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Hiring in Libya

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

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

Need assistance hiring in Libya? Contact us about our International EOR Service

Labor Laws in Libya

Employment laws in Libya 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 Libya employment laws and Libya policies here.

Employee Probation Period

  • Probation period is generally for 30 days

Annual Leave in Libya

  • The minimum entitlement to paid annual leave under Libyan Labor Law is 30 working days, which increases to 45 working days for those over the age of 50 years or who have attained 20 years' service.
  • An employee can take 20 days' paid leave to perform Haj once in their employment.
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Holidays in Libya

Libyan Revolution Day 17th February
Commemoration of the Victory over Kadhafi 19th March
Labor Day 1st May
Eid al-Fitr  
Day of Arafat  
Eid al-Adha  
Islamic New Year  
Martyrs' Day (in Libya) 16th September
Liberation Day  23rd October
Prophet's Birthday  
Libyan Independence Day 24th December

 

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Maternity Leave Libya

  • The Libyan Labor Law entitles a female employee to 14 weeks' paid maternity leave, including a compulsory leave following delivery of not less than six weeks

Paternity Leave Libya

  • There is no statutory paternity leave

Sick Leave in Libya

  • Laborer or employee is entitled paid sick leave or salary for a period not exceeding 45 continuous days or 60 days if not continuous during one year.
  • In all cases, the sick leave should not exceed 3 months during each year

Working Hours in Libya

  • Working hours should not exceed 48 hours per week and should not exceed 10 hours per day.

Overtime in Libya

  • Employees are to entitled overtime at the rate of least 50% on the normal wages in addition to his wages
  • Overtime hours should not exceed 3 hours

Termination of Employment in Libya

  • A local Libyan employee is only entitled to one month’s notice of termination, no matter how long the employee has been employed by the company.
  • A local Libyan employee is not entitled to a payment on the termination of their employment (such as a redundancy payment in other jurisdictions)

Notice Period in Libya

  • A local Libyan employee is only entitled to 30 days notice period for indefinite term contracts

Severance in Libya

  • Only foreign or expatriate employees are entitled to severance pay that equals 15 days’ wages per year for the first five years of service and 30 days' wages thereafter.

Libya Salary and Wages

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13 / 14th Month Salary in Libya

  • No
  • There is no statutory requirement to pay the 13th or the 14th month salary.
  • There is no evidence that bonuses are customary.
  • Employer receive annual leave based on how long they have served and their age, for example 50 year olds that have served for over 20 years receive 45 days paid holiday.
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Income Tax in Libya

  • Libyan nationals and foreigners are subject to income tax on income arising in Libya.
  • Libyan nationals and foreigners are considered to be resident if they satisfy any of the following conditions:
    • They are Libyan.
    • They are in Libya with a work visa.
    • They undertake employment in Libya.
  • Residence results in liability for Libyan personal income tax for the year of residence.
  • Income tax is levied on employment income paid in cash or in kind.
  • Individuals carrying out business activities independently, providing consulting services or engaging in technical, artistic or scientific projects are subject to tax on income derived from such activities.

Annual taxable income

Rate (%)

 

 

Exceeding (LYD)

Not Exceeding (LYD)

0

12,000

5%

12,000

-

10%

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Social Security in Libya

  • Social security contributions are payable monthly on salaries, wages, bonuses and other compensation income.
  • The contribution rates are 11.25% for employers and 3.75% for employees
  • The state pays a 0.75% portion of the contribution for Libyan companies.
  • Employers withhold the employee contributions monthly.

