Armenia’s culture and location are both critical factors that make this country a great place for companies looking to expand. Setting up your payroll is one of the first things you’ll have to tackle before hiring in Armenia.

However, it can be challenging to choose a payroll option while you’re trying to hire employees, deal with compensation and benefits, and run your company. Fortunately, G-P offers an alternative. As the Employer of Record, we manage compliance, handle payroll, and more, so you can begin hiring in minutes, not months.

Taxation rules in Armenia

All workers in Armenia born after January 1, 1974 have mandatory social security accounts.

As of January 1, 2022, employees must contribute 4.5% of their monthly earnings up to AMD 500,000 a month, and for earnings exceeding AMD 500,000 a month, 10% of monthly earnings minus a government flat-rate contribution of AMD 27,500.

Armenia payroll options for companies

You have different Armenia payroll options that can help you make the most of your daily operations. The 3 main choices include:

  • Internal: Not all companies have the resources for an internal payroll, but larger companies planning to work in Armenia long-term may choose this option. You’ll need to hire a large HR team and make sure you understand the country’s labor laws to ensure compliance.
  • Local payroll processing company: You can also choose to hire an Armenia payroll processing company to outsource your payroll. However, you can’t outsource matters of compliance with a local company.
  • Employer of Record (EOR): An EOR like G-P is the only option that will manage your payroll and also handle matter of compliance.

How to set up a payroll in Armenia

Setting up an Armenia payroll usually starts with establishing a subsidiary in the country. Fortunately, you don’t have to incorporate when you work with G-P. We’ll help you start working in days. With us, you won’t have to worry about setting up your Armenia payroll, as you can use our compliant payroll.

Entitlement/termination terms

It’s a good idea to add entitlement and termination terms to all your employment contracts before discussing Armenia payroll options. Notice periods will depend on how long the employee has worked for your company, and workers terminated because of redundancy will be eligible for severance pay.

Streamline global payroll management with G-P

Hire and pay your team anywhere in the world with our agentic Global Employment Platform. Vetted labor law intelligence is embedded directly into your workflows to ensure 99% payroll accuracy wherever you hire.

Our platform is designed to integrate with the systems you already use. Sync employee payroll data automatically to create one reliable source of truth for your HR team.

Book a demo to hire and pay teams in 150+ currencies today.