Hiring in Armenia

You can hire in Armenia through your own Armenian entity, through an employer of record, or by engaging contractors. You pay no payroll tax on top of salary, so employer contributions are 0%.

The Tax Code's closed list of state taxes has no payroll tax, so your cost is the gross salary. The employee bears 20% flat income tax plus pension fee, health premium and stamp duty, which you withhold as tax agent.

Pay is anchored by a minimum wage of AMD 75,000 / month and an average salary of AMD 303,140 / month.

Three ways to hire in Armenia

You can hire through your own entity, which makes you the employer; through an employer of record, which makes the provider the employer; or through a contractor, who is not employed at all.

Route	Legal employer	What you pay on top of salary	How you end it
Your own entity	Your Armenian company	0%	14 days – 2 months by ground; 30 days when the employee resigns
Employer of record	The provider	0% statutory; the provider's fee is on the EOR page	Through the provider as legal employer; the EOR page covers the terms
Contractor	None: the contractor is self-employed under a civil-law contract	Nothing: you withhold no payroll taxes	Under the contract; labour law applies only if a court establishes an employment relationship

Setting up an entity is quick: registration takes 1 to 2 business days, and the step-by-step table below shows what follows.

Without an entity, the permanent-establishment line sits at 183 days, covered in the section on hiring without an entity.

The statutory cost on top of salary is zero on every route. What changes is who is the legal employer and who holds the exposure if the arrangement is challenged.

The Labour Code has no provision on employer-of-record or staff-leasing arrangements. A contractor moves under labour law only when a court finds that the relationship is in fact employment.

The Armenian labour market and what people earn

The average monthly nominal wage in Armenia for 2025 was AMD 303,140 / month, and the cumulative average for January–August 2026 is AMD 312,486. Both are preliminary Armstat figures for organisations with at least one employee.

Salary reference points

Minimum monthly wage	AMD 75,000 / month	Minimum wage law
Average monthly nominal wage, 2025	AMD 303,140 / month	Armstat
Average monthly nominal wage, January–August 2026	AMD 312,486 / month (non-state sector AMD 336,510; state sector AMD 248,578)	Armstat
Information and communication, December 2025	AMD 1,010,668 against AMD 376,743 for the whole economy that month	Armstat

The Information and communication figure covers one month, December 2025, so it can include year-end pay. It averages every employee in the sector, so it is not a developer salary.

No official source publishes pay by role, so there is no developer range to quote.

Registering as an employer in Armenia, step by step

You register the company in 1 to 2 business days; the bank account is the one step with no published timing. After that you register each employee before work starts, and payroll follows a monthly calendar.

Step	What happens	Takes
Choose and register the entity	A foreign legal-entity founder submits its management body's decision, its name and registration number, with all documents translated into Armenian and notarised. Online registration needs an Armenian ID card and digital signature; foreign citizens register in person	1 business day with individual founders; 2 where a legal entity is among the founders and no standard forms are used
Open a bank account	Company account for salary and tax payments	Not published
Register each employee	File application No. 79 on the State Revenue Committee's electronic reporting platform, free of charge, by the end of the day before work starts. The rule does not cover foreign nationals without residence status	Up to 15 minutes; notice issued immediately
Pay the first salary	In Armenian currency, cash or non-cash	By the 15th of the next month
File the tax and social report	Monthly income tax calculation report, which also covers social fees	By the 20th of the next month
Total	Entity registration, plus the bank account step, which is not published	1 to 2 business days to the entity

Registration is immediate when you use the statutory standard forms of documents, per the company registration guide. The employee registration service covers application No. 79, and the Labour Code sets the salary date.

The order is: company, written contract, employee registration before the first day, then the 15th and the 20th of the following month. If you want no entity at all, the contractor route skips this table.

Hiring and onboarding in Armenia

You need a written employment contract and an individual hiring act before work starts. Armenian law allows a probation period of up to 3 months.

