Armenia

Employment taxes

• Income Tax: Flat rate of 21% for employees (set to gradually reduce to 20%).
• Social contributions: Employees contribute to the Armenian pension fund:
  3.5% of gross salary (if monthly income ≤ AMD 500,000)
  10% of income exceeding AMD 500,000, capped at AMD 1,125,000
• No separate payroll tax: Income tax includes everything; simple and clean.

Leave policy

• Paid vacation: Minimum 20 working days per year + 15 national holidays
• Sick leave: Paid by employer (first 5 days) and then by the government
• Maternity leave: Up to 140 paid days, covered by the employer
• Paternity leave: Employees are entitled to 5 days of paid paternity leave.
• Parental leave: Extended unpaid leave options available for childcare

Employment termination

• Notice period: 2 months (can vary based on the reason)
• Valid reasons include redundancy, poor performance, misconduct, etc.
• Employees are entitled to severance pay in specific cases

Hiring and contracts

• Employment contracts must be in writing and signed by both parties
• Must include job description, salary, working hours, benefits, and termination terms
• Probation period: Up to 3 months (with shorter notice for termination)

Payroll and salary payments

• Salaries are typically paid monthly
• Minimum wage: AMD 75,000 (~$190/month)
• Overtime is paid at 150% of the hourly rate
• Employers must pay all wages in AMD (Armenian Dram)

Benefits

Mandatory:

• Paid time off
• Maternity leave/ sick leave
• Pension contributions

Optional:

• Health insurance
• Lunch or transport stipends
• Flexible hours or remote options
• Language courses or upskilling programs

Monthly living cost (Yerevan cost)

• Rent (1-bedroom in the city center): $400–$600
• Utilities (electricity, water, heating, internet): Around $100
• Groceries: Around $150 for regular shopping
• Public transport pass: Just about $12
• Gym membership: $30–$50 depending on the gym
• Dining out: $5–$10 per meal at casual restaurants

You can live comfortably in Yerevan for around $800 to $1,200 a month, with room for weekend trips, wine nights, and the occasional splurge.

How to get a local ID number (PSN)

• If you’re planning to stay and work in Armenia, you’ll need a residence permit
• Once approved, you’ll get a Public Services Number (PSN), this is your local ID
• Required for: banking, taxes, health services, employment
• Apply through the Passport and Visa Department of the Police

Social security registration

Setting up a bank account is quick once you have your PSN.

Popular banks:

• Ameriabank
• ACBA-Credit Agricole
• Ardshinbank
• Inecobank
• HSBC Armenia

Most banks offer online banking, debit cards, and accounts in multiple currencies.

Housing and rentals

• Most rentals are furnished, and lease terms are usually 6–12 months
• Expect to pay 1–2 months deposit
• Tenants have strong rights, landlords must give proper notice before eviction
• Check local sites or use a trusted real estate agent to avoid scams

Healthcare system

• Armenia has a public healthcare system, but many expats choose private clinics for faster service
• Private health insurance is affordable and often offered by employers
• Top clinics are in Yerevan, with English-speaking staff available

Driving and transport

• Yerevan has minibuses, buses, taxis, and a clean metro system
• Public transport is cheap and reliable (~$0.25 per ride)
• Taxis via GG or Yandex Go apps are affordable and safe
• Foreigners can drive with an international driver’s license (for 1 year)

Emergency and important contacts

• Ambulance: 103
• Police: 102
• Fire: 101
• Emergency services (general): 112

Work permit and visa requirements

• EU & non-EU citizens must apply for a temporary or permanent residence permit to work legally
• You’ll need a job offer or valid reason (e.g., freelancing, self-employment)
• Most permits are issued for 1 year, renewable
• Citizens of many countries (e.g., US, Russia, EU) can enter visa-free for 180 days per year

Business culture and work norms

• Politeness and formality matter in professional settings
• Punctuality is expected, but work culture is generally relaxed
• Personal connections go a long way, networking matters
• Hierarchies are respected, but teamwork and openness are valued in modern companies