Ultimate Guide to Hiring in Angola | Salary, Laws & Taxes

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Definitive Guide to Hiring in Angola Find everything you need to confidently hire in Angola - labor law, tax law, compliance, payroll, benefits and more.

Capital

Population

Monetary Unit

Luanda

34.5 MM

Angolan kwanza

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Hiring In Angola Hiring in Angola Labor Laws in Angola Angola Salary and Wages Income Tax in Angola Social Security in Angola Immigration Angola Value Added Tax (VAT) in Angola Mandatory Benefits Of

Hiring employees compliantly in Angola means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Angola so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can: (a) Establish your own new legal entity, banking, accounting and payroll service in Angola; or (b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Angola.

Payments And Invoicing Accrued Benefits in Angola

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Payroll Accrual in Angola Why use Global Expansion to hire in Angola

Labor Laws In Angola Employee Probation Period

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Unlimited employment contracts generally have a probation period of 60 days.

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Annual Leave in Angola employment solutions.

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Angolan employees are generally entitled to 22 days of need? vacation per year.

Employees with children are entitled to an additional vacation day per year until the child reaches the age of 14.

Holidays in Angola

New Year's Day (1st January) Liberation Movement Day (4th February) Carnival (25th February) International Women's Day (9th March) Day of the Liberation of Southern Africa (23rd March) Peace Day (6th April) Good Friday (10th April) Labor Day (1st May) National Heroes' Day (in Angola) (17th September) All Souls Day (2nd November)

Independence Day (of Angola) (11th November) Christmas Day (25th December)

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Maternity Leave Angola Female employees are entitled to three months of maternity leave, four weeks to be taken before the due date and the balance after, with 9 weeks after guaranteed, regardless of the due date.

If there are multiple births, the mother is entitled to an additional four weeks.

The employee may not return to work until at least 5 weeks after the birth.

Employees on maternity leave are generally entitled to social security compensation, with supplementation by the employer.

Paternity Leave Angola There is no statutory paternity leave.

Sick Leave in Angola Employees may take unlimited days off of work for illness as long as they present a medical certificate.

Medium and large companies must pay medical leave at 100% of the employee’s salary for the first two months. The third through the 12th months must be paid at 50% of base salary.

Work Hours in Angola The normal working week in Angola is 44 hours with each day limited to 8 hours.

The work week can be extended to 54 hours or 9 hours per day.

Overtime in Angola Overtime is limited to: - 2 hours per normal day of work - 40 hours per month of work - 200 annual hours Overtime of up to 30 hours per month is paid at an additional 50% rate.

Additional overtime is paid at an additional 75%.

Termination of Employment in Angola Angolan employment law is structured to offer a high level of employee protection.

For employees with unlimited employment contracts, terminations must follow strict rules, and in general, employees may only be terminated for a serious infringement or an objective and economic reason that is not the fault of the employer.

Litigation over termination is common.

For fixed-term employment contracts, employers must serve employees with two weeks' prior written notice before their contract expires.

Further, a 30-day notice period applies to individual termination for objective reasons and a 60-day notice period applies to collective dismissal.

Notice Period in Angola For fixed-term employment contracts, employers must serve employees with two weeks' prior written notice before their contract expires.

Further, a 30-day notice period applies to individual termination for objective reasons and a 60-day notice period applies to collective dismissal.

Severance in Angola It is equivalent to 2 working days of salary for each completed month of service

13th / 14th Month Pay Yes (Mandatory) There is a statutory requirement to pay holiday bonus equivalent to 50% of the base salary.

There is a mandatory 13th month vacation bonus which is paid before the holiday.

And there is a mandatory Christmas Bonus which is paid in December.

Angola Salary and Wages Income Tax in Angola The Labor Income Tax (IRT) is levied on the income of selfemployed workers (liberal, commercial and industrial professionals) or employees (dependent workers).

For the purposes of this tax, all remuneration received in the form of wages, salaries, salaries, fees, allowances, gratuities, subsidies, prizes, commissions, participations, attendance fees, emoluments, participation in fines, costs and other remuneration constitute income from work. accessory.

Labor Income Tax (IRT) is payable by natural persons, whether residing or not, in the national territory, whose income is obtained from services rendered, directly or indirectly, to natural or legal persons with domicile, head office, effective management or permanent establishment in the country.

The PIT Code foresees, with the respective specificities, the segmentation of income into Groups, namely: Group A: Generally applicable to the income earned by employees.

Group B: Income earned by self-employed workers.

Group C: Income earned by individuals carrying out an industrial or commercial activity listed in the minimum profits table in force, attached to the PIT Code.

When the taxable income is determined by the service provided based on one's accounting records, the available records of purchases, sales, and services rendered, or the data available by the tax authorities according to the specific rules applicable to taxpayers of Group B and is subject to a 25% tax rate.

Taxpayers maintaining accounting books and records, simplified accounting model, or purchase and sale or services provided registration book are allowed to deduct up to 30% of incurred expenses in the computation of taxable income.

