Angola Payroll Outsourcing, Payroll Software and Employer Of Record (EOR) services.
Contact us for a payroll simulation, ask a practical question or download our free country guide for Angola.
ANGOLA
Deploy one employee or payroll thousands. Why not just contact us to find out how?
Save time! Don't spend hours researching!
Contact us for a payroll simulation, ask a practical question or find out how things work in the country.
Angola Payroll and Employer of Record: Employment Contracts
Every foreigner who accepts a job offer from an Angolan firm must apply for a work visa. Individuals with work visas can stay in the nation for up to a year and can be renewed twice with multiple entries. Visas are only valid for the professional activity specified in the employment contract, and the categories vary depending on the activity.
Foreign nationals working in the petroleum industry or civil construction, for example, should apply for a type C work visa. A type D work visa is required for anybody entering the commercial, industrial, or fishing sectors.
To hire international staff, a foreign firm must either establish an Angolan subsidiary or collaborate with a worldwide PEO. Expats in Angola must get a work permit in addition to a work visa in order to comply with the country’s rules. Before any of your workers can receive a work visa, your organization must apply for work permits on their behalf.
The law requires all Angola work permits and visas to be provided within 15 days, yet officials frequently delay two to three months. Work visas in Angola typically cost around $100 and are valid for the duration of the job agreement. Employees must reapply after theirs expires, as they are only valid for three months and cannot be extended for more than 36 months.
Probation Periods
- The normal probationary term is 60 days, as required by legislation.
Notice Periods
Individual dismissals based on objective grounds (up to 20 workers): the employer must provide prior notice of dismissal to the employee or employees who occupy the employment posts to be extinguished or changed at least 30 days in advance.
The previous notice period for collective dismissal is 60 days.
In the case of a term contract, the notice period is 15 business days if the length is equal to or more than 3 months.
Minimum Wage
- The monthly minimum salary in Angola is 15,003 kwanza.
Working Hours
- In Angola, a typical work week is 44 hours long, with each day being limited to 8 hours. The workweek can be increased to 54 hours, or 9 hours each day. A one-hour meal break should be included in the workday, or two hours if food is not accessible on the job site. Workers should take at least ten hours off between work days.
Overtime
- Overtime records must be kept by all employers. An employee may work no more than 2 hours of overtime per day, 40 hours per month, and 200 hours per year.
- Working hours on the statutory rest day are compensated at 110 percent of the usual rate. Overtime is calculated based on hours spent during the complementary rest period.
- Overtime compensation is computed by the time worked for every additional 15 minutes (for example, if overtime is performed for more than 15 minutes but less than 44 minutes, it is considered as half an hour overtime). If the hours are longer than 45 minutes and up to 60 minutes, it is counted as an hour.
Overtime wages are often computed based on the size of the organization and the amount of overtime hours worked:
Overtime of up to 30 hours per month:
- Large corporations: 150 percent of usual compensation
- Medium-sized businesses: 130% of usual pay
- Small businesses: 120% of the usual salary
- Microbusinesses: 110% of the normal pay
Overtime of more than 30 hours per month:
- Large corporations: 175 percent of usual compensation
- Medium-sized businesses: 145 percent of usual pay
- Small businesses: 120% of the usual salary
- Microbusinesses: 110% of the normal pay
Non Compete
In the employment agreement, employers may include a non-competition provision. This non-competition agreement, however, must fulfil the following requirements:
- The non-competition restriction cannot last more than three years after the termination date of the employment agreement;
- The clause must be foreseen on a written employment agreement or written addendum; • the activity in question must be capable of causing real damages to the employer and be considered unfair competition; and
- A salary must be granted to an employee during the limitation period, and the amount must be indicated on the employment agreement or addendum
If any of the aforementioned requirements is not met, the clause will be deemed invalid, and the employee will not be subject to this agreement.
Severance
- For the first five years of work, severance compensation is computed at one month’s wage, decreasing to half the monthly income for each year following that.
Termination
When an employee’s employment contract is ended, he or she is entitled to remuneration for any unused leave for the calendar year. The employee must be compensated within three days of their job being terminated. Individuals terminated for economic reasons are entitled to cash in lieu of notice under Angolan law.
In the event of a group layoff of more than five individuals, the employer must inform the worker’s representative body as well as the Ministry of Labour’s provincial offices to explain the cause for the layoffs. In the case of a dismissal of five or less employees, the employer must submit written justification to the employee’s representative body, which must react within seven days.
This response is then forwarded to the Ministry of Labour, which has 10 days to intervene and stop the layoff. If no answer is received, it is presumed that the layoff has been authorized.
The termination of legal and labour relations based on workers’ absence from the job is forbidden as of March 26, 2021. (without prejudice to the application of disciplinary measures on other grounds).
