Armenia

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LABOUR MARKET

 

 

Labour market indicators

Unemployment rate in 2001: 10.3% (ILO data)


Working population:

Year

Total Population

Working population

Activity rate

2004  

3 049 658  
1 641 936  
54%  
Source : Worldbank


Employment by sector:

Year

Agriculture

Industry

Services

2000  

44.4%  
14.1%  
37.2%  
Sources: ILO, Eurostat, last available data

 

Employment contracts
The 'employment contract' is defined the 'Labour Code of the Republic of Armenia' which was was adopted on 9th November 2004. According to this Labour Code, it is obligatory to have written a written 'employment contact' between an employee and an employer. The contract should not contain any condition less favourable to workers than those stipulated by labour law. If a contract of employment contains such provisions, they are deemed invalid.
The contract could be terminated by mutual agreement of both parties, provided that a seven-day written notice is generally respected.


Salaries

National monthly minimum wage as of 2007: 13,000 AMD

Average wage for a employee in the manufacturing industry in 2003: 53048 drams by  month (ILO data)


Social security contributions

Employer: 1. If monthly gross salary is between less than 20,000 AMD); then employer's contribution is 5,000 AMD,
2. If monthly gross salary is between (20,000 - 100,000 AMD); then emplyyer's constribution is 15% of the amount exceeding 20,000 AMD plus AMD 5,000;
3. If monthly gross salary is above 100,000 AMD; then employer's contribution is 5% of the amount exceeding 100,000 AMD plus 17,000 AMD.

Employee: 3%, withheld by the employer at source.

 

Number of hours

Legal definition of full time work (per week): Normal : 40 hours, 8 hours per day
The maximum duration, including overtime work carried out at the request of the employer, should never exceed 48 hours per week and 12 hours per day.

Retirement age: Men : 65 years
Women (2007): 61 years, and will increase by 0.5 years per year (untill the year 2011) till it reaches 63 years.

 

Unions

Unions: Armenia is a member of the ILO (International Labour Organisation). It has also ratified the convention on 'Freedom of Association' (on 2nd Jan'2006) as well as the convention on 'Right to Organise' (on 12th November 2003). Unions which are involved in state-run enterprises still benefit from 'check-off' dues, but organization and 'strike-action' in the private sector is more subdued partly due to lack of protection against reprisals.
The primary trade union centre in Armenia is the Confederation of Trade Unions of Armenia (CTUA), which is the reconstituted remains of the former Soviet trade union structure. It is lead by Martin K. Herutyunyan as chairman.


Useful links

For further informations on the labour market, check out the following web sites:

- International Labour Organization (ILO): studies, statistics and reports on working conditions and labour markets

- NATLEX : ILO database on national labour laws

- Ministry of Labour and Social Affairs, Republic of Armenia

- National Statistical Service of the Republic of Armenia

- National Institute of Labour and Social Researchers, Republic of Armenia


Last modified in mai-07
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