Angola has the sixth largest economy in Sub-Saharan Africa, making it an excellent option for business expansion. It is currently experiencing economic recovery following a recession and has increased exports and purchasing power due to the recovery of the oil sector.
Angola is abundant in oil and mineral reserves, and its economy is largely driven by the oil sector. Oil production (and its related activities) contributes around 50% of GDP, more than 70% of government revenue and more than 90% of Angola’s exports.
Major global oil production companies active in Angola include BP, Chevron, ExxonMobil and Total.
In addition to oil, tech industries in Angola also offer attractive opportunities for overseas investors. Approximately 50% of Angola’s population is under the age of 20, with an appetite for consumer technology. Another area that is gaining momentum is sustainable technology, with the engineering, renewable energy and farming sectors all attracting interest from various African countries.
For businesses planning to expand and hire in Angola, the country's General Employment Law covers all employment relationships in Angola and also applies to Angolan citizens based locally and abroad. For foreign citizens based in Angola, the employment relationship is regulated by the Presidential Decree No 43/2017 of 6 March, as amended by Presidential Decree No 79/17 of 24 April 2017.
Angolan Kwanza (AOA)
Taxes in Angola
All employees are subject to a monthly payroll tax, which is deducted from their salary payments. Employment income refers to salaries, fees, commissions, allowances, payments in kind and bonuses. This includes travel allowances and daily entertainment allowances.
Social security contribution is only compulsory for Angolan nationals or foreign employees with residence permits in the country.
According to Angolan INSS law, employers are required to contribute 8% of the employee’s gross monthly salary towards social security.
It is a legal requirement for employees to contribute 3% of their gross monthly salary towards social security. However,some payments are exempt from INSS, such as vacation bonuses within the minimum bonus established in the GLL or family allowances within the same conditions.
Minimum wage in Angola
The minimum wage in Angola varies depending on the industry.
According to Presidential Decree No. 54/22, as of February 17th 2022, for those working in transport, services and manufacturing, the minimum wage is AOA 40,0066.44 per month. In extractive industry and trade, it is AOA 48,271.73 and in agriculture and most other sectors, it is AOA 32,181.15.
Working hours in Angola
In Angola, the normal working week is 44 hours, with employees working eight hours per day.
Lunch breaks typically last between 45 minutes to 1.5 hours while contractors working in shifts are entitled to 30 minute meal breaks.
Employees are required to take a rest day of at least ten hours between working days.
In Angola, employees are allowed to work overtime for a maximum of 2 hours per day, 40 hours per month and 200 hours per year. Employees who perform overtime work for a maximum limit of 30 hours per month are entitled to be paid: amounting to:
Additional 50% of their normal salary rate for large companies
Additional 30% of their normal salary for medium-sized companies
Additional 20% of their normal salary for small-sized companies
Additional 10% of their normal salary for micro-sized companies
Employee Benefits in Angola
All workers are entitled to a Christmas bonus and a holiday bonus. These are both calculated as 50% of a month’s base wages, totalling an extra month’s wage.
Types of leave available in Angola
Employees are entitled to 22 days of paid annual leave each year. The only exception to this rule is holidays under fixed contracts. In this instance, the employee may take two days for each completed month of work when their initial or extended contract is a maximum of one year.
Although there is no mandated number of days allocated for sick leave, employees are entitled to be absent from work with paid remuneration for illness. There is no limit to this as long as the absence is documented and justified by a medical certificate.
According to the General Labor Law, medium and large companies should pay employees the base salary in full for the first two months of their absence. From the third month to the 12th month employees are eligible for 50% of their base salary until the relevant social protection entity takes over.
Employees may take three days of leave each month to provide urgent assistance to spouses, members of their household, parents, grandparents, children under the age of 18 and relatives of the same lineal degree.
In Angola, sick and family leave are considered a single unit. Employees can take up to eight days of paid family leave per year.
Maternity and paternity leave
Female employees are entitled to 90 days of maternity leave, provided they have contributed a minimum of six months into the social security system during the previous year. This can be supplemented by the employer if necessary.
Maternity leave can begin four weeks before the due date, and an additional four weeks can be taken without pay if desired.
New fathers can take one day of paternity leave when the child is born.
Military service leave
Angolan workers can take paid leave for up to two days per month for military duties, to a maximum of eight days per year.
Employees in Angola can take up to 60 days of unpaid leave for training and educational purposes as long as they provide 30 days' written notice and the employer authorises it.
Public holidays in Angola
Angola observes the following public holidays:
New Year’s Day
Day of the Armed Struggle
International Women’s Day
Southern Africa Liberation Day
Angolan Peace Day
National Heroes Day
All Soul’s Day
Attracting talent in Angola
Angola traditionally has a hierarchical and formal business culture, with value placed on families and relationships. When hiring in Angola, it’s important to establish a good rapport with potential employees and consider benefits that will enrich their lives on both a personal and professional level.
