An Employer of Record (EOR) in Angola is a company that takes on the responsibility of being the legal employer for a worker. This includes managing payroll, benefits, and other employment-related tasks on behalf of the worker's actual employer.
Discover the key considerations and essential details you should be aware of before opting for an Employer of Record (EOR) in Angola to help you with your global staffing needs.
On this page: Employment Contracts | Employment Laws | Social Security | Personal Income Tax | Employee Benefits
Employment Contracts in Angola
Object of the Employment Contract
In Angola, the primary purpose of an employment contract is to ensure that an individual's role aligns with their qualifications and abilities. The contract outlines the duties the employee must perform, the company's rules they must follow, and any other legal obligations. Employers are tasked with correctly defining the employee's position, ensuring equitable pay, and providing a suitable work environment. Jobs can range from intellectual to manual tasks, with specific roles detailed in the contract. If an employee's responsibilities include legal actions for the company, the contract usually grants them the necessary permissions, unless other legal stipulations are in place.
Form of the Employment Contract
While employment contracts in Angola don't always need to be in writing, they can be established through various legal means as long as there's mutual consent between both parties. Employees have the right to request a written contract, which should encompass essential details such as names, addresses, job specifics, salary, start date, and signatures. For foreign workers, written contracts are mandatory. If a contract isn't written down, the onus is on the employer. For contracts lasting over three months, employers must either secure a medical certificate confirming the employee's fitness or conduct a medical assessment.
Duration of the Employment Contract
Employment contracts in Angola can either be for an indefinite period, making the employee a permanent staff member, or for a specified duration to fulfill a particular role or task. If the contract is time-bound, it needs to be documented, indicating the end date and the reasons for its temporary nature. If these specifics are missing, the contract is assumed to be open-ended. Workers on fixed-term contracts enjoy rights similar to permanent staff. However, lifelong employment contracts are prohibited.
Fixed-term Employment Contract
Such contracts are permissible in situations like temporary replacements, seasonal tasks, or urgent projects safeguarding company assets. The contract can specify an end date or be flexible based on certain criteria. However, any terms violating legal guidelines are deemed invalid.
Duration of Employment Contract for a Fixed Duration
The duration of fixed-term contracts varies based on circumstances. Some might last up to six months, while others can extend up to 12 or 36 months. In specific scenarios, like certain construction projects or for particular social groups, extensions beyond 36 months might be permitted. Any such extension requires mutual agreement and should be requested well in advance.
Renovation of Contract
Fixed-term contracts can undergo multiple renewals within certain boundaries. If an employer fails to notify an employee about a contract's end in writing two weeks prior and the employee doesn't object, the contract automatically extends for a similar duration. However, if both parties wish to alter the duration, a written agreement is mandatory.
Conversion of Contract
Should an employee continue their role post the maximum duration set for fixed-term contracts or beyond the completion of a specific task without prior notice, the contract transitions to indefinite. There are specific notice periods based on the contract's duration. If these aren't honored, the employer must provide compensation. In such cases, the employee's tenure is calculated from the original contract's start date.
Employment Laws in Angola
Angola has established clear employment laws that govern various aspects of the employer-employee relationship. From determining the minimum wage to regulating working hours, these laws ensure fairness and transparency in the workplace. This guide provides an overview of key employment regulations in Angola.
Minimum Wage
In Angola, the minimum wage as of 2023 stands at 32,181 AOA per month, equivalent to approximately 38.888 USD per month.
Payroll Cycle
While the typical payroll cycle in Angola is monthly, with wages disbursed on the last working day, some companies might follow a fortnightly or bi-weekly schedule. It's essential to note that 13th and 14th-month salaries, known as "salários de Natal e férias", are mandatory, with the 13th being a vacation bonus and the 14th a Christmas bonus.
Overtime Pay
Overtime in Angola is regulated with specific rates:
- Standard overtime is paid at 150% of the regular hourly rate for the first 30 hours per week and 175% thereafter.
- Night work attracts a 125% rate of the regular pay.
- Work on mandated rest days requires a payment of 110% of the regular pay.
- Overtime is capped at 2 hours daily, 40 hours monthly, and 200 hours yearly.
Working Hours
The standard working hours in Angola are outlined by the Angolan Labor Law. The general workweek is set at 44 hours, with daily limits at 8 hours, typically from Monday to Friday. However, exceptions exist where the workweek can extend up to 54 hours or 9 hours daily, depending on specific circumstances like shift systems or intermittent tasks.
Probation Period
Angola's probation period varies based on the employment contract type and role complexity. For indefinite contracts, probation can last up to 60 days, extendable to 4-6 months with a written agreement. For fixed-term contracts, probation is shorter, ranging from 15 to 30 days, with no extensions allowed.
Notice Period
Notice periods in Angola differ based on contract type and employee tenure:
- Open-ended contracts:
- Up to 1 year: 15 days notice
- 1 to 3 years: 30 days notice
- Over 3 years: 60 days notice
- Fixed-term contracts:
- 3 months or less: No notice required
- Over 3 months: 15 days notice
- Additional points:
- Notice should be written and can be delivered in person or via registered mail.
