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Overview
Angolan Kwanza (AOA)
CURRENCY
Luanda
CAPITAL
monthly
PAYROLL FRECUENCY
13
PUBLIC HOLIDAYS
0 to 8
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Angola
Employer
Company Payroll Contributions
0% - 8%
Social Security
0% - 8%
Total Employment Cost
Employee
Worker Payroll Contributions
0%- 3%
Social Security
0% - 3%
Total Employee Cost
Employee Income Tax in Angola
Worker Income Tax:
- AOA 0.00 - 70,000.00 AOA: 0%
- AOA 70,001.00 - AOA 100,000.00: 10.00% + AOA 3,000.00
- AOA 100,001.00 - AOA 150,000.00: 13.00% + AAO 6,000.00
- AOA 150,001.00 - AOA 200,000.00: 16.00% + AOA 12,500.00
- AOA 200,001.00 - AOA 300,000.00: 18.00% + AOA 31,250.00
- AOA 300,001.00 - AOA 500,000.00: 19.00% + AAO 49,250.00
- AOA 500,001.00 - AOA 1,000,000.00: 20.00% + AAO 87,250.00
- AOA 1,000,001.00 - AOA 1,500,000.00: 21.00% + AOA 187,250.00
- AOA 1,500,001.00 - AOA 2,000,000.00: 22.00% + AAO 292,250.00
- AOA 2,000,001.00 - AOA 2,500,000.00: 23.00% + AOA 402,250.00
- AOA 2,500,001.00 - AOA 5,000,000.00: 24.00% + AOA 517,250.00
- AOA 5,000,001.00 - AOA 10,000,000.00: 24.50% + AAO 1,117,250.00
- AOA 10,000,001.00 and more: 25.00% + AOA 2,342,250.00
0%
Minimum Wage in Angola
General
With payroll outsourcing and depending on the industry in Angola, you will be able to pay the minimum monthly salary as follows:
- Salaries in the agricultural sector: AOA 21,454.00.
- Salaries in the transportation, services, and manufacturing sector: AOA 26,817.00.
- Industrial sector and extractive trade: AOA 32,181.00.
$36.8 Minimum Wage per month
Payroll Contributions in Angola
Payroll Cycle
With Payroll services, you can have a monthly cycle, in which the employer provides payments on the last business day of the month.
13th Salary
In Angola, it is mandatory to pay the 13th month salary and the employer cancels 50% of it as a vacation bonus. Likewise, the employer must pay this salary shortly before the employee takes his vacation days. Also, the employer can pay a salary of the 14th month as a Christmas bonus.
Employee Benefit in Angola
The labor law does not establish more common benefits for the citizens of Angola
Visa and work permit in Angola
For a foreigner to work in Angola, they must apply for a work visa that will allow them to do so for up to 12 months. Likewise, the visa can be renewed 2 times and they are valid only to carry out the professional activity set out in the employment contract. In the same way, visas vary according to the activity to be carried out.
In this case, the Ministry of Public Administration, Employment, and Social Security receives the applications and issues the visas. Moreover, all foreign workers must apply for a visa at the Angolan consulate and complete the required documentation. Thus, this must include a letter from your future employer together with the forms addressed to the embassy.
All these procedures are easier through the assistance of an Employer of record in Angola. For example, they can translate the documentation and legalize it by a public notary, the Ministry of Foreign Affairs, and the Embassy. Likewise, the authorities must process the documentation within 15 days to issue the visa.
In addition, the employee may receive a work visa in Angola with a validity of between 3 months and 3 years. Likewise, the employee must renew it before the expiration date. Similarly, employees must apply for a residence permit or a temporary stay permit for 5 years or less.
In the same way, they must request a permanent stay permit for those who wish to stay for 10 or more years.
VAT in Angola
The standard VAT rate is 14%.
Working Hours in Angola
General
The general labor law governs the schedules for employees in Angola, where the conditions of each activity of the companies are specified. In this case, a standard maximum working day does not exceed 8 hours per day or 44 hours per week.
Besides, these days increase up to 9 hours a day if the work is for time intervals and the presence of the employee is necessary. Also, the employer must limit the worker to 5 consecutive days of a work week.
Overtime
In general, a PEO can manage overtime records of workers. Thus, employees can work overtime a maximum of 2 hours per day, 40 hours per month, and 200 hours per year. On the other hand, employees who work during their rest hours receive 110% of the minimum wage.
Likewise, an employee who is working during free rest hours this day counts as overtime. In the same way, the employer must determine the payment for working overtime for the time, every 15 minutes added. That is if the employee works more than 15 minutes but less than 44 minutes, it counts as half an hour of overtime.
