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DefinitiveGuideto Hiringin Afghanistan
Findeverythingyouneedtoconfidentlyhirein Afghanistan-laborlaw,taxlaw,compliance, payroll,benefitsandmore
Capital Kabul Population 401MM
MonetaryUnit Afghanafghani
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HiringInAfghanistan
LaborLawsIn Afghanistan
AfghanistanSalaryand Wages
IncomeTaxinAfghanistan
SocialSecurityin Afghanistan
ImmigrationAfghanistan
ValueAddedTax(Vat)
MandatoryBenefitsOf Afghanistan
PaymentsAndInvoicingin Afghanistan
AccruedBenefitsinAfghanistan
PayrollAccrualsin Afghanistan
WhyuseGlobalExpansiontohire inAfghanistan DownloadGuide
Hiring In Afghanistan
HiringemployeescompliantlyinAfghanistanmeansdoingit yourselforusinganEmployerofRecordlikeGlobalExpansion.You shouldbecarefulusingindependentcontractoragreementsin Afghanistansothatyoudon’trunafoulofemploymentlaws To hireanemployeecompliantlyandofferthemmandatorybenefits andcompliantagreements,youcan:
(a)Establishyourownnewlegalentity,banking,accountingand payrollserviceinAfghanistanor
(b)useanEmployerofRecordlikeGlobalExpansionwhocan handleallofthedetailsforyou
Labor Laws In Afghanistan
EmploymentlawsinAfghanistanareuniquelysuitedtothe country’swayoflife,andcrucialtounderstandifyouwantto employlocaltalentinthiscountry GetthedetailsonAfghanistan employmentlawsandAfghanistanpolicieshere
ProbationPeriodinAfghanistan
Probationaryperiodshouldnotexceed2weeks
AnnualLeave inAfghanistan
Theemployeesareentitledto20daysofpaidrecreational leaveperyear
Employeesareentitledto10daysofpaidessentialleave
Holidays inAfghanistan
Prophet'sBirthday
MaternityLeave Afghanistan
Afemaleemployeeisentitledto90daysofpaidmaternity leave
30daysofleaveisgrantedbeforethedeliveryandthe remainingisgrantedpostdelivery
PaternityLeave Afghanistan
Thereisnopaternityleave
Sick Leave inAfghanistan
Anemployeeisentitledto20daysofsickleavewithpayand otherallowancesperyear
Employee’ssickleaveforuptothreedayscanbegrantedon thebasisofawrittennotice
Work Hours inAfghanistan
ThetypicalworkweekisSundaythroughThursday Businesshoursaretypically7:30AMto4:30PM
TheLaborLawsetsamaximumof40workhoursperweek onaverage
Overtime inAfghanistan
Theovertimemaynotexceedfourhoursaday Anhourlywageforovertimeispaid25%morethanthe officialworkinghourrateonordinarydaysand50%more thanthehourlyrateonoffdays(weekendorholidays)
TerminationofEmployment inAfghanistan
Under the Labor Law, an employment contract may be terminated under the following circumstances: agreementbytheparties endofcontractterm retirement deathoftheemployee adisabilityhinderingtheperformanceofwork cessationofworkformorethansixmonths dissolutionofthecompanyorreductioninthenumberof staff
finalconvictionleadingtoatleasttwomonths’ imprisonmentoftheemployee disciplinaryreasons refusaltoworkand
anunsatisfactoryprobationaryperiod
Theproceduresfordismissalgenerallyrequire30days’ notice,althoughitiscommonforemployerstoprovideone month’ssalaryandbenefitsinlieuofnotice Undersomecircumstances,theemployeemayalsobe entitledtoseverancepay
TheLaborLawdoesnotmakeanyprovisionforimmediate termination
Collectiveredundanciescangenerallynotbecarriedout withouttheapprovaloftheMinistryofLabor,SocialAffairs, MartyrsandDisabled
Notice PeriodinAfghanistan
Iftheemployerwishestoterminatetheemployment agreementforanyofthereasonsprovidedforinthelaw,one month’snoticeisrequired
Althoughthelawdoesnotstateexplicitlythatthenotice mustgiveinwriting,itisgenerallyrecommended Terminationuponimmediatenoticeispossibleduringthe probationaryperiod,unlessthereasonforterminationis unsatisfactoryperformanceoftheemployee
Employeesmayterminatetheemploymentagreement withoutpriornoticeiftheemployerhasviolatedthelaborlaw orbreachedtheprovisionsoftheemploymentagreement Terminationwithoutnoticetoemployerisalsoallowedinthe caseofincurableillnessoftheemployee Inother circumstances,onemonth’spriorwrittennoticeisthegeneral rule
Severance inAfghanistan
Whenanemployeeisterminatedbecauseofcessationof work,reductioninstaff,imprisonmentorrefusaltowork,the
employerisobligedtomakeseverancepayments,basedon thedurationofemploymentasfollows:
