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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.

G-P streamlines each step of the payroll management process with our market-leading global employment platform. Pay your team with confidence anywhere in the world in 150 currencies with our 99% on-time automated payroll system — all with just a few clicks. Our products also integrate with leading HCM solutions, syncing employee payroll data across platforms automatically to create one reliable, convenient source of truth for HR teams.

Contact us to learn more about how we can support you.

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內容僅供參考,不構成任何法律或稅務建議。 您應該諮詢並信賴您的法律及/或稅務顧問。 G-P 不提供任何法律或稅務建議。 此資料屬一般訊息,並非針對特定公司或員工量身定制,也不反映 G-P 在任何特定司法管轄區內的產品交付情況。 G-P 不會就此訊息的準確性、完整性或及時性做出任何陳述或保證,並且不承擔由此產生的或與之相關的責任,包括因使用或依賴這些訊息而造成的任何損失。

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