Collective Bargaining
Unless the latter is more favourable to the worker, the provisions of an established collective bargaining agreement take precedence over the terms of any contract, and it makes no difference whether the contract was concluded before the collective bargaining agreement.
Hours of work, earnings and salaries, rest intervals, overtime work and compensation, dispute resolution methods, promotion and training, holidays, punishment, dismissal and termination procedures, and many other employment-related concerns are all included in a typical collective agreement.
Enforcement
Except for the supreme jurisdiction of the Tribunal Constitutional on constitutional disputes, the Tribunal Supremo is Angola’s highest court of law.
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 Labour 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
- Inadequate online information regarding unemployment benefits in Angola.
Workers Compensation
Decree No. 53/05 of 15 August 2005 establishing the Legal Framework for Work Accidents and Occupational Diseases.
- Workplace injuries can result in the four scenarios listed below: I permanent whole disability (ii) permanent partial disability (iii) temporary disability (iv) deadly injury resulting in worker death The amount of compensation is determined by the nature and severity of the impairment.
- According to the Work Injuries Act, the entitlement to compensation for work-related injuries and illnesses includes both financial and in-kind procedures. There is no qualifying term for work injury benefits.
- The temporary disability compensation is calculated at 65 percent of the covered worker’s wage. In the case of hospitalization, full wages are paid for the first 30 days and 75% of pay is paid for the remainder of the term if the illness persists.
- For the entire loss of working capability in the customary employment, a permanent disability pension is paid. In this situation, the covered worker receives 50-70 percent of his or her typical wages for the previous 12 months. If the covered worker is determined to have a total loss of working ability for any sort of job, family allowances are granted to each family member.
- The total of the permanent disability pension plus family allowances may not exceed 100 percent of the covered worker’s average wages during the previous 12 months.
- The payment for permanent partial disability (partial loss of working capacity in one’s typical employment) is equal to 70% of the assessed loss of working capacity multiplied by the covered worker’s average wages over the previous 12 months.
- The Survivor Benefit is equal to 30% of the covered worker’s base wages and is payable until the insured worker reaches the age of 60.
- After retirement or if the survivor is diagnosed with a loss of working capacity, the pension is reduced by 40%. As an orphan pension, each surviving kid receives 20% of the covered worker’s base wages, up to a maximum of three.
- There is also a provision for an Ascendant pension, which is equal to 10% of the covered worker’s base wages and is given to each surviving ascendant, up to a maximum of three.
Social Security
- Individuals are required to pay social security payments on their gross income at rates of 3% (8% in the case of retired employees) and 8%, which are paid by the individual and the employer, respectively.
Retirement
- Pensions and other social security benefits are given through a social insurance system in which both employees (3 percent of total monthly earnings) and employers (8 percent of employee monthly earnings) participate to the National Social Insurance Institute. These payments also help to pay for sickness and maternity benefits, as well as family allowances.
- At the age of 60 (women, one year earlier for each child, up to five), with at least 180 months of contributions, or at any age with at least 420 months of contributions, an old age pension is granted. The amount of the old age pension is calculated by multiplying the covered worker’s average monthly wages over the last 36 months (12 months for public workers) by the number of months of contributions and dividing by 420.
- At the age of 50, with at least 180 months of contributions under dangerous or hard working circumstances, an early pension is awarded. As an early pension, 30 percent of the covered worker’s average wage for the previous 12 months is provided.
- At the age of 60, persons who are jobless and have made at least 120 months of payments are eligible for an old-age grant. The old age stipend is equal to 30% of the covered worker’s average earnings over the previous 12 months.
Health
- Medical Aid is a private option and is based on an employee voluntary basis to sign up or for the employer to offer it.
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 anticipates, with specifics, income division into Groups, namely:
- Group A: This category is often applicable to employee earnings.
- Group B: Earnings of self-employed workers.
- Individuals earning income from an industrial or commercial activity mentioned in the current minimum profits table linked to the PIT Code fall into Group C.
There are progressive income tax rates of up to 25% for Group A, 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
Angola Payroll Calendars
Wages are normally paid on the final working day of the month, according to the payroll cycle.
Rebates & Tax Credits
There are no employment income tax credits available.
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
- Inadequate online information regarding unemployment benefits in Angola.
Social Security
- Individuals are required to pay social security payments on their gross income at rates of 3% (8% in the case of retired employees) and 8%, which are paid by the individual and the employer, respectively.
PAYROLL ELEMENTS
Income
Angola Payroll Elements
Salary, earnings, bonuses, overtime pay, taxable benefits, allowances, and certain lump sum perks are examples of remuneration (revenue from employment). Profits or losses made by a company or trade. Income or profits derived from an individual’s status as a trust beneficiary.