Legal limits on contracts and probation

• Probation: up to 3 months, or up to twelve where other legislation provides for it. Periods of absence do not count towards it. During probation either side ends the contract with three days' written notice, per the Labour Code.
• Written form: work without a written contract or without the individual hiring act is illegal employment, and a court can recognise the employment from the day the person actually started.
• Foreigners who need residence status: the contract is fixed-term, for the period of the work permission or residence right.
• Digital contracts: using the national digital system is voluntary now and mandatory from 1 July 2027, moved from 1 January 2026, according to EY Armenia.
• Paper and uploads: contracts with people working from outside Armenia stay on paper after that date. Existing contracts must be uploaded by 30 June 2028 under laws HO-39-N and HO-40-N.

Hiring someone who is not an Armenian citizen adds permit steps, covered in the next section.

Onboarding checklist

• [ ] Written employment contract signed before work starts.
• [ ] Individual hiring act issued.
• [ ] Employee registered with the tax authority by the end of the day before the first day, using application No. 79 (not required for foreign nationals without residence status).
• [ ] Funded pension enrolment for staff born on or after 1 January 1974, per the Law on Funded Pensions; older staff may join by application.
• [ ] Health premium withheld from every salary of AMD 200,001 and above, following State Revenue Committee guidance.
• [ ] Salary set in Armenian currency and paid by the 15th of the following month.

Hiring a foreigner: permits, residence cards and the 1 November 2026 change

Citizens of Eurasian Economic Union (EAEU) states need no work permit but still apply online to confirm lawful residence.

For other foreigners you need consent of the Ministry of Labour and Social Affairs, which takes up to 15 working days at present. A residence card follows within 30 days after you submit the application.

The state fee for a temporary residence status and card is AMD 105,000 until the fee change described below.

Who	What you need	Time and fee
EAEU citizen	No work permit; online application to confirm lawful residence	Not published
Other foreigner	Ministry of Labour consent through the online work permit system, then a residence card	Consent up to 15 working days; card within 30 days of the application; AMD 105,000 for temporary residence until the change below
Person working remotely from outside Armenia	Paper employment contract, outside the digital system, also after 1 July 2027	Not published

The chart asks first where the person will work, then citizenship. The timings and fee in the table describe the present procedure.

What the amended Law on Foreigners changes

The Law on Foreigners, HO-11-N, is in force from 1 November 2026, and the unified electronic platform for foreigners launches the same day. EY Armenia lists these changes:

• The work permit becomes a permit to stay or reside in Armenia for the purpose of employment.
• The exemption for employees of foreign commercial organisations working through branches or representative offices is abolished.
• The exemption for founders and directors of commercial organisations with 50% or more foreign participation is abolished.
• An annual Government quota on residence statuses applies, and the extension procedure is removed. The quota has not been set.
• The provisions on the work visa and on the permit for employment take effect only after the new electronic entry-visa system starts, so not necessarily on 1 November.
• The new work entry visa is valid for up to 120 days, without extension, once per calendar year.

Start permit work early: EY Armenia warns that employers may face challenges in hiring foreign workers because of the quota and the abolished exemptions.

Residence fees: AMD 150,000 and 250,000 by 1 November 2026 at the latest

Law HO-215-N raises the state duty for examining a residence application to AMD 150,000 for temporary residence and AMD 250,000 for permanent residence, plus AMD 5,950 for issuing the card.

That makes AMD 155,950 and AMD 255,950 in total.

The law takes effect on the tenth day after the migration authority announces the launch of the unified electronic platform, and not later than 1 November 2026.

The fees it replaces are AMD 105,000 for temporary and AMD 140,000 for permanent residence. EY adds that the fee is no longer refunded if the application is declined.

Hiring in Armenia without an entity: where a permanent establishment starts

A foreign company's staff working in Armenia create a permanent establishment once the activity lasts 183 calendar days in a tax year. The Tax Code adds two further triggers and a registration duty.

• 183 days: a non-resident company's employees performing works or services in Armenia create a permanent establishment where the activity lasts at least 183 calendar days in a tax year, across one or more related projects.
• Branch or representative office: the location of a branch or representative office is a permanent establishment from the first day, except a representative office that does only preparatory work.
• Dependent agent: an agent in Armenia authorised to represent the company and act on its behalf creates a permanent establishment for it.
• Registration: a non-resident with a permanent establishment must register with the tax authority as a taxpayer. If it does not, the rules for non-residents without a permanent establishment apply to it.

