An international workforce is an essential tool for your company’s growth. Expansion comes with a few hurdles, though. Managing your team in a single office involves several administrative tasks. Those responsibilities become even more challenging when you have employees around the world.
As an employer, your company is liable for complying with country-specific compensation laws anywhere you employ your team. Failure to follow local regulations can have monetary consequences or cause your company to lose its ability to operate in that nation.
At Globalization Partners, our Employer of Record model lifts those administrative responsibilities off your shoulders. We become accountable for hiring your employees and maintaining compliant compensation. In-country experts ensure our practices are current with business and employment regulations in over 180 countries, including Afghanistan.
Afghanistan Compensation Laws
In Afghanistan, there is no minimum wage for permanent workers in the private sector. Nonpermanent private-sector workers must earn at least 5,500 AFN per month. The monthly minimum wage for permanent government workers is 6,000 AFN. These wages depend on a standard 40-hour workweek.
Employees who perform night work and overtime must receive increased wages. The government regulates both forms of work, permitting them only when necessary for a company’s operations. Night work, which takes place between 8 p.m. and 7 a.m., qualifies production workers for a 25 percent increase in wages. Service and administrative workers earn a 15 percent increase. Employees who work overtime must receive a 25 percent increase for those hours, and overtime on public holidays is worth a 50 percent increase.
Employers must withhold a percentage of their workers’ wages for taxes. The amount of those withholdings depends on their employees’ monthly income.
The nation prohibits discrimination related to paying wages and administering benefits.
Afghanistan Benefits Management
Many employees have access to social protection. These funds are usually a combination of employer contributions and deductions from the workers’ monthly salary. Some employers choose to fund their employees’ social protections in full. These funds are essential to workers’ livelihoods after retirement. Companies can also dispense social protections during the employees’ service period to supplement their wages.
Special circumstances may qualify an employee and their family for special social protections. In these situations, workers may receive:
- Food allowances.
- Means of transportation.
- Aid in finding shelter.
- Medical services.
- Aid for childbirth.
- Pension dispensed for extended illness or disability.
- Financial aid equalling 10 months of wages for the burial ceremony of a deceased employee.
Financial assistance for these social protections comes from a company’s budget.
Pension payments come from a dedicated fund within the employer’s institution. Financial aid for old-age retirement should equal 10 months of wages plus the employee’s benefits.
While an employer can choose to administer bonuses, doing so is not compulsory under the Labor Code.
Afghanistan is making continuous progress toward universal health care, and any medical services provided by employers fall under the umbrella of social protections.
If an employee cannot work because of an illness or disability, the employer must pay their standard wages until the employee can go back to work or retire.
Employers are obligated to pay into employee pensions.
Restriction on Compensation and Benefits
Basic restrictions surrounding minimum wage, retirement, and social protections are subject to change without notice.
When you work with a global PEO like Globalization Partners during your expansion, you can feel confident that your company is always compliant. Our experts stay updated on all labor laws and relevant guidelines.
Work With Globalization Partners for Afghanistan Benefits Outsourcing
Ready to start your expansion? Contact us today to learn more about our Global PEO services. We’ll explain how our Employer of Record model works and how partnering with us can benefit you.