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Employer of Record in Armenia

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Table of Content


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Employer of Record in Armenia

Skuad’s EOR solution is an integrated, tech-enriched human resource (HR) platform that can take care of all your HR needs, including recruitment, hiring, onboarding, contracts, payroll, taxes, probation, termination, visas, and work permits. Talk to a Skuad expert and book a demo today to kick-start your expansion plans in Armenia.

Armenia at a Glance

Population: 2,963,900 (2021 estimate)

Currency: Armenian dram (AMD)

Capital city: Yerevan

Languages: Armenian, Assyrian, Greek, Russian, Kurdish, English, and Russian

Gross Domestic Product (GDP): USD 32,893 billion (PPP) (2019)

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Employment in Armenia

Armenian Labor Laws

Labor laws in Armenia are defined by the Labor Code of the Republic of Armenia. The regulations of the legal acts containing norms of the labor law need to be mandatorily adhered to by all employers (citizens or business entities), regardless of their legal form and form of ownership.

Entitlements and Explanations

Public Holidays

  • First Republic Day
  • Independence Day
  • Genocide Remembrance Day
  • New Year's Day
  • Constitution Day
  • International Women's Day
  • Armenian Orthodox Christmas
  • Victory and Peace Day
  • New Year's Eve
  • Good Friday


Employees are qualified to a basic monthly minimum wage, excluding additional payments, bonuses, or incentives. 

The calculation of the minimum hourly rate gets done by dividing the monthly salary by the total hours worked.

  • As per a recent change in the Law on Minimum Monthly wages (1st Jan 2020), the minimum wage is 68,000 AMD in Armenia every month.
  • It is an increase of 23.6% from 55,000 AMD that came into effect in 2015.

Working Hours

Every workweek can be up to forty hours or eight hours per day. Overtime done by an employee is not more than four hours a day, eight hours every week, or 120 hours a year.


Overtime gets calculated as a percentage of the basic wage. All overtime gets mandatorily recorded. 

When an employee works overtime on a national or a public holiday, the pay is twice the standard rate. Otherwise, the employees can also get compensated with time off.

Vacation Leave

The employees get twenty-eight days of paid vacation annually. It is subject to extension for those employees who work in a dangerous environment, in shifts that are not regular, or in any form of unusual arrangement.

Annual leave

Employees can avail themselves of annual leave once they have completed six months of service. These leaves can be availed in the same year of work.

Collective Bargaining agreements and maternity laws allow for annual leave before six(6) months.

Sick Leave

An employee has the privilege to get full benefits in case of sick leave if the absence is less than three months or 120 continuous days or a period of 140 days in the year.

Following injuries related to work or illnesses, employees resume their job after being restored to health. Social security pays for the sick leave taken by the employee. 

Maternity and Paternity Leave

Every female employee is allowed 140 days of paid leave, which begins seventy days before the child's birth. 

In case of complications, the total count of days may rise to 155 days. 

Up to 180 days are granted if there are multiple births. 

In the period of maternity leave, employees receive payment of five times the legal monthly minimum wage.

A baby bonus is provided by the government along with other benefits after the birth of the first two children.

Skuad's EOR solution helps organizations remain compliant with the Armenian employment laws. Contact Skuad today.

Contractors vs. Full-time Employees

Employment Contracts

In Armenia, the employee-employer relationship gets regulated by the following laws:

  • Labour Code
  • Civil Code
  • Law on Minimum Monthly Wage
  • Law on Employment
  • Law on Trade Unions
  • Law on Employers' Union

The employment agreement must be in the Armenian language mentioning the employee's wage or salary, job details, leave details, and other benefits.

Fixed-term contracts should consist of the start and the end date.

Indefinite contracts can get terminated following the statutory notice period (please refer to the Termination section). Employers need to screen employees for details on their previous job before hiring and have their credit scores and criminal records checked. There is no law governing medical screening.

Difference between Contractors vs. full-time employees

While the Labor Code sets out the employee-employer relationship, the Civil Code regulates contractual relations between independent contractors and companies. Foreign companies can hire independent contractors even without registering in Armenia.

Employees and employers must understand the difference between employees and contractors. The latter enjoys more independence in terms of how to complete the work vis-à-vis the former. However, the independent contractor has the liability to pay their taxes, social security, and health insurance premium. They also need to contribute to unemployment funds and workers' compensation funds. However, the employer has responsibilities to pay for workers' compensation, health insurance, social security, and more full-time employees. Employers need to classify workers and contractors accordingly and not misclassify and be subject to penalties.

Skuad's high-tech, centralized HR platform can help your interest as a contractor or other expansion in Armenia. 

Talk to a Skuad expert and book a demo today.