The employer procedures earlier in this guide assume an Armenian employer. A foreign company with no entity does not file them the same way, and this section covers the tax side only.

Two routes avoid an entity altogether:

• The employer of record page explains the model in which a provider is the legal employer.
• The independent contractors page explains engaging a self-employed person under a civil-law contract.

Minimum wage in Armenia

The statutory minimum wage is AMD 75,000 / month, unchanged since 1 January 2023, when Law HO-501-N of 7 December 2022 took effect.

Monthly rate	AMD 75,000 / month	Minimum wage law
Hourly tariff, 40-hour week	AMD 450	Minimum wage law
Hourly tariff, up to 24 hours a week	AMD 750	Minimum wage law
Hourly tariff, 36-hour week	AMD 500	Minimum wage law
What the minimum excludes	Taxes, social and other mandatory payments, bonuses, additional payments, awards and premiums	Labour Code
What the minimum sets	The ceiling of the pension contribution base: 15 times the minimum, AMD 1,125,000	Law on Funded Pensions; PwC

The hourly figures are legal tariffs for piece-rate and hourly-paid workers, not the monthly wage divided by hours.

The minimum also sets the top of the pension base: the Law on Funded Pensions charges no social fee on income above 15 times the minimum.

PwC puts that threshold at AMD 1,125,000, so any rise in the minimum wage would also lift the ceiling.

Minimum wage history

From 1 July 2013	AMD 45,000	Minimum wage law, 2013
From 1 July 2014	AMD 50,000	Minimum wage law, 2014
From 1 July 2015	AMD 55,000	Minimum wage law, 2015
From 1 January 2020	AMD 68,000	Minimum wage law, 2020
From 1 January 2023	AMD 75,000	Minimum wage law

The chart shows the five rates up to the current AMD 75,000, in force since January 2023.

No increase has been enacted: the law still says AMD 75,000.

On 13 August 2026 the Prime Minister said the government prefers to resolve health insurance rather than raise the minimum wage, as reported by Armenpress.

Bonuses, the 13th salary and non-competes

No 13th salary is mandatory in Armenia. Chambers Employment 2026, in a chapter by Shushan Stepanyan of Concern Dialog, says bonuses are at the employer's discretion and set in the contract or internal acts.

Post-termination non-competes are not explicitly regulated, and no reported court cases address them, so how a court would treat one is unpredictable.

The practical rule: write the clause into the contract, and do not budget on enforcing it.

Taxes and contributions: what the employer pays and what the employee pays

You pay no payroll tax in Armenia: the Tax Code's closed list of state taxes has no such levy, so employer contributions are 0%.

As tax agent you calculate, withhold and remit the employee's income tax, pension fee, health premium and stamp duty.

What is withheld from the employee

Item	Amount	Who bears it	Source
Income tax	20% flat of gross salary	Employee; you calculate, withhold and remit	Tax Code
Funded pension fee	5% of salary up to AMD 500,000; above that 10% of salary minus AMD 25,000. No fee on income above the AMD 1,125,000 base ceiling, so the maximum is AMD 87,500. The state tops the fee up to 10% with up to AMD 25,000. Mandatory for staff born on or after 1 January 1974	Employee; you withhold	Law on Funded Pensions
Health premium	AMD 4,800 for salary AMD 200,001–500,000; AMD 10,800 from AMD 500,001. Not charged on pay up to AMD 200,000 in 2026, nor for employees under 18 or Armenian citizens aged 65 and over	Employee; you withhold	SRC
Stamp duty	AMD 1,000 for salary up to AMD 1,000,000; AMD 15,000 from AMD 1,000,001	Employee; you withhold	SRC
Pension amount during childcare leave	AMD 3,000 a month, from the month after leave starts until the child reaches two	Employer	Law on Funded Pensions
First five sick days	Benefit for the five working days after the unpaid first day	Employer	Hartak
Employer contributions	0%	No one: no such levy exists	Tax Code

Income tax is 20% of the full gross salary. The State Revenue Committee guidance shows pension fee, stamp duty and health premium as separate withholdings, not deductions before tax.

