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Population
Armenia has a population of approximately 2.8 to 3 million people (as of 2023). The population is predominantly composed of ethnic Armenians (around 98%). Minority groups include Russians, Yazidis, and Assyrians. Due to economic challenges and conflicts, there has been significant emigration in recent decades.
Capital
The capital of Armenia is Yerevan, the world’s oldest continuously inhabited city. It is the economic, cultural, and political center of Armenia and is home to about 1 million people, a significant portion of the country’s population.
Economic Strength
Armenia’s economy is characterized by agriculture, industry, and services. The production of copper, molybdenum, precious metals, and diamonds plays a significant role. Additionally, IT services and tourism are gaining importance. However, the country faces challenges such as unemployment and a reliance on imports and foreign aid, particularly from Russia and the Armenian diaspora. While the economy is growing, it remains heavily dependent on raw material exports and support from international partners.
Culture
Armenia has a rich cultural tradition, strongly influenced by Christianity, as it was the first country to declare Christianity as the state religion (in 301 AD). Armenian music, dance, and literature are important aspects of national identity. Armenian choral music and the traditional art of the duduk (a woodwind instrument) are world-renowned. Armenian festivals and customs reflect the country’s long history and rich cultural heritage.
Currency
The official currency of Armenia is the Armenian Dram (AMD). One dram is divided into 100 luma. The dram is the only legal tender for domestic transactions.
Health Insurance and Social Security System
Armenia has a public healthcare system, but it is often underfunded, which leads many people to rely on private healthcare services. There is no mandatory health insurance. The state provides limited healthcare services free of charge, but the quality varies significantly, especially between urban and rural areas. The social security system covers pensions, unemployment support, and work accident insurance. Pensions and social security benefits are funded through contributions from both employers and employees.
Employer Costs
Employers in Armenia are required to contribute to social security, with contributions amounting to about 23% of the gross salary. These contributions cover pensions and social insurance. Depending on the industry and individual employment contracts, additional employer costs such as unemployment insurance may apply.
Salary and Bonuses
Salaries in Armenia vary depending on the industry, qualifications, and position. The statutory minimum wage is currently around 75,000 AMD per month (approximately 150 euros). In many companies, bonuses are not legally required but are paid based on individual performance and the company’s financial situation. In particular, performance-based bonuses are common in the IT sector and in international companies.
Payroll
Payroll in Armenia takes into account deductions for taxes and social security contributions. Employers are required to calculate and remit these contributions properly. The income tax rate is a flat 23% (as of 2023), although this rate is expected to decrease slightly in the coming years.
Public Holidays
Armenia’s public holidays include New Year’s Day (January 1), Christmas (January 6), Labor Day (May 1), Independence Day (September 21), as well as several religious and national holidays such as the Feast of the Holy Virgin Mary and Victory Day in World War II (May 9). The exact holiday calendar may vary slightly from year to year.
Working Hours
The legally mandated working hours in Armenia are 40 hours per week. Overtime must be compensated additionally, although there are no strict regulations on the maximum limit for overtime. Flexible working hours are increasingly accepted in some industries.
Vacation
Employees in Armenia are entitled to at least 28 paid vacation days per year, in addition to public holidays. Vacation days are often contractually regulated and may vary depending on the industry, employment contract, and length of service.
Sick Leave
In case of incapacity due to illness or accident, employees are entitled to continued payment of wages. This is typically covered by the employer for up to 10 days, after which the social security system takes over. Health insurance covers medical treatment costs, provided the employee is covered by the state or private insurance system.
Termination/Severance
Armenian labor law regulates terminations in detail and provides for notice periods, which are typically 30 days but can vary depending on the employment contract or length of service. Severance payments are not legally required, but compensation may be provided in cases of wrongful termination or if the employee is laid off due to restructuring.