How to Hire and Pay Employees in Armenia: A Practical Guide for Global Teams

You’ve heard about Armenia’s deep bench of tech talent, competitive costs, and a workforce fluent in multiple languages. What you probably haven’t heard is that employment contracts must be written in Armenian and registered within 15 days. And salaries are paid only in Armenian drams (AMD). Payroll has its own set of rules. And navigating labor laws? Not exactly plug-and-play.

This guide gives you the practical steps to do it right, without getting stuck in the legal maze. Whether you’re hiring a single developer in Yerevan or building a distributed team, here’s how to stay compliant and keep things simple. If you’re exploring multiple global markets, check out Pebl’s broader country hiring guides.

Step-by-step: How to hire employees in Armenia

Hiring in Armenia isn’t complicated, but it is specific. The rules are clear, but the process requires precision. Think: tight timelines, local language documents, and a few legal must-haves that might not exist in your home country.

Let’s walk through the essential steps you need to cover.

Define your hiring needs

Start with the basics: who you need and what type of visas you need to bring them on. In Armenia, most full-time employees expect indefinite contracts. Fixed-term contracts are allowed, but only in specific situations, and you’ll need to justify them.

And don’t assume global job titles translate one-to-one. For example, a “growth marketer” might be categorized differently under Armenian standards. Take time to localize the role and responsibilities upfront.

Understand the local talent landscape

Armenia has strong talent pipelines in IT, finance, customer support, and engineering. English is widely spoken among professionals, especially in tech, but Armenian is the official language, and fluency expectations can vary by role.

If you’re hiring locally, skip the global job boards.

Choose the right hiring model

You’ve got options here. The best one depends on how many people you’re hiring and how fast you want to get started:

• Direct employment. You set up a local entity and hire employees directly. This gives you complete control, but it also comes with extra admin and legal setup.
• Employer of Record (EOR). A third-party provider hires on your behalf. They handle payroll, taxes, contracts, and compliance, while you manage the day-to-day work. If you’re unfamiliar with how this works, here’s a full breakdown of what an Employer of Record (EOR) is.
• Contractors. You can work with freelancers or sole proprietors, but make sure they’re registered and that you’re not crossing into employee territory. Employee misclassification is a real risk.

If you’re hiring just one or two people in Armenia, or testing the waters, an EOR is typically the smoothest, quickest, and most straightforward path.

What to include in an Armenian employment contract

In Armenia, employment contracts aren’t optional. They must be written in Armenian and signed before the employee starts. You’ll also need to register them with the State Revenue Committee.

Here’s what to cover:

• Type of employment. Indefinite or fixed-term
• Job duties. What they’re responsible for and their title
• Work schedule. Including any probation period (up to 3 months)
• Salary. Gross amount in AMD (Armenian drams)
• Time off. At least 20 working days of vacation each year
• Termination rules. Notice periods, conditions for ending the contract
• Social contributions. What’s withheld and why
• Bonuses or perks. Any extras you’re including

Both parties should keep signed copies, and the contract must be registered within 15 days.

For legal details, you can check the Armenian Labor Code.

How to set up payroll and pay employees in Armenia

Payroll in Armenia runs monthly, and salaries must be paid in local currency, Armenian drams. Direct bank transfers are the norm.

Key steps to run payroll

1. Register as a tax agent with Armenia’s State Revenue Committee (SRC).
2. Collect employee tax IDs, bank info, and other onboarding data.
3. Calculate deductions and generate payslips.
4. Submit monthly tax and payroll reports to the SRC.
5. Store payroll records for five years.

Employees expect to be paid by the end of the month. Late payments not only risk penalties, they hurt your reputation with your team.

Mandatory deductions and taxes in Armenia

Let’s break down what comes out of each paycheck.

Income tax

It’s a flat rate of 20%, deducted from gross pay and submitted by the employer. One common mistake? Calculating tax from the net salary. Always start with gross.

Social contributions

These fund Armenia’s pension and healthcare systems. They’re split between you and the employee:

• Employer. 7.15% (capped at a certain salary level)
• Employee. 3.5% to 10%, depending on income

You’ll remit these monthly through the SRC.

Sample payslip

Let’s say your employee earns AMD 500,000/month:

• Gross salary. AMD 500,000
• Income tax (20%). AMD 100,000
• Social contribution (5%). AMD 25,000
• Net pay. AMD 375,000

You, as the employer, will also contribute AMD 35,750.

Common mistakes to avoid when hiring in Armenia

Here are five issues that trip up global teams hiring in Armenia, and how to avoid them:

Tips for a successful application and how EOR providers can support you

If you’re hiring in Armenia for the first time, keep things simple:

• Stick to Armenian job titles when possible.
• Translate your contracts properly, machine translation won’t cut it.
• Build in a cushion for onboarding and payroll setup (at least two weeks).

Need help making sure it’s all above board? That’s where an Employer of Record (EOR) comes in.

They handle local contracts, file taxes, and manage payroll so you don’t have to open a branch or figure out Armenia’s labor laws on your own.

EORs are especially helpful when:

• You want to move fast without setting up a local entity.
• You’re hiring just one or two people.
• You don’t have in-house legal or HR teams familiar with Armenian compliance.

In short, the EOR becomes the local employer on paper, while you focus on getting your new hire up to speed.

What comes next

Hiring in Armenia is absolutely doable, you just need the right roadmap. Define your role, choose the right employment model, use a compliant contract, and make sure your payroll process ticks all the local boxes.

And if the paperwork starts to pile up? You’ve got support options, including trusted EOR partners that can keep you compliant from day one.

How Pebl can simplify hiring in Armenia

Pebl helps growing companies like yours hire in Armenia the right way, without the headaches. Our global payroll service makes it easy to onboard, pay, and manage employees in 185+ countries, including an EOR in Armenia. No legal entity? No problem. We also take care of local compliance, contracts, and taxes so you can focus on building a great team.

Whether you’re expanding into a new market or adding your first employee in Armenia, let’s chat.

This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.

© 2025 Pebl, LLC. All rights reserved.