Armenia (AM)
Affordable Caucasus base with a fast-growing tech scene, rich culture, straightforward residency options, low flat income tax, strong diaspora links and increasingly international Yerevan.
Employment Rights
Sick leave, dismissal protection and red flags in Armenia.
The Labour Code of Armenia (adopted 9 May 2004, as amended) governs all formal employment relationships including those of foreign nationals. Key statutory baselines: minimum wage AMD 75,000/month (confirmed unchanged for 2026; a proposed increase to AMD 85,000 was anticipated but not enacted; check mtss.gov.am for updates); 20 working days paid annual leave (5-day workweek); maternity leave 140 days fully paid (70 days pre-birth + 70 days post-birth); overtime at 1.5× the hourly rate for the first 2 hours per day, 2× thereafter; working week maximum 40 hours. Personal income tax (PIT): flat 20% on gross Armenian-source employment income, withheld by employer at payroll. Funded pension social payment: employees born in 1974 or later contribute 5% of monthly gross salary up to AMD 500,000, and 10% on the portion above AMD 500,000 (subject to annual threshold updates — verify at src.am); the Armenian state matches the employee contribution for qualifying periods. Military insurance stamp duty: typically AMD 1,000–1,500/month per employee withheld through payroll. These deductions mean effective take-home on a gross salary of AMD 500,000/month is approximately AMD 370,000–390,000 after PIT + pension + stamp duty. Foreign employees: your right to work in Armenia requires either an employment-based residence permit or that your employer has completed the relevant migration/notification procedure at the Migration and Citizenship Service (migration.e-gov.am). File employment disputes first through the State Labour Inspection Body (absp.gov.am) for inspections and mediation, or directly at the Court of General Jurisdiction (courts.am) for formal claims.
Sick leave
Rules: Armenia Labour Code and social security regulations provide paid sick leave for employees. For the first day of absence: employer policy varies — most Yerevan employers (particularly international employers and NGOs) require a medical certificate (բժշկական տեղեկանք) from the first day or by day 2. For absences of 3 or more consecutive days: an official sick-leave certificate (disability certificate — աշխատանքային անգործունակության թերթիկ) issued by a licensed medical facility is mandatory to trigger social benefits. Private clinic consultation costs: AMD 10,000–25,000 (Nairi Medical Center: +374 10 589 999; Erebouni Medical Center: +374 10 459 191; Wigmore Clinic: +374 10 543 686). After the first 3 employer-paid days, the state temporary disability benefit (ժամանակավոր անաշխատունակության նպաստ) applies — calculated at a percentage of average salary based on the period of documented contribution; administered through payroll by the employer, who then claims reimbursement from the social insurance system. Total annual sick leave: no hard cap in the Labour Code, but sustained absence beyond statutory sick pay triggers review of the employee's ongoing contract status. Keep all medical certificates and discharge summaries — these are necessary for insurance reimbursement and any future employment or benefits claims.
Doctor note: Most Armenian employers require a medical certificate from day 1 or day 2 of absence — particularly international and multinational employers operating in Yerevan. The disability certificate (Disability Leave Sheet — DLS) must be issued by a licensed doctor at an accredited medical facility in Armenia. Private clinic certificate cost: AMD 10,000–25,000 consultation fee; Nairi Medical Center (+374 10 589 999), Erebouni (+374 10 459 191), Astghik Medical Center (+374 10 290 255). State polyclinic certificates are also accepted and cheaper (AMD 1,000–3,000 consultation fee, longer wait times). Do not use a home-country doctor's note without a certified Armenian translation — employers and the social insurance system will reject notes in foreign languages unless accompanied by a notarised Armenian translation (AMD 5,000–15,000/page).
Employer pay: Under the Labour Code, the employer is responsible for paying the employee's salary during short-term sick leave (first 2–5 days) while the official sick-leave documentation is processed. From day 4 (after the first 3 employer-responsibility days): the state temporary disability benefit is triggered for employees with sufficient social insurance contribution history. The benefit level depends on the employee's contribution period and average salary; typically 80% of average earnings for contributions exceeding 8 years, 70% for 5–8 years, 60% for 2–5 years, and 50% for less than 2 years (verify current scales at mtss.gov.am — rates updated periodically). Employers cannot deduct from the regular salary for absences within the statutory sick leave entitlement if a valid medical certificate is provided. After extended sick leave: if inability to work continues beyond the temporary disability benefit period (typically up to 120 days continuously, or 140 days in 12 months), the employee may be referred for disability status assessment by the Medical-Social Expertise Commission (MSEC).
