Employer of Record (EOR) in Armenia 2025: The Complete Hiring Guide
- Gegidze • გეგიძე | Marketing
- 4 days ago
- 11 min read
Table of Contents:
Why Armenia is on the radar in 2025
Forget Estonia. Forget Portugal. Armenia is where smart companies are hiring in 2025.
Why? Because while everyone’s chasing overexposed talent pools, Armenia’s building a workforce that’s skilled, affordable, and ready to go global.
The country’s IT exports grew more than 30% in just one year, and tech now makes up over 5% of Armenia’s GDP. That’s not hype, that’s momentum.
In Yerevan, you’ll find mid-level developers earning $1,500/month, fluent in English, with EU-standard education and full timezone overlap with Europe and MENA.
Armenia has zero restrictions on remote work, a government that actually wants foreign companies to hire locally, and a business culture that moves fast without the bureaucracy you’ll find in other post-Soviet markets.
If you're expanding your remote team in 2025, Armenia isn’t a backup plan, it’s your competitive edge.
This guide will show you exactly how to make it happen, with no entity and no red tape.
What is an employer of record (EOR) and why use one?
An Employer of Record (EOR) is exactly what it sounds like - a company that becomes the legal employer of your team, so you don’t have to.
Let’s say you want to hire a frontend developer in Yerevan. Great fit, right price, perfect time zone.
The only problem? You don’t have a legal entity in Armenia.
That means no local contracts, no payroll infrastructure, and no way to stay compliant, unless you use an EOR.
With an EOR like Team Up, you still manage the work. We just handle everything else:
Drafting locally compliant contracts
Running payroll and paying taxes in AMD
Managing social contributions
Navigating labor laws, benefits, and terminations
You skip the bureaucracy, the legal risk, and the months-long setup. Your hire gets a real job, real benefits, and a smooth onboarding.
If you're hiring in Armenia to move fast, not open an office, an EOR isn’t a workaround. It’s the playbook.
Armenia’s specific challenges EORs solve
Hiring in Armenia might seem simple until you actually try to do it.
Yes, the talent is there. But unless you already have a local entity, you’re facing a pile of admin, legal, and compliance hurdles before your new hire even sees a contract.
Here’s what slows teams down and how an EOR clears the path:
You can’t hire legally without a registered local entity To employ someone in Armenia, you need a local company, a bank account, and registration with the State Revenue Committee. That takes weeks, sometimes months. An EOR already has that setup. You hire in days, not quarters.
Local employment contracts must follow Armenian labor law That includes writing them in Armenian, reflecting local leave entitlements, and structuring notice periods and terminations properly. An EOR handles compliant contract creation, translations, and filings.
Payroll, tax, and reporting rules aren’t beginner-friendly Employers are responsible for withholding income tax (around 21–23%) and paying social contributions. Missteps can lead to fines or blocked payments. An EOR calculates, pays, and reports all of this for you.
You’re liable for compliance, even if you don’t understand the law Misclassification, late taxes, or mishandled terminations can create serious legal exposure. An EOR takes on full employer liability, so you don’t have to.
Hiring in Armenia without a local presence isn’t impossible, but it is risky and slow. An EOR removes all of that friction so you can focus on the work, not the paperwork.
What it looks like to hire through an EOR in Armenia
If you’ve never used an Employer of Record before, the process can feel abstract.
So let’s break it down step by step, so you know exactly what to expect when hiring in Armenia through an EOR like Team Up.
Here’s how it works in practice:
Step 1: You find the candidate
Whether you're hiring an engineer, operations lead, or customer support rep, you control recruitment. You choose who you want. We don’t get in the way.
Step 2: We handle compliance, fast
Once you’ve selected a candidate, we issue a compliant employment contract written in Armenian and aligned with local labor law. We register the employee with Armenian tax and social authorities and set them up for payroll and benefits.
Timeline: Most hires are fully onboarded in 5-10 business days.
Step 3: Your employee starts work under your direction
They report to you, follow your schedule, and use your tools. From their perspective, they’re a full part of your team.
We just handle:
Payroll processing in AMD
Tax withholdings and monthly reporting
Social contributions
Employment records and leave tracking
Offboarding if or when needed
Step 4: You get one monthly invoice
We consolidate salary, employer costs, and our service fee into a single invoice, so you don’t need to manage local payroll, banking, or government filings.
Labor law, tax & compliance overview
Hiring in Armenia comes with fewer restrictions than many countries in the region, but there’s still a legal framework you can’t ignore.
Armenian labor laws are clear, tax obligations are enforceable, and employment compliance is non-negotiable.
If you're hiring without a local entity, here's what an Employer of Record (EOR) like Team Up handles for you.
