Definitive Guide to Hiring in Afghanistan

Hiring In Afghanistan

Hiring employees compliantly in Afghanistan means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Afghanistan 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 Afghanistan or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Labor Laws In Afghanistan

Employment laws in Afghanistan are uniquely suited to the country’s way of life, and crucial to understand if you want to employ local talent in this country. Get the details on Afghanistan employment laws and Afghanistan policies here.

Probation Period in Afghanistan

• Probationary period should not exceed 2 weeks

Annual Leave in Afghanistan

• The employees are entitled to 20 days of paid recreational leave per year.
• Employees are entitled to 10 days of paid essential leave

Holidays in Afghanistan

Maternity Leave Afghanistan

• A female employee is entitled to 90 days of paid maternity leave.
• 30 days of leave is granted before the delivery and the remaining is granted post delivery

Paternity Leave Afghanistan

• There is no paternity leave

Sick Leave in Afghanistan

• An employee is entitled to 20 days of sick leave with pay and other allowances per year.
• Employee’s sick leave for up to three days can be granted on the basis of a written notice.

Work Hours in Afghanistan

• The typical workweek is Sunday through Thursday. 
• Business hours are typically 7:30 AM to 4:30 PM.
• The Labor Law sets a maximum of 40 work hours per week on average.

Overtime in Afghanistan

• The overtime may not exceed four hours a day
• An hourly wage for overtime is paid 25% more than the official working hour rate on ordinary days and 50% more than the hourly rate on off days (weekend or holidays)

Termination of Employment in Afghanistan

Under the Labor Law, an employment contract may be terminated under the following circumstances:

• agreement by the parties
• end of contract term
• retirement
• death of the employee
• a disability hindering the performance of work
• cessation of work for more than six months
• dissolution of the company or reduction in the number of staff
• final conviction leading to at least two months’ imprisonment of the employee
• disciplinary reasons
• refusal to work and
• an unsatisfactory probationary period.

• The procedures for dismissal generally require 30 days’ notice, although it is common for employers to provide one month’s salary and benefits in lieu of notice.
• Under some circumstances, the employee may also be entitled to severance pay.
• The Labor Law does not make any provision for immediate termination.
• Collective redundancies can generally not be carried out without the approval of the Ministry of Labor, Social Affairs, Martyrs and Disabled.

Notice Period in Afghanistan

• If the employer wishes to terminate the employment agreement for any of the reasons provided for in the law, one month’s notice is required. 
• Although the law does not state explicitly that the notice must give in writing, it is generally recommended. 
• Termination upon immediate notice is possible during the probationary period, unless the reason for termination is unsatisfactory performance of the employee. 
• Employees may terminate the employment agreement without prior notice if the employer has violated the labor law or breached the provisions of the employment agreement. 
• Termination without notice to employer is also allowed in the case of incurable illness of the employee. In other circumstances, one month’s prior written notice is the general rule.

Severance in Afghanistan

• When an employee is terminated because of cessation of work, reduction in staff, imprisonment or refusal to work, the employer is obliged to make severance payments, based on the duration of employment as follows:
• less than one year: one month’s salary including entitlements;
• one to five years: two months’ salary including entitlements;
• five to ten years: four months’ salary including entitlements; and
• more than ten years: six months’ salary including entitlements.

13th / 14th Month Pay

• Yes
• There is no statutory requirement to pay the 13th or 14th month salary, however many employers have decided to offer the 13th month salary to their employees. There is no 14th month salary.
• Other payments over holidays:
• According to Art 50 or the Labour Code, when an employee will be paid in advance for authorised recreational leave.
• According to Art 44 in companies where the employer is unable to give holidays during public holidays because the work cannot be delayed, the employee will be entitled to 50% salary in addition to the normal overtime wage as an incentive.

Income Tax in Afghanistan

• The natural and legal persons are obliged to pay the tax as following based on the provisions of this Law: 
  • Resident persons: from overall income (income from both Afghan and Non-Afghan sources)
  • Non-resident persons: Only from Afghan revenue sources.
• The income tax of legal persons shall be 20 percent of taxable income for the tax year.
• The income tax shall be assessed and exchange to Afghani currency.
• The exchange rate shall be the average of open rates determined by Da Afghanistan Bank on the basis of buy rate at the end of each month.
• Effective as of 1 Hamal 1388, the new tax law reduced the monthly exemption from AFN 12,500 to AFN 5,000 (or prorated share for alternate payroll periods) per person.
• The tax law also added a 2 percent tax bracket.
• The Income Tax Law (Article 4) provides a monthly schedule of withholding rates. 
• The income tax of natural persons is calculated as below chart:

Social Security in Afghanistan

Immigration Afghanistan

• Applicants for an Afghan visa, regardless of the type of visa, are required to obey the laws of the Islamic Republic of Afghanistan. 
• Currently, the standard visa processing time is 5-7 business days but this may vary on an individual basis.
• Foreign nationals who have entered Afghanistan on an Entry Visa or a Work Visa are eligible to work. 
• This category of individuals must obtain a work permit from relevant agencies after entry to Afghanistan. 
• If employment is the purpose of your visit, an official letter of introduction from your employer, sponsoring government or organization stating the purpose and duration of your trip is required. 
• Please also include any sponsorship information and a financial guarantee for expenses that will be incurred in Afghanistan. 
• Applicants applying for a Work Visa should be below the age of retirement (65) and must provide their educational documents along with the visa application, invitation or introduction letter from the employer company in Afghanistan (including passport information, the purpose of travel and duration of stay of the applicant). 
• Additionally, they should also have a confirmation letter from Consular Affairs Directorate-General of the Ministry of Foreign Affairs of the I.R. of Afghanistan.
• Those who intend to travel to Afghanistan for investment and business purposes can apply for an Afghan Business Visa by providing the following documentation:
  • Introduction or permission letter from the Ministry of Foreign Affairs, Chamber of Commerce, or other related official bodies
  • Work permit and business license
  • Address of the company
  • Documents providing the type of commercial activities, payment of taxes and bank account number

Accrued Benefits in Afghanistan

Country Accruals Additional Information

Why use Global Expansion to hire in Afghanistan

Establishing a branch office or subsidiary in Afghanistan can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Afghanistanian labor laws are complex.

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

Global Expansion makes it easy for you to expand into Afghanistan. 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 Afghanistanian 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.