Angola Payroll Outsourcing, Payroll Software and Employer Of Record (EOR) services.
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ANGOLA
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Angola Payroll and Employer of Record: Employment Contracts
- Business Visa:
For attending conferences, business meetings, and events. Valid for 90 days, with stays up to 30 days. No paid employment is allowed.
- Short-Term Work Visa:
Short-Term Visa: Allows paid employment for urgent, short visits, valid for seven days.
Sector-Specific Short-Term Visa: Allows paid employment authorized by local sector bodies when local workers are unavailable.
- Work Visa:
Permits paid employment. Six types based on sectors:
- Type A: Employment in an institution or public company.
- Type B: Independent work, service provision, or involvement in sports or cultural activities.
- Type C: Employment in oil, mining, or construction sectors.
- Type D: Employment in commerce, industry, fishing, maritime, or aeronautical sectors.
- Type E: Work integrated into cooperation agreements.
- Type F: Employment in sectors not mentioned above.
- Dependent Visa:
Allows dependents of Angolan citizens or residence permit holders to work without separate authorization.
- Study Visa:
Required for all levels of education. Valid for one year, extendable for study duration.
- Privileged Visa:
Investor’s visa for those meeting specific financial criteria.
PAID TIME OFF
Annual Vacation
- Yearly leave is normally earned at two days for each month of work in the first year of employment, with a minimum of six days of annual vacation to be taken in that specific year. Leave is granted on January 1st of the following year and can be used once six months of employment has been completed. Employees are entitled to 22 days of annual leave after one year of service.
- The annual leave entitlement begins on January 1st and must be used by December 31st of the same year.
Sick
- Employees on sick leave in medium or large enterprises are paid in full for the first two months of their absence. From the third to the twelfth month of absence, the employer is required to pay the employee 50% of the basic income until the applicable social protection institution takes over. Employers in smaller businesses must pay half of the standard wage for 90 days.
- Employees have the right to be away from work with pay due to sickness, provided that such absence is documented and justified by submitting a medical certificate.
Maternity
- Women who have contributed to the social security system for at least 6 months prior to their pregnancy will be eligible for 12 weeks of maternity leave.
- If required, the employer will supplement this leave. Maternity leave begins four weeks before the due date (eight weeks before the due date for multiple births) and ends nine weeks after the kid is born.
- If the kid is born beyond the planned delivery date, the leave term is extended by the amount required to last at least nine weeks following the child’s birth.
- Maternity pay is computed based on the previous six months’ wages.
Paternity
- Angola’s General Labor Law provides for one day of paid leave upon the birth of a child.
Family
- Female employees with children under the age of 14 are entitled to one day of extended leave for each kid.
- After the maternity leave finishes, and with the employer’s prior approval, the employer can offer a female employee with a further four weeks of unpaid leave to care for the kid.
- Employees are entitled to three days of absence per month (up to a maximum of 12 working days per year) to give emergency assistance to members of their household.
National Holidays
- Angola has a total of 13 public holidays which are paid.
Other Paid Time Off
- Family Support Leave: With previous employer consent, an employee is entitled to 8 days of paid family support leave each year.
- Military Service Leave: An employee may take up to two days of paid leave each month for military responsibilities, up to a maximum of 15 days per year.
- Education Leave: After providing 30 days’ written notice to the employer, an employee may take unpaid leave for 60 days for education or training.
STATUTORY EMPLOYEE BENEFITS
Unemployment
- Angola does not have a dedicated unemployment insurance fund, but employers must provide severance pay for dismissals due to unfair disciplinary actions, wrongful collective dismissals, insolvency, restructuring, or economic conditions.
Workers Compensation
- Employers cover the cost of work injuries and occupational diseases. Compensation depends on the nature and severity of the impairment, with occupational diseases specified by law.
- The Work Injuries Act provides both financial and in-kind compensation for work-related injuries and illnesses, with no qualifying period required.
Social Security
- Individuals must pay social security contributions on their gross income at rates of 3%, while employers contribute 8%.
- These contributions fund sickness, maternity, family, and pension benefits.
- Foreign workers in Angola without a residency visa may be exempt from Angolan social security if they can prove coverage under their home country’s system.
Retirement
- Pension benefits are funded through the social insurance system.
Health
- All Angolans have access to universal primary healthcare.
- Angola’s healthcare system is made up of both state and private sectors. While public healthcare is free, it is not available to all Angolans.