Likewise, if it is more than 45 minutes and up to 60 minutes, it counts as an additional hour. In general, the calculation of overtime payments depends on the size of the company and the number of hours worked:
In a time of up to 30 extra hours per month:
- Large companies: 150% of the regular salary.
- Medium-sized companies: 130% of the regular salary.
- Small companies: 120% of the regular salary.
- Microenterprises: 110% of the regular salary.
In contrast, for a time greater than 30 overtime hours per month:
- Large companies: 175% of the regular salary.
- Medium-sized companies: 145% of the regular salary.
- Small companies: 120% of the regular salary.
- Microenterprises: 110% of the regular salary.
Working Week
From Monday to Friday.
Employee Termination in Angola
Termination Process
Once the employment contract ends, employees can receive payment for unused accrued leave for that year. In addition, with the Employer of record in Angola you will be able to pay the employee before 3 days after the termination of employment. Also, in the case of dismissal for economic reasons, Angolan law allows payment instead of notice.
On the other hand, as it is a massive dismissal (5 or more people), the employer has to notify the worker representative body. Likewise, the employer must notify the provisional offices of the ministry of labor and explain the reason for the dismissals.
Similarly, for the dismissal of 5 or fewer workers, the employer must notify the representative body of the worker in writing. In this case, the organization must respond within 7 days. Also, this response is then sent to the Ministry of Labor, which will have 10 days to process the notification. Thus, if there is no response, approval of the dismissal is inferred.
In addition, by a provision of March 26, 2021, the termination due to the absence of workers in the workplace is prohibited. However, this does not affect the application of disciplinary measures for other reasons.
Notice Period
The notice period varies depending on the profession or position held in the company. Therefore, for an executive, middle-level technicians, or high-level technicians, the notification period is 60 days. On the other hand, when it comes to general employees, the notice period is 30 days.
Severance Pay
In general, severance pay consists of 1 month of the first 5 years of work. The payment then decreases to 50% of the monthly salary of the worker for subsequent years of service.
Probation Period
Commonly, workers in Angola can have a 2-month probation period, despite not being mandatory. However, this period can be extended by 4 months if you submit a written notification, this applies to jobs of high difficulty. In addition, for those who perform administration and management functions, the probation period is up to 6 months.
Employee Leaves in Angola
Paid Time Offs
Manage paid time off with EOR which, in the first year of employment, accrues for each month of work. In general, it is 2 days per month, with a minimum of 6 days of annual vacation in that year. In addition, the license is obtained by the worker on January 1 of the following year and may be used once the 6 months of work have been completed.
Subsequently, workers, having one year of employment, are entitled to obtain 22 days of annual vacation. Additionally, a worker can start vacation from January 1 and has to use his right before December 31 of that same year. Likewise, employees who have children under 14 years of age can obtain an extra day of leave for each child.
Generally, PEO services allow each employee to receive their vacation rights or any accrued benefits. In addition, workers receive a standard bonus equal to 50% of their monthly salary before vacation.
Public Holidays
There are 13 national holidays throughout the year.
Vacation Holidays
There are 22 vacation holidays throughout the year.
Sick Days
African employees on sick leave receive salary payments for the first 2 months of absence. Also, after the third month until the twelfth month absent, employers must pay 50% of the salary. However, it will only do so until social security assumes it.
However, in small companies, EOR services may cancel 50% of the minimum wage for 90 days of absence. In addition, employees can request leave but only if they present adequate and justified documentation such as a medical certificate.
Paternity Leave
In Angola, the General Labor Law allows a paid leave of 1 day at the time of the birth of a child.
Paternal Leave
The professional employment organization may grant an additional 4 weeks' leave after the end of the maternity leave. Thus, the worker can take care of the newborn.
Other Leave
An Employer of record in Angola can grant different licenses following the guidelines of the General Labor Law.
- Family Support Leave. In this case, a worker can receive this 8-day paid leave with prior approval from the employer.
- Military Leave. A worker may receive 2 days of leave per month with a maximum of 15 days per year for military duties.
- Educational Leave. A worker can receive this unpaid leave for 60 days. However, you must request it in writing from the employer 30 days in advance.
Maternity Leave in Angola
Generally, women who contribute to the social security system for a minimum period of 6 months will have 12 weeks of maternity leave. Likewise, through the Employer of record in Angola, you can complete the license if necessary. Also, maternity leave generally begins 4 weeks before the due date (8 for multiple births).
Likewise, after childbirth, the employee will receive 9 weeks of this same leave. Additionally, if the time of delivery extends beyond the expected date, there will be an extension on the license. In this case, it allows the 9 weeks established after birth to be fulfilled correctly.
In addition, the amount of maternity pay depends on the earnings that the employee earned in the previous 6 months.
There are 84 leave throughout the year.