Taxpayers of Group B with no organized nor simplified accounting models are not entitled to deduct costs, and the tax is levied over all income.

Individuals carrying out an industrial or commercial activity (Group C) are taxed at a flat rate of 30% or 6.5%, as explained below:

Taxable income

Rate (%)

T he amount of profits not subject to WHT assessed through the accounting records of individuals with organized accounting (Groups B and C) is subject to the following rate. T he amount of profits established in the minimum profits table (Group C) or amount of sales of goods and services not subject to WHT , when the taxpayer has turnover in excess of four times the maximum value established in the minimum profits table, is subject to the following rate.

25

Fees paid to self-employed individuals are subject to the following WHT when the payer has organized or simplified accounting models.

6.5

Business and professional income derived by nonresident professionals is generally subject to final WHT of 6.5% on the gross amount

6.5

For Group A, there are progressive income tax rates up to 25%, as follows:

Income (AOA) Up to 70,000

Payable tax (AOA) Exempt

Between 70,001 and 100,000

3,000 + 10% upon the excess of 70,000

Between 100,001 and 150,000

6,000 + 13% upon the excess of 100,000

Between 150,001 and 200,000

12,500 + 16% upon the excess of

150,000 Between 200,001 and 300,000

31,250 + 18% upon the excess of 200,000

Between 300,001 and 500,000

49,250 + 19% upon the excess of 300,000

Between 500,001 and 1,000,000

87,250 + 20% upon the excess of 500,000

Between 1,000,001 and 1,500,000

187,250 + 21% upon the excess of 1,000,000

Between 1,500,001 and 2,000,000

292,250 + 22% upon the excess of 1,500,000

Between 2,000,001 and 2,500,000

402,250 + 23% upon the excess of 2,000,000

Between 2,500,001 and 5,000,000

517,250 + 24% upon the excess of 2,500,000

Between 5,000,001 and 10,000,000

1,117,250 + 24.5% upon the excess of 5,000,000

More than 10,000,001

2,342,250 + 25% upon the excess of 10,000,000

Social Security in Angola Individuals are liable to social security contributions on their gross income at rates of 3% (8%, in case of retired employees) and 8% due by the employee and the employer, respectively.

Taxable income includes all cash or in kind benefits, with the exception of the following: Social benefits paid by employers.

Holiday allowances.

Values of subscription/participation in complementary social protection schemes.

The contributions are intended to cover family, pension, and unemployment protection.

Foreign citizens working in Angola (without a residence permit) may be excluded from social security in Angola, provided that they prove that they are covered by their home country's social security system.

Contribution

Employer

Employee

Social Security

8%

3%

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Immigration Angola In line with the new legal regime for foreign nationals in Angola, various types of temporary visas may be granted to foreign nationals who intend to come to Angola.

The type of visa depends on the reason and period of stay.

The Tourism Visas are granted by Consular Missions at the applicant’s country of origin or residence, for business prospection or family reasons and for engaging in scientific and technologic activities, as well to those foreign nationals who intend to stay in Angola for recreational, sporting or cultural activities.

Tourism Visas allow its holder to stay in the country for 30 days, extendable twice for the same time period.

Tourism Visas do not allow their holders to perform remunerated activities in the country, for which a Work Visa is required, or apply for residence.

Temporary Stay Visas, which are granted for 365 days, extendable for the same time period, until the end of the term of the reason that justified the visa, may be granted in the following circumstances: To accomplish missions within religious institutions or within nongovernmental organizations For scientific research, mobility or university extension To family members of study, medical treatment and work visa holders To family members of holders of valid residence permits To spouses of Angolan citizens The appropriate visa allowing a foreign national to undertake remunerated activities in Angola is the Work Visa.

The Work Visa is granted for 365 days, extendable for equal time periods until the end of the term of the employment agreement that justified the visa.

The Work Visa must be applied for at the Angolan Consulate or Embassy in the applicant’s country of origin or residence.

Before applying for a Work Visa, a favorable opinion from the entity overseeing the sector of activity in Angola is required.

Type of Visa/ Permit

Documentation

Validity

Valid passport Proof of accommodation Tourist Visa

Passport size photo

30 days

T ravel itinerary Proof of sufficient funds

Letter by the addressed to the Consular Section stating the reasons to apply for Temporary Stay visa

To accomplish missions within religious institutions or within nongovernmental organizations

Criminal Record certified by the Consulate Medical report issued by a Health Institution

T he Tourism Visas are granted for business prospection or family reasons and for engaging in scientific and technologic activities, as well to those foreign nationals who intend to stay in Angola for recreational, sporting or cultural activities.