PRIVATE EMPLOYEE BENEFITS
Workers Compensation
- Private work accident insurance is available in Angola.
Retirement
- Private retirement/pension funds are available as options in Angola.
Health
- Private healthcare is available in Angola and offers high standards of care and medical services.
Insurance
- There is no private life insurance yet in Angola.
PERSONAL INCOME TAX
Tax Year
- Tax year runs from January 1st to December 31st.
Tax Tables
The Personal Income Tax (PIT) Code categorizes income into Groups:
- Group A: Pertains to income earned by employees.
- Group B: Involves income earned by self-employed workers.
- Group C: Relates to income from industrial or commercial activities.
Taxation for Group B and Group C aligns with business and professional income regimes
Group A follows a progressive income tax regime up to 25%, as follows:
Taxable Income | Rates of Taxes |
Up to 70,000 | 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 |
Taxation Method
- The tax method used in Angola is the progressive income tax.
Double Taxation
- Angola has multiple double taxation agreements.
Residence Requirements
According to the General Tax Code, an individual is considered to be a tax resident in Angola if, among other things, he or she fulfills one of the following conditions:
- On the 31st of December of each fiscal year, maintains a habitation (i.e. a habitual resident) in Angola.
- In each fiscal year, spends more than 90 days in Angola, whether consecutive or not.
Payroll Calendars
- Wages are normally paid on the final working day of the month, according to the payroll cycle.
Rebates & Tax Credits
Certain compensation items may be exempt from or not subject to PIT under specific conditions, including:
- Family allowances.
- Meal and transport allowances, with individual limits set for each allowance.
- Employee business travel expenses, if properly documented as per current legislation.
- Employees’ contributions to social security.
Health Insurance
- All Angolans have access to universal primary healthcare.
- Angola’s healthcare system is made up of both state and private sectors. While public healthcare is free, it is not available to all Angolans.
Unemployment
- Angola does not have a dedicated unemployment insurance fund, but employers must provide severance pay for dismissals due to unfair disciplinary actions, wrongful collective dismissals, insolvency, restructuring, or economic conditions.
Social Security
- Individuals must pay social security contributions on their gross income at rates of 3%, while employers contribute 8%.
- These contributions fund sickness, maternity, family, and pension benefits.
- Foreign workers in Angola without a residency visa may be exempt from Angolan social security if they can prove coverage under their home country’s system.
PAYROLL ELEMENTS
Income
- Wages, salaries, fees, bonuses, and any other supplementary compensation, such as benefits in kind.
Bonuses
- After an actual year of service, workers are guaranteed the following minimum mandatory gratuities:
- 50% of the base salary equivalent to the holiday period salary as a holiday bonus.
- 50% of the base salary for December as a Christmas bonus.
- These minimums can be enhanced through collective agreements or individual employment contracts.
Allowances
- Personal income tax applies to vacation and Christmas allowances, severance payments, cashier, and housing rent allowances. Cash allowances, such as per diems and hardship allowances, are taxable if they surpass specific limits.
- Family allowance laws are governed by Decree 8/11, applicable to both national and expatriate employees. Prerequisites include dependents aged 3 to 14 (those under 3 receive a nursing allowance from INSS), limited to a maximum of 5 children, with the employer having the option to offer an allowance greater than the minimum required.
Benefits in Kind
- Benefits in kind ( such as housing or a company car ) are often valued at their cost to the employer, as documented in the company’s or the recipient’s records.
Investment Income
- Individuals are also subject to Income Tax on Investments (IIT)) on interest, dividends, royalties, and other comparable income.
- The IIT Code in Angola distinguishes such income into two categories, as follows:
- Section A contains credit facility interest, borrowing interest, and income generated by postponed payments.
- Section B contains, among other things, dividends, profits, interest, premiums on amortization, and royalties.
- IIT typically stands at 15%, but some income is taxed at 10% (dividends, bond interest, and capital gains) or 5% (interest and capital gains from bonds with maturity over three years).
Retirement Funding
- Pension benefits are funded through the social insurance system.
Health Insurance
- All Angolans have access to universal primary healthcare.
- Angola’s healthcare system is made up of both state and private sectors. While public healthcare is free, it is not available to all Angolans.
Risk Insurance
N/A
Taxable Income
- Individuals are liable to personal income taxation on Angolan source income earned, regardless of their location of residence. Income tax is levied at progressive rates based on an individual’s taxable income for the year.
