Universal mandatory insurance in Armenia has been developed to ensure the effective realization of a person’s constitutional right to health protection. At the same time, it represents a new tax burden for taxpayers. In this case, taxpayers include individual entrepreneurs, notaries, and hired employees. In practice, this means that employees will receive lower net salaries, with part of these amounts allocated to mandatory insurance.
In this article, you will learn what the amount of universal medical insurance is, who the payers are starting from December 1, 2025, and how universal mandatory insurance is calculated and paid to the state budget.
Before moving on to the details, it is important to note that universal mandatory medical insurance does not apply to compensation for damage to health caused using motor vehicles. These cases are regulated by the legislation of the Republic of Armenia on mandatory insurance of liability arising from the use of motor vehicles.
It should also be noted that, to ensure the implementation of this law (which is a subjective opinion), the monthly stamp duty rates were revised and set at AMD 1,000, instead of the previous AMD 1,500, 3,000, 5,500, and 8,500.
The requirement to have universal mandatory medical insurance mainly applies to the following categories of persons:
For hired employees, the insurance contribution is calculated depending on the amount of salary. The obligation to pay the insurance contribution arises from salaries accrued starting from December 1, 2025.
The procedure and amounts of insurance contributions payable in 2025–2026 are presented below:
Table 1
| Tax threshold |
Gross Salary |
Income Tax |
Social Contr. |
Stamp Contribution |
Insurance | Net Salary | Differ. | ||||
| 200,001- 500,000 |
250,000 | 50,000 | 12,500 | 5,500 | 1,000 | 10,800 | 6,000 | 4,800 | 182,000 | 181,700 | -300 |
| 500,001- 1,000,000 |
550,000 | 110,000 | 30,000 | 8,500 | 1,000 | 10,800 | 0 | 10,800 | 401,500 | 398,200 | -3,300 |
| 1,000,001 – more | – | – | – | 15,000 | 15,000 | 10,800 | 0 | 10,800 | 817,500 | 806,700 | -10,800 |
If an employee is dismissed during any month of 2026, they are required to pay the mandatory insurance contribution independently.
In essence, for hired employees, the mandatory insurance contribution amounts to AMD 10,800 per month.
For gross salaries ranging from AMD 200,001 to 500,000, this amount is reduced through the stamp duty and social credit mechanisms and effectively amounts to AMD 300 in 2025–2026.
The AMD 6,000 subject to compensation from the state budget is reimbursed to employees who are not beneficiaries of the social package.
Who are social package beneficiaries?
These are individuals employed in state bodies of the Republic of Armenia, as well as in state organizations in the fields of education, culture, and social protection.
For gross salaries of AMD 500,001–1,000,000, the mandatory insurance contribution is reduced through the stamp duty and amounts to AMD 3,300.
Employees with gross salaries of AMD 1,000,001 and above are required to pay the mandatory insurance contribution in full.
For hired employees earning up to AMD 200,000, the obligation to pay the mandatory insurance contribution enters into force from January 1, 2027.
Information related to the mandatory insurance contribution will not be reflected in personal income tax calculations.
Individual entrepreneurs and notaries registered in the Republic of Armenia are considered insurance contributors in 2026 if, based on the results of 2025, their income exceeds AMD 2,400,001.
For individual entrepreneurs and notaries, the insurance contribution amounts to AMD 129,600 per year and must be paid by April 20 of the following year.
No state support is provided for this category. However, within the framework of this law, the annual stamp duty was reduced and set at AMD 12,000 for persons with an annual income of up to AMD 12 million.
For individual entrepreneurs and notaries with annual income of up to AMD 2,400,000, the obligation to pay the mandatory insurance contribution will take effect from January 1, 2027.
This category includes residents of the Republic of Armenia who receive income in the form of rental payments, interest, dividends, and/or royalties.
For this group, the mandatory insurance contribution will take effect from January 1, 2027.
This category includes individuals who perform work or provide services under civil law contracts.
For them, the law will also enter into force from January 1, 2027.
If you simultaneously fall under several categories of payers, the most favorable payment mechanism will apply to you.
For example, if you work for two employers and are subject to mandatory insurance under both employment contracts, the total monthly payment may not exceed AMD 10,800.
If mandatory insurance contributions have been withheld for you from two or more tax sources, you may apply once to the Universal Medical Insurance Registry, indicating your bank account details.
Within three business days from the date of application, the overpaid amount will be transferred to your bank account.
The introduction and application of new laws, especially those affecting employees, is a complex process. We recommend taking the following steps:
Review the transitional provisions for the application of universal medical insurance and the dates they enter into force;
Inform employees about the reduction in their net salaries;
Explain to employees what medical services and care are provided within the framework of universal mandatory insurance;
Compare the services included in your existing corporate insurance package with those provided under universal medical insurance—this may allow you to reduce the cost of voluntary insurance.
The Law on Universal Mandatory Medical Insurance represents a new challenge for employers, individual entrepreneurs, and notaries. It leads to new calculations, possible misunderstandings, and additional informational workload.
If you feel that it is difficult to properly inform employees and perform the new payroll calculations, Profin Consulting – an accounting company in Armenia – can become your reliable partner.
Profin Consulting has more than eight years of experience in accounting services and HR administration.
Entrust your accounting and HR administration to professionals, and your accountant in Armenia will resolve all arising issues quickly and accurately.
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