Here are some examples of benefits employers should consider when hiring talent in Angola:
After restrictions were announced to cope with the COVID-19 pandemic, many employees in Angola were required to work from home. However, during the pandemic, there were no formal legislations in the country to manage remote work rules.
As of February 2022, Presidential Decree 52/22 introduced the Remote Working Legal Framework, which created legal definitions for different types of remote work, such as working from home, working in a community work centre and nomadic working (an employee working from a non-fixed location).
As remote working becomes more common, it’s important for employers to think about how this shift in workplace flexibility can impact potential employees’ decisions to consider a fully on-site job.
Remote working rules should be agreed upon between employer and employee within the employment contract. It should be formalised in writing alongside details such as working hours, remuneration and the employee’s duties.
The COVID-19 pandemic changed the global workforce’s attitudes towards work-life balance. Employers that take this on board are more likely to attract and retain satisfied and committed workers.
Companies should take time to review the resources they provide employees that help them to prioritise their well-being. For example, companies could create safe, judgement-free spaces for employees to voice concerns or suggestions for improvement or offer access to mental health support systems for any employees who need them.
Rewards and remuneration incentives
Another way to attract a motivated workforce is to introduce financial incentives such as bonuses and additional allowances.
Companies should always communicate their compensation packages clearly, ensure that what they offer is distributed equally and that any variances in pay are justifiable.
Termination of employment in Angola
Once an employment relationship has been terminated, the employee is eligible for any unused leave for that year. They must also be paid within three days of their employment termination.
In Angola, a 30-day notice period is the standard that applies to individual termination due to objective reasons, while a 60-day notice period is required for collective dismissals. However, exceptions may be accounted for in the employment contract.
If an employer needs to lay off 20 or fewer employees, they will need to provide a reason in writing to the employee’s representative body, who will then have seven days to respond. The request will then go to the General Labour Inspectorate, which has 15 working days to prevent the layoff. If the employer receives no response, this can be taken as acceptance.
In the event of a larger layoff, the procedure remains the same. However, the General Labour Inspectorate is given 22 days to prevent layoffs.
For fixed-term employment contracts that last for more than three months, the employer must provide the employee with 15 working days' written notice before the contract expires.
Probation periods are not mandatory in Angola, but it is common practice for employers to put a probation period of 60 days in place at the beginning of an employment agreement. This period can be reduced or waived by written agreement between both parties.
The probationary period can also be extended up to four months for workers who perform complex, technical tasks that are difficult to evaluate. For staff in managerial positions, the probationary period can be extended to six months.
The above is not applicable for set-term work contracts.
Severance pay in Angola is considered as follows: For fair dismissal based on objective grounds, i.e. collective dismissal or redundancy:
Large companies - one month’s salary for each year of service, to a maximum of five plus 50% of a month's salary for each additional year
Medium companies - one month’s salary for each year of service, to a maximum of three plus 40% of a month's salary for each additional year
Small companies - two month’s salary and an additional 30% of the base salary multiplied by the number of years of service exceeding two years
Micro companies - two month’s salary and an additional 20% of the base salary multiplied by the number of years of service exceeding two years
For a fair disciplinary dismissal, no severance is paid.
Minimum retirement age in Angola
The minimum retirement age in Angola is 60. Employees must have at least 180 months of contributions to be eligible for old-age pension. However, they can retire at any age if they have at least 420 months of contributions.
What are my options for hiring in Angola?
Airswift provides a variety of employment solutions for foreign companies wishing to hire in Angola. Our services make it easy for you to hire employees efficiently and within full compliance with Angolan labour laws.
Our knowledge and expertise enable us to reduce risk while carrying out the administrative tasks involved in hiring and onboarding employees. This gives you more time to focus on business development.
Our contract hire services allow you to fill temporary vacancies and give your organisation the agility to respond to the market's shifting demands.
For long-term hiring requirements, our professional search service can help you find talented employees for permanent positions within your company.
Employer of record
For foreign companies wanting to hire remote employees without setting up a physical entity in Angola, an Employer of Record (EOR) simplifies the hiring process with little compromise on expense and time.
An experienced EOR allows you to bypass the complications of physical entity setup. As they already have an established legal entity in the host country, an EOR can help you by managing locally compliant payroll, overseeing statutory benefits, paying international employees and more.
*Although the information provided has been produced from sources believed to be reliable, no warranty, express or implied, is made regarding the accuracy, adequacy, completeness, legality or reliability of any information. For the latest information and specific queries regarding particular cases, please contact our team.
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