Find your employer of record in Armenia

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All individuals who desire to enter Armenia for business purposes must apply for a work permit. And this permit must be sponsored by their employer to legally work in Armenia.

Usually, holders of Armenian visas are not allowed to work in the country unless they are also work permit holders.

Nonetheless, some individuals are exempt from the work permit requirement, including highly-skilled specialists, business owners, executives, and other workers. And unless a foreign individual is exempt from this requirement, the employer must obtain a work permit before the employee starts their employment period.

The Ministry of Labor and Social Affairs (MLSA) is the authority that issues work permits in Armenia. And this entity is also in charge of testing the Armenian market to ensure that there are no available and qualified Armenian workers to fill that position internally. Once the foreign national receives their work permit, they can start working. But note that this permit has a fixed term and can be renewed on request.

After the foreign national obtains their work permit, they must file an application for a temporary residence permit. And they can apply for it at the Passport and Visa Department of the Police in Yerevan. During the application, the individual must provide the required supporting documents (including medical tests). Furthermore, note that the issuance of the residence card may take between 30 and 45 days from the application date.

Certain individuals, such as those who enter on a contractual basis, may qualify for temporary residence in Armenia. In addition, international students, researchers, and journalists may also qualify for it. However, note that this temporary residence is valid for one year, but it can be extended for one additional year.

In Armenia, the general rate of VAT is 20%. Performing your employer duties with a PEO or Contractor Management Services makes everything more efficient. And with them, running a company in Armenia becomes an easy task.

Termination Process

In order to terminate an employee, employers in Armenia must have a valid reason and provide notice before proceeding. And generally, the notice period is linked to the worker’s length of employment within the company. 

Notice Period

In Armenia, the notice periods are calculated as per the worker’s employment length as follows:

• The employee served for less than 1 year: 14 days’ notice
• The employee served between 1 and 5 years: 35 days’ notice
• The employee served between 5 and 10 years: 42 days’ notice
• The employee served more than 10 years: 60 days’ notice

Severance Pay

Depending on the reason for termination, and should it be company related, the severance pay can be determined. For example, valid reasons can be the liquidation of the company or the reduction of the number of employees. And in any case, the severance pay should be equal to the employee’s average monthly salary.

• The employee served for less than 12 months: 10 times their average daily salary
• The employee served between 1 and 5 years: 25 times their average daily salary
• The employee served between 5 and 10 years: 30 times their average daily salary
• The employee served between 10 and 15 years: 35 times their average daily salary
• The employee served for more than 15 years: 44 times their average daily salary

Probation Period

Generally, probation periods in Armenia consist of 3 months, and the employees’ contracts of employment will determine these periods. But in case either the employee or employer desires to terminate before this period, they can terminate the contract with 3 days’ notice.

Paid Time Offs

In Armenia, employers calculate the minimum days of paid annual leave that employees can get based on their working week. For example, if an employee works 5 days per week, they will receive 20 days of annual leave. But if an employee works 6 days per week, then they will be entitled to 24 days of annual leave.

And the number of days of annual leave can increase if Armenian employees work under stressful or high-risk conditions. For instance, employees working a 5-day working week may receive an annual leave entitlement of up to 35 days. But this can only happen in exceptional conditions. On the other hand, employees working a 6-day working week can receive up to 42 days in extraordinary circumstances.

In Armenia, employees usually access annual leave after continuously working for at least 6 months.

Public Holidays

There are 16 national holidays throughout the year.

Vacation Holidays

There are 20 vacation holidays throughout the year.

Sick Days

If an employee gets sick, the employer must provide paid sick leave from day 2 to day 5. And this means that on the first day, the employee receives unpaid leave. However, if the employee remains sick for 6 or more days, Social Insurance will cover the paid sick leave. The employee will remain entitled to their full benefits if they are absent for less than 120 successive days or 140 days within a year.

On the other hand, The Social Insurance Scheme is in charge of paying an employee’s sick leave under certain conditions. If the employee’s absence is due to work-related injury/illness, Social Insurance will proceed to pay the sick leave. And once the employee recovers and feels healthy enough, they may return to work. The best way to calculate paid leave is by using the services of an Employer of Record in Armenia.