Under the stamp duty law, foreign citizens without residence status do not pay the duty.

What an employee actually costs you

Your cost is the gross salary and nothing more. The table shows what each withholding takes at eight salary levels, for an employee born in 1974 or later. Amounts are monthly, in AMD, 2026 rules.

Gross (AMD / month)	Your cost	Income tax	Pension fee	Stamp duty	Health premium	Employee's net
75,000	75,000	15,000	3,750	1,000	0	55,250
303,140	303,140	60,628	15,157	1,000	4,800	221,555
500,000	500,000	100,000	25,000	1,000	4,800	369,200
500,001	500,001	100,000	25,000	1,000	10,800	363,201
1,000,000	1,000,000	200,000	75,000	1,000	10,800	713,200
1,000,001	1,000,001	200,000	75,000	15,000	10,800	699,201
1,010,668	1,010,668	202,134	76,067	15,000	10,800	706,668
2,000,000	2,000,000	400,000	87,500	15,000	10,800	1,486,700

Components are rounded to whole AMD, so they can differ from the total by 1: in the 1,010,668 row they add to 304,001 against 304,000. Net equals gross minus the total.

The 303,140 and 1,010,668 rows use the average wage and the Information and communication figure from the salary section.

The chart shows the same split at five of those levels: net pay and withholdings add up to the gross, which is your whole cost.

Net pay moves in steps at three thresholds:

• The health premium jumps from AMD 4,800 to AMD 10,800 at AMD 500,001.
• The pension formula changes at AMD 500,000 but stays continuous: both formulas give AMD 25,000 there.
• Stamp duty jumps from AMD 1,000 to AMD 15,000 at AMD 1,000,001.

Net pay therefore falls at two points:

• From AMD 500,000 to AMD 500,001 gross, by about AMD 6,000: from AMD 369,200 to AMD 363,201.
• From AMD 1,000,000 to AMD 1,000,001 gross, by about AMD 14,000: from AMD 713,200 to AMD 699,201.

Where you set the gross decides what the employee takes home, so quote offers as net-to-gross and check the figure against these thresholds.

Salary of AMD 75,000 pays no health premium in 2026, because the premium starts at AMD 200,001. Under phase 2 of universal health insurance, employees earning up to AMD 200,000 gross are covered from 1 January 2027.

On 12 August 2026 Prime Minister Nikol Pashinyan floated a split for that group: the Government might subsidise AMD 4,400 of the AMD 10,800, employees might pay AMD 2,000 and employers the remaining AMD 4,400, Armenpress reported.

That is a proposal, not law. You may pay the premium for staff in full or in part, under Law HO-135-N, in force from 8 May 2026, but no employer obligation exists.

Reduced 10% rate and high-tech support

Income tax on salary is 10% instead of 20% for staff in occupations on the Government's high-technology list who do qualifying research and experimental development and have a positive opinion of the professional commission.

Foreign citizens without residence status are excluded.

Whether a software role qualifies depends on that Government list; none qualifies automatically.

Under Law HO-498-N the new-employee support goes to the business, not to the employee: 60% of the income tax calculated on a new employee's salary, on application, for three years from the hiring month.

Only businesses in listed activities qualify. A new employee is one hired after 31 December 2024 who had not worked for a high-tech employer in the four years before the hiring year.

HO-221-N, in force from 30 May 2026, restricts the support to staff on an employment contract or individual hiring act, so pay under a civil-law contract is outside it.

Branches and representative offices of foreign entities registered in Armenia may apply.

Payroll calendar

Deadline	What	Source
End of the day before work starts (14:00 on the day if work starts on the day of hiring)	Register the new employee with the tax authority	Tax Code
By the 15th of the following month	Pay salary, in Armenian currency	Labour Code
By the 20th of the following month	File the income tax and social calculation report; pay the health premium	Tax Code; SRC
Each day overdue	Fine of 0.075% a day on late tax, for up to 730 days	Tax Code

Working time and overtime

Normal working time in Armenia is up to 40 hours a week and 8 hours a day, under the Labour Code.

