As of March 2024, the estimated population of Armenia is 2.7 million people.
The currency in Armenia is the Armenian Dram (AMD). The currency symbol is ֏.
Employment contracts concluded for an indefinite duration are considered permanent in Armenia. Such contracts can be terminated by mutual agreement between the employee and employer, or at the initiative of either party by providing prior notice, or without notice in the case of gross misconduct.
Written employment contracts remain mandatory for formalizing employment relationships between employers and employees. A new government decision strengthens this requirement by mandating that all labor contracts be concluded in writing, with a gradual transition from paper-based documents to fully digital formats through a newly established electronic system. Each employment relationship must be legally documented and verifiable. The State Revenue Committee of Armenia will manage the digital system, while the Health and Labor Inspectorate and the Migration and Citizenship Service of the Ministry of Internal Affairs will also be granted access to it. Until July 1, 2027, the digital system remains voluntary, and contracts concluded through it have full legal force. The deadline for entering existing paper contracts into the digital system has also been extended from December 31, 2026, to June 30, 2028. Every written employment contract must include specific mandatory information to ensure its legal validity. At a minimum, it must clearly state key details such as the contract number, place and date of conclusion, the employer’s tax identification number and name, and the employee’s full name, public service number, and identification details (including residence documents for foreign employees). It must also specify the place of work, the relevant subdivision or office, the start date of employment, position title, job functions (or reference to an annex defining them), the amount and method of determining the basic salary (including taxes and mandatory contributions), as well as information on supplements, bonuses, and additional payments. Written contracts must be made in 2 copies, 1 copy of which shall be handed over by the employer to the employee within 3 days after the conclusion of the employment contract. The contract must indicate whether it is for an indefinite or fixed term, and if fixed-term, its duration. Where applicable, it should outline the probationary period, working hours, weekly hours, type and duration of annual leave, the name and position of the person signing the contract, and the methods of communication between the employer and employee regarding employment matters.
According to Armenia’s Labor Code, a temporary employment contract can be concluded for a period of up to 2 months. Employees aged between 14 and 16 can only be employed under temporary contracts. Temporary employees can engage in work on rest days, non-working holidays, and memorial days. Non-working holidays, and memorial days are paid at least twice the hourly rate or salary. Both the employee and employer can terminate a temporary employment contract before its expiry by giving notice at least 3 days in advance. Temporary employees are not entitled to any severance payment. There are no specific regulations regarding temporary employment agencies in Armenia.
Employees and employers can agree upon a probationary period at the beginning of employment. The terms of probation are determined in the employment contract. A probationary period cannot exceed 3 months, except under certain circumstances where the law permits probationary periods of up to 12 months. The probationary period cannot be established for employees under 18 years of age, those who have cleared a qualification examination for the job, those who have been transferred to other jobs by mutual agreement of employers, and other cases stipulated by law. Employees have all the rights granted by law during the probationary period. If the employer finds that the employee does not meet the set requirements based on the performance during probation, they can dismiss the employee before the expiration of the probationary period by notifying them in writing 3 days in advance. During the trial period, the employee also has the right to terminate the employment contract by notifying the employer in writing 3 days in advance. If the employment relationship continues after probation, the employee is considered to have passed the probationary period, and the employer can dismiss them only for fair reasons.
The normal length of working time cannot exceed 40 hours per week or 8 hours per day. The maximum duration of working time, including overtime, cannot exceed 12 hours per day and 48 hours per week. The duration of daily working time (including rest and meal breaks) of an employee with 2 or more employment contracts with different employers or the same employer cannot exceed 12 hours per day. Shorter working hours are prescribed for the following categories of employees: For children under 7 – up to 2 hours per day and no more than 4 hours per week For children aged 7 to 12 – up to 3 hours per day and no more than 6 hours per week For children aged 12 to 14 – up to 4 hours per day and no more than 12 hours per week For employees aged 15 to 16 – 24 hours per week For employees aged 16 to 18 – 36 hours per week For employees working in dangerous regions or with hazardous materials – 36 hours per week After the end of half of the working day, but no later than 4 hours after the start of work, employees must be given a break of no more than 2 hours and no less than 30 minutes for rest and food. This break is not included in the working time, and the employees can use it at their own discretion. On the eve of non-working holidays and memorial days, the length of the working day is reduced by 1 hour for all employees, except those working part-time or under shorter working hours.
