Do employers pay social security in Armenia?

No. Armenia has no employer social security contributions, so the employer cost is close to gross salary. The employee pays a 20% flat income tax plus a funded pension contribution of 5% or 10%, depending on salary.

How is payroll reported in Armenia?

Income tax, pension contributions, and stamp duty are reported in one monthly electronic calculation to the State Revenue Committee. Payment is due by the 20th of the following month. Late filing triggers penalties, so the payroll calendar needs to be tight.

How does Good Balance Global hire employees in Armenia?

As your Employer of Record (EOR), we employ your hire under an Armenian employment contract. We run payroll in drams, withhold tax and pension, and file with the State Revenue Committee each month. You keep full control of the work.

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Payroll and benefits guide

Armenia

CapitalYerevan

Fiscal Year1 January - 31 December

Date Formatdd/mm/yyyy

CurrencyAMD (Armenian Dram)

Payroll FrequencyMonthly

Employer Taxes0%

Employee Costs5% – 10% plus fixed monthly fees

Overview

Languages: Armenian
Income tax: 20%
VAT: 20%

Contributions

Employer

Employer social contributionsArmenia does not levy employer social security contributions

Total employer cost

Employee

Funded pension (monthly gross up to AMD 500,000)

10% minus AMD 25,000

Funded pension (monthly gross over AMD 500,000)Capped at AMD 87,500/month; salary ceiling AMD 1,125,000/month

AMD 4,800 – 10,800/month

Health insuranceFixed amount for citizens earning over AMD 200,000/month; AMD 10,800 applies above AMD 500,000

AMD 1,000 – 15,000/month

Stamp dutyAMD 15,000 applies to monthly gross salary over AMD 1,000,000

5% – 10% plus fixed monthly fees

Total employee cost

Authority Payments

Authority PaymentPaid ToDue DateMethod

Authority Payment

State Revenue Committee

Paid To

Personal income tax withheld from salaries

Due Date

20th day of the following month

Method

Monthly electronic calculation and bank transfer

Authority Payment

State Revenue Committee

Paid To

Funded pension contributions and stamp duty

Due Date

20th day of the following month

Method

Reported in the same monthly electronic calculation

Minimum Wage & Working Hours

Minimum wage: AMD 75,000 / Monthly; In force since 1 January 2023 (AMD 500 per hour); a planned rise to AMD 85,000 had not been enacted as of late 2026
Standard working hours: 40 hours per week, 8 hours per day
Overtime: Paid at no less than 150% of the hourly rate

Leave

Annual leave20 working days (5-day week)24 working days for a 6-day week
Maternity leave140 days70 days before and 70 days after birth; longer for complicated or multiple births

Leave type	Duration	Notes
Annual leave	20 working days (5-day week)	24 working days for a 6-day week
Maternity leave	140 days	70 days before and 70 days after birth; longer for complicated or multiple births

Termination

Probation period: Up to 3 months
13th salary: Not mandatory

Benefits

Funded pensionMandatory
Mandatory second-pillar pension funded by employee contributions, with a state top-up
Private health insuranceCommon
Commonly offered by tech and services employers

FAQ

Sources

Last updated: November 1, 2026

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