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Overview
Libyan Dinar (LYD)
CURRENCY
Tripoli
CAPITAL
monthly
PAYROLL FRECUENCY
11
PUBLIC HOLIDAYS
0 to 10.50
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 Libya
Employer
Company Payroll Contributions
0% - 10.50%
Social Security
0% - 10.5%
Total Employment Cost
Employee
Worker Payroll Contributions
0%- 3.75%
Social Security
0%- 1%
Social Unity Fund
0% - 4.75%
Total Employee Cost
Employee Income Tax in Libya
Worker Income Taxes
5%
Up to LYD 1000
10%
More than LYD 1000
1%
If the monthly income does not exceed LYD 50
2%
If the monthly income does not exceed LYD 100
3%
On all monthly income above LYD 100
Payroll Contributions in Libya
Payroll Cycle
Payment cycles are handled every month, with an Employer of Record in Libya you will be able to pay a worker once per month.
13th Salary
In this case, Libya does not have a law that requires the payment of the 13th month.
Employee Benefit in Libya
Visa and work permit in Libya
The policies to apply for a visa in Libya are strict and only the inhabitants of some countries can stay without it. In this case, only citizens of Algeria, Morocco, Jordan, Mauritania, Syria, Tunisia, and Turkey can enter without a visa.
On the other hand, people who come from Jordan can stay for 30 days. Otherwise, citizens from Turkey can stay in the country for 3 months. Likewise, foreigners coming from other countries have to apply for a visa at the Libyan diplomatic mission.
Similarly, foreigners must apply for a work visa, as without it any work they do would be illegal. Also, to obtain the employment permit the employee needs the invitation to the company that can be made by the Employer of record in Libya. On the other hand, the employment visa is valid for up to 30 days and you can renew or extend it while you are visiting the country.
VAT in Libya
In Libya there is no standard VAT rate.
Working Hours in Libya
General
For African employees, in general, work hours are from 48 hours per week to 10 hours per day.
Overtime
In this case, it is overtime if the workers exceed the 48 hours of established work. Therefore, the company must compensate the employee for the overtime according to the contract regulations or collective agreements.
On the other hand, an employee has a maximum limit of 3 overtime hours per day and is paid 150% of the standard salary. You will also be able to pay for it by payroll outsourcing, based on general salary rates.
Working Week
From Sunday to Thursday.
Employee Termination in Libya
Termination Process
In general, the employer can void an employment contract for reasons of business conduct, personal conduct, or employee performance. For this, it requires creating a notification with a written explanation for the employee. In this case, EOR services are suitable to perform these processes and comply with local laws.
On the other hand, when dealing with an employee who presents misconduct, you must notify him and allow him to explain the reason for his conduct. Additionally, employers can terminate the employment contract for different valid reasons, such as:
- The expiration of the contract.
- A medical disability that prevents the work of an employee.
- Criminal conviction of a worker.
On the other hand, at the end of the contract, employers have to provide a certificate stating the following:
- The date that expresses the start and completion of the work.
- Role of the worker in the company.
- Information on the salary you obtained (optional).
- The use of benefits provided by the company (optional).
Notice Period
Notice in Libya has a regular period of 30 days for the worker or the employer. Thus, this period is necessary in the following cases:
- Breach of their obligations by the employee.
- Identity forgery.
- Financial losses due to the employee.
- Failing to comply with workplace safety regulations.
Severance Pay
Companies do not provide compensation to Libyan citizens, only expatriates. Therefore, expatriate workers can receive a salary of half a year for each year of the first 5.
Probation Period
The probation period in Libya is up to 6 consecutive months.
Employee Leaves in Libya
Paid Time Offs
In general, employees can have 30 days of paid vacation per year, manageable with an Employer of Record in Libya. In the same way, it can increase to 45 days of paid vacation for employees over 59 years of age. However, the extension of time applies only to workers with at least 20 years of experience.
Public Holidays
There are 11 national holidays throughout the year.
Vacation Holidays
There are 30 vacation holidays throughout the year.
Sick Days
Manage this leave through PEO services, which in Libya depends on the seniority of the employee. Thus, employees are eligible for a 45-day leave when the term of illness is continuous.
Also, an employee with a non-continuing illness may apply for sick leave of 60 days per year. In addition, the employee will only receive said licenses by presenting the employer with a valid and certified medical certificate.
Paternity Leave
There is no provision in the law that grants paternity leave.
Paternal Leave
No provision in Libya requires a company to grant parental leave.
Other Leave
There are no legal provisions allowing additional licenses.
Maternity Leave in Libya
Female employees can receive 14 weeks of maternity leave, which you can arrange with an Employer of Record in Libya. Likewise, this leave must be used 6 weeks before the established delivery date and 8 weeks after the birth. Likewise, if the birth is multiple or complicated, the leave increases to 16 weeks.
There are 98 leave throughout the year.