Hiring in Armenia

The contract sets out role, salary in AMD, working time, leave, notice and any restrictive covenants. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

The contract must be in Armenian. A bilingual Armenian and English version is common for commercial roles.

Fixed-term contracts are only allowed where the work cannot be set up on an indefinite basis, so most EORs default to indefinite terms. Contracts are moving onto the State Revenue Committee's electronic platform, which becomes mandatory from 1 July 2027.

Set probation in the contract from day one. Up to 6 months is possible for some managerial and specialist roles, but only by written agreement.

Some EORs shorten probation as policy because they, not you, carry the dismissal risk. Ask before you agree a start date.

Overtime is paid at 1.5 times the hourly rate and is capped at 4 hours over two consecutive working days, with an annual limit on top. Night work and work on public holidays carry their own premiums.

Professional roles are not automatically outside these rules, so agree in writing how extra hours are handled and keep a record of them.

Leave becomes usable after six months of service, and it can normally only be exchanged for cash when employment ends, so budget for unused days at exit.

Sick pay is a temporary incapacity benefit: the first day is unpaid, the employer covers roughly the first week and the state budget pays the rest. Maternity leave is 140 days and is funded by the state, so confirm whether the EOR tops it up.

Other no-fault grounds, such as unsuitability for the role, carry 14 to 60 days' notice and severance of 10 to 44 days' average pay, both scaled by length of service. Courts can order reinstatement with back pay, or award up to 12 months' average salary where reinstatement is impractical.

The EOR runs the process as the legal employer and will want the paperwork in order, including a written order citing the ground, final pay, unused leave and severance, all due on the last working day. Employees who are pregnant or caring for a child under one are heavily protected, so check status before you start.

Since January 2026, citizens also pay a fixed universal health insurance premium through payroll. Private medical cover is still a common extra for professional roles, even though it is not mandatory.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top.

Armenia has no employer social contributions, so gross salary plus the EOR fee is most of the cost. The employee's income tax, pension contribution, military stamp duty and health premium all come out of gross pay.

Dram payment is the trap. Salaries paid in Armenia must go out in AMD, so a salary agreed in GBP or USD needs a written conversion rule and an agreed position on who carries exchange-rate movement.

Ask whether the EOR sponsors directly or refers to a partner. A partner-model EOR often cannot sponsor at all, and the permit is tied to the employer named on it. From 1 November 2026, annual quotas replace the labour market test and apply to the sponsor's application, not to you.

Set start dates after approval, not before.

Get the data processing terms in the service agreement, not just the privacy notice. Cross-border transfers need adequate protection in the receiving country or contractual safeguards approved by the Personal Data Protection Agency.

Ask where payroll data is hosted and who in the partner chain can see it.

Incorporation here is quick, but the running cost is the point: accounting, monthly State Revenue Committee reporting, audit above size thresholds and payroll software set an annual floor. From 1 November 2026, a foreign director working in the company also loses the work permit exemption and needs a residence route of their own.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.