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Employees are entitled to a minimum annual leave of 20 working days in the case of a 5-day working week and 24 working days in the case of a 6-day working week after working for at least 6 months with the same employer. Part-time employees are entitled to the same amount of leave without reduction. Employees who work under special conditions associated with mental and emotional strain or occupational risk are entitled to extended annual leave of 25 working days in case of a 5-day workweek and 30 days in case of a 6-day workweek (in exceptional cases - 35 working days in case of 5-day working week, and 42 working days in case of 6-day working week). Additional leave may be granted to employees in harmful and dangerous working conditions or for special work. For each working year, annual leave is provided. Withdrawal from annual leave is allowed only with the consent of the employee. Transfer of annual leave is allowed only with the petition or consent of the employee or if the employee is unable to utilize the leave due to an emergency. Transferred leave is provided in the same working year but not later than within 18 months, starting from the end of the working year for which the employee was not allocated or partially allocated the annual leave. In case of dismissal of an employee without completely utilizing their annual leave, the employer must compensate the employee for the unused leave. Replacement of annual leave with monetary compensation is not allowed in any other situation.
Employees in Armenia are entitled to paid sick leave for a total of 180 days in a year. For the first 5 days, employers are responsible for paying 80% of the employee’s average wages. From the sixth day, the benefits for temporary incapacity are covered by social insurance and paid at the same rate. As of September 1, 2025, employees are entitled to 80% of the wages for the first 7 days, which are paid by the employer, and social security benefits are paid from the eighth day onwards. Employees must provide a medical certificate proving their incapacity to avail of these benefits. Since 1 September 2025, paper sick leave certificates have been discontinued, sick leave certificates are issued electronically via the e-health system. If employees are sick beyond the above-mentioned limits, their employment contracts can be terminated by their employers for long-term incapacity.
Female employees are entitled to paid maternity leave of 140 days (70 days before and 70 days after delivery). In case of complicated childbirth, the leave is extended to 155 days (70 days before and 85 days after delivery). In case of multiple childbirths, the leave is 180 days (70 days before and 110 days after delivery). In case of premature birth, the unused days before delivery are added to the leave after childbirth. Employees who adopt a newborn or are appointed the guardian of a newborn are granted leave until the infant turns 70 days old, or 110 days old in case of multiple children. Employees are paid temporary incapacity benefits as 100% of their daily average wage during their maternity or adoption leave, paid by the employer. For unemployed, pregnant women or those who are not eligible to receive benefits from their employers, the state provides maternity benefits from the state budget funds. The benefit is calculated as 50% of the minimum monthly wage applicable on the first day of the maternity leave period, divided by 30.4 (the average number of days in a month) and then multiplied by 140 (the total number of calendar days for pregnancy and maternity leave). In the case of premature birth, the amount is instead multiplied by 70 (the number of calendar days for maternity leave). In the case of surrogacy, the unemployed surrogate mother gets the benefits. It is prohibited to dismiss a pregnant employee from the day of notifying the employer until 1 month after the maternity leave.
Fathers are entitled to a paid paternity leave of 5 days within 30 days of the child's birth. Employers pay the average daily salary of the employee during this period.
