GLOBAL EMPLOYER OF RECORD IN ARMENIA
Employer of Record (EOR) in Armenia
Hire local or international talent in Armenia and start building your presence without taking on the cost and commitment of incorporation first. Acumen acts as your Employer of Record, so you can grow from an initial hire to a wider team as demand develops.
GLOBAL EMPLOYER OF RECORD
Global coverage
Acumen International delivers global employment solutions across 190+ countries.
Strategic markets
Hiring and compliance support across North America, Europe, and Asia-Pacific.
Established jurisdictions
Lawful employment and payroll in regulated, compliance-intensive countries.
Growth economies
Expanding into new regions? Hiring support across fast-moving economies.
Risky and remote locations
Compliant employment solutions in jurisdictions with limited infrastructure.
Employing in Armenia through an Employer of Record
An Employer of Record arrangement puts three parties into one clear structure: Acumen International is the legal employer of the people working for your business in Armenia, your business engages their services and leads what they do, and the employees work as members of your team. The employment relationship, with the duties Armenian law attaches to it, stays with Acumen. Where the right person has not yet been found, Acumen International can also run the search, from specialist recruitment to executive search, with background and education checks before the offer.
Situations where an Employer of Record serves an Armenian hire
- Contractor compliance. Developers and specialists working full time for your business in Armenia move onto employment contracts, so income tax and pension contributions are withheld as the law requires.
- One accountable provider. Contracts, payroll, permits and labour law compliance sit with Acumen International rather than with several local advisers.
- No entity to set up or maintain. You employ in Armenia without registering a company or a branch.
- Market tests and short-term projects. A development centre pilot or a fixed-term project is staffed without permanent infrastructure, then scaled or closed as results come in.
- Bridge to your own entity. While your Armenian company is being registered, the first hires start with Acumen International and transfer once it can employ them.
- Fast team launch. Armenian nationals and citizens of Eurasian Economic Union states start without work permits, so a team can be formed quickly.
- Mergers and restructuring. Staff in Armenia stay employed without a break while the group structure around them changes.
- NGO staffing. International organisations and development programmes employ project and specialist staff under Armenian law.
- Employer liability. Acumen International holds the Armenian employer’s liability, so statutory duties sit with the party the State Revenue Committee and labour inspectors hold accountable.
- Remote team expansion. Team members based in Armenia join a distributed team with Armenian contracts, tax and pension.
Employing for another business in Armenia: the legal basis and its limits
The Armenian Labour Code governs the employment relationship between Acumen International and each employee, and the services they provide to your business are set out in a commercial agreement. Armenia has no separate licensing regime for this kind of arrangement, so its soundness rests on the employment being real and complete. These limits apply:
- Since 31 July 2023, a foreign national who does not live in Armenia can be employed by an Armenian employer without a public services number.
- From 1 November 2026, founders and directors of companies with foreign participation, and staff of foreign companies’ branches and representative offices, lose their exemption from the employment permit requirement.
- An employee whose employment ends must have a new contract registered within 15 working days, or may lose the residence status based on that employment.
- Termination by the employer is allowed only on the grounds the Labour Code lists, with the notice and severance it sets.
What Acumen International handles in Armenia, from recruitment to exit
| Stage | What it involves in Armenia |
|---|---|
| Recruitment and checks | Finding the candidate where needed, with background and education checks before the offer |
| Permits | The employment permit for a foreign hire, or registration of employment for a citizen of a Eurasian Economic Union state |
| Contract | A written contract that states the workplace, working time, notice methods and the tax and mandatory payments, signed in person, by post or electronically |
| Pay | Monthly payroll in Armenian drams, with income tax, pension contributions, health insurance and stamp duty withheld |
| Leave | Annual leave, and compensation where leave is not granted within 18 months |
| Exit | Notice on a lawful ground, severance and final settlement |
Minimum wage and pay rules in Armenia
The statutory minimum monthly wage is AMD 75,000. Salaries for skilled roles are agreed as a gross monthly amount in Armenian drams and sit far above it; the minimum wage matters mainly because it sets the ceiling for pension contributions, at 15 times its value.
