Guide to employment, payroll and benefits in


Rivermate offers complete payroll, benefits and compliance services for


01. Overview

Last updated: 

August 19, 2021

Libyan Dinar
Ease of doing business
GDP growth

02. Grow your team in


with Rivermate

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


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


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

Libya, officially the State of Libya, is a country in North Africa bordered on the north by the Mediterranean Sea, on the east by Egypt, on the southeast by Sudan, on the south by Chad, on the south by Niger, on the southwest by Algeria, and on the northwest by Tunisia. Tripolitania, Fezzan, and Cyrenaica are the three historical regions that make up the sovereign state. Libya is Africa's fourth largest country and the world's 16th largest country, with an area of nearly 700,000 square miles. Libya has the world's tenth-largest proven oil reserves of any nation. Tripoli, Libya's largest city and capital, is situated in western Libya and is home to over three million of the country's seven million residents. Berbers have lived in Libya since the late Bronze Age as descendants of Iberomaurusian and Capsian cultures. In western Libya, the Phoenicians founded trading posts, while in eastern Libya, ancient Greek colonists established city-states. Before being a part of the Roman Empire, Libya was ruled by Carthaginians, Persians, Egyptians, and Greeks. Libya was an early Christian hotspot. Following the collapse of the Western Roman Empire, the Vandals controlled much of Libya until invasions brought Islam to the region in the 7th century. The Spanish Empire and the Knights of St John occupied Tripoli in the 16th century until Ottoman rule began in 1551. Libya was a participant in the 18th and 19th century Barbary Wars. Ottoman rule lasted until the Italo-Turkish War, when Italy occupied Libya and formed two colonies, Italian Tripolitania and Italian Cyrenaica, which were later merged into the Italian Libya colony from 1934 to 1947. Libya was a battleground in the North African Campaign during World War II. The Italian population began to dwindle. Libya gained independence as a country in 1951. King Idris I was deposed by a military coup in 1969, and Muammar Gaddafi, the "bloodless" coup leader, ruled Libya from 1969 until the Libyan Cultural Revolution in 1973, when he was overthrown and killed in the 2011 Libyan Civil War. The House of Representatives in Tobruk and the 2014 General National Congress in Tripoli, which considered itself a continuation of the General National Congress elected in 2012, initially claimed to rule Libya. A unified interim UN-backed Government of National Accord was formed in 2015 after UN-led peace talks between the Tobruk and Tripoli governments, and the GNC was dissolved to support it. Since then, a second civil war has erupted in Libya, with parts of the country divided between the governments of Tobruk and Tripoli, as well as numerous tribal and Islamist militias. On October 24, 2020, the two major warring parties agreed to a formal truce. Libya is a member of the United Nations, the Non-Aligned Movement, the Arab League, the Organization of Islamic Cooperation, and OPEC. The official religion of Libya is Islam, with Sunni Muslims accounting for 96.6% of the population.

04. Public holidays

05. Types of leave

Paid time off

Employees are entitled to 30 days of paid vacation each year. For people above the age of 50 or who have worked for at least 20 years, this number extends to 45 working days.The employer would need a medical certificate.

Public holidays

Libya recognizes eleven public holidays.

Sick days

The amount of sick time you are entitled to depends on how long you are on leave. Employees who are ill for a long period of time are entitled to 45 days of sick leave, and people who are sick for a short period of time are entitled to 60 days of sick leave each year.In order to be eligible for the leave, the employee must present a medical certificate.

Maternity leave

Women are entitled to 14 weeks of maternity leave, which includes 6 weeks before and 8 weeks after the birth. This leave is extended for a further two weeks if there are multiple births.

Paternity leave

There are no provisions in the Libyan law regarding paternity leave.

Parental leave

There are no provisions in the Libyan law regarding parental leave.

Other leave

06. Employment termination

Termination process

When an employee is hired on a fixed-term basis, either party may cancel the contract only in certain limited situations. In any event where the termination cause is invalid, the defaulting party may be liable to the opposing party for compensation to be assessed by the Court.

Employers are required to pay a gratuity at the conclusion of employment to expatriate employees who are not covered by the Social Security Fund. Gratuity at the conclusion of service is computed in relation to the length of service.

Libyan labor law offers an exhaustive list of grounds for terminating employment without notice owing to the other party's actions. The Libyan labor law also offers a method for resolving collective disputes. Additionally, an employee may not be discharged for membership in a labor organization or trade union.

Notice period

A person employed on an indefinite-term contract must be given at least 30 calendar days notice of termination.

Severance pay

Employers are required to pay a gratuity at the end of employment to expatriate employees who are not covered by the Social Security Fund. Gratuity at the conclusion of service is calculated in relation to the length of service.

Probation period

Probation is 30 days of actual work from the date of resumption. If no decision terminating the contract is issued during the probationary period, it is considered appointment.

07. Working hours


Typical working hours are ten hours per day, with a maximum of forty-eight hours per week.


Overtime is limited to an additional three hours per day at 150 percent of the regular rate of pay.

08. Minimum wage


Libya's monthly minimum wage is currently 450.00 LYD.

09. Employee benefits


Mandatory benefits postulated by law include a probationary period, pay on annual leaves, public holidays, sick leaves, maternity leave, paternity leave, and overtime pay. Statutory benefits also include social security benefits.

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

Establishing an entity in


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


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


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


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


via our Employer of Record / PEO solution.

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