Article 195 of the Labor Code defines the average salary according to which:
- The average salary shall be guaranteed to the employees in cases envisaged by the legislation of the Republic of Armenia, by the collective agreements or employment contracts. A single procedure of calculation is defined for all cases of determining the amount of the average salary envisaged by this Code. When calculating the average salary, all types of remuneration for work shall be taken into consideration (main salary, additional salary — bonuses, additional payments, supplementary payments, awards, etc.), which are applied within the given organisation, irrespective of the source of payment.
- The amount of the average monthly salary of the employee shall be determined by dividing by twelve the total sum of all types of remuneration (main salary, supplementary payments — bonuses, additional payments, supplementary payments, awards, etc.) calculated for the employee by the given employer in the last 12 months proceeding the month in which such a demand emerges.
The twelve months subject to settlement shall not include the months during which the employee was temporarily incapable for work and/or at leave and/or in idleness not due to his or her fault.
If because of any of the reasons mentioned in the second paragraph of this part twelve months have not been added up, the average monthly salary of the employee shall be calculated by dividing the total sum of all types of remuneration (excluding amounts for awards) for work calculated for the employee during all the other months in the given period, and the amounts for awards shall be calculated by 1/12 of the salary.:
Where the employee has not had an actually calculated salary in the twelve months preceding the month in which the demand for estimating the average monthly salary has emerged, or where there are cases listed in the second paragraph of this part in the twelve months, the official rate established by legislation for the employee or the monthly salary established by the employment contract or the legal act on accepting for employment shall be accepted as a basis for calculation instead of the average salary. Where an hourly rate is established, the hourly rate shall be accepted as a basis for calculations.
Where during the calculation of the average salary there have been awards calculated for the employee in the months taken out of the count through the procedure established by the second paragraph of this part, the amount of the award shall be taken into consideration in the average salary through the procedure established by the third paragraph of this part.
- In case of a five-day working week, the amount of the average daily salary shall be determined by dividing the average monthly salary by 21. In case of a six-day working week, the amount of the average daily salary shall be determined by dividing the average monthly salary by 25.
The average daily salary of employees who have worked less than a month shall be determined by dividing the total sum of all types of remuneration for work (main salary, additional salary, including bonuses, additional payments, supplementary payments, awards, etc.), calculated for the days that the employee has worked by the number of days that have been worked.
- The average hourly salary rate shall be determined by dividing the average monthly salary by the number of average working hours for one month of the given employee established by the legislation of the Republic of Armenia, or the collective agreement or employment contract, or the legal act of the employer.
The average hourly salary for employees having worked less than a month shall be determined by dividing the total sum of all types of remuneration for work (main salary, additional salary — bonuses, additional payments, supplementary payments, awards, etc.), calculated for the days that have been worked by the number of working hours established by the legislation of the Republic of Armenia or the collective agreement or the employment contract or the legal act of the employer:
Where the average monthly salary or average hourly salary calculated through the procedure established by this Article is lower than the minimum monthly salary or than the minimum hourly tariff rate existing at the given moment, the minimum monthly salary or minimum hourly tariff rate existing at the given moment shall be accepted as a basis, instead of the average monthly or average hourly salaries respectively
