Salary Calculator
Armenia
The Native Teams salary calculator simplifies salary calculations and associated costs across multiple countries. Whether you're estimating hiring expenses or comparing payroll costs in different regions, this tool provides clear and accurate insights.
It’s very simple — select the country, choose the currency, and indicate the employment status. Then, input the salary details to get a detailed breakdown of both gross and net income. Plus, the tool offers useful insights into local taxes, health contributions, and pension costs specific to the selected country.
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How does a salary calculator for Armenia work?
A salary calculator for Armenia estimates both gross and net income by considering several key factors. It starts with the gross amount, including base pay, bonuses, and other compensation. Then, it applies Armenia flat tax rate.
The calculator also factors in social security contributions from both employees and employers, which cover essentials like pensions and healthcare. After accounting for taxes and contributions, it provides the net salary—the actual take-home pay for the employee.
What is the salary cost in Armenia?
Armenian citizens born before 1974 have a 5% social security contribution if their monthly salary is less than AMD 500,000 or 10% for salaries exceeding that threshold. For those born after 1974, a mandatory pension contribution is set at 5% of their income, which is matched by the government. Employers are responsible for a 2.5% contribution to the social security fund.
How much tax do you pay in Armenia?
Employees in Armenia pay a flat tax fee of 20%. Meanwhile, employers hold no responsibility towards paying payroll taxes.
*Please note that this rate can vary based on legislative changes.
What are the mandatory employee benefits in Armenia?
Armenian employees receive a minimum of 20 days of paid annual leave. In addition, female employees are entitled to 140 days of paid maternity leave (70 days before the birth and 70 days after). In case of complications or multiple births, the leave extends to 155 days. There’s also unpaid childcare leave until the child turns 3.
Are there any other benefits or additional expenses?
Armenian labour law requires severance payments if an employee is terminated without fault. The amount varies based on the reason for termination and the employee's length of service. Typically, it includes:
-One month’s salary for termination due to company liquidation or staff reductions.
-Two weeks' salary if termination is due to health reasons or reinstatement of a previously dismissed employee.
If employees work beyond the standard 40-hour workweek, employers must compensate for overtime at a higher rate. The exact rate can vary, but it's generally 1.5 to 2 times the regular hourly wage. On top of that, many Armenian companies offer additional bonuses or allowances to their employees, including performance bonuses, transportation allowances, meal stipends, or holiday bonuses.
What is the difference between gross and net in the Armenia salary calculator?
In Armenia, gross salary refers to the total earnings of an employee before any deductions are made. This amount includes the base salary, bonuses, and any other financial benefits that the employee receives as part of their compensation package. It is essentially the agreed-upon salary before taxes, social security contributions, and other withholdings are applied.
Net salary, on the other hand, is the amount that the employee actually takes home after all mandatory deductions have been made. In Armenia, this typically includes income tax, social security contributions (especially for pension), and possibly other deductions as per the country’s tax regulations.
How can Native Teams help with employment, salary and taxes in Armenia?
Native Teams offers an all-in-one solution to simplify employment, payroll, and tax management in Armenia. Our platform is equipped with tools and services that make payroll processes straightforward while ensuring full compliance with Armenian legal requirements. We support both employers in handling salary calculations, tax obligations, and benefits management. With our assistance, you can ensure accurate and timely salary payments, ease administrative burdens, and stay confident that all legal requirements are being effectively met.
