Final settlement calculator
What is owed on the last working day: compensation for unused leave with its taxes, severance pay by grounds and years of service, and the notice period. RA Labour Code, articles 115, 129, 130, 170, 195.
Your data
Why the job is ending
The grounds are named in the termination order — with the article number.
Calculated as —
Work week
Funded pension participation
Compensation is due for ALL unused leave, not only the current year (art. 170(2)).
Salary changed during the last 12 months, or there were bonuses, sick leave or unpaid leave? Those months drop out of the average and bonuses count at 1/12 — the exact figure is more complex, better to ask an accountant.
How it is calculated
Severance is shown GROSS. Social payment and stamp duty are not withheld from it — it is absent from the statutory list of wage-equivalent payments. Its income-tax treatment is not settled in the Tax Code, so the amount in hand may be lower; ask an accountant for your grounds.
On these grounds no severance is due (art. 129) — only the leave compensation.
The employer must give written notice — days in advance (art. 115). There is no pay-in-lieu of notice in RA law — short notice is a breach, penalised per day at the average daily wage.
The average is below the minimum wage — the calculation uses 75 000 ֏ (Labour Code art. 195).
Late settlement costs the employer 0.15% of the sum per day, up to 100% of it (Labour Code art. 198).
Two sides of the same day: an employee checking the figure, an employer who must get it right the first time.
Ask an accountant to check it We prepare the settlement — on time, without the penaltyWhat a final settlement includes in Armenia
On termination the employer must make the full settlement on the day the contract ends (RA Labour Code, article 130(1)). It covers compensation for unused leave and, on the grounds the law lists, severance pay.
Compensation for unused leave is paid for all unused leave, not just the current year (article 170(2)). It is taxed exactly like salary — income tax, social payment and stamp duty: Tax Code article 147(1)(12) expressly carves it out of the non-taxable compensation payments.
Severance pay (article 129(1)) depends on the grounds: one month's average salary for liquidation and redundancy; 10, 25, 30, 35 or 44 times the average daily wage, by uninterrupted service, for unsuitability, long incapacity, a change of essential terms and conscription. Resignation, mutual agreement, expiry of a fixed term and disciplinary grounds carry no severance at all.
Example: ֏500,000 average monthly salary, 10 unused days, 3 years of service, unsuitability grounds. Average daily wage ֏23,810; leave compensation ֏238,095 gross and ֏172,771 in hand; severance 25 × 23,810 = ֏595,238. Notice must be given 35 days in advance.
A late settlement costs the employer a penalty of 0.15% of the sum per overdue day, capped at the sum itself (article 198). That is payable to the employee and is not the same as the Tax Code article 401 penalty, which goes to the state budget.
When is the final settlement due?
On the day the employment contract ends (article 130(1)). Where payment is impossible for reasons outside the employer's control, within five working days of the employee's demand (article 130(2)).
How many years of unused leave are compensated?
All of them. Article 170(2) says compensation is paid for all unused leave, and article 167(4) preserves the right to leave even when it was never granted.
Is severance pay taxed?
Not by the social payment or the stamp duty — severance is absent from the statutory list of wage-equivalent payments. The income-tax position has no direct answer in the Tax Code, so this calculator shows severance gross. Check your grounds with an accountant.
When is no severance due?
On resignation, mutual agreement, expiry of a fixed-term contract and disciplinary grounds. Only the leave compensation is owed in those cases.
Can the employer pay in lieu of notice?
No. RA law has no pay-in-lieu of notice. Short notice is a breach, penalised under article 115(2) at the average daily wage for each day of the shortfall.
Sources: RA Labour Code arts. 115, 129, 130, 167, 170, 195, 198; RA Tax Code art. 147. Rates as of 2026-08-01.