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Employer of record in Angola

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Angola

Employer of Record in Angola

Angola

Angola

Angola, located in southern Africa, is a country rich in natural resources, particularly oil and diamonds. Its history has been marked by civil conflict, but it has made significant strides toward stability and development. The capital, Luanda, is a vibrant coastal city. Angola’s economy is closely tied to its oil sector, but the government is working to diversify and improve other industries. It boasts a unique blend of cultures and traditions.

Capital: Luanda

Population: (2023 est.) 34,031,000

Currency: Kwanza (AOA)

Language(s): Portuguese

Employer of Record in Angola

Employee Benefits

The public holidays in Angola are as follows;

Date & Holiday

  • 1 Jan  – New Year’s Day
  • 4 Feb –  Day of the Armed Struggle
  • 20 Feb – Carnival Holiday
  • 21 Feb – Carnival
  • 8 Mar – International Women’s Day
  • 23 Mar – Southern Africa Liberation Day
  • 24 Mar – Southern Africa Liberation Day Holiday
  • 3 Apr – Angolan Peace Day Holiday
  • 4 Apr  – Angolan Peace Day
  • 7 Apr – Good Friday
  • 1 May – Labour Day
  • 17 Sep – National Heroes Day
  • 2 Nov – All Souls’ Day
  • 3 Nov  – All Souls’ Day Holiday
  • 11 Nov – Independence Day
  • 25 Dec- Christmas Day

In Angola, employees typically enjoy an annual vacation entitlement of 22 days. Additionally, employees who have children are entitled to an extra vacation day per year until the child reaches the age of 14. This provision aims to support employees with family responsibilities and provide them with extended leave to spend time with their children. The specifics of vacation entitlements may be outlined in labor laws and employment contracts, ensuring that employees can benefit from time off for personal and family needs.

In Angola, female employees are typically entitled to a comprehensive maternity leave benefit. The standard provisions are as follows:

  • A total of three months of maternity leave.
  • A mandatory four-week leave before the due date.
  • The remaining nine weeks can be taken after the birth, guaranteed, regardless of the due date.
  • In the case of multiple births, an additional four weeks of maternity leave is provided.
  • The employee cannot return to work until at least five weeks after giving birth.

Employees on maternity leave are generally eligible for social security compensation, which may be supplemented by the employer. These measures aim to support and protect the health and well-being of mothers and newborns during the critical postpartum period.

There is no statutory provision for paternity leave in Angola

Unlimited employment contracts in some regions typically include a 60-day probation period. During this initial period, both the employer and the employee have the opportunity to assess the employment arrangement. This probation period allows for an evaluation of job fit, performance, and mutual satisfaction before committing to a long-term employment relationship

In Angola, employees are generally allowed to take unlimited sick leave days, provided they present a medical certificate to support their illness-related absences. However, the compensation during sick leave varies:

Medium and large companies are typically required to pay medical leave at 100% of the employee’s salary for the first two months.

From the third through the twelfth month of illness, the compensation usually drops to 50% of the base salary.

Angola has established a new legal framework for granting various types of temporary visas to foreign nationals based on the purpose and duration of their stay. Here are the key visa categories and requirements:

  1. Tourism Visas: Issued by consular missions in the applicant’s home country, these visas are suitable for family visits, business travel, scientific or technological activities, and leisure, sports, or cultural pursuits. Tourist visa holders are allowed a 30-day stay, which can be double-extended for the same duration. These visas do not permit work or applications for permanent residency, which requires a work visa.
  2. Temporary Stay Visas: Valid for 365 days and extendable for the same period, these visas are granted for various purposes, including religious missions, work within non-governmental organizations, scientific research, university extension, family members of study, medical treatment, and work visa holders, as well as spouses of Angolan citizens. They are typically extended based on the original reason that justified the visa.
  3. Work Visas: A work visa is required for foreign nationals engaged in paid activities in Angola. These visas are issued for 365 days and can be extended for an additional 365 days, aligning with the duration of the employment contract that forms the basis for the visa application. A favorable assessment from the relevant Angolan authority overseeing the applicant’s field of operation is a prerequisite for applying for a work visa.

Important documents required for a work visa in Angola include:

  • Visa application form.
  • Work permit.
  • Letter from the employer.
  • Necessary certificates.
  • Statement of commitment to adhere to Angolan laws.
  • Passport.
  • Passport-size photos.
  • Statement from the Ministry of Public Administration, Employment, and Social Security regarding the enterprise’s activity.
  • Criminal background check.
  • A photocopy of Diário da República (the Official Gazette).
  • Medical certificate.
  • Curriculum Vitae.

It’s important to note that these documents must be translated into Portuguese and authenticated by the Department of State. Visa applicants should comply with the specific requirements outlined by Angolan authorities and consular offices in their home country or place of residence.

In Angola, there is no severance pay however, employees are entitled to various bonus payments in addition to their regular salary. These include:

  1. Holiday Bonus: Employers are required to pay a holiday bonus equivalent to 50% of the employee’s base salary. This bonus is typically associated with holidays and provides additional income to employees during these times.
  2. 13th Month Vacation Bonus: There is a mandatory 13th month vacation bonus, which is paid before the holiday season, providing employees with an extra month’s salary to support their holiday expenses.
  3. Christmas Bonus: Employees receive a mandatory Christmas bonus, typically paid in December, to facilitate holiday-related expenses.

