Overview

Capital
Yerevan
Currency
Dram
Date Format
dmy

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Taxes

Employer
1% - 10% - Social Secutiy
Employee
5.00% - Pension Fund
24% - Up to 120,000
26% of taxable income exceeding AMD 120,000 + AMD 29,280 - 120,000 - 2,000,000
26% of taxable income exceeding AMD 2,000,000 + AMD 518,080 - Over 2,000,000

Minimum Wage

General
Minimum wage is 55,000 AMD. ($115.06)

Working Hours

General
Fulltime employment is considered 40 hours weekly, and 8 hours daily.
Overtime
Mamimum working hours should not exceed 48 hours weekly, and 12 hours daily. Additonally, they should not exceed 4 hours during two consecutive work days or 120 hours per pay year.

Payment

Payroll Frequency
Salaries are paid on a monthly basis. Payday is the 15th of the following month.
General 2
20% rate

Mandatory Benefits

Pension Fund
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.
Social Security
Social insurance: 3% of net monthly earnings. There are no minimum or maximum earnings used to calculate contributions. The insured's contributions also finance sickness and maternity, work injury, and unemployment benefits. Mandatory individual account: 5% of monthly earnings up to 500,000 drams a month, plus up to 1.5% of the account balance for administrative fees. With earnings exceeding 500,000 drams a month, the insured's contribution is 10% of monthly earnings minus a government flat-rate contribution of 25,000 drams, plus up to 1.5% of the account balance for administrative fees.

Termination

Termination Process
Employment contract can be terminiated by mutual agreemeny with 7 days written notice. Fixed term contracts can be terminated with 10 days notice if before expiration. For collective dismissal, the State Employment Service and Workers representative needs to be informed by the employer three months in advance.
Advance Notice
Employees must provide 7 days written notice before terminating their employment.
Severance Pay
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.