Hiring in Armenia

While hiring in Armenia, keep in mind that discrimination is strictly prohibited. It includes discrimination based on ethnic or social origin, sex, skin color, race, genetic features, religion, language, political or other views, age, property status, disability, personal or social circumstances. The Labor Code says contracts must include the worker's name and surname, company name, job description, salary, payment method, bonuses, additional payments, probation period duration, and working hours. The following portals can help you find jobs.

Skuad's extensive, hyper-localized Armenia EOR solution makes the hiring process easy and hassle-free. We handle all the complicated tasks related to payroll management and taxes in compliance with the local laws so that you can focus on other aspects of global expansion.

Talk to Skuad experts now to learn more about hiring in Armenia.

Probation & Termination


The probation period is up to three months. Only in certain specific cases, the probation period can be extended to six months.

Termination of Service

The termination by the employer can be on medical grounds and when the employee rejects a transfer of job offer. Also, an employer may terminate the employee if the role is no longer required.

  • The employer must give two months' notice in the event of the liquidation of the company. The notice period is ten days for a fixed-term contract. 
  • Three months before any collective dismissal, the employee is expected to notify the state employment service and the union which is the employees' representative.

A notice of five days is needed for one year of service, six days for five years of service, and seven days for ten years. Employees who become redundant enjoy a month of separation pay, also called severance pay, but severance pay is up to two weeks.

To ensure your expansion endeavors adhere to the laws regarding probation and termination in Armenia, talk to Skuad experts and book a demo today.

EOR Solution

An EOR service helps organizations manage payroll in the country. Additionally, it helps handle taxation and compliance management matters, and the burden gets eased from employers. Expanding your business operation beyond your national borders can be an expensive and time-consuming task. It involves several complex procedures that can take a lot of time to complete. By choosing to partner with an Armenia EOR service, you can expedite the expansion process and simplify it. 

Benefits of an Armenian EOR Solution

The benefit of working with an EOR service is that you can focus on growing your company while your EOR partner takes care of the rest. Skuad can make sure each of your employees has a positive hiring experience. Since we take over all the HR-related processes, including hiring, payroll, taxation, and securing visas and work permits for your employees, you'll be able to focus on the business side of things. Further, you won't have to worry about contravening any of the Armenian employment laws.

Talk to us to learn more!

Types of Visas in Armenia

Armenian Visa Policy

  • Travelers to Armenia will need either a travel authorization or a visa for entry into the country.
  • Travelers arriving for short stays can apply for a visa via the electronic or e-Visa system.
  • You cannot use the e-visa system for working or permanently staying in Armenia, 
  • Residents of only a small number of countries are eligible for visas on arrival.
  • People of some nationalities also enjoy visa exemption. It means that they can travel to Armenia only on their passport. However, such people cannot work in Armenia.

Types of Visas in Armenia

There are many types of visitor visas to Armenia.

  1. Tourism visa
  2. Family reunification visa (v-2)
  3. Medical treatment visa (V-3)
  4. Business and investment visa (V-7)
  5. Crew members (v-8)
  6. Studies (v-4)
  7. Charitable and humanitarian cause (V-6)
  8. Attending sports, cultural or scientific events (V-5)

Armenia has only short-term visas for tourists. There are no long-term visas.

For a longer duration, it is essential to get a residence permit. You cannot obtain a permit from Armenian embassies. It needs to be issued in Armenia only.

Work Visa types in Armenia

  1. Diplomatic visa – only people with a diplomatic passport can apply for this visa type.
  2. Official visa – there are two types of official visas depending upon the period. The first has a validity of three years, and the second type has one-year validity.
  3. Transit Visa – one could apply for either a single-entry visa or a multiple-entry visa. Only people traveling through the country should apply for this visa type.

Requirements to Obtain a Work Visa in Armenia

  • If you hire foreign employees, you need to apply for a work permit so that the relevant work visa can be granted to the person.
  • The priority for any work goes to Armenian locals. The Ministry of Labor and Social Affairs verifies that the local talent required for the job is present or absent through a test. Only when there are no qualified Armenian workers available does the Ministry allow the hiring of foreign talent.

Work Permits in Armenia

As a customary rule, those who hold the Armenian visa are not qualified to work in Armenia unless they have a work permit. Highly skilled business owners, foreign specialists, and executives get excluded from work permit requirements.

The transfer of staff and whether they are skilled or non-qualified determine the attainment of a work permit and a temporary residence permit. In Armenia, the same policy for work permits exists for local hires, intra-company transfers, and subcontracting employment. It is applied on behalf of the legal employer and gets issued for the employment contract term. The law obliges the employer to seek for Armenian citizens to perform the job.

Those who get employed by any foreign company get excluded from work permit provisions.

Except for a foreign individual spared from work permit terms, the employer needs first to apply for a work permit from the Ministry of Labour and Social Affairs (MLSA).

