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Armenia emerges as a very promising talent hub in the South Caucasus region. The country is well-known for its highly talented and educated workforce, along with competitive labour costs. Armenia also demonstrates a growing reputation in tech fields and presents many opportunities for companies to expand their global teams.
Armenia is gaining attention as a very cost-effective and talent-rich destination for global hiring. The country has its own legal framework that governs minimum wages, employment contracts, and social security contributions that employers must understand and adhere to.
Discover more about salaries, employment costs, and legal requirements for hiring in Armenia. Get the full hiring guide now!
The Armenian labour law requires employers to issue written employment contracts. They should also contain key employment terms and conditions, including job duties, working hours, compensation, and duration.
Notice periods: Two months.
Termination of employment: Termination can occur by mutual agreement, employee resignation with 30 days' notice, or dismissal by the employer.
Want to get all the details of employment contracts in Armenia? Get our full template now!
Employers who hire in Armenia must provide mandatory employment benefits in compliance with the country’s labour laws. Many of them also offer extra benefits to stay competitive in the job market. Understanding both of them is essential to attracting and retaining talent.
Want a full breakdown of all the employee benefits available in Armenia?
Armenia has a well-established tax system that applies to both employed individuals and businesses. Employers are responsible for withholding income taxes and social security contributions, while additional tax rules apply to royalty income and VAT.
Personal income tax rate: 20%
VAT: 20%
Tax allowances: Health insurance premiums, transportation benefits, gifts on special occasions, social security contributions.
Additional tax reliefs: Paid pension benefits, insurance benefits, insurance premiums, and others.
Curious to learn all the details about Armenia’s tax allowances and similar tax regulations?
Employers in Armenia must pay salaries as specified in individual employment contracts, and wages must not be lower than the minimum salary established by the government. Unless a different arrangement is made, salaries must be paid on a monthly basis.
Salary payment deadline: By the end of the month or within 15 days of the following month.
Taxes and contributions payment deadline: By the 20th of the following month.
Payroll declarations deadline: By the 20th of the following month.
Payroll currency: AMD
Armenia’s labour law is defined by the country’s Labour Code, which outlines all the essential aspects of employment, including contract types, working hours, minimum wages, probation periods, and termination rules. Employers must stay compliant with these national regulations, which also define payroll processes, tax obligations, and social security contributions.
Total employment cost:
Minimum wage: 75,000 AMD per month
Probation period: Up to three months.
Foreign citizens working in Armenia are required to obtain the necessary work permits and visas. The process, permit type, and costs are different depending on the applicant’s nationality, job role, and length of stay.
Types of permits: Work permit.
Process length: Two to three months.
Process cost: €2000
Want to learn more about obtaining visas and work permits in Armenia? Get our full country handbook now, or click here to find out more!
EOR services in Armenia enable you to legally employ individuals in the country without opening legal entities. Your EOR will take over all the legal responsibilities as an official employer, including:
Native Teams’ payroll calculators are adjusted to 85+ countries’ local labour laws, including Armenia. Using our calculator, you can easily estimate net and gross salaries, employer/employee contributions, and other mandatory deductions in the country.
Note: The information provided above is for general guidance only and should not be considered a substitute for legal advice. We strongly recommend consulting with qualified professionals who specialise in local labour laws before making any hiring decisions. While the data was accurate at the time of writing, labour regulations are subject to change, and it is your responsibility to stay informed about the latest developments.
Last update: July 29, 2025
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When working with gig workers or freelancers in Armenia, it’s important to define the relationship clearly to avoid misclassification. Freelancers are considered self-employed and manage their own taxes and social security contributions. They typically work under a service contract rather than an employment contract.
Employers must avoid exercising control similar to that of a traditional employee, such as setting fixed working hours or integrating freelancers into their internal team structures.