Employment contracts must meet local standards
All contracts must be compliant with Armenia’s Labor Code and:
Be written in Armenian (bilingual versions are acceptable)
Clearly state job duties, work hours, salary (in AMD), and probation period
Define the contract type (indefinite or fixed-term)
Include rules for notice periods, leave, and termination
We prepare and sign these contracts as the legal employer, so you’re covered from day one.
Working hours and leave requirements
Standard workweek: 40 hours (5 days, 8 hours/day)
Paid leave: At least 20 working days per year
Sick leave: Required documentation; partially reimbursed
Public holidays: 10+ per year, must be observed for full-time employees
Income tax and social contributions
Armenia uses a flat personal income tax model and mandatory pension contributions:
22% flat income tax (includes PIT and social payments)
5% employee pension contribution
Employer must withhold and report all taxes monthly
Employer | Employee | Other |
18% Corporate tax rate | 20-36% Income tax rate (progressive) | 20% VAT |
10% Pension contribution | 2% Pension contribution | 10% Dividends, Royalties |
Team Up handles this entire process accurately, on time, and in full compliance with Armenian tax law.
Termination rules you can’t skip
Ending an employment relationship in Armenia requires:
Written notice (typically 5-15 working days depending on cause)
Severance pay in some cases (especially for redundancy or restructuring)
Documentation of cause (if termination is performance- or behavior-based)
Failure to follow procedure can result in legal disputes or financial penalties. With an EOR, these risks are fully managed.
How much does it cost to use an EOR in Armenia?
One of the biggest reasons companies look to hire in Armenia is cost-efficiency, but that doesn’t just mean low salaries.
It also means avoiding the expense of setting up a legal entity, hiring local accountants, and figuring out tax compliance on your own.
Using an Employer of Record (EOR) gives you a fixed, predictable monthly cost for each employee.
Here’s what’s included:
1. Gross salary
Let’s say you agree to a base salary of $2,000/month for your new hire in Armenia.
2. Employer contributions in Armenia (2025)
While the EOR handles all local tax filings and payments, these employer contributions are factored into your monthly cost.
Contribution Type | Rate |
Income Tax (withheld) | 20% flat (employee pays, but EOR handles it) |
Social Security | 7.5% (on gross salary) |
Military Stamp Duty | ֏1,500–֏15,000/month (fixed based on salary brackets) |
3. Estimated monthly cost breakdown (for $2,000 gross salary)
Item | Amount (USD) |
Gross Salary | $2,000 |
Social Security (7.5%) | $150 |
Military Duty | ~$8–$40 |
EOR Service Fee | ~$200–$400 (varies by provider) |
Total Monthly Cost | ~$2,358–$2,590 |
So you’ll typically spend 15-30% more than the gross salary to cover all mandatory contributions + the EOR’s margin.
3. Team Up’s EOR service fee
We charge a flat fee of €199/month (roughly $215 USD) per employee. This includes:
Local employment contracts (in Armenian)
Monthly payroll in AMD
Tax and pension reporting
Leave tracking and local HR support
Onboarding and offboarding
Total monthly cost breakdown
Gross salary: $2,000/month
Social Security (7.5%): $150
Military Stamp Duty: Let's take a mid-range estimate = $25
Team Up EOR fee: €199 = $215 (approx.)
Item | Amount (USD) |
Gross Salary | $2,000 |
Social Security (7.5%) | $150 |
Military Stamp Duty | $25 |
EOR Service Fee | $215 |
Total Cost | $2,390 |
So the final monthly cost to hire a $2,000/month employee in Armenia through Team Up’s EOR is $2,390 USD.
What you can offer through an EOR in Armenia
If you’re hiring in Armenia, you need more than just a competitive salary.
The top candidates, especially in tech, product, and operations, expect a real job.
That means a real contract, local benefits, and a setup that makes them feel like they’re part of something stable.
Through Team Up, here’s what you can offer.
The essentials (and what’s expected locally)
Paid time off Armenian labor law requires a minimum of 20 working days of paid vacation per year. We make sure that’s built into the contract, tracked, and compliant.
Sick leave Employees are entitled to paid sick leave. You don’t need to calculate anything, we handle documentation and payouts based on the official system.
Health insurance Not mandatory, but becoming standard for white-collar roles. If you don’t offer private coverage, someone else will.
We can help you set up a basic plan that covers what matters without overcomplicating it.
The extras that help you win talent
Perks aren’t fluff, they’re differentiators.
Especially in a market where candidates are comparing you to remote offers from Germany, the Netherlands, or the UAE.
