Quick facts

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Armenia is located in the South Caucasus, bordered by Georgia from the north, Iran – from the south, Azerbaijan – from the north-east and the south-west, Turkey – from the west.The Republic of Armenia occupies a territory of 29 800 sq. km, lying at an average altitude of 1800 m above sea level. The capital is Yerevan. According to the general census of 2019, the population of Armenia is 3 million, 1.1 million of which is residented in Yerevan.

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Employment Contracts

Employment contracts in Armenia can be established for:

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1. Indefinite periods: When no end date is specified.
2. Fixed periods: If a term is specified in the contract.

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Probation Period

The probation period in Armenia is generally limited to three months, but in some cases, the law allows it to extend to six months.

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Working Hours

The standard working week is 40 hours, with a maximum of 8 hours per day. Exceptions may apply based on legislation or agreements, with a maximum of 12 hours per day (including breaks) and 48 hours per week, including overtime. Special categories of workers (e.g., healthcare, guardianship, energy services) can work up to 24 hours per day, but the weekly total cannot exceed 48 hours.

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Vacation Days

Employees are entitled to a minimum of 20 working days of annual leave for a five-day workweek or 24 working days for a six-day workweek. Leave can be split into parts if agreed upon, with at least one part consisting of 10 working days (for a five-day week) or 12 working days (for a six-day week). Additional leave may be granted to those working under harmful conditions, with irregular schedules, or in specific jobs.

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Sick Leave

Employees are entitled to a sickness benefit for the duration of their temporary disability, starting from the first day of absence. The employer covers the first five days of sick leave, while the state covers the remainder. The sick leave compensation is calculated at 80% of the employee's average salary.

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Wages and Salary Payment

All wages must be paid in Armenian dram (AMD). The minimum wage is 68,000 AMD per month. Employees must receive their pay at least once a month, no later than the 15th of the following month. Work on rest days must be compensated at double the regular wage.

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Public Holidays

Armenia recognizes the following public holidays:

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1. December 31 - January 2: New Year.
2. January 6: Christmas.
3. January 28: Day of the Army.
4. March 8: Women’s Day.
5. April 24: Genocide Remembrance Day.
6. May 1: Labor Day.
7. May 9: Victory and Peace Day.
8. May 28: Republic Day.
9. July 5: Constitution Day.
10. September 21: Independence Day.

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Employer Taxes

Employers in Armenia are not subject to specific employment-related taxes.

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Employee Taxes

Income tax: 22%.

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Military Personnel Insurance Fund contributions:

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1. Less than 100,000 AMD: 1,500 AMD.
2. 100,001 - 200,000 AMD: 3,000 AMD.
3. 200,001 - 500,000 AMD: 5,500 AMD.
4. 500,001 - 1,000,000 AMD: 8,500 AMD.
5. Over 1,000,000 AMD: 15,000 AMD.

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Social Tax (for those born after 1974):

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1. Salary under 500,000 AMD: 3.5%.
2. Salary between 500,001 - 1,020,000 AMD: 10% minus 32,500 AMD.
3. Salary above 1,020,001 AMD: 69,500 AMD flat.

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Notice Period

For company liquidation, the employer must provide two months' notice. For fixed-term contracts, the notice period is 10 days. For collective dismissals, employees must notify the state employment service and union three months in advance. Individual notice periods vary:

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• 5 days after 1 year of service.
• 6 days after 5 years.
• 7 days after 10 years.

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Termination and Severance Pay

Employment contracts may be terminated by:

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1. Agreement of both parties.
2. Contract expiration.
3. Employee resignation.
4. Employer decision.
5. Other legal grounds.

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In case of company liquidation or downsizing, employees are entitled to severance pay equivalent to their average monthly wage. Specific circumstances (e.g., retirement or military conscription) may warrant severance pay equal to a two-week wage.