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Armenia Payroll Services & Solutions

Seamlessly expand your business in Armenia, with Horizons

Establishing and managing payroll in Armenia

If your business is planning to expand into Armenia, one of your first tasks will probably be hiring a local workforce. This generally means you will need to establish a legal entity in the country, set up a payroll, and follow various other complex procedures. This can be difficult for foreign organizations, with language barriers, and regular unexpected delays often stalling progress and cutting into revenues.

At Horizons, we provide comprehensive Armenia payroll outsourcing for organizations of all kinds. We will set up and run your Armenia payroll, giving you full flexibility to focus on expanding your Armenian operations, whether or not you have an official entity established in the country.

Why choose the Horizons payroll solution?

If you have an entity

For businesses that have already registered an official entity in Armenia, we offer a comprehensive and tailored payroll outsourcing service. Our expert team will set up and manage your payroll, also handling all of your associated administration, HR, and compliance with local laws.

This level of outsourcing is ideally suited to larger organizations and those expanding into Armenia in the long-term.

If you don’t have an entity

We also provide full support for organizations yet to establish an entity in Armenia. In these cases, we can offer our Armenian subsidiary to act as employer of record for your employees. In addition to this, we will set up and manage your payroll in Armenia, along with associated administration work.

This level of outsourcing is ideally suited to any organization looking for a flexible, low-risk, and scalable route to doing business in Armenia.

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Armenia payroll guide

Taxation and withholdings in Armenia

Employees in Armenia born in or later than 1974 must pay towards social security. This is between 5% and 10% of monthly income, depending on income level, and an administrative fee of 1.5% of the balance.

Employers must pay a standard rate of 7,000 drams per month to employee social security, plus 15% of salary for 20,000 to 100,000 drams in earnings and 5% of any earnings above 100,000 drams.

Personal income tax in Armenia is set at a flat rate of 23%, and this figure is set to gradually fall to 20% by 2023.

Corporate tax in Armenia is 18%.

Entitlements and terminations in Armenia

In most cases, the notice period for employee terminations in Armenia varies between five and seven days depending on the length of service. Severance pay of one month of salary is also required for employees being made redundant.

Probation periods in Armenia are limited to three months.

How to establish an Armenia payroll

To establish and run a payroll yourself, your organization will need to follow a complex set of laws and procedures that are unique to Armenia, as well as operate and negotiate in the Armenian language. You will usually have to register a legal entity, sign up with the relevant authorities, open bank accounts, and hire a workforce.

At Horizons, we provide full Armenia payroll outsourcing, taking care of everything for you to ensure your organization is compliant and well-equipped to successfully expand into the country. For organizations without an entity in Armenia, we can also provide our Armenian subsidiary to act as employer of record for your hires.

Manage payroll in Armenia

Whether it’s EOR service or just payroll management, Horizons’ employment experts can help you get started in 24h.