Employer of Record in Angola

General information

• Currency: Angolan Kwanza (AOA)
• Employer Taxes: 8.00%
• Payroll Frequency: Monthly
• Employee Costs: 3%
• Capital: Luanda
• Fiscal Year: 1 January – 31 December

Main Aspects of the Labour Code

Minimum Wage

General: The monthly minimum wage differs depending on the industry:

Extractive industry and trade: 26,817.62 AOA

Agriculture: 21,454.10 AOA

Transport, services, and manufacturing: 32,181.15 AOA

Payroll

Payroll Cycle: The standard payroll cycle is monthly, with wages typically disbursed by the final working day of each month.

13th Salary: It is mandatory to provide a 13th and 14th salary. The 13th salary, equivalent to 50%, serves as a vacation bonus that must be paid before an employee takes their vacation. The 14th salary is paid as a Christmas bonus.

Working Hours

General: Working hours are governed by the General Labour Law, which stipulates specific conditions tailored to each company’s activities. Typically, the standard maximum working day is 8 hours or 44 hours per week. In cases where work is intermittent or demands the continuous presence of employees, the daily working hours may extend to 9 hours, while the working week is limited to 5 consecutive days by the employer.

Overtime: Employers are required to maintain comprehensive records of all overtime worked. The maximum allowable overtime for an employee is 2 hours per day, 40 hours per month, and 200 hours per year.

During mandated rest days, hours worked are compensated at 110% of the regular pay. Hours worked during the complementary rest period are considered as overtime.

Overtime compensation is calculated based on the time worked beyond regular hours. For example, overtime between 15 to 44 minutes is counted as half an hour, and between 45 to 60 minutes as a full hour.

Overtime pay rates vary depending on the size of the company and the amount of overtime worked:

Up to 30 hours of overtime per month:

• Large companies: 150% of regular pay
• Medium companies: 130% of regular pay
• Small companies: 120% of regular pay
• Micro companies: 110% of regular pay

Over 30 hours of overtime per month:

• Micro companies: 110% of regular pay
• Large companies: 175% of regular pay
• Medium companies: 145% of regular pay
• Small companies: 120% of regular pay

Leave

Annual Leave (Vacation):

During the first year of employment, annual leave accrues at a rate of two days per month worked, with a minimum of 6 days to be taken that year. Employees become eligible to take this leave from the 1st of January following six months of employment. After completing one year of service, employees are entitled to 22 days of annual leave.

Annual leave entitlement starts on the 1st of January and must be used by the 31st of December of the same year. Female employees with children under the age of 14 are granted an additional day of leave per child.

During annual leave, employees receive full pay along with any other accrued benefits for the year. Additionally, a standard bonus equivalent to 50% of the monthly salary is typically paid before the commencement of the annual leave period.

Public Holidays

There are 12 public holidays. Additional days are sometimes added as days off in lieu or bridge days.

Sick Days

Employees on sick leave in medium or large companies receive full payment of their basic salary for the first two months of absence. From the third month up to the twelfth month of absence, the employer is required to pay the employee 50% of their basic salary until the relevant social protection entity assumes responsibility.

In smaller companies, employers must pay 50% of the regular wage for up to 90 days of sick leave.

Employees are entitled to take paid sick leave provided they provide documented justification in the form of a medical certificate.

Maternity Leave

Women who have contributed to the social security system for at least 6 months before their pregnancy are entitled to 12 weeks of maternity leave. This leave can be supplemented by the employer if needed. Maternity leave begins four weeks before the expected due date (eight weeks before for multiple births) and continues for nine weeks after the child’s birth.

If the birth occurs later than the expected due date, the maternity leave period is extended accordingly to ensure it lasts at least nine weeks after the child’s birth.

Maternity pay is calculated based on the cumulative earnings from the preceding six months.

Paternity Leave

The Angola General Labor Law provides one day of paid leave at the time of the birth of a child.

Parental Leave

After the conclusion of maternity leave, and subject to prior agreement with the employer, a female employee may be granted an additional four weeks of supplementary unpaid leave to care for the child.

Employees are also entitled to three days of leave per month, up to a maximum of 12 working days per year, to provide urgent assistance to members of their household.

Other Leave

Family Support Leave: Employees can take up to 8 days of paid family support leave per year with prior approval from the employer.

Military Service Leave: Employees are entitled to paid leave for military duties, up to 2 days per month, with a maximum of 15 days per year.

Education Leave: Employees may request unpaid leave for education or training, with a notice period of 30 days to the employer, for a duration of up to 60 days.

Brain Source International is a global Employer of Record (EOR) service provider that facilitates companies in expanding their workforce into various countries, including Angola. As an EOR, Brain Source International acts as the legal employer for the client’s workforce in Angola, handling payroll, taxes, compliance with local labor laws, and other administrative tasks.

Partnering with Brain Source International in Angola allows companies to streamline their international operations without the need to establish a legal entity or navigate complex local regulations independently. This arrangement provides flexibility and scalability for businesses looking to quickly enter the Angolan market or manage a contingent workforce efficiently.

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