Employer Payroll Tax
Employee Payroll Taxes
Employee Income Tax
The monthly minimum wage varies based on industry:
- Agriculture- 21,454.00 AOA
- Transport, services, and manufacturing- 26,817.00 AOA
- Extractive industry and trade- 32,181.00 AOA
A 13th and 14th salary is required and are each 50% of the employee’s regular monthly wages. The 13th salary is considered a vacation bonus and must be paid out before vacation is taken and the 14th salary is paid out before Christmas.
The standard workweek is 5.5 days at 8 hours per day, for a total of 44 hours. Work can be extended to 9 hours per day when the work is intermittent or simply requires the presence of the worker, or when the weekly is limited to five workdays.
Employers are required to provide a lunch break of one hour if food is available on premise, or two hours if not.
The government mandates one full rest day per week, normally on Sunday, and a complimentary half-day preceding or following the rest day.
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.
Employees are entitled to 22 days of paid leave after the completion of 1 year of employment.
There are 12 public holidays.
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 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.
There are no provisions in the law regarding paternity leave.
There are no provisions in the law regarding parental leave.
In cases where the employer claims to have just cause for dismissal, the employee has a right to a hearing. If a judge rules against employer, the employee has the right to be reinstated and paid all lost wages.
In the event of a layoff of five or fewer people, the employer must provide a reason in writing to the employee’s representative body, who has seven days to respond. The request then goes to the Ministry of Labor, which has 10 days to stop the layoff. Not responding is viewed as acceptance.
In the event of a larger group layoff, the employer must notify workers’ representative body and the provincial offices of the Ministry of Labor to explain the reason for layoffs.
The notice must be 60 days for senior staff or middle management and 30 days for general workers.
One month of pay for every year of seniority up to five years. After that, it’s 50% of monthly salary for each year.
Up to 2 months
The VAT standard rate is 14%.