How are Annual Leave Payments calculated in Armenia? Can Unused Leave be rolled over?

In Armenia, employees are entitled to annual paid leave, with the minimum leave period set at 20 working days. Understanding how leave payments are calculated and the rules surrounding unused leave is essential for both employers and employees.

How Are Annual Leave Payments Calculated?

The payment for annual leave in Armenia is based on the employee's average daily wage. This average is calculated by taking the total earnings—including salary, bonuses, and other benefits—over the previous 12 months and dividing by the number of working days in that period.

Here’s how it works:

1. Calculate the Average Daily Wage:
   • Total earnings from the past 12 months ÷ Number of working days in those 12 months.
2. Determine the Total Leave Payment:
   • Average daily wage × Number of leave days taken.

For example, if an employee’s average daily wage is 10,000 AMD and they take 10 days of leave, their leave payment would be 100,000 AMD. This system ensures that employees receive their full pay during their vacation period, maintaining financial stability while they take time off.

Can Unused Annual Leave Be Rolled Over?

In Armenia, it is possible to roll over unused annual leave to the next year, but there are specific limitations. According to Armenian labor law, employees are generally expected to use their leave within the year it is earned. However, if leave cannot be taken due to work requirements or other valid reasons, the unused leave can be carried over to the following year.

Key Points to Note:

• Employers cannot fully deny employees the ability to take leave.
• It is not permissible to indefinitely roll over unused leave. This prevents excessive accumulation of leave and ensures that employees take necessary time off for rest and recuperation.