G-P provides employer of record services for customers that want to hire employees and run payroll without first establishing a branch office or subsidiary in Angola. Your candidate is hired via G-P’ Angola PEO in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. The individual is assigned to work on your team, working on your company’s behalf exactly as if he or she were your employee to fulfill your in-country requirements.
Our solution enables customers to run payroll in Angola while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As a Global PEO expert, we manage employment contract best practices, statutory and market norm benefits, and employee expenses, as well as severance and termination if required. We also keep you apprised of changes to local employment laws in Angola.
Your new employee is productive sooner, has a better hiring experience and is 100% dedicated to your team. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. G-P allows you to harness the talent of the brightest people in more than 185 countries around the world, quickly and painlessly.
Angolan businesses tend to be formal and hierarchical and relationships are very important. Angolans value families, so it is polite to ask about them, and in fact, you may not even get to the business discussion in your first meeting as your counterparts want to establish a good rapport. Negotiations can be time consuming as consensus building is important, even though the senior-most person will ultimately make the decision. Meetings often start late, and while interrupting someone who is talking is considered very rude, you can expect people to walk in and interrupt meetings with regularity. Finally, Angolans do not like to be negative, so they may say they agree with you even though they don’t, making it important to get all agreements in writing.
Hiring in Angola
Angolan labor laws favor the employee and they tend to be strictly enforced. Additionally, for companies with 5 or more employees, at least 70% of the employees must be Angolan nationals. Foreign non-resident employees can only be hired on fixed-term contracts which may range from three to 36 months. Companies must follow specific recruitment, hiring, and immigration regulations.
When negotiating terms of an employment contract and offer letter with an employee in Angola, it may be useful to keep the following in mind:
Employment Contracts in Angola
Micro, small, and medium companies may create fixed-term employment contracts of up to 10 years. Large companies may only conclude such agreements for up to 5 years.
Generally, only fixed-term and training contracts must be in writing. However, it is best practice to put all employment contracts in writing, in the local language, and spell out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Angola should always state the salary and any compensation amounts in Angolan kwanza rather than a foreign currency.
Working Hours in Angola
The normal working week in Angola is 44 hours with each day limited to 8 hours. The work week can be extended to 54 hours or 9 hours per day.
The work day should include a 1-hour meal break, 2-hours if food is not available on the work site.
Between work days, workers should have a rest break of at least 10 hours.
Overtime is limited to:
- 2 hours per normal day of work
- 40 hours per month of work
- 200 annual hours
Overtime of up to 30 hours per month is paid at an additional 50% rate. Additional overtime is paid at an additional 75%.
Holidays in Angola
Angola celebrates 12 national holidays:
- New Year’s Day
- Liberation Day
- Women’s Day
- Good Friday
- Easter Day
- Peace Day
- Labour Day
- National Heroes’ Day
- All Souls’ Day
- Independence Day
- Christmas Day and Family Day
Vacation Days in Angola
Angolan employees are generally entitled to 22 days of vacation per year. Employees with children are entitled to an additional vacation day per year until the child reaches the age of 14.
Angola Sick Leave
Employees may take unlimited days off of work for illness as long as they present a medical certificate.
Medium and large companies must pay medical leave at 100% of the employee’s salary for the first two months. The third through the 12th months must be paid at 50% of base salary.
Maternity/Paternity Leave in Angola
Female employees are entitled to three months of maternity leave, four weeks to be taken before the due date and the balance after, with 9 weeks after guaranteed, regardless of the due date. If there are multiple births, the mother is entitled to an additional four weeks. The employee may not return to work until at least 5 weeks after the birth.
Employees on maternity leave are generally entitled to social security compensation, with supplementation by the employer.
There is no statutory paternity leave.
Employees are eligible for up to three days of family leave per month, up to 12 days per year, eight of which are to be fully compensated, to help members of their household, a spouse, parents, grandparents, or children over 10 years of age.
Health Insurance in Angola
Angola has a universal, free healthcare system, although access to quality care is limited.
Employees who have worked for at least one year are generally entitled to the following bonuses:
- A holiday bonus of 50% of base salary calculated based on what would be earned during the holiday period
- A Christmas bonus of 50% of base salary for the month of December
Termination/Severance in Angola
Unlimited employment contracts generally have a probation period of 60 days.
Angolan employment law is structured to offer a high level of employee protection. For employees with unlimited employment contracts, terminations must follow strict rules, and in general, employees may only be terminated for a serious infringement or an objective and economic reason that is not the fault of the employer. Litigation over termination is common.
Failure by the company to properly carry out administrative and reporting duties may result in fines.
For fixed-term employment contracts, the employer must serve the employee with prior written notice two weeks before the contract expires.
Paying Taxes in Angola
Income tax is paid on a progressive scale of 0% to 25% of monthly earnings.
Social security contributions are as follows:
- Employees: 3%
- Employers: 8%
This information is provided as generally accepted information and is not intended as advisory services.
Establishing a branch office or subsidiary in Angola to engage a small team is time-consuming, expensive and complex. Angolan labor law has strong worker protections, requiring great attention to detail and an understanding of local best practices. G-P makes it painless and easy to expand into Angola. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws, without the burden of setting up a foreign branch office or subsidiary. Our Angola PEO and Employer of Record solution provides you peace of mind so that you can focus on running your company.
If you would like to discuss how G-P can provide a seamless employee leasing or PEO solution for hiring employees in Angola, please contact us.