How net salary is calculated
All taxes and contributions are withheld from gross salary; the employer pays nothing on top. Net pay is gross salary minus four deductions:
- Income tax: 20% of gross salary. If your company uses the IT sector tax benefit, the calculator applies 10%. Check with your employer whether the benefit applies to your company.
- Pension contribution: 5% for a salary up to 500 000 AMD, above that 10% minus 25 000 AMD. Not everyone pays it: see who pays the pension contribution.
- Stamp duty: 1 000 AMD for a salary up to 1 000 000 AMD inclusive, 15 000 AMD above that.
- Health insurance premium: from 0 to 10 800 AMD depending on the salary. Some employees are exempt: see who is exempt.
In the “Net salary” mode the calculator works backwards: it finds the smallest gross salary that gives at least the net amount you entered.
Who pays the pension contribution
- Mandatory: everyone born on January 1, 1974 or later. The rate is 5% for a salary up to 500 000 AMD, above that 10% minus 25 000 AMD. The contribution is based on at most 1 125 000 AMD of salary (15 minimum wages), so it never exceeds 87 500 AMD a month.
- Voluntary before July 1, 2018: people born before 1974 who applied to choose a pension fund before July 1, 2018. The state tops up their pension account as for mandatory participants, and the calculator uses the same scale for their contribution.
- Voluntary since July 1, 2018: people born before 1974 who applied later. The contribution is a flat 5% of salary, at most 56 250 AMD a month.
- Not participating: if you were born before 1974 and never applied, nothing is withheld.
Once you have applied, you cannot opt out.
Who is exempt from health insurance
The full universal health insurance premium is 10 800 AMD a month (129 600 AMD a year). A transitional rule applies in 2026: nothing is withheld for a salary up to 200 000 AMD, 4 800 AMD from 200 001 to 500 000 AMD, and 10 800 AMD above 500 000 AMD.
Nothing is withheld from your salary if you are a citizen and resident of Armenia in one of the groups covered by the state:
- people aged 65 and over;
- people with a disability of group 1, 2 or 3 (or a profound, severe or moderate limitation of functioning);
- participants in the clean-up of the Chernobyl nuclear power plant accident;
- former servicemen receiving a military disability pension;
- mothers (adoptive parents) caring for a child under two;
- one parent (guardian) of three or more minor children;
- one parent, adoptive parent, guardian or trustee of a child with a disability;
- family members of servicemen killed or missing in the combat of April 2016 and since September 27, 2020; veterans of the Great Patriotic War and persons treated as such; victims of repression;
- members of low-income families, in cases set by the government;
- people aged 18–23 who grew up without parental care (up to 26 if in full-time education).
Parents of three or more children and parents of a child with a disability get the status on application. Foreigners with the right to live in Armenia pay the premium on general terms.
If you are exempt, untick “Are you covered by universal health insurance?” in the calculator.
Deduction rates
In force from January 1, 2026. Amounts are based on monthly gross salary.
| Deduction | Rate | Source |
|---|---|---|
| Income tax | 20% of gross salary; IT: 10% | taxsummaries.pwc.com |
| Pension contribution | Mandatory participants (born on January 1, 1974 or later) and voluntary ones who joined before July 1, 2018:
Voluntary participants who joined on July 1, 2018 or later: 5%, at most 56 250 AMD a month Base up to 1 125 000 (15 minimum wages) | arlis.am |
| Stamp duty |
| arlis.am |
| Health insurance |
| arlis.am |
Examples
Gross salary 400 000 AMD
Income tax 80 000 AMD (20%), pension contribution 20 000 AMD (5%), stamp duty 1 000 AMD, health insurance 4 800 AMD. Net pay: 294 200 AMD.
Gross salary 800 000 AMD
Income tax 160 000 AMD, pension contribution 55 000 AMD (10% − 25 000), stamp duty 1 000 AMD, health insurance 10 800 AMD. Net pay: 573 200 AMD.
800 000 AMD, voluntary participant since 07.2018
Pension contribution 40 000 AMD (a flat 5%); the other deductions are the same: 160 000 AMD, 1 000 AMD, 10 800 AMD. Net pay: 588 200 AMD.
Frequently asked questions
How is net salary calculated in Armenia?
Income tax (20%), the pension contribution (5%, or 10% minus 25 000 AMD), stamp duty and the health insurance premium are deducted from gross salary. For example, a gross salary of 400 000 AMD gives 294 200 AMD net.
Does the employer pay taxes on top of the salary?
No. All taxes and contributions are withheld from gross salary; the employer only transfers them to the budget as a tax agent.
How do I know if I am in the funded pension system?
If you were born on January 1, 1974 or later, participation is mandatory. People born earlier participate only if they applied to choose a pension fund, and they cannot opt out afterwards. Your employer or your pension fund can confirm your status.
Who does not pay the health insurance premium?
Citizens and residents of Armenia in the groups covered by the state: people aged 65 and over, people with disabilities, mothers of children under two, one parent of three or more minor children and others. See the full list in the section “Who is exempt from health insurance”.
Why does net pay drop just above 1 000 000 AMD?
Stamp duty jumps from 1 000 AMD (up to 1 000 000 AMD inclusive) to 15 000 AMD above that. So 1 000 000 AMD gives 713 200 AMD net, while 1 000 001 AMD gives 699 201 AMD. Health insurance has similar steps at 200 000 and 500 000 AMD.
Sources
Updated:
This calculation is for reference only and is not tax advice. Check exact amounts with your employer or the State Revenue Committee.