In Armenia, labor law mandates a specific set of benefits that employers must provide to their employees. These benefits encompass paid time off, social security contributions, and leave for various situations.

Paid Time Off

Armenian employees are entitled to a minimum of 20 days of paid annual vacation each year. Armenia observes 10 public holidays throughout the year, and employees are entitled to paid leave on these days. Employees also receive paid sick leave, with the employer covering the first five days at 80% of the average salary. For absences exceeding five days, social insurance covers the leave.

Social Security Contributions

Employers in Armenia are required to contribute to a mandatory social security scheme on behalf of their employees. This scheme provides benefits such as pensions, healthcare, and unemployment insurance.

Maternity and Paternity Leave

Female employees are entitled to a generous 140 days of paid maternity leave, divided into 70 days before childbirth and 70 days after. This duration increases to 155 days for complicated deliveries and 180 days for multiple births. Employers must pay employees 100% of their average monthly earnings during this leave. While not explicitly mandated by law, some companies in Armenia offer paternity leave as a benefit.

This overview provides a general guideline. It's advisable to consult the Armenian Labor Code or seek guidance from a legal professional for the latest and most accurate information on mandatory employee benefits in Armenia.

In Armenia, companies can differentiate themselves by offering attractive optional benefits packages to attract and retain top talent. Here's a look at some commonly offered optional employee benefits in the country:

Supplemental Private Health Insurance

While basic healthcare is covered under the mandatory social security scheme, some employers might offer supplemental private health insurance plans. These plans can provide wider coverage for medical services, medications, and dental care.

Life and Accidental Death Insurance

Offering life or accidental death insurance demonstrates employer care for employee well-being and can provide financial security to the employee's family in case of unforeseen circumstances.

Professional Development Opportunities

Companies may offer financial assistance or paid time off for employees to pursue professional development opportunities, such as attending conferences, workshops, or obtaining relevant certifications. This investment in employee growth benefits both the employee and the company.

Flexible Work Arrangements

In recent times, some Armenian companies have begun offering flexible work arrangements, such as remote work options or flexible working hours. This can improve employee work-life balance and productivity.

Transportation Allowances

Depending on location and company size, some employers might offer transportation allowances to help employees cover commuting costs.

Additional Paid Time Off

Companies may offer additional paid time off beyond the mandatory minimum, such as personal leave days or compassionate leave for specific situations. This demonstrates employer understanding and flexibility.

Recreation and Wellness Programs

Some companies may organize or subsidize recreational activities, gym memberships, or wellness programs to promote employee health and well-being.

These are just some of the optional benefits offered by Armenian employers. The specific benefits offered can vary depending on the company size, industry, and overall compensation strategy.

In Armenia, as of March 2024, there is no mandatory health insurance for employees. However, the Armenian government is in the process of developing a universal health insurance system.

Current Health Insurance Situation

Employers in Armenia are not currently required to provide health insurance to their employees. However, some employers may choose to offer health insurance as a voluntary benefit. Additionally, residents in Armenia have the option to purchase individual health insurance plans from private insurance companies. This is particularly recommended for expatriates living in Armenia.

Upcoming Universal Health Insurance System

The Armenian government is working on a universal health insurance system that is expected to be implemented in 2024. The program aims to provide basic medical care and financial protection to all residents. It is anticipated that both employers and employees will contribute to the program through payroll taxes. However, the specific contribution rates and the services covered under the program are still under development.

It is crucial to stay informed about the latest updates regarding the universal health insurance program. Information will be available on the website of the Armenian Ministry of Health once it is available.

Armenia's retirement system is a three-pillar model, offering a combination of state pensions and voluntary contributions. This system provides a variety of retirement plans for employees.

State Pension

The state pension is the mandatory component of the system, funded through payroll taxes. The retirement age is 63 for men with a work history and 65 for everyone else. The state pension amount is calculated based on the employee's average salary and years of contributions. However, it's important to note that the average state pension is currently around 43,800 AMD (as of summer 2022), which might not be sufficient to maintain a comfortable standard of living.

Mandatory Funded Pension System (MFPS)

Introduced in 2011, the Mandatory Funded Pension System (MFPS) is a mandatory savings scheme where a portion of the employee's salary (5%) is contributed to a personal pension account. The employer contributes an additional 5%, bringing the total contribution to 10%. For employees earning less than 500,000 AMD monthly, the state contributes the additional 5% to ensure the 10% minimum contribution. These contributions are invested by licensed pension fund managers, and the returns are credited to the employee's account. The employee can access the accumulated funds in the MFPS upon reaching retirement age or under specific circumstances like disability or emigration.

Voluntary Pension Plans

Voluntary pension plans are optional plans offered by private pension funds, banks, and insurance companies. Employees can choose to contribute additional funds on top of the mandatory contributions. These plans offer various investment options and benefits, allowing for greater retirement income security. Contributions to voluntary pension plans may be tax-deductible.