Armenia, the country of Transcaucasia, lies just south of the great mountain range of the Caucasus and is at the front of the northwestern extremity of Asia. To the north and east, Armenia is bounded by Georgia and Azerbaijan, while its neighbors to the southeast and west are Iran and Turkey respectively. Armenia is a mountainous country characterized by a great variety of scenery and geologic instability. The average elevation is 5,900 feet (1,800 meters) above sea level. The main contributors to the economy are mining, information technology, and agriculture.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Armenia.
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Capital :
Yerevan
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Currency :
Armenian Dram (AMD,֏)
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Languages spoken :
Armenian
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Population :
2.96 million (2021 est.)
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Minimum wage 2023 :
AMD 75,000 per month
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Cost of Living index :
$$ (109 of 139 countries)
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Payroll Frequency :
Monthly
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VAT - standard rate :
20%
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GDP - real growth rate :
5.7% (2021 est.)
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The holidays mentioned below are valid for the year 2023.
The approximate time for sharing the contract with an employee in Armenia is 7 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.
NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.
The standard working week in Armenia is 40 hours, composed of five eight-hour days.
The maximum duration of working time, including overtime work, may not exceed 12 hours a day (including the break for rest and meals), and 48 hours per week. Overtime work, upon request of the employer, should not exceed four hours during two successive days, and 180 hours per year.
For each hour of overtime work, in addition to the hourly rate, an additional payment should be made, not less than 50% of the hourly rate. If overtime is performed during the night, the rate is not less than 30% of the hourly rate.
The duration of the probation period should not be more than three months, except for certain cases that are established in the labor legislation that can set the maximum time period of six months.
If the employee is not suitable for work, suffers long-term incapacity to work, or the employee attains the pensionable age, the employer may terminate an indefinite employment contract by giving a notice period based on the following guidelines.
| Employment Duration | Notice Period |
| Up to 1 year | 14 days |
| 1-5 years | 35 days |
| 5-10 years | 42 days |
| 10-15 years | 49 days |
| More than 15 years | 60 days |
The duration of the minimum annual leave, in the case of the five-day working week, is 20 working days, and in the case of the six-day working week, is 24 working days.
Employees working in special working conditions on a five day working week should get 25 days of annual leave whilst those on a six day working week get 30 days.
For non-work-related absences due to sickness, employers in Armenia are required to retain the employee’s position for a period of up to 120 continuous days (or 140 total in a year), and employees can receive full pay and benefits during their absence from the employer.
A salaried employee is provided with a sickness benefit for the working days of the period of temporary disability certified by the temporary disability certificate, starting from the second working day until the establishment of the disability group.
Leave for taking care of a child under the age of three is granted upon the request of the mother (step-mother), father (step-father, or the guardian who is taking care of the child. The leave may be taken as a single period or be used in parts. Employees entitled to such leave may take it out of turn.
Employed women are granted pregnancy and maternity leave according to the following guidelines:
| Individual Circumstances | Pregnancy and Maternity Leave Duration |
| Ordinary pregnancies | 140 days (70 days for pregnancy leave, 70 days for maternity leave) |
| Hard delivery cases | 155 days (70 days for pregnancy leave, 85 days for maternity leave) |
| Simultaneous delivery of more than one child. | 80 days (70 days for pregnancy leave, 110 days for maternity leave) |
A paid leave of five working days is provided within 30 days after the birth of the child to the father of the newborn, at the expense of the employer.
An employee having adopted a newborn or appointed a guardian of a newborn (or had a child through a surrogate) should be granted a leave for a period from the day of adoption or of being appointed guardian up to when the infant attains an age of 70 days (in case of adoption or being appointed a guardian of two or more newborns — up to when the newborns reach 110 days).
Employees studying at general education, secondary vocational, or higher education institutions should be granted a study leave upon the motion of the educational institution:
Upon the employee’s request, the unpaid leave is granted to:
The Armenian Social Security System covers the following:
The employer does not pay any contributions towards social security but employers are obliged to withhold the amount of social payment, as well as, submit monthly personalized reports to the tax authorities on calculated income, amounts of tax and social payments withheld for employees.
Healthcare in Armenia is generally state-funded, so employers are not expected to provide private medical insurance. There is a proposal for universal health insurance coverage that may attract up to 6% of the employee’s gross wage but it has little support from the citizens.
Employers pay a periodic benefit in accordance with their civil liability. A compulsory system of rules and regulations has been put in place by the state in order to determine entitlement to and the amount of this periodic benefit. It covers damage suffered as a result of injuries, occupational diseases and other health impairments suffered while carrying out employment duties.
No statutory benefits are provided. In 2015, unemployment benefits were discontinued and replaced by employment-promotion measures including cash assistance to persons who are uncompetitive in the labor market.
Employers do not contribute to the Pension Fund since 2013. Employee contributions provide for old-age benefits with a basic pension and a bonus pension, disability pension, and survivors’ pension and benefits.
Government and employee contributions provide for a lump sum birth grant, childcare benefits, and family allowances.
The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.
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