Armenian workers are renowned for being highly dependable and diligent when it comes to work. Plus, hiring talent from this country tends to be largely affordable. These are just a couple of reasons why employers seek out Armenian talent. 

That said, the Armenian government is decidedly strict regarding legislation concerning the relationship between employers and employees. And there are penalties and fees for non-compliance. In addition to that, offering hefty benefits to employees showcases that you understand their worth and want them to feel appreciated. Therefore, employers should do all they can to adhere to the rules for the good of their businesses and employees. 

Whether you’re 100% sure you want to hire Armenian workers or you’re on the fence and gathering information, you should know a few things. You need to understand the importance of labor laws in Armenia, the mandatory benefits according to the government, supplementary perks to consider, and more. 

The Labor Laws in Armenia

As you learn about employment laws in Armenia, you’ll quickly find that not all sources are reliable. That’s why it’s vital to be careful about where you get your information.

The full Armenian labor law text can be found in the country’s legal database, and the Constitution of the Republic of Armenia can be found in the Armenian Legal Information System (ALIS). Here’s the Armenian labor law text in English. There are also legal resources that paraphrase or spell out the laws to make them easier for laypeople to understand. 

Some of the above-linked sources are in Armenian. If you need to translate the information, you can adjust the language in your browser to show it in your preferred language. You can also copy and paste the text into an external translation program.

Mandatory Employee Benefits in Armenia

When building your employee benefit plan, the focus should be on non-negotiable benefits put in place by the government of the republic. Those who don’t offer the right benefits to their employees may end up with fines, warnings, and (in the worst cases) criminal penalties. And it’s impossible to abide by laws you’re unaware of. The actual labor law text is your source of truth, but to give you a good overview, we’ll outline the mandatory employee benefits in Armenia. 

Minimum Wage

As of January 1, 2023, the most current monthly minimum wage in Armenia is 75,000 drams. This equates to USD 188.09 per month. Per the Minister of Finance and other government officials, the plan is to raise the monthly minimum wage to 85,000 drams by the year 2026. So, you’re likely to see further increases in the future. 

Armenian employees are entitled to a minimum annual leave of 28 days, whether the employee is working part-time or full-time. This leave may be lengthened to a total of 35 calendar days for specific jobs that take a large toll on the employee’s emotional and physical well-being. These jobs typically involve:

  • Dangerous and harmful working conditions.
  • Specialized work.
  • Unregulated schedules.

Workers in Armenia don’t work on the following paid public holidays:

  • December 31 to January 1 – New Year
  • January 6 – Christmas Day
  • January 28 – Army Day
  • March 8 – Women’s Day
  • April 24 – Genocide Victims’ Commemoration Day
  • May 1 – Labour Day
  • May 8 – Day of Yerkrapah
  • May 9 – Victory and Peace Day
  • May 28 – The Republic Day
  • July 5 – Constitution Day
  • September 21 – Independence Day

The day before a public holiday, the workday should be shortened by an hour unless the employee works part-time.

Working Hours and Overtime

Per the employment laws in Armenia, employees are permitted to work a maximum of 40 hours per week or 8 hours per day.

Overtime is an option you and your employee may take advantage of if desired. Just know that there are limits for overtime hours – 120 hours a year, 4 hours over two consecutive days, and 48 hours per week. You’ll find other stipulations in the labor law text. 

Laws indicate that an employee can take paid time off as needed for sickness or the incapacity to work. View the table below for a breakdown of how pay works during this leave:

Day of Illness
Sick Leave Pay
1
None
2–5
80% of normal wage
6+
Social insurance coverage applies*

*Social insurance payments vary based on the employee. If the employee is out for less than 120 days in a row or 140 days in a year, they can keep their full social insurance benefit payments.

Maternity leave

Maternity leave in Armenia is set at 140 calendar days per year – 70 should be taken before the baby’s birth, and 70 should be taken after delivery. There are variations surrounding the types of deliveries: 

  • For complicated deliveries – 155 calendar days (70 before birth, 85 after birth)
  • For multiple births – 180 calendar days (70 before birth, 110 after birth)
  • For adoption or legal guardianship of a newborn – Leave lasts until the baby is 70 days old

In the case of premature births, you’ll add any unused days before the birth to the leave allowance for after the birth. 

Parental Leave

Parental leave is available to parents and guardians of a child until they’re three years old. This leave is unpaid. The leave can be taken all at once or in multiple increments. 

Social Insurance Contributions

In Armenia, the social security system provides monetary assistance to employees for sickness, maternity, pension, unemployment, and more. To fund the system, contributions should be made by both employees and employers. They pay a percentage of the employee’s earnings on a monthly basis. 

Severance Pay

Yet another benefit you should offer your Armenian employees is severance pay, the amount of which depends on the reason for the termination and how long the worker worked for the employer. The employee gets paid one month’s salary in the following cases: 

  • There were employee layoffs.
  • The employees’ previous employer rehired them. 
  • The company was liquidated. 

If the employee was terminated due to old age, long-term disability, or changes in working conditions, the severance pay is as follows: 

Years of Service
Severance Pay
Less than 12 months
10 × average daily salary
1 to 5 years
25 × average daily salary
5 to 10 years
30 × average daily salary
10 to 15 years
35 × average daily salary
More than 15 years
44 × average daily salary

Supplementary Employee Benefits in Armenia

In addition to the non-negotiable Armenian benefits above, we recommend considering supplemental employee benefits. These aren’t required by law, but they can help you attract better candidates and make your workers feel appreciated.

Select the options that fit your budget and align with potential candidates’ wants and needs. Here are a few options to get you started: 

  • Training and development programs in the form of tailored workshops, free conferences, and certifications. 
  • More paid leave or higher pay during mandatory leaves. 
  • Support for the family – on-site or reduced-cost daycare. 
  • Remote working options – a few days per week or every day. 
  • Payments toward school loans or courses relevant to the employee’s job position. 
  • Health and wellness perks like vaccination campaigns, gym and yoga memberships, and private health insurance plans with wide coverage and good benefits. 

How to Build a Benefit Plan for Armenian Workers

You’ve got the knowledge you need to begin planning out your benefits package for Armenian workers. But before you get started, we recommend reading through this list of tips – it will help you start off on the right foot.  

Deep Research

Start with some deep research into Armenian laws surrounding labor. You don’t have to be an expert, but it helps to know the laws yourself before you offer law-mandated benefits to your workers. There may be times when a law or concept feels hazy to you, and that’s when you should reach out for help from an international lawyer. 

Note Mandatory and Supplemental Benefits

Next, note the mandatory benefits we’ve outlined above. Make sure that all of them are included – leaving one or more off could lead to legal trouble. And penalties could cost your business dearly. 

Go through your supplemental benefit options and choose the right ones for your company and specific positions. Note those as well. 

Compile Everything

Compile your mandatory and supplementary benefits into a document for distribution to current and potential hires. You may use them during the recruiting and hiring process, during orientation, and more. You may find that you need to create more than one version of the benefit document to use for targeted purposes. 

Update Regularly

And finally, make sure you’re keeping your benefit documents updated to ensure ongoing compliance and relevance. 

So, there you have it – everything you need to know about employee benefits in Armenia. We hope you found all the information you were looking for in this employee benefits guide, and we wish you the best as your business grows in your industry.