Guide to employment, payroll and benefits in

Afghanistan

Rivermate offers complete payroll, benefits and compliance services for

Afghanistan

01. Overview

Last updated: 

August 19, 2021

Currency
Afghan Afghani
Capital
Kabul
Ease of doing business
44.1
Language
Persian
Population
38928346
GDP growth
2.67%

02. Grow your team in

Afghanistan

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Afghanistan

, particularly if you don't have established local relationships. You can hire employees in

Afghanistan

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Afghanistan is a landlocked nation at the crossroads of Central and South Asia, officially known as the Islamic Republic of Afghanistan. Afghanistan is bordered on the east and south by Pakistan; on the west by Iran; on the north by Turkmenistan, Uzbekistan, and Tajikistan; and on the northeast by China. It is a mountainous country with plains in the north and southwest, covering 652,000 square kilometers. Kabul is the capital and the largest city in Afghanistan. Its population is estimated to be about 32 million people, with ethnic Pashtuns, Tajiks, Hazaras, and Uzbeks making up the majority. At least 50,000 years ago, humans lived in what is now Afghanistan. Settled life first appeared in the area 9,000 years ago, eventually developing into the Indus, Oxus, and Helmand civilizations of the 3rd millennium BCE. Indo-Aryans migrated to Gandhara through the Bactria-Margiana area, followed by the rise of the Iron Age Yaz I culture, which has been linked to the culture depicted in the Avesta, Zoroastrianism's ancient religious texts. In the 6th century BCE, the city, then known as "Ariana," fell to the Achaemenid Persians, who invaded the areas to their east as far as the Indus River. Invading the area in the 4th century BCE, Alexander the Great married Roxana in Bactria before embarking on a campaign in the Kabul Valley, where he encountered opposition from the Aspasioi and Assakan tribes. The Greco-Bactrian Kingdom became the Hellenistic world's easternmost point. Buddhism and Hinduism flourished in the area for centuries after the Mauryan Indians conquered it. The Kushan emperor Kanishka, who ruled from his twin capitals of Kapisi and Puruapura, was instrumental in Mahayana Buddhism's expansion to China and Central Asia. The Kidarites, Hephthalites, Alkhons, Nezaks, Zunbils, and Turk Shahis are among the Buddhist dynasties that originated in this area. The Saffarid, Samanid, Ghaznavid, and Ghurid dynasties introduced Islam to Sassanian-held Herat and Zaranj in the mid-7th century, and the Saffarid, Samanid, Ghaznavid, and Ghurid dynasties achieved complete Islamization between the 9th and 12th centuries. The Khwarazmian, Khalji, Timurid, Lodi, Sur, Mughal, and Safavid empires later dominated parts of the area. The Hotak dynasty, whose founder Mirwais Hotak proclaimed southern Afghanistan independent in 1709, is responsible for the current state of Afghanistan's political history. Ahmad Shah Durrani established the Durrani Empire in 1747, with Kandahar as its capital. The Durrani capital was relocated to Kabul in 1776, while Peshawar was designated as the winter capital; the latter was captured by Sikhs in 1823. Afghanistan served as a buffer state in the "Great Game" between British India and the Russian Empire in the late 1800s.

04. Public holidays

05. Types of leave

Paid time off

Depending on their age, type of employment, and duration of service, employees earn between 20 and 30 days of paid yearly leave. The majority of employees are given 20 days of paid vacation each year.

Public holidays

There are sixteen public holidays in Afghanistan.

Sick days

Employees are entitled to 20 paid sick days per year. A doctor's note or a note from a health organization may be required if an employee is unwell for more than five days in a row.

Maternity leave

Employees who are women are entitled to 90 days of paid maternity leave. The first thirty days are taken before the birth, while the last sixty days are taken after the delivery.

Paternity leave

There is no statutory paternity leave in Afghanistan.

Parental leave

Other than the mentioned terms for maternity leave, there are no other provisions in the Afghanistan law regarding parental leave.

Other leave

06. Employment termination

Termination process

The following are the essential circumstances for terminating a work contract: mutual agreement, retirement, death, disability, or incapacity that will make it difficult to perform the job, long cessation of work for a period of at least six months, dissolution of the organization or reduction in the number of employees, final conviction to prevent work continuation, and repeated breaches of work after being disciplined.

Notice period

Employers must warn employees one month in advance of termination.

Severance pay

Employers are required to pay severance to employees in a variety of circumstances, with the amount determined by the employee's years of service. Severance pay should be paid to the employee's legal inheritor in the event of their death.

Probation period

Both contracting parties can agree on a probationary period for employment. The parties may terminate the contract by notifying one another during this time period, which cannot exceed three months.

07. Working hours

General

The standard work week in Afghanistan is 40 hours over five days.

Overtime

Employees are entitled to a percentage of basic wages for overtime during the work week, weekends and holidays. Special rules apply to younger workers for work performed at night.

08. Minimum wage

General

There is no minimum wage in Afghanistan for permanent employees in the private sector. Monthly earnings for nonpermanent private sector employees must be at least 5,500 AFN. For permanent government employees, the monthly minimum wage is 6,000 AFN. These wages are based on a 40-hour workweek.

09. Employee benefits

General

Many workers have access to social security. These funds are often a mix of company contributions and deductions from the employees' monthly pay. Some companies opt to pay for all of their workers' social protections. These funds are critical to employees' post-retirement lives. Companies may also provide social protections to workers as a complement to their pay while they are on the job.

Special conditions may entitle an employee and their family for additional social benefits. Workers in these circumstances may get food allowances, transportation, assistance in locating housing, medical services, assistance with delivery, a pension for prolonged sickness or incapacity, and financial assistance equivalent to ten months of pay for a dead employee's funeral ceremony.

The funds for these social safeguards come from a company's budget. Pension payments are made from a special fund inside the employer's organization. Financial assistance for old-age retirement should equal 10 months of earnings plus the employee's benefits.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Afghanistan

to hire a team takes time, money, and effort. The labor law in

Afghanistan

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Afghanistan

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Afghanistan

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Afghanistan

via our Employer of Record / PEO solution.

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