lessthanoneyear:onemonth’ssalaryincludingentitlements; onetofiveyears:twomonths’salaryincludingentitlements; fivetotenyears:fourmonths’salaryincludingentitlements; and morethantenyears:sixmonths’salaryincluding entitlements
13th/14thMonthPay
Yes
Thereisnostatutoryrequirementtopaythe13thor14th monthsalary,howevermanyemployershavedecidedtooffer the13thmonthsalarytotheiremployees Thereisno14th monthsalary
Otherpaymentsoverholidays:
AccordingtoArt50ortheLabourCode,whenanemployee willbepaidinadvanceforauthorisedrecreationalleave
AccordingtoArt44incompanieswheretheemployeris unabletogiveholidaysduringpublicholidaysbecausethe workcannotbedelayed,theemployeewillbeentitledto50% salaryinadditiontothenormalovertimewageasan incentive
Afghanistan Salary and Wages
Income Tax in Afghanistan
Thenaturalandlegalpersonsareobligedtopaythetaxas followingbasedontheprovisionsofthisLaw:
Residentpersons:fromoverallincome(incomefrom bothAfghanandNon-Afghansources)Non-residentpersons:OnlyfromAfghanrevenue sources -
Theincometaxoflegalpersonsshallbe20percentoftaxable incomeforthetaxyear
TheincometaxshallbeassessedandexchangetoAfghani currency
Theexchangerateshallbetheaverageofopenrates determinedbyDaAfghanistanBankonthebasisofbuyrate attheendofeachmonth
Effectiveasof1Hamal1388,thenewtaxlawreducedthe monthlyexemptionfromAFN12,500toAFN5,000(or proratedshareforalternatepayrollperiods)perperson
Thetaxlawalsoaddeda2percenttaxbracket
TheIncomeTaxLaw(Article4)providesamonthlyschedule ofwithholdingrates
Theincometaxofnaturalpersonsiscalculatedasbelow chart:
Hire
anyone, anywhere
Social Security in Afghanistan
SocialInsurance Program
Employedpersonsinprivate-sectorestablishments, cooperatives,socialorganizations,jointenterprises,and governmentarecovered
Immigration Afghanistan
ApplicantsforanAfghanvisa,regardlessofthetypeofvisa, arerequiredtoobeythelawsoftheIslamicRepublicof Afghanistan
Currently,thestandardvisaprocessingtimeis5-7business daysbutthismayvaryonanindividualbasis
ForeignnationalswhohaveenteredAfghanistanonanEntry VisaoraWorkVisaareeligibletowork
Thiscategoryofindividualsmustobtainaworkpermitfrom relevantagenciesafterentrytoAfghanistan
Ifemploymentisthepurposeofyourvisit,anofficialletterof introductionfromyouremployer,sponsoringgovernmentor organizationstatingthepurposeanddurationofyourtripis required
Pleasealsoincludeanysponsorshipinformationanda financialguaranteeforexpensesthatwillbeincurredin Afghanistan
Afghanistan(includingpassportinformation,thepurposeof travelanddurationofstayoftheapplicant)
Additionally,theyshouldalsohaveaconfirmationletterfrom ConsularAffairsDirectorate-GeneraloftheMinistryofForeign AffairsoftheIR ofAfghanistan
ThosewhointendtotraveltoAfghanistanforinvestmentand businesspurposescanapplyforanAfghanBusinessVisaby providingthefollowingdocumentation:
WorkpermitandbusinesslicenseAddressofthecompanyDocumentsprovidingthetypeofcommercialactivities, paymentoftaxesandbankaccountnumber -
IntroductionorpermissionletterfromtheMinistryof ForeignAffairs,ChamberofCommerce,orother relatedofficialbodies
OfficialVisa (OV)
Visa application form (physically signed)
Passportsize photo Passportwith 6-month validity
Letterof introduction withpurpose ofvisit
GreenCard (forUS citizens)
BusinessVisa (BV) Introduction orpermission letterfrom theMinistry ofForeign Affairs, Chamberof Commerce, orother related officialbodies
Workpermit andbusiness license
Addressof thecompany Documents providingthe typeof commercial activities, paymentof taxesand bank account number
Anew notarized bank
Varies
1to3years
OVisissuedby theAfghanistan Missionsabroad totheforeign nationalswho holdServiceand Special PassportsorUN Laissez-Passer It canalsobe issuedtothose whoenterthe territoryofthe IslamicRepublic ofAfghanistan forconducting official assignmentsin thediplomatic andconsular missionsof foreign countries, institutions, agenciesor international organizations
BVisissuedto theforeign nationalswho enterintothe territoryofthe IslamicRepublic ofAfghanistan forthepurpose ofbusiness, investment, marketing, commercial transactions, guardianship, liquidation, handlingof corporateaffairs, andcommercial property;selling andbuying property; participationin exhibitions; commercial eventsand othersimilar issues
WorkingEntry Visa(WV)
statement withhavinga minimumof US$100,000 deposit
