Angola: A Guideline to Payroll and Employer of Record

Establish your presence globally with Neeyamo as we help you go beyond borders to manage your international payroll and hire new talent in Angola.

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Overview

A country with one of the youngest populations in the world - Angola’s population consists mainly of children, with around 40% of the population between the ages of 0-14 and over 70% of the population under the age of 24. With a population filled with young, determined, and creative minds, the country sees a bright future workforce.

Do your organization’s expansion plans require you to hire employees in Angola? Do you lack a physical entity in the country – a key requisite to hire local talent, your solution is right here: the ideal payroll software for small businesses as well as large Neeyamo – Global Payroll Specialists. Neeyamo assists organizations worldwide with onboarding and managing employees in Angola, processing payroll, managing local compliance requirements, benefits, and more.

Tools And Instances

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Global Payroll

Neeyamo’s global payroll solution covering 180+ countries

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Global Work

A tech-based EOR solution to manage your extended workforce

Facts And Stats

Capital

Luanda

Currency

Angolan Kwanza (AOA)

Official Language

Portuguese

Fiscal Year

1 January - 31 December

Date Format

DD/MM/YYYY

Country Calling Code

+244

Other Languages

Chokwe, Kikongo, Kimbundu, Oshiwambo, Ngangela and Umbundu

Time Zone

UTC + 01:00)

Global Payroll

Overview

Payroll: Meaning

Payroll means the list of compensation to be paid to employees of a company or organization for a set period or date. Global payroll companies allow organizations to outsource their payroll, allowing employers to focus on other aspects of their business.

What is Global Payroll?

Handling payroll for a widespread workforce can pose a significant challenge for any organization, and the added complication of compliance can make things worse. If companies spend more time processing payroll, it directly impacts day-to-day operations and their overall productivity. The solution to this is global payroll outsourcing.

What is a global payroll system?

Over the years, Neeyamo – Global Payroll Services has observed these complexities and strived to provide global payroll solutions through a single technology platform – Neeyamo Payroll. Neeyamos global payroll systems ease the process for companies looking to outsource their global payroll requirements and aid them in maneuvering the tricky payroll system in Angola. Neeyamos payroll software provides the perfect solution for all your global payroll needs – for employees working in primary geographies, the long-tail region, remote or internationally located.

How is payroll calculated?

Neeyamo acts as your personalized Payroll Calculator. Ensuring adherence to local regulatory requirements using multi-level controls. Providing timely and accurate payroll, courtesy of our experts worldwide and using a tech-based integrated smart helpdesk solution with seamless support experience manned by payroll experts - Neeyamo has all your payroll needs covered.

Payroll Taxes

Payroll tax is the percentage amount retained from an employee's salary and paid to the government to invest in the general population's welfare. These are statutory in nature and are levied from both the employer and employee. Additional statutory contributions are made by employers towards aiding both short-term and long-term benefits for their employees.

Employee Taxes

Employee Payroll Contributions

  • 3.00% - Social Security

3.00% - Total Employee Cost

Minimum Retirement Pensions as of September 17, 2024:

  • The minimum retirement pension for categories including old age, survivors, disability, and old age allowance has been set at 70,000 kwanzas.
  • Pensions that fall between the minimum and maximum amounts will see a 25 percent increase.

 

The employee taxes are estimated as follows:

