Armenia
A small (and beautiful) country in the Caucasus region, Armenia’s a great place to hire. But if your company isn’t already established there, hiring might seem tricky—fortunately, there’s a way to hire in Armenia that won’t take you more than a couple of clicks. We’ll teach you about it in the next couple of minutes.
Country snapshot
CURRENCY
Armenian Dram (AMD)
EMPLOYER TAXES
0.0%
PAYROLL FREQUENCY
Monthly
OFFICIAL LANGUAGE
Armenian
It’s the fastest way to hire globally
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It’s a lot cheaper
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
It’s more flexible for you & your team
Can be less risky than hiring employees
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
Some people want to be employees
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
You might not have as much control over your talent
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
Laws about hiring are complicated, and the same is true in Armenia. But there are ways to sidestep the headaches—if your company hasn’t already established a physical presence in Armenia, you have two real options when it comes to hiring. We’ll detail both below.
Hire talent as contractors
Hire talent as employees
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Armenia than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Armenia.
Employer tax
Pension
Individual tax
Flat Rate - 23%
Paid Time Off (PTO)
The minimum annual leave is 20 working days for a five-day working week and 24 working days for a six-day working week.
Extended annual leave of up to 25 working days for a five-day working week, or 30 working days for a six-day working week (in exceptional cases, 35 working days for a five-day working week, or 42 working days for a six-day working week) is given to employees in working conditions, deemed stressful or high risk.
Public Holidays
There are 20 public holidays, 14 of which are non-working.
Sick Days
Employees provide paid sick leave to their employees from the 2nd to the 5th day. After the 6th employees are covered by social insurance.
Maternity Leave
Pregnant employees receive 140 days (70 days of pregnancy, 70 days of childbirth), 155 days (70 days of pregnancy, 85 days of childbirth) – complicated childbirth, 180 days (70 days of pregnancy, 110 days) in case of having more than one child at a time.
In case of premature birth, unused days of maternity leave are added to the days of maternity leave.
The daily benefit is 100% of the insured’s average monthly earnings (regardless of the number of years of covered employment) divided by 30.4 (average number of days in a month).
Paternity Leave
Fathers can take 5 days of paid leave within the first 30 days after the child is born.
Parental Leave
Parents is entitled to 5 days paid leave within the first month of the child’s birth.
Other Leave
None.
Marriage Leave
None.
Bereavement Leave
None.
Termination Process
In order to terminate an employee, an employer must have sufficient reasons and provide notice.
Notice Period
The notice period is determined by the length of employment.
up to 1 year of employment – no less than 14 days notice
1-5 years employments – 35 days notice
5-10 years of employment – 42 days notice
10-15 years of employment – 60 days notice
Severance Pay
Severance pay is determined based on the grounds of termination.
liquidation of the organization/reduction in the number of employees/recovery of the employee in the previous job
- Employees average monthly salary
an employee for non-compliance with the position held/Long-term disability of the employee/The employee is entitled to an old-age pension/Significant working conditions to change/employee to be called up for compulsory military service –
- up to 1 year – 10 times the employees average daily salary
- 1-5 years – twenty-five times the employees average daily salary
- 5-10 years – 30 times the employees average daily salary
- 10-15 years – 35 times the employees average daily salary
- 15 or more years – 44 times the employees average daily salary
Probation Period
The probationary period is generally set at three months in the employment contract. Before the expiration of the probationary period, the employment contract can be terminated by notifying at least 3 days in advance.
Working Hours
Full Time employment is considered 40 hours weekly, and 8 hours daily.
Overtime
Employees earn 150% of their normal hourly rate for each hour of overtime work. Employees earn 130% of their normal hourly rate for each hour of night work.
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