Employer of Record in Tunisia

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

Employment Contract Requirements

In Tunisia hiring follows key laws like the 2014 Constitution and the 1966 Labour Code, ensuring fair pay. Employment contracts can be fixed or indefinite, even project-specific. Verbal agreements are legally binding, but for fixed-term contracts, a written agreement is a must. A written contract should include:

• Details of the Employer and Employee
• Remuneration
• Standard Working Hours
• Position Description and Responsibilities

Onboarding Process

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

The standard workweek is five days, with working hours not exceeding 48 hours and a minimum requirement of 40 hours.

Overtime in Tunisia

If an employee works beyond their regular workweek, they are entitled to overtime pay, which includes a wage supplement. The overtime pay rates are determined by the employee's regular weekly working hours:

• For employees working 48 hours per week, the rate is 175%.
• For employees working 40 hours per week, the rate is 125% for each hour worked between 40 and 48 hours, and 150% for each hour worked beyond 48 hours.

Probation Period in Tunisia

Probationary period is determined by collective agreements, individual contracts, and common practices. For most other collective agreements, the probationary period stands at:

• Six months for operational staff.
• Nine months for technical roles.
• One year for managerial and supervisory positions. This timeframe is subject to renewal once or can be shortened through mutual agreement.

Fiscal Year in Tunisia

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

Payroll Cycle in Tunisia

The payroll cycle in Tunisia is usually monthly, with employees being paid on or before the last day of the month.

Minimum Wage in Tunisia

The minimum wage for employees in Tunisia is typically 2.55 TND per hour, amounting to ~417.558 TND per month for a typical 40 hour work week.

Bonus Payments in Tunisia

No mandatory provision for a 13th salary exists in Tunisia. However, employees might be eligible for various bonuses as per the terms outlined in a collective bargaining agreement.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 20.07% on top of the employee salary in Tunisia.

Employee Payroll Tax Contributions

In Tunisia , the typical estimation for employee payroll contributions cost is around 9.18%.

Individual Income Tax Contributions

Income tax in Tunisia varies on a progressive scale ranging from 0% to 35%. The calculation considers individual factors, including household status and the number of children, which can influence the overall tax rates.

Pension in Tunisia

To qualify for an old-age pension in Tunisia, one needs to be 60 (or 50 for hazardous jobs) with 10 or 15 years of contributions. The pension is 40% of their average earnings in the 10 years before retiring, plus 0.5% for every extra three months of contributions after 10 years. The pension amount ranges from 66.7% to 80% of their average earnings, but it can't exceed six times the legal monthly minimum wage.

Mandatory Leave Entitlement in Tunisia

The annual leave entitlement in Tunisia is 12 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 Tunisia

In Tunisia, there are 15 public holidays, providing employees with designated days off.

Paid Time Off in Tunisia

Tunisian employees are entitled to one day of leave per month after completing an entire month of work. Annual paid leave is generally limited to 15 days per year. Employees receive additional paid leave days if their annual vacation is disrupted by sickness, accidents, or a public holiday.

Maternity Leave In Tunisia

Expectant mothers in Tunisia are entitled to 30 days of paid maternity leave. An additional 15 days are granted if the employee faces illness or complications related to pregnancy. Maternity benefits are covered by social security.

Paternity Leave In Tunisia

Fathers in Tunisia are granted one day of paid leave within the first seven days following the birth of their child.

Sick Leave In Tunisia

The Tunisian Labour Code doesn't set a minimum for sick days, but government sickness benefits cover up to 180 days a year. So, employees likely have job-protected sick leave, depending on the seriousness of their illness.

Parental Leave In Tunisia

In Tunisia, there are no legal provisions for parental leave beyond maternity and paternity leave.

Bereavement Leave

Employees are entitled to three days of paid leave in the event of the death of a close family member

Marriage Leave

Employees in Tunisia are granted three days of paid leave for their own marriage.

Termination Process in Tunisia

To end employment in Tunisia, an employer must have a substantial and fair reason. The employee, before termination, has the right to appeal to a discipline council. Acceptable legal grounds for dismissal include:

• Economic factors
• Serious misconduct, such as refusal to follow work-related orders and unexplained absences
• Extended sick leave, particularly when combined with other economic reasons
• Objective justifications

Notice Period in Tunisia

A notice period is mandatory, and the minimum duration is one month. However, this period can be extended if specified in the employee agreement.

Severance in Tunisia

Employees are eligible for severance pay unless terminated for misconduct. The calculation involves one day's pay for each month of employment, with a maximum cap of three months' pay.