What do you need to know to hire in Armenia?
Armenia charges employers zero social security on payroll. Income tax is a flat 20% on all earnings, with no personal allowance. Annual leave is 20 days and there are 14 public holidays. Each guide below takes one layer.
· Armenia guide
How does Teamed handle Armenian hiring for you?
Teamed becomes your legal employer of record in Armenia for from $599 per employee per month, with zero FX mark-up in any currency.
Payroll, contracts, and the full Armenian employment law stack run on one platform.
Real HR and legal experts manage every Armenian hire, from the first offer letter to the final payslip. An actual person, not a chatbot or a pooled queue, handles your Armenian team alongside EOR, contractor onboarding, and entity payroll on one platform. There is no setup fee and no exit fee. Employer cost passes through at cost, itemised on every invoice.
A contractor in Armenia who converts to payroll keeps their record, and that same employee can graduate from EOR to your own Armenian entity without re-onboarding. Run the Crossover Calculator to see the month the model flips. EOR is the right model for a first Armenian hire, until it isn't.
- Armenian employers pay zero social security. Unlike almost every other country in the Teamed network, Armenia puts the entire pension contribution on the employee. The employer payroll burden is income tax withholding only. That makes Armenia one of the lowest-cost employer markets in the region.
- Income tax in Armenia is a flat 20% on all earnings from the first AMD. There is no personal allowance and no zero-rate band. Most EOR guides show a progressive scale that does not apply. The tax and payroll guide covers the full withholding mechanics.
- Notice in Armenia scales by tenure across four bands, up to 60 days. Severance on redundancy is one month of average salary, flat, regardless of service length. The banded unsuitability severance is separate. The termination guide explains each route.
Hiring in Armenia is low cost by regional standards. The employer pays no social security. Income tax is a flat 20% withheld from the employee, filed monthly by the 20th of the following month.
The minimum monthly wage is AMD 75,000/month. Annual leave is 20 days plus 14 public holidays, counted separately.
Teamed runs Armenian payroll, contracts, and compliance through an EOR entity holding the required local registrations.
This page is the map. Each guide below is the detail.
Zero FX. No setup fees. 48-hour onboarding. The price your finance team can forecast against without an asterisk.
How much does it cost to hire an employee in Armenia in 2026?
Armenia has no employer social security. Your cost above gross salary is the Teamed fee and any benefits you agree.
Income tax is withheld from the employee at a flat 20%. That is the employer's only mandatory deduction.
Most countries add 15 to 30 percent of gross salary in employer-side taxes. Armenia adds zero in mandatory social charges. The employer withholds income tax at 20% and remits it by the 20 days of the following month. No further contribution is required from the employer payroll budget.
Teamed's Armenia price is a starting rate, with zero FX in any currency pairing. No setup fees. No exit fees. Salaries, taxes, and benefits passed through at cost on every invoice.
The full breakdown, including the minimum wage floor and any benefit benchmarks, is in the cost guide.
Do you need an Armenian entity to hire employees in Armenia?
No. An Employer of Record runs Armenian payroll and contracts from day one.
Your own Armenian entity becomes cheaper than EOR somewhere around 5 to 8 employees, depending on salary.
Forming a company in Armenia requires registration with the State Register of Legal Entities, plus local accounting and annual filings once it is live. An Employer of Record is faster and cheaper at low headcount. Teamed runs Armenian payroll, contracts, and day-one compliance from the moment you sign.
Because employer social charges are zero, the crossover calculation in Armenia is simpler than in most countries. It depends mainly on your accounting overhead versus the Teamed fee at your headcount. The EOR vs entity guide runs those numbers.
Most EOR providers will not tell you when you have crossed it. We do, and we help you move. You progress from contractor to EOR to your own entity on one platform under Teamed's Graduation Model, with tenure preserved.
What are the key employment law rules in Armenia in 2026?
The minimum monthly wage is AMD 75,000/month from 1 January 2026.
Probation lasts up to 3 months, or 6 months for managerial and specialist roles. Either side can exit on 3 days notice.
Armenia's Labour Code sets a standard working week of 40 hours. Payroll is monthly, with income tax withheld and filed by the 20th of the following month. The minimum wage of AMD 75,000/month has been stable since 2024. An increase to AMD 85,000 was debated in parliament in 2021 but has not been enacted as of June 2026.
Day-one unfair dismissal protection applies from the first day of employment. There is no qualifying service period before the core rights attach. Employees have 4 weeks from dismissal to file a legal claim. The hiring guide covers the contract requirements and day-one obligations in detail.
What benefits must you provide Armenian employees in 2026?
The statutory floor is 20 days of paid annual leave plus 14 public holidays, counted separately.
Maternity leave runs for 140 days at full pay. Paternity leave is 5 days.
Statutory annual leave is 20 days for a five-day week, not including public holidays. Armenia has 14 public holidays, which are additional to the leave entitlement. Sick pay is covered by the employer for the first 5 days, at 80% of average salary. After that, the state social insurance fund takes over.