Through Team Up, you can offer:
Coworking memberships in Yerevan, Gyumri, or Vanadzor
Laptops and equipment (shipped locally without customs chaos)
Learning budgets for online courses or local workshops
Wellness or gym allowances (yes, these are appreciated)
You pick what makes sense. We execute it locally on your payroll, fully tracked, fully legal.
No patchwork HR systems
Everything runs through Team Up. One platform. One payroll. One point of contact.
Your team gets a benefits experience that feels professional. You stay focused on product, not paperwork.
EOR vs payroll outsourcing in Armenia
If you’re expanding into Armenia, you’ll eventually face this question: Do we need an EOR, or can we just outsource payroll?
Here’s the short answer:
If you don’t have a legal entity in Armenia, you can’t use payroll outsourcing alone. You need an Employer of Record (EOR).
Let’s break down why.
What payroll outsourcing does (and doesn’t do)
Payroll outsourcing means hiring a local provider to run your payroll, calculate salaries, handle withholdings, and file taxes. But legally, you’re still the employer.
Which means:
You must have a registered local entity
You’re responsible for contracts, compliance, terminations, and disputes
You carry full legal liability if anything goes wrong
It’s useful if you already have a company in Armenia. Otherwise, it won’t get you very far.
What an EOR does differently
An Employer of Record becomes the legal employer on your behalf. You manage the work. The EOR handles the legal and operational backend:
Legally hires the employee under Armenian labor law
Issues compliant contracts
Runs payroll and pays taxes
Administers benefits
Takes on the legal risk
You don’t need an entity. You don’t need local HR. You can hire in weeks.
When to choose what
Scenario | You Need |
No Armenian entity | EOR |
Hiring one or two remote team members | EOR |
Testing the Armenian market | EOR |
Already incorporated and just need payroll help | Payroll Outsourcing |
Want full legal control and infrastructure | Entity + Payroll |
Payroll outsourcing is a tool. An EOR is the solution when you’re not set up locally and still want to move fast, stay compliant, and protect your business.
How to choose the right EOR in Armenia
Not all EORs are built the same. Especially in Armenia, where global platforms often try to offer services without any actual local presence.
If you’re trusting someone to legally employ your team, handle compliance, run payroll, and support your people, you need more than just a vendor. You need a partner who actually understands the market on the ground.
Here’s how to pick the right one.
1. They must be legally operating in Armenia
A surprising number of “EOR providers” subcontract everything to third parties or worse, don’t have any legal infrastructure in Armenia at all.
Ask:
Do you have a registered legal entity in Armenia?
Who signs the employment contracts, your company or a third party?
If they can’t answer clearly, walk away.
2. They handle contracts, taxes, and compliance end-to-end
A real EOR should manage:
Local employment contracts (in Armenian)
Payroll processing in AMD
Monthly tax filings
Labor law updates, leave tracking, and terminations
Ask:
Who’s responsible if something goes wrong?
Can you walk me through your offboarding process?
3. They support your employee experience, not just paperwork
You’re not hiring freelancers. You’re building a team. Your EOR should support that.
Look for:
Local onboarding and HR support
Employee access to workspace or benefits
Quick turnaround on payroll issues or policy questions
4. Transparent pricing, no vague contracts
Watch for hidden fees, inflated exchange rates, or unclear scope.
Team Up offers:
Flat €199/month per employee
No setup fees
Full visibility into what’s included
Is an EOR right for your team?
Let’s make this simple. If you want to hire in Armenia without opening a company, navigating tax codes, or hiring a local HR manager, then yes, an Employer of Record (EOR) is the right move.
But let’s be more specific.
Use an EOR if you:
Want to hire 1–10 people without setting up a legal entity
Need to move fast, think days or weeks, not months
Don’t want to deal with local tax filings, contracts, or compliance risk
Want to offer real benefits and local support, without building an HR team
Are testing the Armenian market before a bigger expansion
Want one partner, one invoice, and zero surprises
With Team Up, that’s exactly what you get.
An EOR might not be for you if:
You plan to open a full-scale office in Armenia soon
You’re hiring 50+ people and need direct control over local operations
You already have a registered entity and local HR/legal teams
In those cases, setting up your own company may make sense long term.
Bottom line
If you’re serious about building a lean, global team, Armenia gives you the talent, and an EOR gives you the speed, flexibility, and compliance to hire without the overhead.
No entity. No delays. No legal risk.
Hire smarter. Scale faster. Start now.
Frequently asked questions (FAQs)
What is an employer of record (EOR) in Armenia?
An EOR is a third-party company that becomes the legal employer of your team members in Armenia, so you don’t have to open a local entity. You manage the work. The EOR handles local contracts, payroll, taxes, benefits, and compliance with Armenian labor law.