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Doing business in Armenia

information on working experience of the worker. The liability to keep work-books for all employees working in the main place of work is vested with the employer. The work-book should be comprised of the following data: name and family name of the employee (patronymic if desired); year, month and day of birth of the employee; period of work in compliance with the employment contract, period of time in personnel reserve of the civil service which is accounted toward job tenure, period of time during studies at vocational and higher educational establishments, period of time at compulsory military service; basis for any record taken (number and enactment date of the legal act). This document allows employees receiving their retirement allowances. The periods for jobs, which according to the legislation entitle the employee to privileged pension are also enshrined. Labor remuneration in Armenia Salaries/Wages

In 2011 the average wage in Armenia was 115,451 AMD. The minimum allowed wage in Armenia is 32,500 AMD per month. Income taxes and compulsory social security payments

Compulsory social security payments in the Republic of Armenia are levied at income source. Thus, an employee receives net salary amount. Taxes are calculated as follows:

• social security payment is withheld at 3% of the calculated monthly salary;

• the payment withheld towards social security and the amount of personal deductions are to be preliminary reduced from monthly salary aimed at income tax calculation. This amount is established at 32,500 AMD for Š 2012 Grant Thornton CJSC. All rights reserved. 24

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