In Armenia, notice for dismissing an employee must be given in writing and it must mention the basis and reason for dismissal. In case of terminating an employment contract on the grounds of liquidation of the organization or technological or organizational changes, employers must give a notice of at least 2 months. In case of terminating the employment contract on the grounds of essential work changes, or non-compliance of an employee with the position held or work performed, long-term incapacity of the employee, and retirement of the employee, the employer is obliged to notify in writing as follows: Employees with up to 1 year experience – 14 days Employees with 1 to 5 years’ experience – 35 days Employees with 5 to 10 years’ experience – 42 days Employees with 10 to 15 years’ experience – 49 days Employees with over 15 years’ experience – 60 days Employees must be given free time to look for new jobs during their notice period. The duration of the time off may not be less than 10% of the working time included in the notice period. Notice of termination is invalidated if more than 5 days have passed after the expiration of the notice period and the employer has not terminated the contract.
Employers are liable to give severance pay equal to 1 month’s average salary to employees if the employment relationship is terminated due to liquidation of the company, reduction in staff due to production changes or technical and organizational changes, or reinstatement of the employee in previous job. In case of termination due to the employee being deprived of their legal rights, or in case of death of the employee, as well as in case of change in essential conditions of employment, the severance is paid as follows: If the employee has worked for up to 1 year – Average daily salary worth 10 days If the employee has worked for 1 to 5 years – Average daily salary worth 25 days If the employee has worked for 5 to 10 years – Average daily salary worth 30 days If the employee has worked for 10 to 15 years – Average daily salary worth 35 days If the employee has worked for 15 years or more – Average daily salary worth 44 days Employers must make a full final settlement with the employee on the day of termination of the employment contract. They must pay all the dues on the day of final settlement, or at least within 5 working days after the employee submits a request.
A retirement pension is granted to individuals who have reached the age of 63 and have at least 10 calendar years of work experience. It is also available one year earlier, at age 62, for individuals with at least 35 years of work experience, provided they are no longer employed. Individuals with a minimum of 15 years of work experience in particularly harmful or difficult conditions are eligible for a preferential pension starting at the age of 55. The pension is granted for life unless the right to receive it ceases as specified by law. Pension is paid as a sum of 2 parts: basic pension and work pension. The basic pension is paid from the state budget, and its amount is determined by a government order. In contrast, work pension is calculated as the product of the years of service, the value of 1 year of service, and the pensioner's personal factor. The personal factor or coefficient depends on the years of service. The minimum pension amount is AMD 46,000. Armenia also provides social benefits to those who do not qualify for a pension. This allowance is granted upon reaching the age of 65. The allowance is assigned for life on the basis of an application made by the beneficiary within 3 months of reaching that age. The amount of social allowance is AMD 46,000.
In case of the death of a family’s breadwinner, the labor pension is assigned to the following survivors: Children under 18, or till 26 if they are studying Siblings or grandchildren under the age of 18, if their parents are disabled Children with a disability aged 18 years and older Parents and spouses who have reached the age of retirement pension at the time of death of the breadwinner or who are disabled Spouse who takes care of a child, sibling, or grandchild under the age of 14 Other dependents under the age of 14 The labor pension is calculated as a sum of 2 parts: the basic pension and the labor portion of the pension. The basic pension is paid from the state budget, and its amount is determined by a government order. In contrast, a work pension is calculated as the product of the years of service, the value of 1 year of service, and the pensioner's personal factor. The pension is assigned to each family member who is entitled as 50% of the work pension of the deceased breadwinner, which is added to the amount of the basic pension. For each child under the age of 18 who has lost both parents, in case of losing a breadwinner, the amount of the labor pension is calculated as 50% of the work pension of each deceased parent, plus 5 times the amount of the basic pension. The amount of the basic pension is set to AMD 34,000 (Armenian Drams) from April 1, 2026. Armenia also pays social benefits to families in case of the death of their breadwinner who was not entitled to pensions. The amount of social allowance is AMD 46,000 per month.