Police Clearanceor No-Objection Certificate Visa application form (physically signed)
Passportsize photo
Passportwith 6-month validity
Visa application form (physically signed)
Passportsize photo
Passportwith 6-month validity
Proofof educational qualification
Invitationor introduction letterfrom theemployer companyin Afghanistan
1year
WVisissuedto employees, doctors, teachers, trainers,experts, engineers,pilots, thestaffof ground transportation andforeign technical workersbased onneedand previous invitationsfor thepurposeof workingat Diplomaticand Consular Representations, UNOffices, International Organizations; Government andNonGovernmental Organizations; Nationaland International Agencies
Value Added Tax (Vat)
TheAfghanistanRevenueDepartment(ARD)hasannounced thatthecountryismovingforwardwiththeimplementation ofitsnewVATregimewitheffectfrom22December2021 ThestandardVATrateis10%
Mandatory Benefits Of Afghanistan
Thesearemandatorybenefitsaspostulatedbylaw
Theseincludeprobationaryperiod,annualleave,public holidays,sickleave,maternityleave,overtimepay,notice period,andseverancepay
Statutorybenefitsalsoincludesocialsecuritybenefits
Payments And Invoicing in Afghanistan
Thetaxableyearisthesolaryearwhichstartsfromthefirst dayofJadi(21stDecember)andendsonthelastdayofQaws (20thDecember)
Alegalperson(butnotanaturalperson)wishingtousea differenttaxationyearmayapplyinwritingtotheMinistryof Financeexplainingthereasonsfortherequestedchange
TheAfghanistanRevenueDepartment(ARD)isresponsible fortheadministrationandcollectionoftaxandnon-tax revenuefortheGovernmentofAfghanistan
Accrued Benefits in Afghanistan
(833%ofannualsalary)
•onetofiveyears:twomonths’salary (1666%ofannualsalary)
fivetotenyears:fourmonths’salary (3333%ofannualsalary)
morethantenyears:sixmonths’salary (50%ofannualsalary)
Vacations% Basedon20daysofpaidvacationayear (549%ofannualsalary)
Notice% Onemonth’snoticeisrequired(833%)
ChristmasBonus
OverNotifications% 0%
VacationsPlus% Basedon20daysofpaidvacationayear (549%ofannualsalary)
Totalpercentageof Salary(yearly) Thetotalemploymentaccrualsasa percentageofsalaryperanumareequal to2215%ofannualsalary
Payroll Accruals in Afghanistan
AnnualLeave
Employeesareentitledto20 daysofpaidrecreationalleave and10daysofpaidessential leave Therefore,Employers musttakeintoaccountthe costsassociatedwiththispaid leave
Thisequals30 daysofpayor 822%ofannual salary(30/365 days)
Maternity Leave
Afemaleemployeeisentitled to90daysofpaidmaternity leave
Thisequals 2465%ofannual salary(90/365)
SickLeave Anemployeeisentitledto20 daysofsickleavewithpay Thisequals548% ofannualsalary (20/365)
OvertimePay
Anhourlywageforovertime ispaid25%morethanthe officialworkinghourrateon ordinarydaysand50%more thanthehourlyrateonoff days(weekendorholidays) Theovertimemaynotexceed fourhoursaday
Severance Pay SeverancePayisbasedon durationofemployment:lessthanoneyear:one month’ssalaryincluding entitlements; •onetofiveyears:two
Thisequals1666% ofannualsalary (2/12months)
Grow
months’salaryincluding entitlements; fivetotenyears:four months’salaryincluding entitlements;and morethantenyears:six months’salaryincluding entitlements Note:-Forthe purposeofthiscalculation, assumeonetofiveyears employmentperiod
Social Security Contribution
Employersarenotrequired tomakeanycontributionto thesocialinsuranceprogram
Why use Global Expansion to hire in Afghanistan
EstablishingabranchofficeorsubsidiaryinAfghanistancanbe time-consuming,expensiveandcomplex Withsucharobustlabor marketinplace,onemustpaygreatattentiontodetailwhen structuringemploymentbecauseAfghanistanianlaborlawsare complex
Thecompanyalsohasaresponsibilitytocomplywithspecific employmentpracticesdictatedbyAfghanistanianlawtomaintain itsgoodstandingasanequalopportunityemployer GlobalExpansionmakesiteasyforyoutoexpandinto Afghanistan We'llhelpyouhireyourcandidateofchoice,handle HRmattersandpayroll,andensurethatyoucomplywithlocal lawswithouttheburdenofsettingupaforeignbranchofficeor subsidiary Inaddition,you'llhavecompletecontrolanddirection overyouremployees
Weenableyoutostayincontrolofeverything OurAfghanistanian GlobalProfessionalEmployerOrganization(PEO)andEmployerof Record(EOR)solutionprovidesyouwithpeaceofmindtofocuson runningyourcompanyandthesecuritytoenternewmarkets