Allowable Deductions
- Employees’ contributions to social security are allowed as a deduction for PIT purposes.
PAYROLL TAXES AND EMPLOYER CONTRIBUTIONS
Payroll Taxes
- The employer is responsible for remitting the monthly income tax and applicable social security contributions from their employees salaries.
Unemployment
- Angola does not have a dedicated unemployment insurance fund, but employers must provide severance pay for dismissals due to unfair disciplinary actions, wrongful collective dismissals, insolvency, restructuring, or economic conditions.
Social Security
- Individuals must pay social security contributions on their gross income at rates of 3%, while employers contribute 8%.
- These contributions fund sickness, maternity, family, and pension benefits.
- Foreign workers in Angola without a residency visa may be exempt from Angolan social security if they can prove coverage under their home country’s system.
Workers Compensation
- Employers cover the cost of work injuries and occupational diseases. Compensation depends on the nature and severity of the impairment, with occupational diseases specified by law.
- The Work Injuries Act provides both financial and in-kind compensation for work-related injuries and illnesses, with no qualifying period required.
ADMINISTRATION
Income
- Individuals whose main income source is employment aren’t required to submit tax returns as their employer withholds taxes. Employment income tax is managed through monthly WHT by employers.
- Self-employed workers file their annual returns in March, reporting their yearly revenue.
- Employers file the yearly Employment Income Tax return by February’s end, detailing total employee numbers, wages, other income, and total Employment Income Tax withheld.
Payroll Taxes
- The employer is responsible for remitting the monthly income tax and applicable social security contributions from their employees salaries.
Unemployment
- Angola does not have a dedicated unemployment insurance fund, but employers must provide severance pay for dismissals due to unfair disciplinary actions, wrongful collective dismissals, insolvency, restructuring, or economic conditions.
Social Security
Old-Age Benefits:
- Old-age pension: Based on the insured’s average monthly earnings over the previous 36 months multiplied by the number of months of contributions and divided by 420.
- Old-age allowance: Equals 30% of the insured’s average monthly earnings over the past year.
Survivor Benefits:
-
- Permanent survivor pension: Amounts to 70% of the insured’s last monthly earnings, divided among eligible survivors according to the law.
- Temporary survivor pension: Represents 70% of the insured’s last monthly earnings, paid for up to one year.
- Death grant: A one-time payment equal to six times the deceased’s pension or average monthly earnings, divided equally among eligible survivors.
- Funeral grant: A lump sum of 25 000 AOA.
Workers Compensation
Temporary Disability Benefits:
- Payment: Receives 65% of last daily earnings, increased to 100% if hospitalized for first 30 days, then 75% thereafter if condition persists.
Permanent Disability Benefits:
- Total Loss of Work Capacity: Receives 50% to 70% of reference earnings based on assessed loss, up to 80% if total loss.
Workers’ Medical Benefits:
- Covers necessary medical treatment, hospitalization, medicine, surgery, specialist treatment, rehabilitation, and prostheses.
Survivor Benefits:
-
- Survivor Pension:
- Spouse’s Pension: Receives 30% of gross monthly earnings if under 60, 40% if 60 or older or with loss of working capacity.
- Orphan Pension: Receives 20% of gross monthly earnings per orphan up to age 18 (age 25 if student).
- Other Eligible Survivor’s Pension: Receives 10% of gross monthly earnings per surviving parent or grandparent, up to three.
- Death Grant: Receives lump sum of six times base earnings.
- Funeral Grant: Covers funeral costs, up to two times employee’s earnings at death.
- Survivor Pension:
Statutory Benefits
- Social security benefits, probationary period, notice period, annual leave etc.
Employee Benefits
- Certain benefits are mandated by law to be included in the Angola benefit management plan. Angola has 12 public holidays on which employees are excused from work, and they are additionally entitled to 22 days of vacation time every year. Employees with children receive an extra vacation day each year until the child reaches the age of 14.
LEGISLATION
- General Labor Law No. 2/00 of 11 February 2000
- Law on Inspection and Labor Administration No. 2/92 of 17 January 1992
- Internal regulations of the General Inspectorate of Labor, Decree No. 9/95 of 21 April 1995
STATUTORY BODIES
- The Ministry of Public Administration, Employment and Social Security
- Angola Revenue Authority