Long-term: Long-term disability in Armenia is assessed by the Medical-Social Expertise Commission (MSEC — under the Ministry of Labour and Social Affairs). MSEC assigns disability groups (I, II, III) based on the degree of incapacity. Disability pension (հաշմանդամության կենսաթոշակ) is available to Armenian residents with a confirmed disability status and sufficient contribution or residence record — amount depends on disability group and contribution years. For foreign nationals with limited Armenian contribution history: private income protection insurance (covering 60–80% of monthly salary if unable to work) is the essential safety net. International providers (AXA Global Healthcare, BUPA International) offer policies for AMD 180,000–600,000/year (approximately USD 450–1,500/year) depending on income, benefit level, and waiting period. Purchase before health issues arise — insurers may exclude pre-existing conditions. Funded pension fund (accumulated under payroll social payments): if you leave Armenia before retirement age, the funded pension balance remains in your personal account at the pension fund (AMPF, Amundi Armenia, Sas-pension, Mego) and continues to accumulate returns — it is not automatically forfeited on departure, but access rules depend on Armenian pension law in effect at the time of retirement age.
Dismissal protection
Law: The Labour Code (Articles 109–115) regulates termination, listing exhaustive grounds for lawful dismissal. Grounds for justified dismissal (the employer must prove): systematic failure to perform duties (after two written warnings); serious single misconduct (gross insubordination, dishonesty, violence, intoxication at work); redundancy (genuine restructuring with proper procedure); expiry of fixed-term contract; failure to meet qualification requirements. Protected categories who cannot be dismissed (even for cause in some situations): pregnant employees; employees on maternity or parental leave; employees on sick leave; elected trade union representatives; and disabled employees with group I or II disability status. Redundancy procedure: fair selection criteria required; minimum advance written notice; redundancy pay of not less than AMD 75,000 (1 month minimum wage as of 2026). All dismissals must be in written form (official order — կարգադրություն) signed by the employer's authorised representative. File unfair dismissal claims at the Court of General Jurisdiction (courts.am) after attempting to resolve through the State Labour Inspection Body (absp.gov.am; complaint portal online). Labour Inspection Body complaints: can order reinstatement, correction of documents, and fine the employer — useful leverage before court.
Deadline to sue: File a dismissal dispute claim within 1 month of the date of dismissal — this is the limitation period under the Labour Code for wrongful dismissal claims. State Labour Inspection Body (absp.gov.am): file an online complaint or attend in person at the Inspection Body offices; inspection typically completes within 10–30 business days; the body can issue binding orders to the employer and impose administrative fines (AMD 50,000–500,000+ per violation). Court of General Jurisdiction (courts.am): file a labour dispute claim — the plaintiff (dismissed employee) is exempt from state duty for labour claims in Armenia, making court proceedings low-cost for employees. Documents to bring: employment contract, dismissal order, all payslips, tax/pension deduction records, any written warnings, and a written account of events. MTSS (Ministry of Labour and Social Affairs — mtss.gov.am; Tel: +374 10 529 780) can advise on rights before formal filing. Average timeline from filing to first-instance judgment: 6–18 months for contested dismissal cases.
Probation
Probation periods (փորձաշրջան) are permitted only if explicitly written into the employment contract — verbal probation is not recognised under the Labour Code. Maximum probation length: 3 months for standard roles (Labour Code Article 117); up to 6 months for senior management, director, and chief accountant positions. During probation, either party can terminate the contract with just 3 days' written notice. After successful completion of probation: full Labour Code protections apply. Foreign employees: if employment terminates during probation, notify the Migration and Citizenship Service (migration.e-gov.am) about changes to your employment-basis residence status within the required timeframe. Ensure your contract states: explicit probation start and end dates; the specific 3-day notice right during probation; and what documentation you will receive at end of probation confirming permanent status. Some employers informally extend probation beyond 3 months — this is unlawful; after 3 months you are a full permanent employee regardless of contract language.
Notice periods
Labour Code minimum notice periods for employer-initiated termination: redundancy — minimum 2 months' written notice; unsatisfactory performance (after warnings) — minimum 14 days' written notice; probation dismissal — 3 days' written notice. Payment in lieu of notice (PILON) is not specifically regulated but is negotiated in practice — Armenian employers sometimes agree an immediate departure with payment of the notice period salary. Final settlement (liquidation of employment): must be paid on the last working day — includes all outstanding salary, accrued unused annual leave (paid at daily rate), and any contractual severance. Request the final settlement in writing with itemised components before your last day. Senior expat contracts should include: repatriation clause (employer pays economy-class return flights if involuntarily terminated); school term overlap provision (notice period accounts for children's school term if in an international school mid-term); and explicit language on whether AMD or USD is the settlement currency and which exchange rate applies.
Working time
Max hours: 40 hours per week (8 hours per day) is the standard maximum under Labour Code Article 159. Reduced working time categories: employees under 18 years — 36 hours/week; employees with certain disabilities — 36 hours/week; employees in hazardous/harmful conditions — sector-specific limits. Night work (22:00–06:00): constitutes a separate work period; night shift cannot exceed 7 hours without overtime provisions. Flexible and remote working: no statutory right to flexible or remote working under Armenian law, but it is common practice in the Yerevan tech sector, NGOs, and international employers. If your contract includes a "confidentiality" or "all-inclusive" salary clause, confirm explicitly whether overtime is included or separately compensated.
