Definitive Guide to Hiring in Angola

Hiring In Angola

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

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

Labor Laws In Angola

Employee Probation Period

• Unlimited employment contracts generally have a probation period of 60 days.

Annual Leave in Angola

• Angolan employees are generally entitled to 22 days of vacation per year.
• Employees with children are entitled to an additional vacation day per year until the child reaches the age of 14.

Holidays in Angola

Maternity Leave Angola

• Female employees are entitled to three months of maternity leave, four weeks to be taken before the due date and the balance after, with 9 weeks after guaranteed, regardless of the due date. 
• If there are multiple births, the mother is entitled to an additional four weeks. 
• The employee may not return to work until at least 5 weeks after the birth.
• Employees on maternity leave are generally entitled to social security compensation, with supplementation by the employer.

Paternity Leave Angola

• There is no statutory paternity leave.

Sick Leave in Angola

• Employees may take unlimited days off of work for illness as long as they present a medical certificate.
• Medium and large companies must pay medical leave at 100% of the employee’s salary for the first two months. The third through the 12th months must be paid at 50% of base salary.

Work Hours in Angola

• The normal working week in Angola is 44 hours with each day limited to 8 hours. 
• The work week can be extended to 54 hours or 9 hours per day.

Overtime in Angola

• Overtime is limited to:
  • 2 hours per normal day of work
  • 40 hours per month of work
  • 200 annual hours

• Overtime of up to 30 hours per month is paid at an additional 50% rate. 
• Additional overtime is paid at an additional 75%.

Termination of Employment in Angola

• Angolan employment law is structured to offer a high level of employee protection. 
• For employees with unlimited employment contracts, terminations must follow strict rules, and in general, employees may only be terminated for a serious infringement or an objective and economic reason that is not the fault of the employer. 
• Litigation over termination is common.
• For fixed-term employment contracts, employers must serve employees with two weeks' prior written notice before their contract expires. 
• Further, a 30-day notice period applies to individual termination for objective reasons and a 60-day notice period applies to collective dismissal.

Notice Period in Angola

• For fixed-term employment contracts, employers must serve employees with two weeks' prior written notice before their contract expires. 
• Further, a 30-day notice period applies to individual termination for objective reasons and a 60-day notice period applies to collective dismissal.

Severance in Angola

• It is equivalent to 2 working days of salary for each completed month of service

13th / 14th Month Pay

• Yes (Mandatory)
• There is a statutory requirement to pay holiday bonus equivalent to 50% of the base salary.
• There is a mandatory 13th month vacation bonus which is paid before the holiday.
• And there is a mandatory Christmas Bonus which is paid in December.

Angola Salary and Wages

Income Tax in Angola

• The Labor Income Tax (IRT) is levied on the income of self-employed workers (liberal, commercial and industrial professionals) or employees (dependent workers).
• For the purposes of this tax, all remuneration received in the form of wages, salaries, salaries, fees, allowances, gratuities, subsidies, prizes, commissions, participations, attendance fees, emoluments, participation in fines, costs and other remuneration constitute income from work. accessory.
• Labor Income Tax (IRT) is payable by natural persons, whether residing or not, in the national territory, whose income is obtained from services rendered, directly or indirectly, to natural or legal persons with domicile, head office, effective management or permanent establishment in the country.
• The PIT Code foresees, with the respective specificities, the segmentation of income into Groups, namely:
• Group A: Generally applicable to the income earned by employees.
• Group B: Income earned by self-employed workers.
• Group C: Income earned by individuals carrying out an industrial or commercial activity listed in the minimum profits table in force, attached to the PIT Code.
• When the taxable income is determined by the service provided based on one's accounting records, the available records of purchases, sales, and services rendered, or the data available by the tax authorities according to the specific rules applicable to taxpayers of Group B and is subject to a 25% tax rate.
• Taxpayers maintaining accounting books and records, simplified accounting model, or purchase and sale or services provided registration book are allowed to deduct up to 30% of incurred expenses in the computation of taxable income.
• Taxpayers of Group B with no organized nor simplified accounting models are not entitled to deduct costs, and the tax is levied over all income.
• Individuals carrying out an industrial or commercial activity (Group C) are taxed at a flat rate of 30% or 6.5%, as explained below:

• For Group A, there are progressive income tax rates up to 25%, as follows:

Social Security in Angola

Immigration Angola

• In line with the new legal regime for foreign nationals in Angola, various types of temporary visas may be granted to foreign nationals who intend to come to Angola. 
• The type of visa depends on the reason and period of stay.
• The Tourism Visas are granted by Consular Missions at the applicant’s country of origin or residence, for business prospection or family reasons and for engaging in scientific and technologic activities, as well to those foreign nationals who intend to stay in Angola for recreational, sporting or cultural activities. 
• Tourism Visas allow its holder to stay in the country for 30 days, extendable twice for the same time period. 
• Tourism Visas do not allow their holders to perform remunerated activities in the country, for which a Work Visa is required, or apply for residence.
• Temporary Stay Visas, which are granted for 365 days, extendable for the same time period, until the end of the term of the reason that justified the visa, may be granted in the following circumstances: 
• To accomplish missions within religious institutions or within nongovernmental organizations 
• For scientific research, mobility or university extension 
• To family members of study, medical treatment and work visa holders 
• To family members of holders of valid residence permits 
• To spouses of Angolan citizens
• The appropriate visa allowing a foreign national to undertake remunerated activities in Angola is the Work Visa. 
• The Work Visa is granted for 365 days, extendable for equal time periods until the end of the term of the employment agreement that justified the visa. 
• The Work Visa must be applied for at the Angolan Consulate or Embassy in the applicant’s country of origin or residence. 
• Before applying for a Work Visa, a favorable opinion from the entity overseeing the sector of activity in Angola is required.

Payments And Invoicing

• The tax year runs from 1 January to 31 December.
• Individuals only deriving employment income are not required to file tax returns, as 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 through monthly WHT collected by employers.
• Self-employed workers file an annual return disclosing their annual income during March of the following year.
• By the end of February each year, employers should file the Employment Income Tax annual return ('Modelo 2'). 
• This return should disclose the total number of employees (including those who are self-employed), the total amount of wages and other income paid to each employee during the prior year, and the total amount of Employment Income Tax withheld.

Accrued Benefits in Angola

Payroll Accrual in Angola

Country Accruals Additional Information

Payroll Accruals Additional Information

Why use Global Expansion to hire in Angola

Establishing a branch office or subsidiary in Angola 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 Angola labor laws are complex.

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

Global Expansion makes it easy for you to expand into Angola. 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 Angola 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.