Employment contracts and working time in Armenia
| Rule | What it means for you |
|---|---|
| Contracts can be concluded by post or electronically, and must state the workplace, working time, notice methods and mandatory payments | Hires abroad can sign before they arrive |
| An employee resigning gives at least 30 days’ notice, and the employer may accept an earlier end date | Handovers are planned around a one-month window |
| Annual leave can be granted before six months’ service by agreement, and leave not granted within 18 months costs 0.15% of average monthly salary per day of delay | Leave is scheduled so it is not deferred beyond 18 months |
| A fixed-term contract ends automatically on expiry unless employment continues | Project contracts are renewed or closed deliberately |
| Interns may work for at most two months and make up no more than 10% of staff | Graduate programmes are structured within the limits |
Ending employment in Armenia
An employer can end an employment contract only on a ground the Labour Code allows, such as redundancy, unsuitability for the job or a serious breach, and the notice period depends on the ground, up to 60 days. On dismissal, the employee receives one month’s average salary as severance, plus a further payment that rises with continuous service:
| Continuous service | Additional payment |
|---|---|
| Under 1 year | 10 days’ average salary |
| 1 to 5 years | 25 days’ average salary |
| 5 to 10 years | 30 days’ average salary |
| 10 to 15 years | 35 days’ average salary |
| 15 years or more | 44 days’ average salary |
A layoff of more than 10% of staff, and at least 10 employees, within two months must be notified to the state employment body and employee representatives two months in advance.
Employment risks in Armenia and how Acumen International covers them
| Risk | Where it arises | How Acumen International covers it |
|---|---|---|
| Worker misclassification | A contractor working full time under your direction can be treated as an employee, with income tax and pension due for past periods | Your team is employed under the Labour Code with withholding from the first payroll |
| IP ownership | Rights in work created in the job sit with the local employer unless the contracts pass them on | Contracts confirm the rights and transfer them onward to your business |
| Client liability for pay and contributions | Without a licensing regime for staff provision, an unclear arrangement can make your business look like the real employer | The contract, permits, pay and filings stay with Acumen International, and the service agreement sets out each party’s role |
| Equal pay for assigned staff | The Labour Code prohibits discrimination in pay and conditions | Pay is set against comparable roles on objective criteria before the offer |
| Permanent establishment | An employee who negotiates or signs contracts for your company can create a taxable presence in Armenia | Signing authority stays with your company and is written into the role |
| Exit cost | Severance of one month’s salary plus up to 44 days’ pay, and notice of up to 60 days | Grounds, notice and costs are prepared before any decision |
| Sponsor obligations | From 1 November 2026, residence for employment is subject to annual quotas and cannot be extended, only reapplied for | Applications are filed early in the quota year and new applications are prepared before each status expires |
| Pay transparency | Armenia has no pay transparency law, but EU-based groups apply the Pay Transparency Directive across their workforce | Pay structures are documented on objective criteria |
Work and residence permits in Armenia
Citizens of Eurasian Economic Union states (Russia, Belarus, Kazakhstan and Kyrgyzstan) can work in Armenia without a permit, though their employment must still be registered. Most other foreign nationals need permission to work, applied for by the employer, and the system changes on 1 November 2026:
- The work permit becomes a permit to stay or reside for employment, which allows the holder to obtain a work entry visa, temporary residence or the right to work during a lawful stay.
- A new work entry visa is issued for up to 120 days, single or multiple entry, cannot be extended and is granted only once per calendar year. Anyone who entered on another visa must switch to it before applying for residence based on employment.
- Annual quotas set by the government cap the number of residence statuses granted each year, replacing case-by-case labour market assessment; once a quota is used, applications are refused.
- Extensions are abolished: when a residence status expires, a new application is required.
What Acumen International contributes
- An Armenian employer to apply. The permit is applied for by the employer. Acumen International applies for your hire, so a foreign specialist can work for your business without an Armenian entity of your own.
- A place within the quota. With quotas filled on a first-come basis, Acumen International files applications early in the year and plans each hire’s timing against the remaining allocation.
- The one-time visa used well. Because the work entry visa is granted only once a year and cannot be extended, Acumen International sequences the visa, the residence application and the start date so the 120 days are not lost.
- Status that does not lapse. With no extensions, a new application is prepared well before each status expires, keeping the person’s right to work unbroken.
Family members
Family members apply for residence on the basis of their relationship to the employee, and need their own permission to work if they intend to take a job.