May be granted in the following circumstances:

A passport with at least 9 months’ validity

Temporary Stay Visa

Eligibility

1 year

For scientific research, mobility or university extension To family members of study, medical treatment and work visa holders

Proof of means of subsistence while in Angola

To family members of holders of valid residence permits

Proof of accommodation 3 personal photos

To spouses of Angolan citizens

Photocopy of passport's main pages

Company letter in Portuguese Application form fully completed Photograph Passport valid for more than twelve (12) months Contract of employment in Portuguese Medical report issued by a Health Institution Work Visa

Criminal Record certified by the Consulate

1 year

Foreigners seeking employment in Angola must apply for a work visa

Certificate of Academic or Professional Qualifications Two (2) photocopies of the license of the contracting (private) company in Angola Curriculum Vitae in Portuguese Photocopies of the passport

Value Added Tax (VAT) in Angola Value Added Tax (VAT) is levied on the transfer of goods, the provision of services carried out in the national territory, for consideration, by a taxable person, acting in that capacity, as well as on the importation of goods.

The Value Added Tax rates are as follows:

14%, as a general rate applicable to all operations carried out by taxable persons under the general regime; 7%, on the effective receipts of the taxable persons of the simplified regime; 5%, for import and transfer operations of various goods included in the table annex I of the Value Added Tax Code, as well as for agricultural inputs; 2%, for the importation of goods and the transfer of goods carried out in the Province of Cabinda.

VAT Standard Rate

14%

Reduced Rate

7%

Reduced Rate

5%

Reduced Rate

2%

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Mandatory Benefits in Angola These are mandatory benefits as postulated by law These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, notice period, and severance pay Statutory benefits also include social security benefits

Need assistance hiring in Angola? Contact us about our International EOR Service

Mandatory Benefits Overview Probationary Period Annual Leave Public Holidays Maternity Leave Sick Leave Overtime Pay Notice Period Severance Pay Social Security Benefits

Payments And Invoicing The tax year runs from 1 January to 31 December.

Individuals only deriving employment income are not required to file tax returns, as the employment income tax is withheld at source by their employer.

Employment income tax is assessed and paid on a pay as you earn (PAYE) basis through monthly WHT collected by employers.

Self-employed workers file an annual return disclosing their annual income during March of the following year.

By the end of February each year, employers should file the Employment Income Tax annual return ('Modelo 2').

This return should disclose the total number of employees (including those who are self-employed), the total amount of wages and other income paid to each employee during the prior year, and the total amount of Employment Income Tax withheld.

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Accrued Benefits in Angola Christmas Bonus % It is based on 50% of the salary of December

Christmas Bonus % It is based on 50% of the salary of December

Severance per Year%

(4.16% of annual salary)

0%

(8.33% of annual salary)

Employees are entitled to one months's pay based on one year of service

Vacations % Angolan employees are generally entitled to 22 days of vacation per year

(6.02%)

Notice % Employees are entitled to 2 weeks of notice for fixed term contract exceeding 3 months

(3.83%)

Christmas Bonus Over Notifications% (4.16% of annual salary)

Outstanding Christmas Bonus equivalent to 2 weeks of pay must be paid in December

Vacations Plus % Employees are entitled to 50% extra of their monthly base rate for their holiday

(4.16% of annual salary)

Total percentage of Salary (yearly)

30.66%

The total employment accruals as a percentage of salary per annum

Payroll Accrual in Angola Country Accruals Additional Information Social Security

8%

Christmas Bonus

8.33%

Vacations

Description

9.04% Individuals are liable to social security contributions on their gross income at rates of 3% (8%, in case of retired employees) and 8% due by the employee and the employer, respectively.

T axable income includes all cash or in kind benefits, with the exception of the following: Social benefits paid by employers.

Holiday allowances.

Values of subscription/participation in complementary social protection schemes.

T he contributions are intended to cover family, pension, and unemployment protection.

Foreign citizens working in Angola (without a residence permit) may be excluded from social security in Angola, provided that they prove that they are covered by their home country's social security system.

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Payroll Accruals Additional Information

Employment Accruals

Annual Leave

Angolan employees are generally entitled to 22 days of vacation per year.

T his equals 6.02% ( 22/365 days ) of annual income

Maternity Leave

Female employees are entitled to three months of maternity leave.

Employees on maternity T his equals 25% leave are generally (3/12 months) of entitled to social security annual income compensation, with supplementation by the employer.

Sick Leave

Companies must pay T his equals 16.66% medical leave at 100% of (2/12 months) of the employee’s salary for annual income the first two months.

Overtime is limited to:

2 hours per normal day of work Normal hourly rate is around 40 hours per 1,631.25 AOA. month of work Overtime is paid 200 annual hour at an additional 815.625 AOA.

Overtime

Overtime of up to 30 hours per month is paid at an additional 50% rate.

13th Month Pay

13th month pay is T his equals 16.66% mandatory.14th-month is (2/12 months) of also mandatory as a annual income Christmas bonus

Social Security Contribution

Employers must make social security contribution of 8%

T his equals 8% of annual income

Why use Global Expansion to hire in Angola Establishing a branch office or subsidiary in Angola can be timeconsuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Angola labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Angola law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Angola.

We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Angola Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.

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