Employer of Record and Payroll Services in Armenia

The Employer of Record arrangement lets foreign companies deploy staff to Armenia without forming a local Armenian entity. We hold the Armenian employment relationship on the client’s behalf, sponsor the work permit and Temporary Residence Card, run monthly payroll in AMD, withhold and remit all taxes, file monthly personalized reports, and handle benefits administration. The employee reports to the client and works on the client’s projects. We hold the legal employment infrastructure that makes that deployment compliant under Armenian law.

For project-based deployments, market-entry pilots, small regional teams, and clients who want operational presence in Armenia without committing to a permanent legal entity, the EOR is often the right answer. For clients who have or expect to set up an Armenian entity, we run the same payroll, tax, and contract work as a service to their entity rather than under our own. Either model is supported.

This page is the parent hub. The detail pages are Employer of Record Services, Armenian Employment Contracts and the e-Contract Platform, and Payroll Tax and Compliance.

What the EOR engagement covers

A standard EOR engagement covers eight workstreams.

Legal employment under Armenian law. We hold the Armenian employment relationship. The Armenian-language employment contract is signed on the unified electronic contract platform that became mandatory for new contracts in January 2026.

Work permit and Temporary Residence Card sponsorship. We register on workpermit.am as the sponsoring employer, run the labor market test where applicable, submit the application, and manage the Temporary Residence Card issuance. Standard fees: AMD 25,000 ($52) work permit, AMD 105,000 ($219) Temporary Residence Card, approximately 30 business days processing.

Monthly payroll calculation and disbursement in AMD. Salaries are calculated, taxes withheld, and net pay disbursed to the employee on the standard monthly cycle.

Tax withholding and remittance. Personal income tax at 20% (10% for qualifying IT employees), social security at 5% up to AMD 500,000 then 10% minus AMD 25,000 above (capped at AMD 87,500/month), and the military stamp duty (AMD 1,500–15,000 fixed fee depending on salary tier) are withheld and remitted to the state budget by the 20th of the following month.

Employment contract drafting. Compliant with Article 84 of the Armenian Labor Code and the 2026 unified e-contract platform. Bilingual format (Armenian plus the employee’s language). Salary in AMD, 40-hour standard work week, minimum 20 working days paid annual leave, probationary period up to 3 months (6 in certain cases), termination conditions defined in the contract.

Monthly personalized reporting. Submitted to tax authorities on the standard cycle.

Benefits administration. Health insurance procurement, annual leave tracking, sick leave, maternity and paternity leave compliance.

Termination advisory and exit process. Where an employment relationship ends, we manage the legal exit, final payroll, and any obligations under Armenian labor law.

EOR vs. entity formation

The EOR is the right answer in three scenarios.

Project-based deployments. When the work has a defined endpoint — typically 6–24 months — the EOR is materially easier to wind down than an LLC. The legal employment infrastructure unwinds with the engagement; there is no entity dissolution process to manage at project end.

Small headcount. For deployments of one to five employees, the LLC overhead is often disproportionate to the operational footprint. The EOR scales to a small team cleanly.

Market-entry pilots. For clients evaluating whether Armenia is the right base for a longer-term operation, the EOR allows the deployment to begin while the entity-versus-EOR decision is finalized. If the client later decides to form an entity, employment can be transferred from the EOR to the new entity.

The LLC, Branch Office, and Representative Office structures are the right answer when the operating model genuinely benefits from a separate Armenian legal identity — typically larger headcount, longer time horizon, or sector-specific positioning that requires the entity.

How the EOR handles the regulatory load

The EOR is designed for compliance specifically. The unified electronic contract platform mandatory as of January 2026 requires Armenian digital signatures, bilingual contract format, and specific content elements under Article 84 of the Labor Code. Penalties for informal employment start at AMD 600,000 (~$1,500) per worker as of 2026; employer fines for missing work permits are AMD 100,000–150,000; overstay fines for employees are AMD 50,000–100,000. The compliance exposure for an improvised informal arrangement scales quickly with headcount and time.

The EOR absorbs that load. The full contract and platform mechanics are on the Armenian Employment Contracts page; the tax and payroll compliance schedule is on the Payroll Tax and Compliance page; the immigration scope sits on the Immigration and Work Authorization hub.

Indicative pricing

EOR and payroll services run at indicative monthly fees of $300–$600 per employee, depending on salary scale, benefits configuration, and additional compliance scope. For clients with their own Armenian entity who want us to run payroll only — not the legal employment relationship — pricing is at the lower end of that range. For clients on full EOR arrangements, the higher end of the range applies.

Pricing is indicative and subject to custom quoting based on your requirements.

The 2026 compliance environment specifically

The January 2026 changes — the unified electronic employment contract platform, Armenian digital signature requirements for new contracts, and the mandatory Social Number for company registration — collectively raise the compliance bar in a way that affects every foreign employer in Armenia. The platform requires bilingual contracts, Armenian digital signatures from both employer and employee, and content elements specified under Article 84 of the Labor Code. Informal arrangements that may have worked under the prior paper-contract regime are no longer compliant. The EOR is configured to handle these changes by design — we operate the platform as part of our standard scope, so the regulatory transition is invisible to the client. For employers running their own Armenian entity, we provide the same compliance scope as a payroll service rather than as a full legal employment relationship.

How the EOR fits the broader engagement

Most EOR engagements run alongside our Soft-Landing Programs scope for the employee’s arrival and settlement, Immigration and Work Authorization for permit sponsorship, and where applicable Cultural Integration and Translation Services for language and government interactions. The single point of contact across all of these is part of the standard engagement model — the client deals with one named account manager rather than coordinating across multiple vendors.

Frequently asked questions

What does the Employer of Record arrangement actually do?

We hold the Armenian employment relationship on the client's behalf. We issue the Armenian-language employment contract on the unified e-contract platform, sponsor the work permit and Temporary Residence Card, process monthly payroll in AMD, withhold and remit all taxes, file monthly personalized reports, and handle benefits administration. The employee reports to the client and works on the client's projects. We hold the legal employment infrastructure in Armenia.

Do we maintain operational control of our employee under an EOR?

Yes. The employee reports to you, works on your projects, and integrates with your team. The EOR is a legal employment structure, not an operational one. Decisions about role, performance, compensation, scope, and termination remain with the client; our role is to execute the underlying compliance and payroll mechanics.

How are taxes withheld under an EOR?

We withhold 20% personal income tax (10% for qualifying IT employees), social security contributions at 5% on monthly gross salary up to AMD 500,000 and 10% minus AMD 25,000 above (capped at AMD 87,500/month), and the military stamp duty (AMD 1,500–15,000 monthly fixed fee depending on salary tier). Withheld taxes are remitted by the 20th of the following month with monthly personalized reports.

Is there a minimum headcount to use the EOR?

No. The EOR works for single-employee deployments as cleanly as for multi-employee teams. For project-based work, market-entry pilots, and small regional teams, the EOR is often the right answer specifically because the headcount is low enough that an LLC would be premature.

What about benefits like health insurance?

We administer health insurance, annual leave tracking (minimum 20 working days per Armenian Labor Code), sick leave, and maternity/paternity leave compliance. Benefit packages can be configured to mirror what the client's home-market employees receive, subject to Armenian regulatory minimums.

Ready to deploy your team to Armenia?

Every engagement starts with a free consultation. We assess your workforce, timeline, and entity structure, then deliver a tailored proposal with transparent pricing and clear milestones.

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