0.00 AOA - 70,000.00 AOA 0.00%
70,001.00 AOA and 100,000.00 AOA 10.00% + 3,000.00 AOA
100,001.00 A00 and 150,000.00 AOA 13.00% + 6,000.00 AOA
150,001.00 AOA and 200,000.00 AOA 16.00% + 12,500.00 AOA
200,001.00 AOA and 300,000.00 AOA 18.00% + 31,250.00 AOA
300,001.00 AOA and 500,000.00 AOA 19.00% + 49,250.00 AOA
500,001.00 AOA and 1,000,000.00 AOA 20.00% + 87,250.00 AOA
1,000,001.00 AOA and 1,500,000.00 AOA 21.00% + 187,250.00 AOA
1,500,001.00 AOA and 2,000,000.00 AOA 22.00% + 292,250.00 AOA
2,000,001.00 AOA and 2,500,000.00 AOA 23.00% + 402,250.00 AOA
2,500,001.00 AOA and 5,000,000.00 AOA 24.00% + 517,250.00 AOA
5,000,001.00 AOA and 10,000,000.00 AOA 24.50% + 1,117,250.00 AOA
10,000,001.00 AOA and over 25.00% + 2,342,250.00 AOA

 

Employer Taxes

Under employer taxes, the following contributions are made:

Social Security - 8.00%

Total Employment Cost - 8.00%

Payroll Cycle

Overview

Undoubtedly, payroll is a critical process for any organization. The pay cycle in Angola refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.

Frequency

In Angola, employees are generally paid monthly. The wage is paid by the last working day of the month.

13th Month Cycle

In Angola, 13th and 14th-month salaries are mandatory, with 50% being paid as a 13th salary for a vacation bonus (which must be paid before an employee takes vacation). 

The 14th salary payment is done through a Christmas bonus.

Global Work

Overview

An Employer of Record (EOR) services provider helps you eliminate the hassle of handling complexities while onboarding a new employee in an international location. They help bridge the gap that otherwise mandates organizations to have a local registered entity and a local bank account, prior to making a job offer to an international hire.

An EOR services provider acts as a legal employer, facilitates salary payments, and manages other statutory requirements such as health insurance, payroll taxes, and employee benefits ensuring compliance with local tax laws and regulations.

This allows organizations to focus on collaborating with the employee in Angola for operational tasks, with the knowledge that they have a cost-effective solution to support their global payroll & HR requirements, as they continue their global expansion.

Neeyamo, using its Cloud-based HR and Payroll services, strives to provide its customers with a seamless employee management experience and offers global compliance in payroll and EOR aspects with our Global Payroll Technology Stack.

HR Mandates and Practices

Minimum Wage

The monthly minimum wage in Angola varies based on the industry:

National Minimum Wage from September 17 ,2024 is:

  • Initially set at 70,000 Angolan kwanzas.

Minimum Wage for Specific Groups:

  • Micro-enterprises, start-ups, and domestic workers will have a separate minimum wage set at 50,000 kwanzas.

 

Overtime

Hours worked during the mandated rest day are paid at the rate of 110% of the regular pay. Hours worked during the complimentary rest period are counted as overtime. Night work is paid at the rate of 125% of the regular pay.

Overtime is paid at the rate of 150% of the regular pay for the first 30 hours in a week and then at an additional 175% after that.

The limit on overtime is 2 hours per day, 40 hours per month, and 200 hours per year.

Data Retention Policy

Tax records must generally be kept for a minimum of five years.

Hiring and Onboarding Requirements

Hiring

Employers in strategic and priority sectors (ex, the oil & gas sector) must employ Angolan citizens in all available positions unless there are no Angolan citizens in the national market with the required qualifications and experience.

All private employers with ten or more employees must maintain a reserve of 2 percent of vacancies for employees who have a degree of disability equal to or greater than 60 percent.

Onboarding

In Angola, the following documents are generally required to complete an employee’s onboarding processes:

  • Candidates Full Name
  • Address
  • Contact Number
  • Email Address
  • Copy of Identification Card
  • Emergency Contact Details
  • Bank Account Details
  • Educational Details
  • Employment Certificate
  • Driving License
  • Working Visa (for non-citizens)

Probation

Probation is not mandatory; however, 2 months is common practice. The parties may extend the probation period, in writing, up to 4 months, in the case of employees who perform highly technical complex work, which is difficult to evaluate, and up to 6 months in case of employees who perform management duties.

Leave

Public Holiday

Angola recognizes 11 public holidays.