Bonuses
- In Angola, a 13th and 14th salary are required, with 50 percent paid as a 13th salary for a vacation bonus (which must be paid before an employee takes vacation) and the remaining 50 percent paid as a 14th salary for a Christmas bonus.
Allowances
PIT applies to vacation and Christmas allowances.
PIT is levied on severance payments, as well as the total amount paid owing to cashier allowances and housing rent allowances. Accidental services given by non-resident person providers are taxed at a rate of 15%.
- Cash allowances, including per diems/daily allowances, hardship allowances, and other cash allowances, are liable to tax in Angola if they exceed specific restrictions, i.e., if they exceed the amounts stipulated in the Civil Service Law, which are as follows:
- Within Angola, the restriction is 18.750 Kwanzas each day for the first 15 days (in case the travel exceeds 15 days, the amount for the additional days are reduced to 60 percent)
- For international travel, the limit might range between USD 250 and USD 350, depending on the destination. The tax-free sum should be accessible only when the employee is temporarily relocated from his regular place of employment to work for the business.
- Representation costs – 20% of the base income (of civil servants). If it can be justified as a business cost, it is not taxed. For example, consider telephone charges.
The laws governing family allowance are outlined in Decree 8/11, issued January 7th, and apply equally to both national and expatriate employees.
The following are the prerequisites for family allowance:
- Applicable to dependents between the ages of 3 and 14 (before the age of 3 they are entitled to nursing allowance provided by INSS);
- Up to a maximum of 5 children;
- The employer may give a family allowance that is greater than the minimum necessary.
Employees should follow the following guidelines for this purpose:
-
Birth registration documents;
-
Vaccination as indicated by the Health Ministry;
-
School good grades (for children of school age) or Certificate of Incapacity as proof if the kid has a defect that prevents them from studying).
The amount owing each month is determined by the wage earned
Benefits in Kind
Benefits in kind are often valued at their cost to the employer, as documented in the company’s or the recipient’s records.
- Housing given by the employer – up to 50% of the leasing agreement’s value.
Please keep in mind that the rental agreement must be submitted with the tax office within 15 days of signing.
- Car given by the employer – If it is utilized for business purposes by the employee and is not documented as personnel expenditures by the Company, it does not constitute taxable income of the employee for Personal Income Tax reasons.
Investment Income
The IIT is owed on interest, dividends, royalties, and other comparable income. The IIT Code in Angola distinguishes such income into two categories, as follows:
Section A contains the following:
- Credit facility interest.
- Borrowing interest.
- Income generated by postponed payments.
- The tax is due when the income becomes due or is assumed to become due.
On loan agreements and credit facilities, a minimum annual interest rate of 6% is assumed unless another rate is demonstrated by a signed and stamped contract.
Section B contains (amongst other things):
- Dividends.
- Profits attributable to PEs are repatriated.
- Interest, premiums on amortization, reimbursement, and other kinds of remuneration paid on I bonds and securities or other financial instruments issued by any corporation, (ii) treasury bills and treasury bonds, and (iii) Central Bank Securities.
- Dividend interest on shareholder loans (or other shareholder financing). A presumed minimum annual interest rate equivalent to the commercial bank rate is set.
- Indemnities given to entities in the event that their business is halted.
- Gains on stocks and other financial assets.
- Royalties.
Retirement Funding
Pensions and other social security benefits are given through a social insurance system in which both employees (3 percent of total monthly earnings) and employers (8 percent of employee monthly earnings) participate to the National Social Insurance Institute. These payments also help to pay for sickness and maternity benefits, as well as family allowances.
At the age of 60 (women, one year earlier for each child, up to five), with at least 180 months of contributions, or at any age with at least 420 months of contributions, an old age pension is granted. The amount of the old age pension is calculated by multiplying the covered worker’s average monthly wages over the last 36 months (12 months for public workers) by the number of months of contributions and dividing by 420.
At the age of 50, with at least 180 months of contributions under dangerous or hard working circumstances, an early pension is awarded. As an early pension, 30 percent of the covered worker’s average wage for the previous 12 months is provided.
At the age of 60, persons who are jobless and have made at least 120 months of payments are eligible for an old-age grant. The old age stipend is equal to 30% of the covered worker’s average earnings over the previous 12 months.
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.
Employment income, business and professional income, and other sorts of revenue are normally liable to taxation for lengthy business trips.
Employment/business and professional income are taxed in three categories:
- Group A includes remuneration earned by employees (paid by an employer entity under an employment contract entered into in accordance with labor law), public servants, and members of the board;
- Group B includes remuneration received by entrepreneurs/freelance workers that falls under the activities’ list included as an attachment to the PIT Code;
- Group C includes all remuneration obtained as a result of development.