Min rest: Labour Code: minimum 12 hours rest between consecutive working days. Weekly rest: minimum 2 consecutive days off (typically Saturday and Sunday for standard Yerevan office roles, or equivalent). Public holidays: Armenia has 12 public holidays in 2026 — all are paid days off. Working on a public holiday entitles the employee to either double pay (200% daily rate) or an additional compensatory rest day. Public holiday calendar: check the current year list at e-gov.am annually — public holiday schedules can change. Lunch break: minimum 30 minutes, maximum 2 hours, not counted as working time unless the employee cannot leave the workplace. For employees with children under 1.5 years: additional nursing breaks (minimum 30 minutes each, at least every 3 hours) are mandatory and counted as working time.
Overtime: Overtime rates under the Labour Code: the first 2 overtime hours per day are paid at 1.5× the ordinary hourly rate; subsequent overtime hours in the same day are paid at 2× the ordinary hourly rate. Total overtime cannot exceed 4 hours per employee in any 2 consecutive days or 180 hours per year. Overtime must be agreed in advance — employers cannot require unlimited compulsory overtime. All overtime must be documented in writing (order and timesheets) — keep your own record of actual hours worked as evidence for any claim. Alternative to overtime pay: by written agreement, overtime can be compensated with equivalent additional rest days instead of cash payment — this must be agreed before the overtime is worked, not retroactively. Repeated undocumented or uncompensated overtime is grounds for an employment dispute filed at the State Labour Inspection Body (absp.gov.am).
Vacation
Minimum annual paid leave: 20 working days per year for a standard 5-day workweek (Labour Code Article 162); 24 working days per year for a 6-day workweek. Additional annual leave for certain categories: employees in hazardous or harmful conditions — 5–10 additional days; employees with irregular working hours — additional days per collective agreement; civil servants — higher statutory minimum. Leave accrues from the first day of employment at approximately 1.67 working days per month. Annual leave cannot generally be replaced by monetary compensation while employed — the employee must take the leave. However, unused accrued annual leave on termination of employment is paid out at the daily rate based on final salary. Expatriate contracts in Yerevan's international employer market typically negotiate above the statutory minimum: 20–25 days/year is standard for professional roles, with some international employers offering 25–30 days to accommodate long-haul international travel home. School-family note: Armenia's international school year (QSI, Yerevan International School) typically runs September to June, which may not align with your employer's peak leave periods — negotiate annual leave timing flexibility explicitly in your contract.
Anti-discrimination
The Armenian Constitution (Article 29) and the Labour Code (Article 3) prohibit employment discrimination based on: sex, race, nationality, language, origin, citizenship, age, physical condition (disability), marital or family status, belief, political or other opinion, and trade union membership or activity. The Law on Equal Rights and Equal Opportunities for Women and Men (HO-47, 2013) provides additional workplace protections. Sexual harassment: prohibited under Armenian law — file a complaint at the State Labour Inspection Body (absp.gov.am) or directly at the Court of General Jurisdiction. For foreign nationals: equal legal rights to file labour discrimination complaints in Armenian courts — proceedings are in Armenian; if you need interpretation, bring your own licensed interpreter or arrange through a lawyer. Practical documentation steps: record every discriminatory incident with date, time, witnesses, and written evidence (emails, messages, HR documents); file a formal written HR complaint first; if unresolved in 10 business days, file with State Labour Inspection Body (absp.gov.am). Compensation for proven discrimination: reinstatement and/or damages awarded by the Court of General Jurisdiction. Armenian Bar Association (chamberofadvocates.am; Tel: +374 10 527 553) referral for employment lawyers.
Contract red flags
- !Net salary offered verbally but gross salary and all statutory deductions (20% PIT, funded pension 5%+, stamp duty AMD 1,000–1,500/month) not shown in writing before signing
- !Employer confirms you can start work before migration/work authorisation is confirmed in writing from the Migration and Citizenship Service
- !Probation period not explicitly written in the contract — verbal probation is unenforceable under the Labour Code
- !Salary partly or wholly paid in cash without payslips — no evidence for tax, pension, bank KYC, or future employment/residence claims
- !Contract in Armenian only with no translated version — legally the Armenian text controls; sign nothing you cannot read in a language you understand
- !Overtime, annual leave, sick leave entitlements, or job description absent from the written contract
- !No mention of funded pension deductions in a contract for an employee born in 1974 or later — employer evading mandatory payroll deduction
- !Ambiguous salary denomination: AMD vs USD, gross vs net — specify currency, gross/net status, and the exchange rate methodology in writing
- !Non-compete clause restricting all work in Armenia or your profession for 2+ years after departure — likely unenforceable and a red flag for predatory contracting
- !No repatriation clause for a position that required you to relocate from outside Armenia
- !Employer retaining your passport for "visa processing" — keep your passport in your own possession at all times; hand only a certified copy to the employer
- !No written probation end-date confirmation — employer leaving you on informal indefinite "probation" beyond the 3-month Labour Code maximum
Employment Rights
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