Guide to employment, payroll and benefits in

Angola

Rivermate offers complete payroll, benefits and compliance services for

Angola

01. Overview

Last updated: 

August 19, 2021

Currency
Angolan Kwanza
Capital
Luanda
Ease of doing business
41.3
Language
Portuguese
Population
32866272
GDP growth
-0.15%

02. Grow your team in

Angola

with Rivermate

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

Angola

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

Angola

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

Angola, formally the Republic of Angola, is a country on Southern Africa's west coast. It is the second-largest lusophone nation in terms of total area and population, as well as Africa's seventh-largest country, bordered on the south by Namibia, the north by the Democratic Republic of the Congo, the east by Zambia, and the west by the Atlantic Ocean. Angola has an exclave district, Cabinda, which shares borders with both the Republic of Congo and the Democratic Republic of Congo. Luanda is the country's capital and largest city. Since the Paleolithic Period, Angola has been inhabited. It was established as a nation-state as a result of Portuguese colonisation, which started with the establishment of coastal settlements and trading posts in the 16th century. European immigrants started to establish themselves in the interior of the country in the 19th century. Due to opposition from indigenous groups such as the Cuamato, Kwanyama, and Mbunda, the Portuguese colony that became Angola did not have its current boundaries until the early twentieth century. Angola became a Marxist–Leninist one-party republic in 1975, after a protracted anti-colonial struggle. In the same year, the country was engulfed in a brutal civil war between the ruling People's Movement for the Liberation of Angola, which was backed by the Soviet Union and Cuba, and the rebel anti-communist National Union for the Total Independence of Angola, which was backed by the US and South Africa. Since its independence in 1975, the MPLA has ruled the region. Angola emerged as a relatively prosperous unitary presidential parliamentary republic following the end of the war in 2002. Angola has vast mineral and petroleum reserves, and its economy is among the world's fastest-growing, especially since the civil war ended. Economic development, on the other hand, is highly unequal, with the majority of the country's income concentrated in a relatively small segment of the population. Most Angolans also have a low standard of living; life expectancy is among the lowest in the country, and child mortality is among the highest. Since 2017, Joo Lourenço's government has made combating corruption a top priority, to the point that many former government officials have been arrested or have court hearings scheduled. While this is something that the previous administration did not do, skeptics see this anti-corruption campaign as targeted. Angola is a member of the United Nations, the Organization of Petroleum Exporting Countries (OPEC), the African Union, the Community of Portuguese-Speaking Countries, and the Southern African Development Community. Angola's population is projected to be 31.83 million people as of 2019. Angola is a multiethnic and multicultural nation. Angolan culture represents centuries of Portuguese rule, with the Portuguese language and Catholic Church dominating, mixed in with a number of indigenous customs and traditions.

04. Public holidays

05. Types of leave

Paid time off

After one year of service, employees are entitled to 22 days of paid vacation.

Public holidays

In Angola, there are twelve public holidays.

Sick days

Employees at large to medium-sized companies are paid in full for the first two months of sickness and 50% for the third and twelfth months. Small company employees get 50% pay for 90 days.

Maternity leave

Maternity leave lasts three months and will begin as early as four weeks before the due date. Maternity leave is shortened to four months for simultaneous births. The leave is limited to 45 days in the case of stillbirth.

Maternity leave pay is calculated using the cumulative earnings of the preceding six months.

Paternity leave

Angola has no provisions in the law regarding paternity leave.

Parental leave

Angola has no provisions in the law regarding parental leave.

Other leave

06. Employment termination

Termination process

When an employer asserts fair cause for dismissal, the employee is entitled to a hearing. If a judge decides against the employer, the employee is entitled to reinstatement and reimbursement for any missed earnings.


Employers must submit a justification for layoffs of five or less employees in writing to the employee representative body, which has seven days to react. The request is subsequently forwarded to the Ministry of Labor, which has ten days to intervene in order to halt the layoff. Absence of response is interpreted as acquiescence.


Employers must inform employees' representative bodies and provincial offices of the Ministry of Labor in the case of a significant group layoff to explain the cause for the layoffs.

Notice period

For senior or middle management, the notice period must be 60 days. For general employees, the notice period must be 30 days.

Severance pay

The severance pay is tantamount to a month's pay for each year of seniority, up to a maximum of five years. Following that, it's 50% of monthly salary for the remainder of the year.

Probation period

The probation period in Angola can go up to two months.

07. Working hours

General

The working time of an employee is defined as the period of time between when the employee begins his/her work and when the employee completes his/her tasks.


An employee is permitted to work a maximum of 44 regular hours per week. Daily work hours cannot exceed eight hours. The weekly limit may be increased to 54 hours in the case of shift, modular, or variable work hours, such as when work is intermittent or requires the employee's mere presence. Part-time employment cannot be less than 5 hours per day, not including overtime.


The daily working hour limit may also be increased to nine hours per day, excluding overtime, if the work is intermittent or requires the employee's sole presence and the employer limits the work week to five consecutive days. The workweek is typically 5.5 days long (i.e from Monday to half Saturday).


When work is intermittent or requires the employee's sole presence and the employer employs shift, modular, or variable work hours, the daily work hour limit may be increased to ten hours.

Overtime

Overtime work is defined as work performed in excess of the normal working hours. The maximum duration of overtime is set at two hours per day, forty hours per month, and two hundred hours per year.


Employees who work overtime are entitled to additional compensation. For large companies, an employee shall be paid 50% more than his or her normal hourly wage, 30% more than his or her normal hourly wage for medium-sized companies, 20% more than his or her normal hourly wage for small companies, and 10% more than his or her normal hourly wage for micro-companies, up to a maximum of 30 hours of overtime work per month.


For each hour worked in excess of 30 hours in a month, an employee shall be compensated at a rate of 75% of the normal hourly wage in large companies, 145 percent in medium-sized companies, 20% in small companies, and 10% in micro-companies.


If the overtime work is less than 15 minutes in duration, no payment at the overtime rate is required. Overtime work that exceeds 15 minutes but does not exceed 44 minutes will be counted as a half hour of work. Between 45 and 60 minutes of overtime work is considered one hour of work. For the purpose of calculating overtime pay, the weekly day or half-day of rest is considered a normal working day.

08. Minimum wage

General

Angola's labor laws require employers to pay a monthly minimum wage that varies by industry. As of 2019, employees in the transportation, services, and manufacturing industries should earn at least 26,817 kwanza per month, while those in the extractive industry and trade should earn at least 32,181. Each of the other economic sectors generates a minimum of 21,454 kwanza per month.


Typically, employees who have worked for your company for at least one year are entitled to two bonuses: a holiday bonus and a Christmas bonus. The holiday bonus is equal to 50% of the employee's base salary, multiplied by the amount earned during the holiday period. The Christmas bonus is equal to 50% of the employee's December base salary.

09. Employee benefits

General

The employer contributes 8% of the cost of healthcare via social security.

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

Establishing an entity in

Angola

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

Angola

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

Angola

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

Angola

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

Angola

via our Employer of Record / PEO solution.

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