HR & Labor
Minimum wage is 55,000 AMD.
A hired employee, a foreign national and a stateless person participating in the scheme, who is in receipt of basic income in the manner as envisaged by the legislation of the Republic of Armenia and whose monthly income does not exceed AMD 500,000, shall make a monthly funded contribution in his/her pension account in the amount of 5% of the basic income, while the remaining 5% shall be paid for (in favor of) the participant from the state budget to secure 10% of the required contributions; employees whose monthly income exceeds AMD 500,000, shall receive AMD 25,000 on monthly basis for (in favor of) his/her pension account from the state budget, while the remaining contributions shall be paid by such persons to secure 10% of the required contributions; employees whose basic annual income does not exceed AMD 6,000,000, shall be obligated to make monthly funded contributions in his/her individual pension account in the amount of 5% of the basic income, while the remaining 5% shall be paid for (in favor of) the participant from the state budget to secure 10% of the required contributions. Lastly, if an employee whose basic annual income exceeds AMD 6,000,000, annually AMD 300,000 shall be paid for (in favor of) the participant from the state budget to the pension account, while the remaining annual contributions shall be paid by such a person to secure 10% of required contributions.
A two week severance is paid under certain specific circumstances. However, the amount may change due to mutual agreement between the employee and employer. There is no labor court in Armenia, therefore all the labor disputes are heard by ordinary judge.
Must provide 7 days written notice.
In case of collective dismissals, the employer must inform the State Employment Service and the workers representative three months in advance. Redundancies are deemed collective if they concern the period of two consecutive months or the termination of employment is for more than ten percent of all of the workers but not less than ten people (Article 116 of the LC)
There are 17 public holidays.
Employees after working a year in a company are entitled to 28 days of paid vacation.
VAT is 20% standard rate.