All companies should provide compensation and benefits that meet the statutory minimums and even go above and beyond if possible. Adding supplemental benefits to your Armenia benefits management plan can help you exceed the country’s requirements and bring in a high level of talent. That said, finding the time to source these benefits and figure out what’s best for your employees while running your company can turn into quite the challenge.
The Globalization Partners team understands everything that will be on your plate during an expansion, which is why we offer Armenia compensation and benefits outsourcing. We can use our Armenia PEO to help you expand quickly, and we’ll handle everything from hiring employees who work for your company to making sure you meet Armenia’s compensation laws. When you choose us, you’ll have to worry about just one thing — running your company.
Armenia Compensation Laws
Armenia’s minimum wage is fixed at 68,000 AMD a month as of 2021. One important Armenian compensation law is overtime. Employees are allowed to work overtime, but they can’t work more than four hours a day or eight hours a week. They should receive at least 150% of their regular hourly rate for every overtime hour.
Guaranteed Benefits in Armenia
All employees should receive days off for Armenia’s 10 public holidays, as well as 20 days of annual paid vacation. Another required benefit is maternity leave. Female employees should get up to 140 days of paid maternity leave — 70 days before birth and 70 days after. If there are complications, the employee should get 155 days of paid time off and 180 days for multiple births. Adding these guaranteed benefits to your Armenia benefit management plan first will help you make sure you stay compliant.
Armenia Benefits Management
Your company has to figure out how to disperse benefits once you finish your plan. We recommend providing additional benefits in your employment contract to help your open positions stand out from others. For example, try providing bonuses in your contracts, or give them out on a discretionary basis. Doing so can show employees that you care about the work they’re doing for your company.
Restrictions for Benefits and Compensation
Companies expanding through traditional methods can’t provide compensation or benefits until they have a registered entity in Armenia. However, it can take a couple of months or even a year to incorporate and start working in a foreign country unless you work with a global PEO.
Globalization Partners has subsidiaries around the world that we can use to help you expand faster. For example, we’ll use Armenia compensation and benefits outsourcing to add your employees to our payroll and benefit plan. Then, we’ll act as the Employer of Record and manage all the risk of compliance for you.
Armenia Competitive Benefits Planning
When you’re designing benefits plans for employees in Armenia, keep in mind that your program can help further company growth in the new country. You can leverage competitive benefits offerings to attract and hire leading team members in the area. To plan successfully, you’ll want to balance key considerations and create a plan that fits your budget and market standards.
Armenia employee benefits plans
As you build your program, be sure to account for legal regulations and local expectations. A plan that addresses critical needs for your employees can demonstrate that you truly value their work.
You’ll contribute to workplace engagement and retention when you support your employees with a thoughtful benefits program that helps them personally and professionally. Your benefits plan is an investment in your work culture and your employees’ motivation to succeed in your company.
You might offer supplemental provisions such as these to support employees:
- Housing and travel assistance
- Advanced professional learning courses
- Wellness events and resources
- Childcare services or stipends
Mandatory employee benefits in Armenia
Ensure you include all the required benefits in your plan before you add supplemental provisions. Mandatory offerings include:
- Maternity leave
- Public holiday leave
- Maternity leave
- Vacation leave
How to design your employee benefits program
Benefits plans will look somewhat different in each country because of unique regulations and market conditions. However, you can approach the planning process with the same basic steps anywhere in the world.
1. Set a budget and program goals
Identify critical objectives for your program, such as the size of the team you want to support and how you want to prioritize employee retention. Assess your available finances and create a budget to support top program goals.
2. Understand the local economy
You’ll need an understanding of the market before you can compete in it. Analyze other companies’ benefits offerings to see if you can match them. Look for market standards that may emerge across industries, as these will inform your employees’ expectations.
It’s also wise to discuss top economic concerns with local workers. In interviews or surveys, ask them what they’re looking for from their employers and note any underserved offerings your company could provide.
3. Design your benefits plan
Using your research as a guide, begin building your plan. Start with the required provisions. With the rest of your budget, you can incorporate market standards and the offerings that employees want most.
Remember to factor employee contributions, outsourcing costs, and administration expenses into your budget as you finalize your plan.
Average cost of benefits per employee
Because each company has a different operating scale and business objectives, a national average program cost isn’t the most precise metric to use in your planning. You’ll want to focus on creating a unique budget that’s sustainable for your company.
You might consider supporting your benefits plan with a set percentage of yearly revenue so you can easily scale your offerings as your company grows.
How to calculate employee benefits
You can calculate any mandatory benefits based on national labor laws.
If you’re setting rates for fringe benefits, use your research to meet or exceed your competitors’ offerings.
How are employee benefits taxed in Armenia?
Most forms of remuneration and benefits provided by employers are taxable. You can expect to include any monetary earnings in your calculations for each employee’s taxable income.
Employee health benefits plans
The current healthcare infrastructure of Armenia includes free, government-sponsored services and some private providers. You can provide private insurance coverage options for your employees, but doing so is not a requirement.
Work with Globalization Partners to build your global team
Globalization Partners’ global employment platform helps you build and scale an international team quickly and easily, ensuring all benefits offered to candidates are compliant and in line with local regulations. Learn more about our platform and request a proposal today.