Guides an employer through the end-to-end monthly payroll cycle for Armenian employees: computing gross-to-net deductions (20% flat PIT, funded pension at 5%/10% tiers, stamp duty, health insurance from 25 Dec 2025), remitting all withheld amounts to the State Budget, and filing the monthly aggregated income-tax-and-social-payment calculation via the SRC e-portal by the 20th of the following month.
Confirm the employer is registered with the State Revenue Committee (SRC) via e-register.am and has an 8-digit TIN. Collect each employee's date of birth (determines funded pension eligibility — born on/after 1 Jan 1974 = mandatory participant), employment contract type (employment income vs civil-law contract), and confirm all income is AMD-denominated. Flag any workers who may be self-employed individual entrepreneurs or micro-businesses, as those are out of scope for the payroll withholding regime.
Establish the confirmed gross salary (ashkhatavarts) in AMD for each employee for the pay period. Identify the payment date, which drives (a) the stamp-duty schedule and (b) whether the new health-insurance contribution applies (on/after 25 December 2025). Flag any bonuses (premia/havelavchar) or advances (avans/kankhik) — these are taxable as employment income and must be included in the gross base. If only a net figure is known, warn that gross-up is non-linear due to the pension kink at AMD 500,000.
Apply the deterministic gross-to-net deduction order for each employee: (1) PIT = gross × 20% flat — no personal allowance, no brackets; (2) Funded pension = gross × 5% if gross < AMD 500,000, or gross × 10% − AMD 25,000 if gross ≥ AMD 500,000, capped at AMD 87,500/month for gross above AMD 1,125,000, or zero if employee born before 1 Jan 1974; (3) Stamp/military duty per the applicable schedule (five-band through 24 Dec 2025; two-band AMD 1,000/AMD 15,000 from 25 Dec 2025); (4) Health insurance — AMD 0 if gross ≤ AMD 200,000, AMD 4,800 if AMD 200,001–500,000, AMD 10,800 if above AMD 500,000 — applies only on/after 25 December 2025. Net pay = gross minus all four deductions. Employer social/payroll contribution = nil.
Aggregate all employee deductions into a single employer remittance schedule. Total PIT withheld, total funded pension withheld, total stamp duty, and total health insurance must each be computed separately as they go to different accounts/codes. Confirm the remittance deadline: all amounts must be paid to the State Budget by the 20th day of the month following the salary payment. Prepare bank transfer narrations using standard Armenian payroll codes (EKAMTAYIN HARK for PIT, KENSATHOSHAK for pension, DROSHMANISHAYIN VCHAR for stamp, APAHOVAGRAKAN for health insurance).
Prepare and file the Monthly Aggregated Income-Tax-and-Social-Payment Calculation via the SRC e-portal by the 20th of the month following salary payment. The return reports each employee's gross income, PIT withheld, funded pension contribution, stamp duty, and (from 25 Dec 2025) health-insurance contribution for the period. Reconcile the filed figures against the bank remittances. Retain the filed calculation and bank receipts as supporting documentation in line with the Tax Code of the Republic of Armenia (Law HO-165-N).
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Armenia Payroll
Use this skill whenever asked about Armenia (Republic of Armenia — Hayastan, South Caucasu
Armenia Social Contributions & Payroll Withholding
Use this skill whenever asked about Armenia payroll social contributions and personal inco