Normal working time	Up to 40 hours a week and 8 hours a day	Labour Code
Maximum with overtime	12 hours a day and 48 hours a week	Labour Code
Overtime pay	At least 50% on top of the hourly rate	Labour Code
Night work pay	At least 30% on top of the hourly rate	Labour Code
Overtime limits	Written consent of the employee, up to 180 hours a year and 4 hours over two successive days, outside exceptional cases	Labour Code
Work on rest days and non-working holidays not in the schedule	At least double the hourly or daily rate, or another paid rest day within a month, or the day added to annual leave	Labour Code

Leave, sick pay and parental leave

Minimum annual leave is 20 working days on a five-day week and 24 working days on a six-day week, under the Labour Code.

Sick pay, maternity benefit and childcare support are shared between employer and state.

Type	Entitlement	Who pays
Sick leave	No benefit on the first day; 80% of the calculated average wage from the second day; up to 120 days, 240 for tuberculosis	Employer pays the five working days after the unpaid first day; the State Budget pays the rest
Maternity	140 days (70 + 70); 155 days after a hard delivery; 180 days for multiple births	The employer calculates and pays the benefit for an employed woman
Childcare	Leave to care for a child under three, on request; state allowance AMD 31,600 monthly for a child under two (AMD 63,200 for rural residents on leave); one-off birth benefit AMD 500,000	State pays the allowance and the birth benefit; employer pays AMD 3,000 a month towards the employee's pension during the leave

Your own cost is the first five sick days, the maternity benefit and the AMD 3,000 monthly pension amount while an employee is on childcare leave.

Public holidays

Armenia has 13 non-working days a year, set by the Law on Holidays and Memorial Days.

Date	Holiday
31 December – 2 January and 6 January	New Year and Christmas/Epiphany (four days together)
27 January	Memorial Day of those who fell in defence of the homeland
28 January	Army Day
8 March	International Women's Day
24 April	Armenian Genocide Remembrance Day
1 May	Labour Day
9 May	Victory and Peace Day
28 May	Republic Day
5 July	Constitution Day
21 September	Independence Day

The 27 January holiday is new: Parliament adopted the bill on 20 January 2026 and the President signed it into law. The Government may also declare additional non-working days for events of exceptional importance.

Termination: notice and payments

You may end an open-ended contract only on the closed list of grounds in Article 113 of the Labour Code. Notice runs 14 days – 2 months, depending on the ground and the employee's tenure.

Ground	Notice	Payment
Employee resigns	30 days; 5 days where the employer breaches the contract or the law, or for illness	None stated
Liquidation or redundancy	Two months, in writing	One average monthly salary
Unsuitability or long-term incapacity	14 days up to 1 year of service; 35 days up to 5 years; 42 days for 5–10 years; 49 days for 10–15 years; 60 days over 15 years	10, 25, 30, 35 or 44 times the average daily salary, by the same tenure bands
During probation	3 days, in writing, either side	None stated

The chart shows how the unsuitability notice grows with tenure against the flat 30-day resignation notice.

The one-monthly-salary payment also applies where a predecessor is reinstated, and a contract or written agreement may give a larger payment.

Notice and severance are two separate costs:

Under the Code, severance pay is required on top of notice, not in lieu of it.

— Shushan Stepanyan, author of the Armenia chapter, Concern Dialog (Chambers Employment 2026, Armenia)

Mass dismissal and unlawful dismissal

If you plan to dismiss more than 10% of staff and at least 10 employees within two months, you must notify the employment authority and the employees' representative at least two months before the contracts end.

A court that finds a dismissal unlawful can award, instead of reinstatement, compensation of one to twelve average monthly salaries, on top of pay for forced idleness.

Where the dismissed employee takes a new job while the case runs, Law HO-364-N caps the idleness pay at the last nine months' salary, from 24 November 2024.

Recent changes

Changes that affect you as an employer run from December 2025 salary to 1 July 2027.

