Armenia

Employment

Official employment is established by signing the contract of employment - an agreement between employee and employer where certain terms and conditions are agreed upon by both parties. Probation period may be established by the employee under certain conditions (by law it should be exceed three months).

Payroll

Salaries are paid on a monthly basis. Payday is the 15th of the following month.

HR & Labor

Working hours: According to Article 139 of the Labor Code, typical working hours should not exceed 40 per week or 8 hours per day. The maximum number of hours an employee is allowed is 12 hours daily and 48 hours weekly (including overtime).
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Night hours are defined from 10pm – 6am, where employee compensation is doubled. Minimum age: Article 32 of the Labor Code states that any person under the age of 16 is not permitted to work full time. The working hours for employees 14-16 years old is 24 hours per week. Workers between ages 16-18 are allowed to work 36 hours per week. Anyone under the age of 18 is not allowed to participate in business trips or work under hazardous conditions (which are specified in Article 257 of the Labor Code).

Immigration

The government of Armenia does not have an official system for work permits for foreign parties. In order to work legally in Armenia, one must obtain a residence permit. It is a fairly easy process since it isn’t required by law to make an investment, to prove annual income, deposit money or buy or rent property.
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Temporary and permanent residence permits are issued within 30 days after the application is filed and it is done at the local police station (visa and passport department). There are 3 types of permits – temporary (1 year + renewable and costs about $258), permanents (5 years + renewable and costs about $344) and special (10 years + renewable and costs about $369).

Benefits

The only benefits that every company provides the employee with are paid leaves and maternity leave. It is illegal to terminate a female due to pregnancy. Some companies provide health insurance, paid taxis (if the working hours are irregular) and other benefits such as paid lunches.
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However this is case by case and each company policies differ. Additional benefits such as leave to study and prepare for an exam. For funeral/marriage incidents, employee is granted 3 days of unpaid leave.

Minimum Wage

Minimum wage is 55,000 AMD.

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.

Severance Payments

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.

Advance Notice

Must provide 7 days written notice.

Termination Procedure

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)

Public Holidays

There are 17 public holidays.

Vacation Days

Employees after working a year in a company are entitled to 28 days of paid vacation.

VAT

VAT is 20% standard rate.