Employer of Record in Libya

Businesses can only operate smoothly in Libya 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 Libya below, to avoid any compliance issues.

Employment Contract Requirements

In Libya, employment contracts serve as legal agreements between employers and employees, outlining terms and conditions of employment. These contracts typically specify details such as:

• Job responsibilities
• Salary
• Working hours
• Leave entitlements
• Termination procedures

Onboarding Process

We can help you get a new employee started in Libya 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 Libya

In Libya, the standard working week typically consists of five days, from Sunday to Thursday. Typical working hours within Libya are 48 hours per week, 10 hours per day.

Overtime in Libya

Any work exceeding the standard 48 hours per week falls under the category of overtime and is governed by the employment contract or collective agreements. Generally, overtime limits are capped at 3 hours per day and compensated at 150% of the standard salary rate.

Probation Period in Libya

The probation period in Libya is typically six months.

Fiscal Year in Libya

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

Payroll Cycle in Libya

The payroll cycle in Libya is usually monthly, with employees being paid towards the end of the month.

Minimum Wage in Libya

The minimum wage for employees in Libya is typically 6.25 LYD per hour, amounting to ~1000 LYD per month for a typical 48 hour work week.

Bonus Payments in Libya

There are no provisions in the law for a 13th-month salary in Libya.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 10.5% on top of the employee salary in Libya.

Employee Payroll Tax Contributions

In Libya , the typical estimation for employee payroll contributions cost is around 4.75%.

Individual Income Tax Contributions

Individual income tax in Libya is progressive, with rates ranging from 5% to 10%.

Pension in Libya

In Libya, there is a public pension system that provides retirement benefits to eligible individuals. The pension system is managed by the government and provides financial support to retirees. Additionally, there may be private pension options available through employers or individual savings plans.

Mandatory Leave Entitlement in Libya

The annual leave entitlement in Libya is 30 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 Libya

In Libya, public holidays may include:

Paid Time Off 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.

Maternity Leave In Libya

Under Libyan Labor Law, female employees are entitled to 14 weeks of paid maternity leave, which includes a mandatory leave period of not less than six weeks following delivery.

Paternity Leave In Libya

Libya's labor laws do not provide statutory paternity leave for fathers, though employers may offer paternity leave as part of their company policies or employment contracts.

Sick Leave In Libya

In Libya, workers are entitled to paid sick leave or salary for a maximum of 45 continuous days, or 60 days if not continuous, within a year. However, regardless of the arrangement, sick leave should not exceed 3 months annually.

Parental Leave In Libya

Libya's labor laws do not provide a statutory shared parental leave policy that allows parents to divide a set amount of leave between them.

Termination Process in Libya

Employers can terminate an employment agreement for the following reasons:

• Expiration of a contract
• Medical reasons that would prevent the employee from fulfilling their duties.
• Conviction of a crime
• For termination initiated by either the employee or employer- a letter of resignation or termination must be sent to the other party.

Notice Period in Libya

The notice period in Libya is typically 30 days for both the employee and employer.

Severance in Libya

In Libya, severance pay is not required for Libyan nationals, but it is for expatriates. Expatriates are entitled to receive half a year's salary for every year of employment, up to a maximum of five years.