• 1 July 2027: digital employment contracts become mandatory (laws HO-39-N and HO-40-N). Contracts with people working from abroad stay on paper, and existing contracts must be uploaded by 30 June 2028.
• 1 January 2027: phase 2 of universal health insurance covers employees earning up to AMD 200,000 gross and individuals working under civil-law contracts. The contractors page covers the contractor side.
• Not later than 1 November 2026: residence fees rise to AMD 150,000 for temporary and AMD 250,000 for permanent residence, under HO-215-N. The date is the tenth day after the platform launch is announced.
• 1 November 2026: the Law on Foreigners (HO-11-N) takes effect, with the quota and the abolished exemptions; the employment-permit and work-visa parts follow once the new e-visa system starts.
• 30 May 2026: the state-support law for high-tech staff (HO-221-N) takes effect and limits support to staff on employment contracts.
• 8 May 2026: employers may pay employees' health premiums in full or in part (HO-135-N).
• 20 January 2026: Parliament adopts the bill that makes 27 January a non-working day.
• 1 January 2026: stamp duty on employees is AMD 1,000 up to AMD 1,000,000 of salary and AMD 15,000 above.
• December 2025 salary: health premium withholding starts under HO-459-N, paid by the 20th of the following month.

Announced, not law:

• An employee health insurance scheme for pay up to AMD 200,000, floated on 12 August 2026 with an AMD 4,400 employer, AMD 2,000 employee and AMD 4,400 state split.

What a mistake costs and who pays

Most mistakes start with an undocumented hire, and the penalty falls on the employer.

Party	Risk	Amount
Employer	Worker not documented in writing, or not registered with the tax authority in time	AMD 250,000 per worker, imposed when a tax inspection finds it
Employer	Late payment of tax, including withheld income tax	0.075% of the unpaid amount for each day overdue, for up to 730 days
Employer	Unlawful dismissal	Instead of reinstatement, compensation of one to twelve average monthly salaries, plus pay for forced idleness
Employer	No written contract or individual hiring act	A court can recognise employment from the day work actually started
Foreign company	Permanent establishment not registered	The rules for non-residents without a permanent establishment apply instead
Company that treats an employee as a contractor	Labour law applies once a court establishes the employment relationship; see independent contractors	Labour-law obligations for the whole relationship

The Tax Code carries the AMD 250,000 penalty and the daily late-payment fine, and the Labour Code carries the dismissal remedies and the rule on work without a written contract.

Questions people actually ask

What is the minimum wage in Armenia per month and per hour?

The minimum wage is AMD 75,000 a month, unchanged since 1 January 2023. Hourly-paid workers have minimum tariffs of AMD 450 on a 40-hour week, AMD 500 on 36 hours and AMD 750 up to 24 hours.

What is the average salary in Armenia?

The average monthly nominal wage was AMD 303,140 for 2025. For January–August 2026 it is AMD 312,486, with AMD 336,510 in the non-state sector and AMD 248,578 in the state sector. Both figures are preliminary.

What are the average IT salaries in Armenia?

Information and communication paid an average of AMD 1,010,668 in December 2025, against AMD 376,743 for the whole economy. It is one month across the whole sector, not a developer salary. No official survey by role exists.

What does an employer pay on top of salary in Armenia?

You pay nothing beyond gross pay: the Tax Code has no employer payroll tax, so employer contributions are 0%. Exceptions: AMD 3,000 a month towards pension during childcare leave, and the five sick days after the first unpaid day.

Can a foreign company hire in Armenia without a local entity?

Yes, through an employer of record or independent contractors. Staff working in Armenia for a foreign company create a permanent establishment once the activity lasts 183 calendar days in a tax year.

Can a US citizen or other foreigner work in Armenia?

Yes. EAEU citizens need no work permit; others need Ministry of Labour consent, up to 15 working days at present, and a residence card. The Law on Foreigners changes the procedure from 1 November 2026.

Is a 13th-month salary mandatory in Armenia?

No. Chambers Employment 2026 states there is no mandatory requirement to provide a 13th salary in Armenia. Bonuses are at the employer's discretion and are set in the contract or internal acts.

How many days of leave and public holidays are there in Armenia?

Annual leave is 20 working days on a five-day week and 24 on a six-day week. There are 13 non-working public holidays, and normal working time is 40 hours a week.

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