Four Deductions From an Armenian Salary
- Income tax: 20% of gross, with no tax free amount.
- Funded pension: 5% of gross up to ֏500,000; above that 10% of gross less ֏25,000, with gross capped at ֏1,125,000.
- Stamp duty: ֏1,000 a month on gross up to ֏1,000,000, ֏15,000 above.
- Health insurance: nothing up to ֏200,000, then ֏4,800 up to ֏500,000 and ֏10,800 above.
Net = Gross − 20% income tax − pension − stamp duty − health premium
Funded Pension Contribution Rules
The funded (second pillar) pension is compulsory for employees born on or after 1 January 1974. It goes into a private pension fund in your name, chosen when you start work.
- At ֏300,000 gross: 5% = ֏15,000 a month.
- At ֏800,000: 10% less ֏25,000 = ֏55,000.
- At the cap and above: ֏87,500 a month.
The contribution does not reduce income tax. Untick the pension box if you were born before 1974.
Stamp Duty and Health Insurance in 2026
Until late 2025 the stamp duty for the servicemen's insurance fund ranged from ֏1,500 to ֏15,000 a month. It is now a flat ֏1,000 for pay up to ֏1,000,000. At the same time the universal health insurance system began, paid by working citizens earning more than ֏200,000 a month.
| Monthly gross | Stamp duty | Health insurance |
|---|---|---|
| Up to ֏200,000 | ֏1,000 | ֏0 |
| ֏200,001 to ֏500,000 | ֏1,000 | ֏4,800 |
| ֏500,001 to ֏1,000,000 | ֏1,000 | ֏10,800 |
| Above ֏1,000,000 | ֏15,000 | ֏10,800 |
The government has said part of the 2026 health payment will come back in 2027 through the income tax return. The calculator shows the amount withheld, not the later refund.
Worked Example on ֏300,000 a Month
- Income tax: 20% of ֏300,000 = ֏60,000
- Funded pension: 5% = ֏15,000
- Stamp duty: ֏1,000
- Health insurance: ֏4,800
- Net: ֏219,200 a month
That is 26.9% of gross. A salary of ֏180,000 stays under the health insurance threshold and nets ֏134,000.
Net Pay at Six Salaries
| Gross a month | Pension | Stamp and health | Net a month | Net a year |
|---|---|---|---|---|
| ֏100,000 | ֏5,000 | ֏1,000 | ֏74,000 | ֏888,000 |
| ֏200,000 | ֏10,000 | ֏1,000 | ֏149,000 | ֏1,788,000 |
| ֏300,000 | ֏15,000 | ֏5,800 | ֏219,200 | ֏2,630,400 |
| ֏500,000 | ֏25,000 | ֏5,800 | ֏369,200 | ֏4,430,400 |
| ֏800,000 | ֏55,000 | ֏11,800 | ֏573,200 | ֏6,878,400 |
| ֏1,500,000 | ֏87,500 | ֏25,800 | ֏1,086,700 | ֏13,040,400 |
The share deducted stays between 26.0% and 27.6% across the range because income tax is flat. The pension cap stops the 10% from growing once gross passes ֏1,125,000.
What Is Taxed and What Is Not
- Taxed at 20%: salary, bonuses, overtime, holiday pay and most benefits in kind.
- Exempt: state benefits, compensation for business travel within the limits, and some one off payments set out in the Tax Code.
- Mortgage interest: employees with a qualifying home loan may get income tax back, which this calculator does not include.
Bonus Months and Yearly Pay
Armenian payroll treats each month on its own. The pension rate, the stamp duty step and the health insurance step all look at that month's gross, so a bonus can move you up a tier for one month. Add ֏400,000 of bonus to a ֏300,000 salary and the month's gross of ֏700,000 brings a pension of ֏45,000 and health insurance of ֏10,800, leaving ֏503,200 net.
For the year as a whole, the default salary gives ֏3,600,000 gross and ֏2,630,400 net. Income tax is ֏720,000 of that and the funded pension ֏180,000, which stays your own savings rather than a tax.
Assumptions and Limits
- One employer, same gross every month, a resident employee.
- The pension cap uses the current minimum wage of ֏75,000; a rise in the minimum wage moves the cap.
- Health insurance applies to Armenian citizens; untick it for foreign staff.
- Any 2027 health insurance refund and mortgage interest refunds are not shown.
Sources: State Revenue Committee (src.am) and the Tax Code of Armenia, Law on Funded Pensions, the 2025 laws on universal health insurance and the stamp duty. The stamp duty and health amounts were checked against PwC and two other published summaries because the official law texts were not reachable. Rates for 2026.
Frequently Asked Questions
What is the income tax rate in Armenia in 2026?
A flat 20% on employment income, withheld by the employer each month.
Who pays the funded pension contribution?
Employees born on or after 1 January 1974. They pay 5% of gross up to ֏500,000 a month and 10% less ֏25,000 above, up to ֏87,500 a month.
How much is the stamp duty on salary?
֏1,000 a month for gross pay up to ֏1,000,000 and ֏15,000 above that, from 2026.
Do I pay health insurance on a salary of ֏200,000?
No. In 2026 only citizens earning more than ֏200,000 a month pay; lower earners join the system from 2027.
What is the net of ֏500,000 gross?
With the funded pension and health insurance, ֏369,200 a month.
Can I see the same breakdown for Azerbaijan or Turkey?
Yes. The Azerbaijan Gross to Net Calculator and the Turkey Gross to Net Calculator use the same layout.
Do foreign employees pay the same deductions in Armenia?
Foreign residents pay the 20% income tax and the stamp duty. The health insurance premium applies to Armenian citizens, and the funded pension applies to foreigners only in some cases, so untick the boxes that do not apply to you.