Employer cost and income tax in Armenia
Armenia places the main payroll charges on the employee: the employer withholds them from gross salary and pays no separate social contribution on top.
| Deduction from gross salary | Amount |
|---|---|
| Income tax | 20% flat |
| Funded pension, salary up to AMD 500,000 a month | 5% |
| Funded pension, salary above AMD 500,000 a month | 10% of salary minus AMD 25,000, capped at AMD 87,500 |
| Health insurance, Armenian citizens earning over AMD 200,000 a month | AMD 4,800, or AMD 10,800 above AMD 500,000 |
| Stamp duty | AMD 1,000 a month, or AMD 15,000 above AMD 1,000,000 |
Pension contributions apply to employees born after 1 January 1974, and the contribution base is capped at AMD 1,125,000 a month.
Sectors employing through an Employer of Record in Armenia
- Software and IT services companies employ developers, QA engineers, data scientists and product managers in Yerevan and Gyumri.
- Semiconductor and hardware design firms employ chip design, verification and embedded engineers.
- Fintech and online services businesses employ engineers, risk analysts and customer operations leads.
- Mining and metals companies employ geologists, mining engineers and environmental specialists.
- International organisations and development programmes employ programme managers and technical experts.
Hiring cases in Armenia and how they are handled
| Case | What local rules add | How it is handled |
|---|---|---|
| A software company hires a senior backend engineer from Kazakhstan | As a Eurasian Economic Union citizen, no permit is needed, but employment must be registered | The contract is signed and the employment registered before the start date |
| A chip design firm brings in an Indian verification lead in December 2026 | Residence for employment is quota-limited, and the work entry visa is granted once a year for up to 120 days | The application is filed against the quota and the visa, residence filing and start date are sequenced in one plan |
| An engineering manager on a residence status nears its expiry | Extensions no longer exist, so a new application is required | The new application is prepared and filed well before the status ends |
| A product lead’s role is made redundant after six years | Notice on the redundancy ground, one month’s average salary as severance, and a further 30 days’ pay for five to ten years’ service | Severance and notice are calculated and budgeted before the decision |
Benefits, payroll and leave in Armenia
Payroll obligations
| When | What happens |
|---|---|
| Before the start | The contract is signed, and any permit or employment registration is in place |
| Every month | Salary is paid in Armenian drams, with income tax, pension, health insurance and stamp duty withheld and reported |
| Within 18 months of accrual | Annual leave is granted, or compensation becomes due |
Leave entitlements
| Leave | Entitlement | Paid by |
|---|---|---|
| Annual leave | Can be taken before six months’ service by agreement; compensation is due if not granted within 18 months | Employer |
| Pregnancy and maternity leave | 140 days (70 before and 70 after the birth), 155 days for a complicated birth and 180 days for multiple births | State benefit |
| Paternity leave | Five paid working days, requested within 30 days of the birth | Employer |
| Childcare | Reduced working hours available until the child turns two | — |
Sources
- Amendments to the RA Law “On foreigners”
- Key amendments to Armenia’s Law on Foreigners: new quota system, work entry visa and updated residence rules
- Amendments to the Labor Code of the Republic of Armenia, June 2023
- Essential changes in Labor Code of the Republic of Armenia: main aspects
- GILS employment law: Armenia
- Armenia: other taxes
- Minimum wage: Armenia
FREQUENTLY ASKED QUESTIONS
Got questions?
We’ve got answers
Have questions about hiring globally? You’re not alone. Below you’ll find answers to the most common questions from teams expanding into new markets — from compliance and onboarding timelines to payroll and local benefits.
If you don’t see what you’re looking for, our team of in-country experts is always ready to help you navigate the details.
Can someone work remotely from Armenia for our overseas business through an Employer of Record?
Yes, where the role can be employed in Armenia and the working arrangement is suitable. Acumen provides the local employment relationship, allowing the employee to work as part of your overseas team without your company becoming their direct local employer.
Can we move an existing contractor or employee onto an Employer of Record in Armenia?
Yes, where the arrangement is suitable. Acumen can employ the individual through its Employer of Record structure in Armenia, giving the worker a formal local employment relationship without requiring your company to create its own employing entity. This is an employment transition, not a contractor reclassification service.
Can we start with one employee in Armenia and add more later?
Yes. An Employer of Record lets you begin with the headcount the business needs and add employees as demand develops. If the Armenia team later becomes large enough to justify your own entity, the employment model can be reviewed without making that investment a condition of the first hire.