This Armenia salary calculator works both ways: from gross to take-home pay, and from an agreed net figure back to the gross the employer must accrue. Rules as of 14 October 2026.
How is net salary calculated in Armenia?
Every deduction is computed on the monthly gross, rounded to a whole dram, and subtracted. None of them reduces the base of another.
| Deduction | 2026 rate | Applies when |
|---|---|---|
| Income tax | 20% | standard regime |
| Income tax (R&D) | 10% | employees of R&D-privileged companies, until 31 Dec 2031 |
| Funded pension | 5% | gross up to 500,000 ֏ |
| Funded pension | 10% − 25,000 ֏, max 87,500 ֏ | gross above 500,000 ֏ |
| Stamp duty | 1,000 ֏ / 15,000 ֏ | up to / above 1,000,000 ֏ |
| Health insurance | 0 / 4,800 / 10,800 ֏ | up to 200,000 / 200,001–500,000 / above 500,000 ֏ |
The pension contribution is mandatory for anyone born in 1974 or later, including foreign nationals.
Worked example: 300,000 ֏ gross
- Income tax 20%: 60,000 ֏
- Pension 5%: 15,000 ֏
- Stamp duty: 1,000 ֏
- Health insurance: 4,800 ֏
- Net: 219,200 ֏ (2,630,400 ֏ a year)
The employer’s cost is 300,000 ֏, because there are no employer contributions.
For net → gross, a take-home target of 223,700 ֏ needs 306,000 ֏ gross. Near the 200,000, 500,000 and 1,000,000 ֏ thresholds one net figure can match two grosses (149,000 ֏ net comes from both 200,000 and 206,400 ֏); the calculator returns the lower one.
What changed in 2025–2026?
- Health insurance under the Universal Health Insurance Law is withheld from December 2025 salaries: 4,800 ֏ (10,800 ֏ premium minus a 6,000 ֏ state subsidy) or 10,800 ֏. Legally the duty follows the previous month’s salary and persists for 12 months; the calculator uses the current month for simplicity. Employees under 18 or 65+ are exempt.
- Stamp duty was simplified to two rates in 2026.
- The R&D 10% rate runs until 2031; old IT certificates are no longer issued.
- The minimum wage remains 75,000 ֏. Health insurance rules change again from 1 January 2027.
Who is it for?
Relocants weighing a job offer from an Armenian company, IT staff comparing the 20% and 10% rates, and employers or sole proprietors budgeting for hires. Team2B accountants run payroll for 1,200+ clients — see our overview of taxes in Armenia.
Related calculators: vacation pay, sick pay, maternity benefit, termination pay.
Frequently asked questions
What is deducted from a salary in Armenia in 2026?
Income tax of 20% (10% for employees of companies with the R&D privilege), a funded pension contribution of 5% up to 500,000 ֏ (10% minus 25,000 ֏ above that, capped at 87,500 ֏), stamp duty of 1,000 ֏ (15,000 ֏ above 1 million ֏) and health insurance of 4,800 or 10,800 ֏ for salaries above 200,000 ֏.
What is the take-home pay on a 300,000 ֏ salary?
219,200 ֏ at the 20% rate with pension and health insurance: income tax 60,000 ֏, pension 15,000 ֏, stamp duty 1,000 ֏ and health insurance 4,800 ֏.
Do employers in Armenia pay social contributions on top of salary?
No. Armenia has no employer payroll contributions; all taxes are withheld from the employee’s gross pay. An employer may voluntarily pay health insurance for staff.
Is the funded pension mandatory for foreigners?
Yes, for employees born in 1974 or later, foreigners included. For those born earlier it is voluntary.
Can withheld health insurance be refunded?
Yes, for state-insured categories such as people with disabilities: they can claim the premiums back from the Universal Health Insurance Fund (uhif.am) with an electronic application.
Sources
- State Revenue Committee
- PwC Tax Summaries — Armenia
- iravaban.net — 2026 net salary examples
- iravaban.net — health insurance refunds
- Universal Health Insurance Fund
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