- Employer non-compliance mandates severance pay equivalent to the notice period salary.
- Employees can leave immediately if there's a valid reason, like a breach of contract by the employer.
- Collective agreements can modify notice periods for specific sectors.
Personal Income Tax in Angola
In Angola, the Personal Income Tax (PIT) Code categorizes income into three main groups:
- Group A: Pertains to income earned by salaried employees.
- Group B: Covers earnings of self-employed individuals.
- Group C: Relates to income from specific industrial or commercial activities as defined in the PIT Code.
Taxation Regimes
For Group B and Group C, the taxation aligns with business and professional income guidelines. Specifics include:
- When income is from companies or individuals with certain accounting models, a 6.5% withholding tax (WHT) applies.
- For those without the specified accounting methods, a 25% tax rate is applicable. However, some Group B individuals can deduct up to 30% of their expenses.
Group C taxpayers with organized accounting determine their taxable income similarly to corporate tax guidelines. Those without organized accounting may use minimum profit tables or turnover-based calculations for taxation.
Rate Overview
| Taxable Income Type | Rate (%) |
|---|---|
| Profits with organized accounting (Groups B & C) | 25 |
| Minimum profit table (Group C) or turnover exceeding set limits | 25 |
| Fees to self-employed (with organized accounting) | 6.5 |
| Non-resident professionals | 6.5 |
| Group C taxpayers with turnover ≤ 10 million AOA (2022) | 6.5 |
| Group A progressive rates | Up to 25% |
For Group A
| Income Tax | |
| 0 - 70,000 AOA | 0% |
| 70,001 - 100,000 AOA | 10% + 3,000 AOA |
| 100,001 - 150,000 AOA | 13% + 6,000 AOA |
| 150,001 - 200,000 AOA | 16% + 12,500 AOA |
| 200,001 - 300,000 AOA | 18% + 31,250 AOA |
| 300,001 - 500,000 AOA | 19% + 49,250 AOA |
| 500,001 - 1,000,000 AOA | 20% + 87,250 AOA |
| 1,000,001 - 1,500,000 AOA | 21% + 187,250 AOA |
| 1,500,001 - 2,000,000 AOA | 22% + 292,250 AOA |
| 2,000,001 - 2,500,000 AOA | 23% + 402,250 AOA |
| 2,500,001 - 5,000,000 AOA | 24% + 517,250 AOA |
| 5,000,001 - 10,000,000 AOA | 24.5% + 1,117,250 AOA |
| 10,000,001 AOA and above | 25% + 2,342,250 AOA |
Employee Benefits in Angola
Employee benefits play a pivotal role in enhancing the overall work experience and satisfaction of workers. In Angola, these benefits are classified into two primary categories: mandatory benefits set by law and additional perks introduced by employers to entice and retain skilled professionals. Below is a comprehensive overview of these benefits:
Mandatory Benefits
Paid Time Off
Employees in Angola are entitled to various forms of paid time off, including:
- Annual Leave: Workers are granted 22 days of paid annual leave each year. Additionally, parents receive an extra day off for each child under the age of 14.
- Public Holidays: Employees enjoy 12 public holidays annually, ensuring ample time for relaxation and family.
- Sick Leave: During the initial two months of sickness, employees receive their full salary. From the third to the twelfth month, they are compensated at 50% of their regular pay. However, companies might stipulate a specific number of days absent with a medical certificate before granting full compensation.
- Maternity Leave: Mothers are granted a 3-month maternity leave, with 70% of their salary covered by the Social Security Institute. Employers may also supplement this benefit.
- Paternity Leave: New fathers are entitled to a 5-day paternity leave with full salary.
Optional Benefits
Beyond the mandatory benefits, employers in Angola often introduce additional perks and benefits to stand out in the competitive job market. These optional benefits can include health insurance, retirement plans, professional development opportunities, and more. By offering such benefits, companies aim to foster loyalty, enhance employee morale, and ensure long-term commitment.
Embracing the services of an Employer of Record (EOR) in Angola proves to be a strategic move for companies venturing into global expansion. Teaming up with an EOR enables businesses to navigate the complexities of local employment regulations, intricate payroll systems, and compliance requirements efficiently. This collaborative partnership empowers enterprises to establish a presence in Angola seamlessly, eliminating the challenges associated with establishing a legal entity. With the EOR adeptly managing the intricacies of international employment procedures, companies can redirect their focus towards core objectives and growth strategies.
Social Security Contributions in Angola
Understanding social security contributions is crucial for both employees and employers in Angola. These contributions ensure support for various aspects of life and work, from family allowances to pensions. Here's an overview:
Employer Payroll Contributions in Angola
Employee Payroll Contributions in Angola
Who Contributes?
Both employees and employers in Angola have obligations regarding social security contributions:
Contribution Rates
Contributions are set percentages of the gross monthly earnings:
Purpose of Contributions
Contributions serve several essential purposes in Angola, including:
Additional Details
Here are some further insights into social security contributions in Angola: