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Mercans offers complete payroll, PEO and HR services in Armenia

In recent years, Armenia's economy has grown significantly and it has several larger trading partners nearby, a wealth of natural resources, and excellent opportunities for business growth. At Mercans, we help organizations of all kinds to expand abroad, including into Armenia. In a matter of days, rather than weeks or months, your organization can start your Armenian expansion with our Armenia PEO, employer of record, and payroll services, even if you do not already have a presence in the country.


Doing Business in Armenia

The pace of economic reforms, Armenia's safety, freedom, and openness appeal to foreign investors and business owners. As a first step to entering the Armenian market, many prefer to visit Armenia in person and register a business. If you do not speak Armenian or plan to run your business remotely, a knowledgeable payroll firm like ours can help you minimize risks by ensuring compliance with tax, labor, immigration, and other regulations, avoiding pitfalls, and taking advantage of tax benefits and other government assistance programs.

Entity Registration and Incorporation Requirements

In Armenia, starting a business or expanding an existing one is straightforward. From a variety of entity types, choose the one that suits your business needs.


Banking Hours: 9.00 am to 6:00 pm from Monday to Friday

Working Week

The standard working week is from Monday to Friday from 8:00 am - 9:00 pm

Labor Law

There are a number of legal acts in the social and economic field that create the framework for the work laws in the Republic of Armenia, including the Constitution and the Labour Code. The right to freedom of profession, as well as the right to working conditions that comply with safety and hygiene requirements, is guaranteed (Art. 32 of the CAR). The use of forced labor is prohibited. Workers retain their right to social security regardless of their age, disability, loss of main income earner, unemployment or other conditions prescribed by law (Article 37 of the CAR). Article 39 of the CAR states that "all citizens are entitled to free superior and professional education in State superior and other professional educational institutions.". In cases and in conformity with the procedure prescribed by law, the State provides financial and other assistance to institutions and their students conducting superior and other professional education programs”.

Main Industries

Brandy, mining, diamond processing, metal-cutting machine tools, forging and pressing machines, electric motors

GDP Growth


Dates & Numbers


Official State Name

Republic of Armenia


2.96 Million



Major Languages



Armenian Dram

Internet Domain


International Dialing Code


Yerevan, AM
11:29 am, June 14, 2024
temperature icon 27°C
few clouds
Humidity 24 %
Wind Gust: 0 mph


The payroll cycle in Armenia is generally a monthly cycle, with wages paid on the 15th day of the following month. There is no mandatory or customary 13th salary payment in Armenia. In Armenia, overtime is calculated at 150% of the standard hourly rate for each hour of overtime worked. Should an employee work nights, these are calculated at 130% of the standard hourly rate for each hour of night work.

It is acceptable to provide employees with online payslips


Employees receive paid annual leave of 20 days

Annual Leave

Employees receive paid sick leave of 5 days

Sick Leave

20 weeks of paid maternity leave and 5 days of unpaid paternity leave

Maternity & Paternity Leave

14 days

Employee Termination

There are no provisions mandated by law regarding the 13th month salary

13th month salary

406 AMD per hour

Minimum Wage

Overtime payment of 1.5x the employee's ordinary rate of pay for the first hour of overtime


Employees paid monthly are entitled to 10x’ pay for each year of employment for the first year of service and increases with higher years of service

Severance Pay


Tax and Social Security

Armenian-resident entities, as well as non-resident entities doing business through a PE, are liable for CIT. For tax residents, worldwide income is taxable; for non-residents, Armenian-source income is taxable. CIT is charged at a standard rate of 18%. For CIT, taxable income serves as the taxable base.


The majority of income of an individual is taxable. Armenia generally does not tax capital gains on the sale of securities, real estate or other assets. Insurance and pension payment are also exempt from taxes.


Corporate Income Tax


Personal Income Tax


Sales Tax



Social Security

Individuals can access income support, superannuation services, student allowances and loans as well as public housing assistance.


Social Security Rate


Social Security Rate for Employers


Social Security Rate for Employees


Employment Law

In Armenia, it is mandatory for employers to sign an individual employment contract or to issue an individual legal act upon accepting employment; hence, employment contracts are commonly used. In addition to individual employment contracts, collective employment contracts may be signed with representatives of company employees. On January 1, 2020, the minimum monthly wage in Armenia was set at AMD 68,000, following a 23.6% increase from the previous year.

Employment Agreement

The Republic of Armenia (RA Labor Code) states that the Standard Working hours should not exceed 40 hours per week, and a daily work period must not exceed eight working hours. The maximum working time (including overtime) should not exceed 12 hours per day (48 hours per week), including breaks. Accurate records of wages, time and leave must be maintained by the employer at all times.

Working condition

Employees must be provided with paid rest and unpaid meal breaks. The number of breaks and duration will depend on the hours worked.


The minimum annual paid leave in Armenia is 28 days (Article 159 of the LC). Extended and additional paid annual leave of up to 35 days (or up to 48 days in some exceptional cases) are granted to workers performing work in hazardous conditions, or in conditions of intellectual or emotional stress.

Employment termination

The employment relationship may end in a few ways including resignation, retirement, dismissal or redundancy. Dismissal may be done for misconduct or redundancy but through a valid and proper process.


14 days

Minimum notice period for terminating an employee



Total number of public holidays



Working hours per week


3 days

Total number of days for Compassionate & Bereavement Leave



As a general rule, a holder of an Armenian visa is not entitled to work in Armenia unless s/he also holds a work permit. Highly skilled foreign specialists, business owners, executives and certain other categories of workers are exempt from work permit requirements. The work permit has to be applied for on behalf of the legal employer and is issued for the duration of the employment contract but not longer than one year.


Residency permits

Visas will vary depending on whether the individual is intending to work for up to three months or over three months, the country of origin and there are also specific visas for those aged 18 to 35.

Work Permit Validity

1 year

Required Documents

An application form

The employee’s passport

A diploma showing education or qualification for the job

Two photos

Proof of payment of the government’s fees

Compliant, reliable, error-free and touchless payroll in Armenia

Build the best team and hire top talent compliantly in Armenia. Get in touch with Armenia payroll outsourcing & PEO specialists for a free consultation!

This document was prepared for informational purposes only. As local laws & regulations keeps on changing. Please consult your tax & legal advisors as well.
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