This calculator applies the Armenian Labour Code rules to your termination ground, tenure, unused leave, notice and taxes. You can enter unused leave days directly or accrue them from dates. Rules are current as of 14 Oct 2026.
How is the final settlement calculated?
- Final salary = monthly salary ÷ working days in the month × days worked.
- Unused leave pay = average monthly ÷ 21 (or 25) × unused days. Days for the current leave year are 20 × months worked ÷ 12 − days taken.
- Severance by ground (table below).
- Missed notice = average daily × notice days not given.
The average is taken over 12 months (bonuses at 1/12) and cannot be below the 75,000 ֏ minimum wage.
Severance and notice by ground (2026)
| Ground | Severance | Notice |
|---|---|---|
| Liquidation, redundancy | 1 × average monthly | at least 2 months (60 days) |
| Reinstatement of the previous employee | 1 × average monthly | — |
| Unsuitability, long-term incapacity | by tenure: <1y 10, 1–5y 25, 5–10y 30, 10–15y 35, 15y+ 44 daily wages | 14 / 35 / 42 / 49 / 60 days |
| Refusal of changed terms, conscription | by tenure (10–44 daily wages) | — |
| Resignation | 0 | employee gives 30 days |
| Fixed-term expiry | 0 | employer gives 10 days |
| Mutual agreement, disciplinary, probation | 0 | — |
Worked example: redundancy
Average salary 400,000 ֏, 5-day week, hired 16 May 2022, made redundant on 15 Oct 2026 with full notice. 11 of 22 October working days worked, no leave taken this leave year.
- Average daily: 400,000 ÷ 21 = 19,047.62 ֏.
- Leave: 20 × 5 ÷ 12 = 8.33 days → 158,730 ֏.
- Final salary: 200,000 ֏. Severance: 400,000 ֏.
- Gross total: 758,730 ֏. Deductions on 358,730 ֏ of salary and leave pay: income tax 71,746, pension 17,937, stamp duty 1,000, health insurance 4,800 ֏.
- Net: 663,247 ֏.
With only 40 of 60 notice days, the employer would add 20 × 19,047.62 = 380,952 ֏.
What changed in 2025–2026?
Health insurance has been withheld from salaries since 2026 (4,800 ֏ for gross 200,001–500,000 ֏, 10,800 ֏ above), and stamp duty is now 1,000 ֏ up to 1 million ֏ and 15,000 ֏ above. These affect leave pay and final salary, not severance.
Who is it for?
Relocated employees checking their settlement, employers and IEs planning redundancies, and accountants who need a quick cross-check. Assumptions: tenure of exactly 5, 10 or 15 years falls into the higher band; severance taxation is a toggle.
Related: taxes in Armenia, salary calculator, vacation pay calculator, maternity benefit calculator.
Frequently asked questions
Do I get severance pay if I resign in Armenia?
No. Resignation, mutual agreement, expiry of a fixed-term contract, disciplinary dismissal and failed probation carry no statutory severance. Unused leave is always compensated.
How much is severance for redundancy in Armenia?
One average monthly salary, plus pay for all unused leave and the days worked. The employer must give at least 2 months’ notice; each missing day of notice is paid at the average daily wage.
How is unused vacation compensated?
The average monthly salary is divided by 21 (5-day week) or 25 (6-day week) and multiplied by all unused leave days from all years. It is taxed like salary.
Is severance taxable in Armenia?
Common practice treats statutory severance as a compensation within legal norms, so no income tax, pension, stamp duty or health insurance. The point is not settled, so the calculator has a toggle. Contractual amounts above the statutory severance are taxed at 20%.
When must the final settlement be paid?
On the termination day. If the employer cannot pay for reasons beyond its control, within 5 working days of the employee’s demand. Late payment accrues 0.15% per day, capped at 100%.
Sources
- iravaban.net — severance pay, 2026
- hrcommunity.am — final settlement
- Legal500 — Armenia employment law
- Tax Code art. 147 (taxinfo.am)
free consultation
We will review your case on Telegram or WhatsApp. Mon–Fri 10:00–18:00, 2 Nar-Dos st., Yerevan.