Allowable Deductions
- The 8% social security payments (paid by the employee) are allowed as a deduction from the employee’s taxable income for PIT purposes.
PAYROLL TAXES AND EMPLOYER CONTRIBUTIONS
Payroll Taxes
- There are no payroll taxes.
Unemployment
- Inadequate online information regarding unemployment benefits in Angola.
Social Security
- Individuals are required to pay social security payments on their gross income at rates of 3% (8% in the case of retired employees) and 8%, which are paid by the individual and the employer, respectively.
Workers Compensation
The Workmen’s Compensation Act of 1987 requires all employers of labor to set aside money to Decree No. 53/05 of 15 August 2005 establishing the Legal Framework for Work Accidents and Occupational Diseases.
- Workplace injuries can result in the four scenarios listed below: permanent whole disability (ii) permanent partial disability (iii) temporary disability (iv) deadly injury resulting in worker death The amount of compensation is determined by the nature and severity of the impairment.
- According to the Work Injuries Act, the entitlement to compensation for work-related injuries and illnesses includes both financial and in-kind procedures. There is no qualifying term for work injury benefits.
- The temporary disability compensation is calculated at 65 percent of the covered worker’s wage. In the case of hospitalization, full wages are paid for the first 30 days and 75% of pay is paid for the remainder of the term if the illness persists.
- For the entire loss of working capability in the customary employment, a permanent disability pension is paid. In this situation, the covered worker receives 50-70 percent of his or her typical wages for the previous 12 months. If the covered worker is determined to have a total loss of working ability for any sort of job, family allowances are granted to each family member.
- The total of the permanent disability pension plus family allowances may not exceed 100 percent of the covered worker’s average wages during the previous 12 months.
- The payment for permanent partial disability (partial loss of working capacity in one’s typical employment) is equal to 70% of the assessed loss of working capacity multiplied by the covered worker’s average wages over the previous 12 months.
- The Survivor Benefit is equal to 30% of the covered worker’s base wages and is payable until the insured worker reaches the age of 60.
- After retirement or if the survivor is diagnosed with a loss of working capacity, the pension is reduced by 40%. As an orphan pension, each surviving kid receives 20% of the covered worker’s base wages, up to a maximum of three.
- There is also a provision for an Ascendant pension, which is equal to 10% of the covered worker’s base wages and is given to each surviving ascendant, up to a maximum of three.
ADMINISTRATION
Income
- Employers collect WHT on a monthly basis to pay employment income tax on a PAYE basis.
- Individuals whose main source of income is employment income are not obliged to submit tax returns since 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 by employers through monthly WHT collection.
- During March of the following year, self-employed workers file an annual return stating their annual revenue.
- Employers must file the Employment Income Tax yearly return (‘Modelo 2’) by the end of February each year. This report should include the total number of workers (including self-employed individuals), the total amount of wages and other income received to each employee in the previous year, and the total amount of Employment Income Tax withheld.
Payroll Taxes
- There are no payroll taxes in Angola.
Unemployment
- Inadequate online information regarding unemployment benefits in Angola.
Social Security
- Individuals are required to pay social security payments on their gross income at rates of 3% (8% in the case of retired employees) and 8%, which are paid by the individual and the employer, respectively.
Workers Compensation
- The Workmen’s Compensation Act of 1987 requires all employers of labour to set aside money to Decree No. 53/05 of 15 August 2005 establishing the Legal Framework for Work Accidents and Occupational Diseases.
- Workplace injuries can result in the four scenarios listed below: permanent whole disability (ii) permanent partial disability (iii) temporary disability (iv) deadly injury resulting in worker death The amount of compensation is determined by the nature and severity of the impairment.
- According to the Work Injuries Act, the entitlement to compensation for work-related injuries and illnesses includes both financial and in-kind procedures. There is no qualifying term for work injury benefits.
Statutory Benefits
- Angola has a free universal healthcare system, the Workmen’s Compensation Act 1987 and social security.
Employee Benefits
- Certain benefits are mandated by law to be included in het 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.
- Companies should provide employees unlimited sick leave days as long as they produce a medical certificate. Medical leave is normally paid at 100% of the employee’s income for the first two months, but months three through twelve should be paid at 50% of the employee’s basic salary.
LEGISLATION
- The Angolanisation Principle
- General Labour Law No. 2/00 of 11 February 2000
- Law on Inspection and Labour Administration No. 2/92 of 17 January 1992
- Internal regulations of the General Inspectorate of Labour, Decree No. 9/95 of 21 April 1995.
STATUTORY BODIES
- The Ministry of Public Administration, Employment and Social Security
- Angola Revenue Authority
