How to Hire Remote Employees In 


The Basics

Armenian Dram (AMD)
Employer Taxes
Payroll Frequency
Official Language

Employment in 


Hire Independent Contractors

Independent contractors or freelancers are self-employed individuals who provide services to companies as a non-employee. This is one of the most common ways companies tend to hire non-local designers, engineers, support reps, etc.

For legal and tax purposes, independent contractors are not classified as employees. They may work for multiple clients, set their own work hours, negotiate their pay rate, and decide how a job gets done.

For example, the IRS says that if an independent contractor or freelancer does work that can be controlled (what will be done and how it will be done) by an employer then they are, in fact, classified as an employee.

As you can imagine, hiring someone as an independent contractor versus an employee is a fine line to tread.

While there are benefits when you choose the contractor route, there are quite a few drawbacks to consider and you’ll need to weigh them carefully to determine the best fit for your company.

Benefits of Hiring Independent Contractors
Reduced overhead: Lower cost in expenses, payroll, benefits, and more.
Greater flexibility: Contractors can be brought on as-needed. If not a good fit, you simply don’t have to move forward with the contract.
Reduced legal risk: Contractors aren’t usually protected by employment anti-discrimination and workplace safety laws.
Disadvantages of Hiring Independent Contractors
Risk of Misclassification: Not only does this deny workers their proper protections, it can also result in steep penalties and damage to your company. If the IRS determines that employee misclassification has occurred, you will be liable for a percentage of the employees wages, FICA contributions, penalty fines, unpaid taxes, up to a year in prison, and more.
Lack of Control: Contractors are drawn to being independent because it gives them greater control over the work they perform and who they work with. Because they’re not employees, you can’t tell them what to work on and how it should be done.
Lack of Loyalty: Contractors come and go as-needed. Many companies hire contractors for short-term work, which makes it difficult to cultivate loyalty.
Increased Scrutiny: Using Independent Contractors typically leads to an increased risk of being audited.

Set up a subsidiary in 


A foreign subsidiary is a company that operates overseas as part of a larger company who’s HQ is in another country.

Establishing a foreign entity is great for having an international presence and accessing new markets. Though, setting up a subsidiary in Armenia can be expensive, stressful, and time-consuming. It's not for the faint of heart.

To set up a subsidiary in Armenia, you have to:

  1. Register your business name and file articles of incorporation
  2. File for local bank accounts
  3. Learn and keep track of the local employment laws
  4. Set up local payroll
  5. Hire local accounting, legal, and HR people

If you're lucky, this process can take months. If you're not so lucky, it can take up to a year. And on average, it costs about $50k-$80k, all-in-all, to get setup. And that's just for Armenia.

Use an Employer-of-Record (EOR)

An employer-of-record (EOR) is a company that hires and pays an employee on behalf of another company.

An EOR is typically used to overcome the financial and regulatory hurdles that often come with employing remote workers.

Each country has its own payroll, employment, and work permit requirements for non-resident companies doing business in their jurisdiction. Meeting those demands can be a huge obstacle when it comes to hiring remotely.

At Panther, we help companies employ and pay people in over 160 countries, without having to set up a foreign subsidiary. Payroll, benefits, taxes, compliance, and more are all handled by us, at a fraction of the cost.

Outside of saving you months and tens of thousands of dollars, other advantages of using Panther are:

  • Ability to attract talented and motivated employees from all over the world.
  • Full legal compliance: There is no risk of violating local employment laws.
  • Transparency: Employees are still your employees. All the work, processes, operations and day-to-day business belong to you, the company, just like with any other employee. Panther just takes on all of the responsibilities, obligations and admin work related to your team's employment.
  • No risk of misclassification

Because you no longer have to set up your own subsidiary, you’ll save a ton of time and tens of thousands of dollars using Panther.

Paying Remote Employees

Paying employees in Armenia is not the same as paying workers in your own country. Employees have to be paid using Armenia’s employment and payroll standards.

This means that you have to know, understand, and keep up with 1) fluctuating currency changes, and 2) local payroll and tax laws in the countries you’re looking to hire in.

