Employer Payroll Tax
Employee Payroll Taxes
The amounts of the gross minimum wage for payments from January 1, 2021, are (in accordance with the new tax exemption of 18,300 dinars):
- for a month with 160 working hours: 39,370.61 dinars.
- for a month with 168 working hours: 41,469.67 dinars.
- for a month with 176 working hours: 43,568.73 dinars.
- for a month with 184 working hours: 45,667.79 dinars.
The payroll cycle is monthly.
There is no 13th salary.
A work week is 40 hours for five days of 8 hours each.
Overtime is work over 8 hours per day or 40 hours a week. Overtime is limited to 8 hours per week and 4 hours per day and paid at 126% of regular salary.
Employees get 20 days of paid vacation each year.
There are 12 public holidays.
Paid sick leave is unlimited as long as needed, with a certificate from a physician filed with the health insurance authority. During the first 30 days, employees receive 65% of salary if sickness/injury not related to work, and 100% if it was work-related. After 30 days, payment comes from the state, not the employer.
Combined pregnancy/maternity leave goes for 365 days.
No specific paternity leave but under certain circumstances, the father could use maternity leave if mother unable to care for the baby during that period.
Employers must provide an explanation in writing and at least 8 days’ notice if the termination is based on performance. The explanation must include the reason for dismissal, evidence, and an opportunity for the employee to respond. Failure to follow the procedure could result in a court invalidating the dismissal.
The employer must give at least 8 days. An employee terminating the employment must give 15 days.
In the event of layoffs, a notice period of 30 days is required.
In the case of layoffs, a severance payment of at least 1/3 of regular salary for each year worked is required.
Not more than 6 months, during which either party could end the relationship with five days’ notice.
VAT is 20% standard rate.