Employer of Record in Angola

Guide to Hiring Employees in Angola

Your guide to hiring employees in Angola, covering the employment landscape, employer of record responsibilities, working customs, and local labor laws.

Hiring Employees In Angola
Employer Of Record In Angola

Capital City

Luanda

Currency

Angolan Kwanza

 (

Kz

)

Timezone

GMT +1

Payroll Frequency

monthly

Tax Year

1 January- 31 December

Employer Tax

8%

Languages

Portuguese

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How to Hire Employees In Angola

Hiring in Angola for the first time can be overwhelming, especially when navigating unfamiliar employment laws.  Whether you hire independent contractors, set up a legal entity, or use an EOR service, understanding the local employment landscape is crucial for success.  Playroll’s comprehensive guide can help you get started if you're hiring locally or relocating a team member.

Companies can hire employees in Angola in the following three ways:

  • Setting up a local entity. Entity establishment reduces risk exposure and enables direct hiring, but can be costly and time-consuming – making it less practical for companies seeking quick and flexible solutions for hiring in Angola.
  • Partnering with an Employer Of Record. An EOR, like Playroll, is a third-party entity that serves as the legal employer of your international workforce which hires, pays, and manages compliance with Angola’s labor laws and tax regulations.
  • Hiring independent contractors. Hiring contractors gives companies a flexible, affordable alternative to hiring local employees, though it involves unique misclassification risks.

Good To Know

Angola has a growing young population, with a significant portion of the labor force engaged in the informal sector. The untapped young workforce has attracted foreign companies to invest in the country.

The government in Angola is actively implementing reforms to enhance the labor market. Reforms include improving labor regulations, expanding access to education and training, and fostering job creation.

Portuguese is the official language, reflecting the country's colonial history. Employment contracts must be in Portuguese, although translated copies may be provided.

Written contracts are not always mandatory, except for fixed-term and foreign non-resident contracts. Having written contracts for all employees is considered good practice for clarity and dispute resolution.

Employment and Labor Laws in Angola

Businesses can only operate smoothly in Angola if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Angola below, to avoid any compliance issues.

Employment Contract Requirements

In Angola, it's crucial to strictly adhere to employment and labor laws. When hiring in the country, a written contract should include:

  • Employer and employee details
  • Start date
  • Job description
  • Salary details in Angolan kwanza

Onboarding Process

We can help you get a new employee started in Angola quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Angola

Working hours follow the General Labour Law, which tailors conditions to each company's activity. The regular maximum workday is 8 hours, and the weekly limit is 44 hours.

Overtime in Angola

The maximum overtime is two hours a day, 40 hours a month, and 200 hours a year. For the first 30 overtime hours, rates vary by enterprise size, and beyond that, different rates apply as follows:

  • Large enterprises: 150% for the initial 30 hours of overtime, 175% for all hours beyond the initial 30, including the 31st hour and beyond
  • Average enterprises: 130% for the initial 30 hours of overtime, 145% for all hours beyond the initial 30, including the 31st hour and beyond
  • Small enterprises: 120% for the initial 30 hours of overtime, 120% for all hours beyond the initial 30, including the 31st hour and beyond
  • Micro-enterprises: 110% for the initial 30 hours of overtime, 110% for all hours beyond the initial 30, including the 31st hour and beyond

Probation Period in Angola

Probation period isn't mandatory, but it usually lasts for two months. If needed, both parties can extend it in writing. Extensions can be up to four months for complex technical roles and up to six months for managerial positions.

Employer of Record in Angola

An Employer of Record (EOR) acts as the legal employer for workers in Angola, taking on key responsibilities to ensure compliance with local labor laws and regulations. The EOR facilitates the hiring process for businesses that want to employ workers without establishing a legal entity in the country.

The employer of record in Angola is responsible for:

  • Employment Compliance: Ensure all employment contracts comply with Angola's labor laws and regulations, including proper classification of employees.
  • Payroll Management: Calculate, process, and distribute employee salaries in accordance with Angola's payroll laws, including deductions for taxes and social security contributions.
  • Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
  • Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with Angola's legal requirements.
  • Benefits Administration: Provide mandatory employee benefits as required by Angola's labor laws, such as health insurance, pension contributions, and statutory leave.
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Payroll Management in Angola

Fiscal Year in Angola

1 January- 31 December is the 12-month accounting period that businesses in Angola use for financial and tax reporting purposes.

Payroll Cycle in Angola

The payroll cycle in Angola is usually monthly, with employees being paid by the last working day of the month.

Minimum Wage in Angola

The minimum wage for employees in Angola is typically 182.85 AOA per hour, amounting to ~32,181.15 AOA per month for a typical 44 hour work week.

Bonus Payments in Angola

It is mandatory to provide a 13th and 14th salary in Angola. The 13th salary includes 50% designated for a vacation bonus, to be paid before an employee takes vacation. The 14th salary serves as a Christmas bonus.

Employment Taxes in Angola

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 8% on top of the employee salary in Angola.

Tax TypeTax Rate
Social Security8%

Employee Payroll Tax Contributions

In Angola , the typical estimation for employee payroll contributions cost is around 3%.