The simplest way to speed up work permit processing is to keep one employer for the entire stay. It seems incompatible with contracting at first, but if you use Skuad, you can ease your operation. The EORs even collect payments, pay taxes (including handling the admin) and send the net salary to you. With our comprehensive knowledge of local tax law, you are assured of compliance.

Documents required to obtain the work permit in Armenia

  • The employer needs to apply with the Ministry of Labor and Social Affairs.
  • The documents required include – the passport and the educational certificates of the employee along with the application form.
  • The other documents required are – two photographs of the employee and proof that they paid government fees.

Securing an Armenia Work Permit through Skuad

Skuad's extensive EOR services include sponsoring work permits. We have comprehensive knowledge of the local laws about work permits. Immigration laws are revised regularly, so it's hard to keep up with the latest developments. We have expertise in the taxation and immigration policies in the Caucasian region, ensuring that you receive up-to-date, accurate information. Talk to us today to learn more.

Payroll & Taxes in Armenia

Armenian Payroll Taxation details

In Armenia, the tax levied on workers and employees applies differently to different income sources.

  • Income Tax - 22% 
  • Corporate Tax - 18%
  • Sales Tax - 20%
  • Social Security Tax - 5%
  • Social Security Tax for Companies - 2.50%
  • Social Security Tax for Employees - 2.50%

Payroll Options in Armenia

The four main choices include,

  • Remote: For payroll in another country, you can add employees in Armenia to make a centralized payroll.
  • Internal: You can create an internal payroll for large companies and a well-staffed HR department
  • Outsourced to a local company: The outsourced body shall be responsible for generating and executing payroll but not for compliance.
  • Outsourced to a global company: The outsourced global EOR service provider will take care of all HR tasks and liabilities. 

Skuad's bespoke EOR solution for payroll and taxes can make your expansion easier and save you time and money.

Talk to us today to learn more

Incorporation: Setting Up a Subsidiary in Armenia

The Armenia subsidiary setup process entails compliance with the corporate laws.

Requirements of incorporating an LLC in Armenia:

  • The entity should have one director and one shareholder.
  • The director and the shareholder can be of any nationality.
  • The paid-up share capital needs to be a minimum of 1 EUR.
  • Since LLCs operate much like a residential company, the annual audited financial statements need to be submitted to the country's commercial registry.

The following steps are required to set up an LLC in Armenia:

  • Application for registration
  • Furnishing resolution of founders on the company of the legal body
  • Building a charter of the legal entity recognized by the founders' body
  • Furnishing proof of state fee payment
  • Providing information of the subsidiary's director and the passports
  • Furnishing a statement on the actual beneficiaries of the corporation
  • Presenting documents showing the status of a legal person as well as the company's founding records
  • Choosing a unique name for the organization

Talk to us to know how Skuad's robust EOR solution can help your business in the hire-to-fire cycle without the need for your business to learn the LLC laws in Armenia or get into the trouble of setting up a subsidiary in the country. Skuad's EOR services handle all compliance functions, including setting up a subsidiary.

Get in touch with Skuad experts to learn more!

Professional Employer Organization (PEO)

A PEO works as your co-employer – it means that you are in a joint employment relationship with the PEO handling jobs like recruiting, hiring, onboarding, managing payroll and taxation, and ensuring compliance end-to-end on an outsourced basis.

Your business entity needs to submit its wage-related details using the Federal Employer Identification Number of the PEO. The official contract called Administrative services outsourcing (ASO) with the PEO determines the HR functions that the PEO will manage and handle on your behalf.

On the other hand, an EOR service is provided by organizations that take over the legal responsibilities of employment to decrease complexities associated with HR functions, market access, and paying employees internationally. The EOR firm becomes the primary employer of their partner organization's employees on paper.

Skuad offers both EOR and PEO services. Depending on your requirements, you can benefit from our industry expertise to expedite your expansion in the Caucasian region in Europe.

Talk to our experts to book a demo.

Conclusion: What Gives Skuad's Armenian Solutions an Edge?

Skuad offers customized EOR solutions to kick-start your business in Armenia. Its extensive knowledge of the local laws, language, customs, and market will ensure the smooth expansion of your business. By taking over all your HR-related tasks, we can save you time, labor, and resources, which will let you better focus on the business side of expansion. 

Talk to Skuad experts today to learn more.

EOR in 
(Save upto 15%)
(billed annually)
Start Hiring Now

Employ contractors and employees in 160+ countries

Get started
EOR in 
(billed annually)
(billed monthly)

Employ contractors and employees in 160+ countries

Table of Content

Building a remote team?

Employ exceptional talent, anywhere, anytime!

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Skuad is the best solution to hire and expand globally.

Request demo
start hiring