Employer of Record Armenia
Last updated
- Capital City
- Yerevan
- Languages
- Armenian
- Currency
- Armenian Dram (AMD)
- Population Size
- 2,800,000,000,000
- Employer Taxes
- 22%
- Employee Costs
- 23%
- Payroll Frequency
- Monthly
Expanding to Armenia? EOR (Employer of Record) Services Can Help You Hire Globally, Pay Locally, and Expand Effortlessly
We act as your Employer of Record in Armenia. When considering the expansion of your business on the international stage, INS Global’s Employer of Record services prove to be the optimal choice for enhancing efficiency and productivity while ensuring regulatory compliance. Partnering with our seasoned Employer of Record in Armenia gives you the potential to seamlessly recruit and manage employees in less than a week without the need to establish a local entity, all while adeptly navigating the complexities of international expansion.
Our services in Armenia provide a reliable, streamlined, and cost-effective solution for sourcing, employing, and overseeing local talent through our local Employer of Record. Armenia may be the next step on your journey, but with INS Global’s services spanning more than 100 countries worldwide, you gain the ability to efficiently oversee a diverse and globally dispersed workforce from virtually anywhere.
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Why Choose an Employer of Record in Armenia Over Company Incorporation?
To begin operations on your own in Armenia, you would first have to understand the complex system of regulations required to set up and manage a new legal identity, then ensure complete legal compliance with every law relating to labor and tax.
Choosing to establish a new company in Armenia would mean being liable for every aspect of that company being fully operational and totally compliant before getting started on making it successful. It can be costly, involving large teams and many headaches, from legally hiring your employees to establishing back-end processes like tax compliance. From start to finish, the time required to start a company in Armenia could be as long as two months and can require several thousand dollars in fees in the first two years.
A knowledgeable EOR can do all of these things for you in a fraction of the time, allowing you to begin the tasks you need to complete to be successful from day one.
A EOR:
- Saves time on expanding
- Lowers expansion costs
- Ensures legal compliance
- Allows you to focus on growing abroad
PEO/EOR Vs Company Incorporation
The Advantage in Figures
| PEO/EOR | Company Incorporation | |
|---|---|---|
| Price | 80% Less Expensive | |
| Market Entry | 2-5 Days | 6 Months |
| Employee Turnover | Decrease by 14% | |
| Recommendation | 98% of the Current PEO Clients | |
| Administrative Fees | Saves an Average of $450 | |
| Costly Payroll and Compliance Fines | Help Avoid | |
| Company Growth Rate | 7 – 9% | |
| ROI | 27% | |
| Closed During Pandemic | -58% | |
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The Advantages of Using an Employer of Record in Armenia
Ensure Total Legal Compliance
No need to worry about falling foul of any regulations. We take care of all compliance requirements.
Save Money
Avoid all the typical costs associated with company incorporation and any potential fees or fines
Reduce Unnecessary Tasks
We arrange all your HR needs allowing you to take care of the tasks that matter to your company’s success
Enter the Market in Days
Begin operations immediately and let us deal with the rest
Streamline Your Company Structure
Minimize your team and maximize your potential output by letting us take care of all the tasks that would typically go to an HR department
How does a EOR in Armenia Work for You?
We provide a simple setup process to get you started in Armenia as quickly as possible.
- 1
We work with your business to create a tailored expansion plan .
- 2
Our organization provides the legal entity needed to help hire and manage staff, ensuring compliance with Armenia’s legal requirements.
- 3
We handle HR-related tasks such as hiring, contract management , and payroll management to ensure local compliance upon entry to Armenia.
- 4
Your employees can focus on your goals while we take care of HR and legal compliance, providing a seamless transition and continued level of protection in the long-term.
The Differences Between PEOs and Employer Of Record
When considering a partnership with a PEO in Armenia, you will likely also hear the term EOR (Employer of Record). Typically, the two terms are largely interchangeable based on the kind of services they offer. The main difference between the two is the level of liability taken on by the PEO/EOR and the parties involved in the agreement.
- A PEO provides all HR services to employees on behalf of other companies
- A PEO agreement is made between the PEO and the original company to share the responsibilities for the employee
- An EOR in Armenia legally hires the employee on behalf of the original company and provides all HR services
- An EOR agreement is made between the EOR and the employee on behalf of the original company
In Armenia both services are indistinct according to national regulations, but INS Global can offer any elements of both according to your requirements
INS GUIDES
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Labor Law in Armenia
Employment Contracts In Armenia
Professional employment in Armenia starts with an official letter of employment.
In most cases, employers can include a 3-month probation period in their contracts.
An employment contract should specify and describe the employee’s role in detail.
An employer can end the contract early if the employee violates the conditions of their employment contract.
Employees are entitled to 14 days of notice. This increases to 2 months if the company is in liquidation.
Severance pay is required for employees being let go in Armenia. This can range from 2 weeks’ pay to 1 months’ pay depending on the cause of dismissal. Redundancy often comes with larger severance agreements.
The working week in Armenia runs from Monday to Friday.
Requesting work to be done on the weekends is allowed with the agreement of the employee, but usually comes with a higher hourly rate.
Full-time employees generally work 8 hours per day, 40 hours per week.
Part-time employees work 20 hours per week.
Employees are entitled to a higher hourly rate for overtime. This is generally 150% of the normal hourly rate.
Types Of Leave
Armenia has 15 official national holidays.
Employees are entitled to 28 days of paid annual leave every year.
Employees can get up to 35 days of leave if they are working in hazardous conditions.
If an employee is ill and can’t come in to work, they are entitled to 30 days of unpaid leave.
A sick leave allowance after 30 days can be claimed from social security as employers have no responsibility to pay employees during this time.
A valid doctor’s note should be submitted to HR as soon as possible upon taking leave.
According to Armenian law, female employees are entitled to 140 days of maternity leave.
Maternity leave extends from 70 days before birth to 70 days after birth.
This leave can be extended to 155 days if there are complications at birth.
Maternity leave can also be extended to 180 days for multiple births.
Male employees are entitled to 5 days of paternity leave.
Tax Laws in Armenia
- Employers in Armenia are responsible for withholding all taxes and social contributions from their employee’s salaries.
- Employee contributions toward pensions can be up to 5% of the monthly gross salary if it’s less than 500,000 AMD.
- Employer contributions can be 10% of the monthly gross salary, but not more than the maximum threshold minus 25,000 if the salary is more than 500,000 AMD.
- The corporate income tax rate is set at 18% for both local and foreign companies.
- Personal income tax is a flat rate of 23% of all income.
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Frequently Asked Questions
Global Employer of Record is an effective solution for companies looking to expand their workforce abroad effortlessly.
This approach allows you to outsource the international hiring process quickly and efficiently, providing access to a global talent pool while still managing payroll compliance in each country.
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