Maternity leave is 140 days at 100 percent of average pay. Paternity leave is 5 days. Either parent may then take up to 36 months of job-protected unpaid parental leave under the Labour Code. The benefits guide covers each entitlement and the employer obligations.
What are payroll taxes in Armenia in 2026?
Employers pay no social security in Armenia. There is no mandatory employer contribution to the pension system.
The employee pays 5% pension contribution on earnings up to AMD 500,000 per month. Income tax is 20% flat, withheld by the employer.
Armenia operates a fully funded pension system. The employee contributes 5% of gross earnings up to AMD 500,000 per month. Above that threshold a different formula applies, capped at AMD 1,125,000. The employer makes no matching contribution. Income tax is a flat 20% on all employment income from the first AMD, with no personal allowance or zero-rate band.
Payroll filings and all withheld taxes are due to the State Revenue Committee by the 20 days of the following month. Teamed handles all withholding, filing, and remittance. The tax and payroll guide sets out the full mechanics.
How do you terminate an employee in Armenia?
Armenian statutory notice scales with tenure. It starts at 14 days for service under one year.
Notice rises through 35 days for one to five years, and reaches a maximum of 60 days for 15 years or more.
Notice under Labour Code Article 113 must be given in writing. For service under one year, notice is 14 days. For one to five years it is 35 days. For redundancy or liquidation, the minimum is two months (60 days) regardless of tenure.
On redundancy or liquidation, the employer also owes one month of average salary as severance. Unsuitability severance scales with service length. For service under one year it is 10 days of average salary. For one to five years it is 1 month of average salary. The bands for longer service are expressed in working days under the Labour Code and are described in the termination guide. If you dismiss 10 or more employees within 60 days, you must notify the State Employment Service 60 days in advance. The termination guide covers each route in full.
What should you know before hiring in Armenia?
Two things catch US buyers out. The first is that income tax applies from the first AMD with no allowance.
The second is that employee pension is a mandatory deduction even though the employer pays nothing. Employees see it on every payslip.
The flat tax surprises buyers expecting a progressive scale. Armenia's 20% rate applies from the very first AMD of employment income. There is no personal allowance, no zero-rate band, and no higher rate. The tax code is simple, but gross-to-net calculations differ from every Western model the buyer is used to. Brief finance teams before the first payslip runs.
The employee pension deduction is mandatory but employer-free. Employees contribute 5% of gross earnings up to AMD 500,000 per month. The employer withholds this alongside income tax. The employer contributes nothing. This is the opposite of the UK, Germany, and most other Teamed markets. The hiring guide and the tax guide both cover how Teamed handles this on every payslip.
Frequently asked questions
How much does it cost to hire an employee in Armenia?
Armenia has no employer social security. Your cost above gross salary is the Teamed fee, plus any agreed benefits. The employer withholds income tax at a flat 20% and the employee pension contribution of 5% on earnings up to AMD 500,000 per month. Teamed's Armenia fee is one flat number per employee per month, with zero FX mark-up in any currency pairing. The cost breakdown guide has worked examples.
Can a US company hire in Armenia without an entity?
Yes. An Employer of Record like Teamed runs Armenian payroll, contracts, and compliance through its own registered entity. You direct the work. Teamed becomes the legal employer of record. Setup takes 48 hours once terms are confirmed. Forming your own Armenian entity takes longer and requires local registration with the State Register of Legal Entities.
What is the income tax rate in Armenia in 2026?
Armenia uses a flat income tax of 20% on all employment income. There is no personal allowance and no zero-rate band. The rate applies from the first AMD of earnings. The employer withholds it monthly and files by the 20 days of the following month. The tax and payroll guide covers the full mechanics.
What are Armenian statutory notice periods?
Notice scales with service under Labour Code Article 113. For service under one year, the employer must give 14 days notice. For one to five years it is 35 days. The maximum is 60 days for redundancy or liquidation, regardless of tenure. Employees must give 30 days notice to resign. During probation, either side can exit on 3 days notice.
What is the minimum annual leave for an Armenian employee?
Statutory minimum paid annual leave is 20 days for a standard five-day week. Armenia counts annual leave and public holidays separately. There are 14 public holidays in 2026. The leave entitlement and the public holidays are both on top of each other. Employers can grant more leave by contract.
What are the mass dismissal rules in Armenia?
If you dismiss 10 or more employees within a 60 days window, the mass dismissal rules apply. You must notify the State Employment Service at least 60 days before the first dismissal takes effect. The termination guide sets out the full procedure.
Armenia is the only major Teamed market where the employer pays zero social security. The flat income tax and the fully employer-free pension system make the payroll maths straightforward. The thing that trips people up is that the employee pension deduction still appears on every payslip, even though the employer pays nothing into it. Buyers read the deduction and assume a match that does not exist.
Armenia is one of the lowest-cost employer markets in the Teamed network. Zero employer social security. A flat 20% income tax. No hidden add-ons.
The complexity is in the detail: notice bands, banded severance, a pension deduction that falls entirely on the employee.
Read the right Armenia guide before the first hire, not after the first payslip question.
