Hire in Armenia

EOR in Armenia

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in Armenia, an employer of record may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Armenia ―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity.

Learn about the hiring, employment, payroll and benefits requirements for workers in Armenia and how our employer of record service, EOR, and local HR experts can help you manage your international employment needs.

Hiring in Armenia

The Labor Code is administered by the Ministry of Labor and Social Affairs in Armenia.

Employment contracts in Armenia

As you look to hire employees in Armenia, here are some standard regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.

Working hours

Normal working time is eight hours in one day and 40 hours in one week.

Overtime work should not exceed four hours during two consecutive working days and 120 hours per year. Employees should not work more than 48 hours a week and 12 hours a day, including normal working time and overtime.

Sunday is the general day of rest; for five-day work weeks, Saturday and Sunday are the rest days. Any work done between 10 p.m. and 6 a.m. is night work.

Compensation

As you consider the appropriate salary to offer new employees, keep in mind:

• Effective January 1, 2015, to December 31, 2019, Armenia’s monthly minimum wage is 55,000 AMD.
• Overtime pay is equal to 150% of normal remuneration.
• Employers are required to give employees holidays as non-working days with full pay.
• Employees working on holidays are entitled to double their normal remuneration or another day of rest with pay.

As your employer of record in Armenia, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.

Bonuses

Armenia does not mandate employers to provide bonus payments to employees.

Termination and severance

Employers and employees are required to give ten days’ notice before the termination of an employment contract. Generally, employers must pay employees a severance payment equal to two weeks of normal salary. This can be increased through collective bargaining agreements.

Employee benefits and paid leave in Armenia

When negotiating terms of an employment contract with a candidate in Armenia, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Maternity leave

Employers must give pregnant employees paid maternity leave of at least 140 days (70 days before the birth of the child and 70 days after the birth) at full remuneration. In cases of complicated delivery, employers must give pregnant employees 155 days of paid leave (70 days before the birth and 85 days after) and 180 days of paid leave in the event of the birth of more than one child at one time (70 days before the birth and 110 days after). Employers cannot terminate an employee while the employee is on maternity leave.

Vacation

There are three types of paid annual leave in Armenia. The minimum paid annual leave, which all workers qualify for, is equal to 28 days. Employers may have to give some employees extended or additional paid annual leave, which can range from 35 to 48 days per year. Employees working in hazardous or stressful conditions can qualify for extended or additional leave.

Employers cannot give financial compensation in the place of vacation unless an employee is being terminated.

Holidays

The holidays specified by the Armenian labor code are:

• New Year’s Day (three days)
• Christmas
• Day of the Army
• Women’s Day
• Commemoration day of Genocide Victims
• Labor Day
• Victory Over Fascism Day
• Day of Victory and Peace
• Holiday of the Republic
• Day of the Constitution
• Day of Independence

Health coverage

Pension insurance has been in effect since January 2014 and covers individual accounts. All employees born after Jan. 1, 1974, are required to participate.

Employer contributions for pension financing equal 10% of an employee’s monthly salary.

All resident and nonresident workers born after Jan. 1, 1974, are covered by the mandatory social insurance contribution system. Employers are required to make mandatory contributions to the social insurance fund for each employee. Employers also must withhold employee contributions for the social insurance fund.

Additional benefits

In addition to healthcare benefits, employees in Armenia are entitled to pension, which is funded by government tax revenues, as well as workers compensation, which is covered through mandated employer insurance.

Employer social costs will cover a large portion of employee benefits in Armenia, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance if needed.

Updated: August 23, 2024

Employee onboarding with an employer of record in Armenia

We write and validate all local employment contracts, streamlining the onboarding process for you and your Armenian employees—all you have to do is provide relevant information and review and approve the employment agreement. As your employer of record in Armenia, we will:

• Schedule a welcome call to discuss HR and employment information for Armenia, as well as answer any questions
• Prepare a customized employment contract in English or other local language
• Share the employment contract and benefits information with the new employee for signature and review
• Gather tax and banking information from the employee to set up payroll
• Provide a local point of contact to the employee to answer any questions regarding their employment, local HR or payroll

The entire onboarding process for the employee is often completed in as little as two weeks.

Partner with Safeguard Global as your Armenia employer of record and PEO

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution, to expand and hire in 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in Armenia. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider we support payroll administration—including payments, filings and other calculations— all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today.

Disclaimer

The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.