Outside of the laws and regulations around payroll, there may be different conditions surrounding leave, overtime, termination, and more. As you can imagine, maintaining this kind of regulatory knowledge can be challenging. But it is crucial and necessary to follow local legislation.

After, you’ll have to determine the best way to pay your international employees. This can be done in a number of ways, including but not limited to:

Pay through a local entity

One of the most challenging (and expensive) parts of paying international employees is setting up the infrastructure to do so.

Before you start to run payroll, you have to register your company as the local employer in the country the worker resides in. As you can see in the “Set up a subsidiary” section, this is a multi-step process that can take up to a year and put you on your way to bankruptcy.

Work with an EOR

Outside of EORs acting as the full admin employer, many also provide remote payroll.

For example, at Panther, in just 1-click, you’re able to pay your entire global team, anywhere in the world. We send you an invoice each month, charge you in US Dollars, and pay your employees the same amount in their local currency.

We factor in currency fluctuations and use the mid-market rate plus any applicable fee passed on by our provider at cost at the time of billing.


 Specific Information

Working Hours

Full Time employment is considered 40 hours weekly, and 8 hours daily.


Employees earn 150% of their normal hourly rate for each hour of overtime work. Employees earn 130% of their normal hourly rate for each hour of night work.

Payroll Tax



  • Pension

Employee (Income Tax)

  • Flat Rate - 23%

Minimum Wage

The minimum wage is 406 Drams per hour and 68,000 Drams a month.


Pay Cycle

Salaries are paid on a monthly basis. Payday is the 15th of the following month.

13th Salary

The 13th salary is not required by law.


Paid Time Off (PTO)

The minimum annual leave is 20 working days for a five-day working week and 24 working days for a six-day working week.

Extended annual leave of up to 25 working days for a five-day working week, or 30 working days for a six-day working week (in exceptional cases, 35 working days for a five-day working week, or 42 working days for a six-day working week) is given to employees in working conditions, deemed stressful or high risk.

Public Holidays

There are 20 public holidays, 14 of which are non-working.

Sick Days

Employees provide paid sick leave to their employees from the 2nd to the 5th day. After the 6th employees are covered by social insurance.

Maternity Leave

Pregnant employees receive 140 days (70 days of pregnancy, 70 days of childbirth), 155 days (70 days of pregnancy, 85 days of childbirth) – complicated childbirth, 180 days (70 days of pregnancy, 110 days) in case of having more than one child at a time.

In case of premature birth, unused days of maternity leave are added to the days of maternity leave.

The daily benefit is 100% of the insured’s average monthly earnings (regardless of the number of years of covered employment) divided by 30.4 (average number of days in a month).

Paternity Leave

Fathers can take 5 days of paid leave within the first 30 days after the child is born.

Parental Leave

Parents is entitled to 5 days paid leave within the first month of the child’s birth.

Other Leave


Marriage Leave


Bereavement Leave



Termination Process

In order to terminate an employee, an employer must have sufficient reasons and provide notice.

Notice Period

The notice period is determined by the length of employment.

up to 1 year of employment – no less than 14 days notice

1-5 years employments – 35 days notice

5-10 years of employment – 42 days notice

10-15 years of employment – 60 days notice

Severance Pay

Severance pay is determined based on the grounds of termination.

liquidation of the organization/reduction in the number of employees/recovery of the employee in the previous job 

  • Employees average monthly salary

an employee for non-compliance with the position held/Long-term disability of the employee/The employee is entitled to an old-age pension/Significant working conditions to change/employee to be called up for compulsory military service –

  • up to 1 year – 10 times the employees average daily salary
  • 1-5 years – twenty-five times the employees average daily salary
  • 5-10 years – 30 times the employees average daily salary
  • 10-15 years – 35 times the employees average daily salary
  • 15 or more years – 44 times the employees average daily salary

Probation Period

The probationary period is generally set at three months in the employment contract. Before the expiration of the probationary period, the employment contract can be terminated by notifying at least 3 days in advance.