The paid public holidays observed in Angola are:

  • January 1: New Year's Day
  • February 4: Liberation Movement Day
  • March 8: International Women's Day
  • Carnival
  • Easter
  • April 4: Peace Day
  • May 1: Labor Day
  • September 17: National Heroes Day
  • November 2: Memorial Day
  • November 11: Independence Day
  • December 25: Christmas Day

When a holiday falls on a Sunday, the working holiday is moved to the following Monday.

Annual Leave

Employees are entitled to 22 days of paid leave after the completion of 1 year of employment.​

Sick Leave

Employees at large or medium-size businesses receive full pay for the first two months of illness and 50%of third to twelfth months. Employees at small businesses receive 50% for 90 days.​

Maternity Leave

Maternity leave is 3 months and can begin 4 weeks before the expected due date. For multiple births, maternity leave is extended to 4 months. For stillbirth, the leave is reduced to 45 days. Maternity leave pay is based on the average earnings of 6 months leading up to birth.

If the women who have a minimum of 6 months of contributions into the social security system during the previous 12 months. Full wages are paid during maternity leave through the social security system, supplemented by the employer if necessary. Leave begins four weeks before the due date. An additional four weeks of leave may be taken without pay.

Paternity Leave

A father can take one day of leave when his child is born.

Military Service Leave

An employee may take paid leave for military duties up to two days per month for a maximum of 15 days per year.

Other Leave

Education Leave:
After giving 30 days of written notice, an employee may take unpaid leave for 60 days for education or training.

Marriage Leave:
Newly married employees are entitled to marriage leave for up to 10 days.

Bereavement Leave:
Employers must provide up to eight days of leave for employees experiencing the loss of family members.

Trade Union Leave:
An employee is entitled to paid leave for 4 days in each month for exercising powers as an executive member of a trade union and 4 or 5 paid hours per month for union delegates of a trade union with at least 200 or more employees in the workplace. Extra leave can also be provided in such cases but is not required to be paid by the employer.

Leave for Legal Obligations:
An employer shall provide leave for a paid period of at least 2 days per month up to a maximum of 8 days in one calendar year to employees in order to comply with legal obligations in relation to the judiciary, military, police, or other authorities with identical powers.

Sports and Cultural Activities Leave:
An employee can be granted paid leave by an employer for a maximum period of 8 days in a calendar year for sports or cultural activities if it has to be performed within normal working hours.

Termination

Notice Period

Termination notice is 60 days for executives, middle-level technicians and high-level technicians, regardless of tenure with the employer, and 30 days for other employees. Angolan law allows payment in lieu of notice for individuals dismissed for economic reasons.

Severance Pay

The severance pay in Angola is made with one month of pay for every year of seniority up to five years of employment. After that, it’s 50% of the monthly salary for each year.

Visa

Overview

With numerous entries, work visas allow for a maximum 12-month stay in the nation and a total of two extensions. Only the professional activity specified in the employment contract is eligible for a visa, and the kind of visa required depends on the activity.

The Ministry of Public Administration, Employment, and Social Security issue all work visas and residency permits after foreigners adhere to specified requirements. Any foreign national seeking employment in Angola must possess certain professional, technical, or scientific expertise that Angola does not possess.

As a result, the availability of local workers to fill open positions determines whether it is possible to hire foreign workers. Employers from both home and abroad are permitted to hire non-residents as long as at least 70% of their staff is made up of Angolans.

Employee Background Checks

Legal and Background Checks

There is no legal provision prohibiting an employer from requesting work references from a potential employee, or from inquiring about any work they performed in the past.

Upon termination of a labour relationship, the employer must issue a work certificate that indicates the employee’s start and termination dates of employment, their job function, and their professional qualification(s). At the employee’s request, it may also include an assessment of their professional qualities.

Last updated on August 19, 2024. 

If you have any queries or suggestions, reach out to us at irene.jones@neeyamo.com

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