Contribution

Group 1083

Social Security 

Employer Group 1083 11.25%
Employee Group 1083 3.75%

Immigration Libya

  • A valid passport and entry visa are required to enter Libya.
  • Libya offers the following types of temporary visas to foreign nationals:
    • Transit visas, which are valid for a maximum of seven days
    • Student visas, which are valid for 12 months and are renewable
    • Tourist visas, which are single-entry visas valid for 30 days
    • Business visas, which may be single-entry visas valid for 30 days, or multiple entry visas valid for 3, 6 or 12 months
    • Residence/work visas, which are provided outside Libya if the individual will enter Libya with the intention of residing or working
  • Foreign nationals must obtain a work permit to work in Libya.
  • Foreign nationals who will work under an employment contract must obtain a work authorization, which is valid for up to one year.
  • Foreign nationals may not be self-employed.
  • After the period of validity for a work authorization or work permit expires, an individual may reapply for such items.
Need assistance hiring in Libya? Contact us about our International EOR Service
 

Type of Visa/Permit

Documentation

Validity

Eligibility

Tourist Visa

  • A valid passport
  • A completed visa application form
  • Two recent passport photographs
  • One copy of proof of vaccination for yellow fever

30 days

  • Foreign national who wish to visit Libya for tourist purposes must obtain a tourist visa

Business Visa

  • A valid passport
  • A completed visa application form
  • Two recent passport photographs
  • One copy of proof of vaccination for yellow fever
  • Proof of profession

30 days (single entry);

3,6, or 12 months (multiple entry)                                                                            

  • Foreign national who wish to visit Libya for business purposes must obtain a tourist visa

Work Permit

  • A valid passport
  • A completed visa application form
  • Two recent passport photographs
  • One copy of proof of vaccination for yellow fever
  • CV
  • Employment Contract
  • Academic qualifications

1 year

  • Foreign nationals who will work under an employment contract must obtain a work permit
 
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Value Added Tax (VAT) in Libya

  • Libya does not levy a VAT or sales tax.
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Mandatory Benefits in Libya

  • These are mandatory benefits as postulated by law
  • These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, notice period, and severance pay
  • Mandatory benefits also include social security benefits.
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Mandatory Benefits overview

  • Probationary period

  • Annual Leave

  • Public Holidays

  • Maternity Leave

  • Sick Leave

  • Overtime Pay

  • Notice period

  • Severance Pay

  • Social Security Benefits

Payments And Invoicing

  • The tax year in Libya for individuals is the calendar year.
  • Employees who have only income from employment are not required to file annual income tax returns.
  • Individuals with non-employment income must file an annual tax return within 60 days after the end of the tax year (31 December).
  • For such individuals, tax is payable in four quarterly installments, beginning on 10 March, with a 15-day grace period, or on the next day in a quarter after the issuance of an assessment.

Payroll Accrual in Libya

Country Accruals Additional Information

Social security 10.50%
Maternity 50days
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Description

description

 

Payroll Accruals Additional Information

      Employment
Accruals
Annual Leave The minimum entitlement to paid annual leave under Libyan Labor Law is 30 working days, which increases to 45 working days for those over the age of 50 years or who have attained 20 years' service.   This equals 8.22% (30/365 days) of annual income
Maternity Leave The Libyan Labor Law entitles a female employee to 14 weeks' paid maternity leave, including a compulsory leave following delivery of not less than six weeks   This equals 26.9% (14/52 weeks) of annual income
Sick Leave Laborer or employee is entitled to paid sick leave or salary for a period not exceeding 45 continuous days or 60 days if not continuous during one year.   This equals 12.32% (45/365 days) of annual income
Overtime Employees are to entitled overtime at the rate of least 50% on the normal wages in addition to his wages. Overtime hours should not exceed 3 hours   Depends on the number of overtime hours worked
Social Security Social security contributions are payable monthly on salaries, wages, bonuses and other compensation income.
The contribution rate is 11.25% for employers
  This equals 11.25% of annual income

Accrued Benefits in Libya

Christmas Bonus % 0%
Christmas Bonus Over Vacations % 0%
Severance per Year%

This is equivalent to remaining wages to be paid.

 
Vacations %

Employees are entitled to an annual holiday of 30 days (8.24% of annual salary)

8.24%
Of annual
salary
Notice %

Employees are entitled to 30 days of notice period for one year of service or more (8.24%)

8.24%
Christmas Bonus Over Notifications % 0%
Vacations Plus % 0%

Total percentage of Salary (yearly)

The total employment accruals as a percentage of salary per annum

16.48%

Why use Global Expansion to hire in Libya

Establishing a branch office or subsidiary in Libya 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 Libyalabor laws are complex.

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

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

 

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