In Armenia, the disability work pension is granted based on an assessment by a functionality committee and requires a combination of minimum age and years of work experience, except for disabilities caused by work injuries or occupational diseases, where no work experience is required. Pension is calculated as basic pension weighted by disability group. The basic pension is paid from the state budget, and its amount is determined by a government order. The amount of the basic pension is set to AMD 34,000 (Armenian Drams) from April 1, 2026. The weighing multiplier depends on the degree of disability: Group 1 disability (profound/total incapacity, needs attendance) - 140% Group 2 disability (severe/total incapacity) - 120% Group 3 (moderate/partial incapacity) - 100% The minimum pension amount is AMD 46,000. Armenia also provides social benefits to disabled persons who do not qualify for a pension or disabled children. Effective April 1, 2026, the social benefit amounts are as follows: Group 1 disability and disabled child - AMD 49,000 Group 2 disability - AMD 47,500 Group 3 disability - AMD 46,000
Both residents and non-residents are subject to taxation. The tax year runs from January 1 to December 31. A person is considered a resident if they have been in the country for a total of 183 days or more in any 12-month period starting or ending in the tax year, or their center of vital interests is located in the country, as well as in the state service of Armenia, temporarily working outside the territory of the Republic of Armenia. Residents are taxed on their income from sources within and outside Armenia, while non-residents are taxed on their income from sources within Armenia. The standard personal income tax rate is a flat 20% on gross income. Certain types of income are subject to different rates; for instance, income from bank deposits, debt securities, and the sale of securities is taxed at a flat rate of 10%. Income from royalties and rental payments is taxed at 10%, and income from dividends is taxed at 5%. Taxpayers are also required to pay a mandatory monthly Military Stamp duty as follows, depending on their monthly income: Up to AMD 1,000,000 (Armenian drams) - AMD 1,000 Above 1,000,000 - AMD 15,000
Entry visas can be a single entry (21 days stay or up to 120 days stay), or multiple entries (up to 60 days of stay with 6 months’ validity or up to 120 days stay with 1-year validity). Entry visas can be extended for a maximum of 60 days. There are single-entry and multiple-entry transit visas as well. Armenia also issues e-visas.
The types of visa by purpose of visit include:
Armenia has introduced a new work-entry visa for foreign nationals engaged in short-term work activities, effective November 1, 2026. It can also be issued for submitting an application from the territory of the Republic of Armenia for obtaining temporary residence status. It can be issued for single or multiple entries, with the right to stay for up to 120 days, without the possibility of extension. A work entry visa is issued only once during a given calendar year.
To be employed in Armenia, foreign nationals must apply for a work entry visa valid for up to 120 days per year, with a fee of AMD 15,000 (Armenian drams). Employers must register themselves on the unified work permit portal. After registration, the employer submits a description of the vacant position and an application to fill the position with a foreign employee. Employers must also submit an application to obtain a temporary residence permit for their employees. The employer is obliged to conclude an employment contract with a foreign national who has received temporary residence status for the duration of that status within 15 working days of receiving it. Based on this residence permit, the foreign employee can apply for a work permit with the Ministry of Labor and Social Affairs, submitting their passport along with a notarized Armenian translation of the passport, a color photo, documents related to their employment and education, and a receipt for payment of the fee. The amount of the state duty is AMD 105,000 (Armenian drams). The work permit is issued for 1 year and is renewable. There are the following 3 types of residence permits issued in Armenia: Temporary residence permit – issued to foreign nationals who want to stay in Armenia for a period of 1 year or more for the purposes of study, employment, family union, business, etc. Effective November 1, 2026, temporary residence permit holders must notify authorities and file a new employment contract within 15 business days in case of changing employers. Permanent residence permit – issued to foreign nationals if they prove the existence of a spouse or close relative who is a citizen of Armenia or has special residence status and has resided in Armenia for at least 3 years. It is also issued to persons who have their business in Armenia or are of Armenian nationality. This permit is issued for a period of 5 years, with the possibility of extending it for the same period each time. Special residence permit – issued to foreign nationals of Armenian origin, as well as to those carrying out economic or cultural activities in Armenia. The status of special residence is granted by order of the Prime Minister for 10 years. This permit will be abolished effective November 1, 2026, and no new permits will be issued; permits already issued remain valid until expiry.