Tax TypeTax Rate
Social Security3%

Individual Income Tax Contributions

Individual income tax in Angola is calculated using progressive rates ranging from 0% to 25% as follows:

Income BracketTax Rate
0 - 70,000 AOA0%
70,001 AOA - 100,000 AOA10% + 3,000 AOA
100,001 AOA - 150,000 AOA13% + 6,000 AOA
150,001 AOA - 200,000 AOA16% + 12,500 AOA
200,001 AOA - 300,000 AOA18% + 31,250 AOA
300,001 AOA - 500,000 AOA19% + 49,250 AOA
500,001 AOA - 1,000,000 AOA20% + 87,250 AOA
1,000,001 AOA - 1,500,000.00 AOA21.00% + 187,250.00 AOA
1,500,001 AOA - 2,000,000 AOA22% + 292,250 AOA
2,000,001 AOA - 2,500,000 AOA23% + 402,250 AOA
2,500,001 AOA - 5,000,000 AOA24% + 517,250 AOA
5,000,001 AOA - 10,000,000 AOA24.5% + 1,117,250 AOA
10,000,001 AOA and over And above25% + 2,342,250 AOA

Pension in Angola

Employers contribute 8% to social security. This covers old age and survivor benefits. The old age pension kicks in at 60 or earlier with enough contributions. Women get a reduction in retirement age for each childbirth. The survivor pension is granted if the deceased had enough contributions, benefiting a widow(er), parents over 50 who couldn't work, and orphans with a significant loss of earnings capacity. The widow(er)s pension stops if they remarry.

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The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Angola tailored to your needs.

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Work Permits & Visas in Angola

Annual Leave & Company Policies In Angola

Mandatory Leave Entitlement in Angola

The annual leave entitlement in Angola is 22 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Angola

Angola has a total of 12 public holidays when employees can take time off from work.

HolidayDate
New Years Day1 January
Day of the Armed Struggle4 February
Carnival HolidayFebruary, day changes yearly
CarnivalFebruary, day changes yearly
International Womens Day Holiday7 March
International Womens Day8 March
Southern Africa Liberation Day23 March
Angolan Peace Day4 April
Good FridayApril, day changes yearly
Labor Day1 May
National Heroes Day17 September
All Souls Day2 November
Independence Day11 November
Christmas Day25 December

Paid Time Off in Angola

Employees with one year of service are entitled to 22 days of paid vacation, excluding weekends, compensatory rest days, and public holidays. Female employees with children under 14 receive an extra day of leave per child, while disabled employees are entitled to five additional days of annual leave.

Maternity Leave In Angola

In Angola, women contributing to the social security system for at least 6 months before pregnancy are entitled to 12 weeks of paid maternity leave. The employer may supplement this leave if needed. Maternity leave begins four weeks before the due date (or 8 weeks before for multiple births) and continues for nine weeks after the child's birth.

Paternity Leave In Angola

Employees in Angola are entitled to one day of paid leave at the time of the birth of their child as part of paternity leave.

Sick Leave In Angola

Employees can take sick leave with a medical certificate as proof. Details differ depending on the size of the company:

  • In large companies, 100% of the regular salary is paid for the first two months, followed by 50% from the third to the twelfth month
  • In medium-sized companies, 50% of the normal salary is paid for 90 days.

Parental Leave In Angola

After maternity leave, with an employer agreement, a woman can get four extra weeks of unpaid leave for child care.

Military Service Leave

Employees have the right to take paid leave for military duties, up to 2 days per month and a maximum of 15 days per year

Family Support Leave

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

Employment Termination and Severance Policies in Angola

Termination Process in Angola

Angolan employment law prioritizes employee protection. Both parties can mutually terminate the employment contract. Generally, employers can only terminate employees for:

  • Gross misconduct
  • Violation of the contract
  • Economic reasons
  • Poor performance

Notice Period in Angola

Executives, middle-level technicians, and high-level technicians in Angola have a 60-day notice period, while general employees have a 30-day notice period.

Severance in Angola

Severance pay is calculated at one months salary for the initial five years of employment, decreasing to half the monthly salary for each subsequent year.

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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ABOUT THE AUTHOR

Jesse Weisz

Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).

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FAQS

FAQs About Hiring In Angola

Questions and Answers

What Is an EOR in Angola?

An Employer of Record (EOR) in Angola is a third-party organization that legally employs workers on behalf of your company. The EOR handles all local employment tasks, including compliance with labor laws, payroll, taxes, benefits, and employment contracts. This allows businesses to easily hire talent in Angola without the need to set up a legal entity there, saving time and ensuring compliance with local regulations.

Can I Hire in Angola Without an Employer of Record?

Yes, you can hire in Angola without an Employer of Record, but this typically requires setting up a legal entity in the country. Establishing a local entity involves navigating registration processes, tax systems, and employment regulations. This can be costly and time-consuming, often taking between 4-6 months to enter a new market. An EOR provides an alternative by allowing you to hire talent quickly and compliantly without the need to establish a legal presence in Angola.

How Much Does It Cost To Employ Someone In Angola?

The cost of employing someone in Angola includes more than just their salary. You also need to consider mandatory contributions such as taxes, social security, insurance, and benefits. These additional costs can vary based on the role, location, and specific employment laws in Angola. When using an Employer of Record, there are additional service fees, usually charged as a percentage of the employee's salary or as a monthly or annual fee. This ensures compliance and covers administrative tasks.

What Is the Minimum Wage In Angola?

As of January 1, 2024, Angola's minimum wage rates are:

  • 182.85 AOA p/h AOA per month.
  • Applies nationwide across all sectors.
  • Adjustments typically occur annually.

How Does an EOR Help You Run Payroll In Angola?

An EOR simplifies payroll management in Angola by handling all aspects of salary payments, tax deductions, and compliance with local labor laws for your international employees. The EOR calculates gross pay, deducts necessary taxes and contributions, and ensures employees are paid accurately and on time. They also manage year-end tax reporting and compliance filings, reducing the administrative burden on your team and minimizing the risk of errors or penalties.

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