Vacation pay in Armenia: calculator and how it works
Work out vacation pay from average earnings, with bonuses, excluded months and deductions, under the Armenian Labour Code.
Employees can use the calculator to check the amount before going on leave; accountants and business owners can use it to work out the payment quickly. Enter just your average salary, or the detailed figures: pay for 12 months, excluded months and bonuses.
How vacation pay is calculated
- Take the 12 months before the month in which the leave starts. Months spent entirely on sick leave, on leave or in idle time, and the pay for them, are left out.
- Divide the pay for the remaining months by their number and add 1/12 of the bonuses for the period. If all 12 months are excluded, the contractual salary is used instead.
- The monthly average cannot be lower than the minimum wage of AMD 75,000.
- Divide it by 21 or 25 to get average daily pay, then multiply by the number of working days of leave.
| Item | Five-day week | Six-day week |
|---|---|---|
| Minimum annual leave | 20 working days | 24 working days |
| Divisor for average daily pay | 21 | 25 |
The divisors are fixed and do not depend on how many working days a given month has.
Vacation pay is taxed like salary: income tax (20%, or 10% under the R&D privilege), the pension contribution, stamp duty and health insurance. The calculator offers two modes. “Standalone” treats the vacation pay as the month’s entire income. “With month’s salary” takes deductions from the month’s total gross, which is more accurate when vacation pay is paid out together with salary.
Example: AMD 500,000, 10 days, five-day week
AMD 23,809.52
Average daily pay
AMD 238,095
Gross vacation pay
AMD 65,324
Deductions
AMD 172,771
Net vacation pay
The deductions are AMD 47,619 income tax, AMD 11,905 pension contribution, AMD 1,000 stamp duty and AMD 4,800 health insurance. If the same vacation pay is paid together with a AMD 500,000 salary, the month’s total income crosses the AMD 500,000 threshold and you keep AMD 160,666 of the vacation pay.
Frequently asked questions
At least 20 working days on a five-day week and 24 on a six-day week. Some categories of employees are entitled to longer leave, which the calculator does not model separately.
Yes, but only in part: total bonuses for the 12 months are divided by 12 and added to average monthly earnings.
No later than 3 days before the leave starts.
Then the minimum wage of AMD 75,000 is used. The calculator applies it automatically and shows a warning.
No. Leave is counted in working days, and public holidays are not included. Enter working days only.
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