Payroll and HR
Administration in Armenia

Armenia – Payroll and HR administration services

Global Expansion Plus provides payroll and HR administration services in Armenia. Use our solutions to take care of your people in Armenia. We make sure that your people are being taken care of, and your entity is safe from violating local legislation. The Labor Code governs the Armenian labor relationship.

Hiring and onboarding employees in Armenia

If you are hiring a foreign employee, you need to consider obtaining the work permit first. Please see below. Once you agreed on the job offer with your future employee, you need to start the onboarding process.

Onboarding Process

The information that needs to be included in the labor legislation is stipulated in the labor code of Armenia. Armenian labor legislation defined several types of employment agreements.
The data noted in the employment contract are listed in the labor legislation of the Republic of Armenia. According to labor law, there are several types of employment contracts. Employment contracts can be for an indefinite time or a fixed-term.
A fixed-term contract is signed for the following reasons:
  • The service provided for the employer is made for personal matters;
  • Work is done from the home office;
  • For seasonal work employees;
  • Temporary projects are done within two months.
Fixed-term contract is prohibited unless one of the reasons mentioned above.

Probation Period

The trial period is set at three months. Employees under 18 years old can not be on a probation period. An employee on a probation period can be dismissed with a three-day notice.

Health and Safety

The employer must ensure for the workforce such working conditions that are comfortable and safe. Requirements for work conditions are contained in the “Labor Protection Law” of Armenia. Following the requirements mitigates the risks of damage to the health and safety of the people.

Work permits and Visas in Armenia

Visa Types

There are different types of visas to the Republic of Armenia:
  • Visa Type (Visitor)- This Visa is issued to the tourist, people visiting relatives that live in Armenia. Visa is used to entring medical and recreational purposes. This Visa can be issued with single or multiple entries. Visa is given for a period of one year.
  • Visa Type (Official)- This Visa is issued for an official visit to the county. Multiply Visa is issued for three years, while the single entry visa is given for one year.
  • Visa Type (Diplomatic)- This Visa is issued for the diplomatic representative of foreign countries. The period of Visa is 120 days for a single entry visa.
  • Visa Type (Transit) – This Visa is provided for the three days' stay in Armenia and used for transit through Armenian territory.
The ministry of foreign affairs of the Armenian Republic issued and prolonged visas. Visas are issued electronically. The maximum period of visas is 120 days, with the option to be extended to an additional 60 days.

Work Permit

Companies that want to employ foreigners need to obtain a work permit. So some categories of workers the work permit are not required. Only the official employer can apply for the work permit. It should be noted that before applying for the work permit, a review of candidates on the Armenian labor market should be taken. Only after interviews with responders to the job announcement, the application to the work permit for a foreign specialist can be submitted.
The application is submitted to the Ministry of Labor and Social Affairs (MLSA) in the prescribed form on behalf of a foreign or Armenian employer.
MLSA searches for candidates for the declared position on the Armenian labor market. When such candidates are found, MSLA sends the candidates for an interview. The employer has the right to reject the candidates. If candidates are not found, MSLA accepts application for a work permit for a specified foreign citizen.
A work permit in Armenia is issued for one year. It can be renewed at the request of the employer. It is important to apply for the reissue of the work permit 60 days before the end of the term.
The list of documents required for submission to the MLSA:
  • application form;
  • two photographs of an employee (size - 35x45 mm);
  • valid passport of a foreigner;
  • documents proofing educational records;
  • receipt confirming payment of the application fee.
Within approximately 20 days after the submission of a full package of documents, the employer receives permission to work in Armenia for a foreign employee. Only the passport is returned to the Ministry of Labor and Social Affairs.

Working hours and leaves in Armenia

Working hours and overtime

Standard working hours are 40 hours per week maximum of eight per day. The total workweek cannot exceed 48 hours per week and 12 hours per day.

Vacation leave

An employee is entitled to annual leave of 20 days. Annual vacation leave shall be provided the current year, if the vacation days were not used, they are accumulated and paid at the contract termination.

Sick leave

Sick leave is provided to employees that temporarily unable to perform their duties. The maximum term for the sick leave is 90 days. After 90 days employee that does not restore the ability to work, disability may be granted to the ill person. Sick leave is paid at 80% of the average salary by the state budget.

Maternity and paternity leave

Maternity leave is paid to a mother starting from the period of pregnancy and end after the child’s delivery. The total compensated days are equal to 140 days, and the maternity leave is calculated and paid at one installment.

Holidays in Armenia 2020

  • 01- 04 January 2020 - New Year's Holiday
  • 05 - 06 January 2020 - Christmas
  • 28 January 2020 - National Army Day
  • 08 March 2020 - Women's Day
  • 13 April 2020 - Easter Monday
  • 24 April 2020 - Genocide Memorial Day
  • 01 May 2020 - Labor Day
  • 09 May 2020 - Victory Day
  • 28 May 2020 - Day of First Republic
  • 05 June 2020 - Constitution Day
  • 14 September 2020 - Exaltation of the Holy Cross
  • 21 September 2020 - Armenian Independence Day
  • 31 December 2020 - New Years Eve

Remuneration & Benefits in Armenia

The minimal wage is rising almost every year. On 1 January 2020, the minimal salary equals to ADM 68 thousand (USD 140).

Employee termination and severance in Armenia

An employment contract is terminated:
  • by agreement of the parties;
  • upon expiration of the contract;
  • by a decision of the employee;
  • by a decision of the employer;
  • in other cases, provided for by labor legislation;
The standard notification period is two months, The severance payment is equal to one monthly salary.

Payroll related taxes in Armenia

Employee taxes

Employees are paying Personal Income Tax, the rate depends on the amount of the salary:
  • 23% - Up to AMD 150,000
  • 28% of the amount over AMD 150,000 - From AMD 150,001 up to AMD 2,000,000
  • 36% of the amount over 2,000,001 - Over AMD 2,000,001
Social security paid by employees is 2,5% of the gross salary. The social security contribution is capped at AMD 12,500.

Employer taxes

Employers do not pay employment taxes at the moment. Exceptions are government agencies and companies.
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