Administering accurate compensation on a predictable schedule is vital to employee satisfaction at your company. Still, complying with employment regulations has its challenges in your local office — let alone every country...
Read MoreAdministering accurate compensation on a predictable schedule is vital to employee satisfaction at your company. Still, complying with employment regulations has its challenges in your local office — let alone every country your global workforce calls home.
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Administering accurate compensation on a predictable schedule is vital to employee satisfaction at your company. Still, complying with employment regulations has its challenges in your local office — let alone every country your global workforce calls home.
The challenges of handling an international payroll can burden your in-house team. Currency exchange rates fluctuate, time zones and holidays complicate communication, and international banking practices lack standardized operations.
When you expand your company, you need a cost-effective, compliant way to manage payroll. Partnering with an employer of record is a risk-free strategy to ensure that your employees receive the correct compensation on an automated schedule.
Afghanistan follows the Income Tax Law of 2009, which requires employers to withhold a percentage of all wages and salaries for taxes.
The withheld amount of an employee’s salary depends on their monthly income. Employees who earn under 5,000 AFN are exempt from these taxes. Withholdings for each progressive bracket are as follows:
Note that all brackets assume a regular working period of 40 hours per week.
Employers pay pensions from a dedicated fund, and social protections come from the company’s budget.
When your company hires overseas, you can choose between a few payroll management strategies:
To set up your payroll, you must register your company with the Afghanistan Revenue Department (ARD) or your local Mustufiat office. Once the administration approves your application, you’ll receive your company’s Taxpayer Identification Number (TIN), which you’ll need when you file monthly withholding reports.
If you work with Globalization Partners, we hire your employee as their Employer of Record and put them on our payroll. Your monthly invoice includes their wages, and we keep our practices compliant with country-specific regulations.
If an employee cannot work due to an extended illness or liability, their employer must pay their standard wages and offer benefits until they can resume work or retire. Families of deceased employees receive 10 months of wages to pay for a burial ceremony.
An employer may terminate an employment contract for repeated disciplinary infractions and absences. Extended work stoppages, closure of the company, and other grounds require the employer to pay the remainder of the employee’s salary. Since each contract lasts for a year, a one-month notice period is acceptable.
The legal team at Globalization Partners can lawfully end an employment contract, and we’ll ensure former employees receive the funds they’re entitled to.
Put your global payroll on a single platform with Globalization Partners. Contact our team today for more information.
If you’re ready to grow your business, or you have questions about a specific country, complete the form. One of our experts will be in touch shortly.
