Termination Pay in Armenia 2026: Calculator
Work out what an employer owes on the last day: final salary, unused leave pay, severance and payroll deductions.
This calculator shows the final settlement before the dismissal order is signed. Enter the termination ground, average wage, tenure and leave balance to see the gross amount, deductions and take-home pay.
How the final settlement is calculated
Everything starts from the average wage. It covers the last 12 months (bonuses count at 1/12) and cannot be lower than the minimum wage of AMD 75,000. The average daily wage is the monthly figure divided by 21 for a five-day week or by 25 for a six-day week.
- Final month salary: monthly salary ÷ working days in the month × days worked.
- Unused leave pay: average daily wage × unused days. Annual leave is 20 working days (24 on a six-day week); days for the current leave year accrue in proportion to the months worked.
- Severance depends on the ground. Liquidation, redundancy and reinstatement of a former employee: one average monthly wage. Unsuitability for the position, long-term incapacity, refusal of changed essential terms and conscription: the average daily wage times a tenure multiplier.
- Missing notice days: if the employer gave notice late, each missing day is paid at the average daily wage.
Severance and notice by tenure
| Continuous tenure | Severance, daily wages | Notice, calendar days |
|---|---|---|
| under 1 year | 10 | 14 |
| 1–5 years | 25 | 35 |
| 5–10 years | 30 | 42 |
| 10–15 years | 35 | 49 |
| 15 years or more | 44 | 60 |
Exactly 5, 10 or 15 years falls into the higher band in the calculator. For liquidation and redundancy, notice is at least 2 months (modelled as 60 days).
Example: dismissal for unsuitability
An employee on a five-day week earns AMD 500,000 gross, which is also the average wage, and has 7 years of tenure. Notice was given on time, 42 days ahead; 12 leave days remain unused; in the final month they worked 10 of 21 working days.
- average daily wage: 500,000 ÷ 21 ≈ AMD 23,809.52;
- salary for 10 days: AMD 238,095;
- unused leave pay: 12 days × daily wage = AMD 285,714;
- severance: 30 daily wages = AMD 714,286.
Deductions apply only to the salary and leave pay (AMD 523,809 together): income tax AMD 104,762, social payment AMD 27,381, stamp duty AMD 1,000, health insurance AMD 10,800. Note that together the two amounts cross the AMD 500,000 threshold, so health insurance is AMD 10,800 rather than AMD 4,800.
AMD 1,238,095
Total gross
AMD 143,943
Deductions
AMD 1,094,152
Take-home
Frequently asked questions
No, and neither do mutual agreement, expiry of a fixed-term contract, a disciplinary dismissal or a failed probation. You receive only the final month salary and pay for unused leave. The employee must give the employer 30 days’ notice.
Statutory severance and pay for missing notice days are usually treated as compensation within legal norms and not taxed (Tax Code, Article 147). Practice is not uniform, so the calculator lets you switch on 20% tax. Any contractual payment above the statutory amount is subject to 20% income tax.
For liquidation, redundancy, unsuitability and long-term incapacity, the employer pays one average daily wage for each missing day. During the notice period the employee is entitled to paid time off for job hunting of at least 10% of working time.
On the termination day. For each day of delay the employer owes a penalty of 0.15% of the take-home amount, capped at 100% of that amount.
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