Furthermore, the principle of ensuring a certain composition of the workforce is in place. Companies with more than five employees are generally required to employ at least 70% Angolan citizens and up to 30% foreign non-residents. This policy aims to promote employment opportunities for local citizens while allowing for a limited percentage of foreign non-resident workers

In Angola, employees who have completed at least one year of service with a company are generally entitled to two bonuses:

  1. Holiday Bonus: This bonus typically amounts to 50% of the employee’s base salary and is calculated based on what they would earn during the holiday period.
  2. Christmas Bonus: The Christmas bonus is also equivalent to 50% of the employee’s base salary, specifically for the month of December.

In addition to these bonuses, Angolan employees typically enjoy various other benefits, including public holidays, annual leave, sick leave, maternity leave, paternity leave, health insurance, and other social security benefits. These benefits are designed to support the well-being and financial security of employees and are often included in employment contracts and labour laws.

Progressive Income Tax

Taxable Income

Tax on Lower Amount AOA

Rate on Excess %

Exceeding AOA

Not Exceeding AOA

_

70,000

_

0

70,000

100,000

3,000

10

100,000

150,000

6,000

13

150,000

200,000

12,500

16

200,000

300,000

31,250

18

300,000

500,000

49,250

19

500,000

1,000,000

87,250

20

1,000,000

1,500,000

187,250

21

1,500,000

2,000,000

292,250

22

2,000,000

2,500,000

402,250

23

2,500,000

5,000,000

517,250

24

5,000,000

10,000,000

1,117,250

24.5

10,000,000

_

2,342,250

25

In Angola, social security is mandatory for all employees who are Angolan nationals or foreign residents. The applicable social security rate in Angola is typically set at 11 percent. This rate is applied to the earnings or income of eligible employees and contributes to various social security benefits and programs, such as retirement benefits, medical coverage, and other forms of social protection. Compliance with social security contributions is important for both employees and employers to ensure access to these benefits and maintain legal compliance.

In Angola, the income tax system is based on a progressive scale, with rates ranging from 0% to 25% of an employee’s monthly earnings. The specific tax rate applied depends on the individual’s income level, with higher earners subject to a higher tax rate.

Both employees and employers are typically required to make contributions to social security. Employees contribute at a rate of 3% of their earnings, while employers are responsible for a higher contribution at 8% of their employees’ earnings. These contributions fund various social security benefits and programs for employees.

Additionally, employers in Angola are subject to a corporate income tax rate of 25%. This tax is levied on a company’s profits and is a key source of government revenue. Compliance with these tax obligations is essential to meet legal requirements and support the country’s social security and public finance systems.

Navigating employment regulations in a foreign country, such as Angola, can be complex, and it’s crucial to incorporate entitlement and termination terms in employment contracts before selecting an Angola payroll option to ensure compliance. Angolan employment laws typically prioritize employee protection, and fulfilling administrative and reporting obligations is essential to avoid potential fines. Given the prevalence of litigation in termination cases, employers should exercise caution and carefully consider the implications of terminating an employee before providing notice.

In Angola, notice periods for different types of employment contracts and termination reasons are as follows:

  1. Fixed-Term Employment Contracts: Employers are required to provide employees with two weeks’ prior written notice before their fixed-term contract expires. This notice period serves as a heads-up to the employee that their contract will not be renewed upon its expiration.
  2. Individual Termination for Objective Reasons: When an individual termination is necessary for objective reasons, such as business-related factors, a 30-day notice period applies. This provides the affected employee with a one-month notice before their employment is terminated.
  3. Collective Dismissal: In cases of collective dismissal, a more extended notice period of 60 days applies. This extended period allows affected employees and relevant stakeholders more time to prepare for the collective dismissal process.

These notice periods are designed to provide employees with sufficient time to make necessary arrangements and transition to new employment opportunities while promoting fairness and transparency in the termination process.

In Angola, overtime work is subject to specific limitations and rates. Here are the typical regulations for overtime:

  • Overtime is limited to a maximum of 2 hours per normal working day.
  • Monthly overtime is capped at 40 hours.
  • The annual maximum for overtime work is 200 hours.

For the first 30 hours of overtime worked in a month, employees are typically entitled to receive an additional payment at a rate of 50% over their regular hourly wage. Any additional overtime beyond the initial 30 hours is typically compensated at a higher rate of 75% over the standard hourly wage.

These regulations are in place to ensure that employees are fairly compensated for additional work hours and to promote a healthy work-life balance.

In Angola, withholding tax (WHT) is applied to payments for services provided to both resident and non-resident entities. The standard withholding tax rate for these service payments is typically set at 6.5%. This means that the entity making the payment is required to withhold 6.5% of the payment amount and remit it to the tax authorities on behalf of the service provider. This withholding tax is designed to ensure that tax revenue is collected upfront on certain types of income, promoting tax compliance and revenue collection.

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