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Payroll In Angola

Benefits & Compensation in Angola

What are Employee Benefits?

Employee benefits denote perks entitled by employers to employees in addition to their base wage. Alternatively, they are defined as the resources employers provide to uplift the worth of employment beyond compensation. These benefits influence a company’s success in terms of recruitment, engagement, and employee retention. They make employees feel like they are appropriately taken care of. So they will feel engaged and satisfied in the workplace. Moreover, the offered benefits and compensation improve employees’ loyalty and productivity.

The employment contracts define certain mandatory benefits all employees will obtain in Angola. These mandatory benefits cover statutory minimum wage, working hours, overtime payment, paid leaves, paternity leave, maternity leave, annual leave, disability pension, sickness benefits, retirement benefits, severance fund, and more. 

Compensation Laws in Angola

Various compensation laws oversee compensation and benefits in Angola. The below section discusses the laws associated with the compensation and benefits policy in Angola:

Labour Law in Angola (General Labor Law of 1981):

The General Labor Law of 1981 regulates the Labour Law in Angola and entitles employee benefits in Angola. The Law administers the terms and conditions of employment like working hours, overtime, rest periods, wages and holidays, employment relationships, and other relevant compensation and benefits policies in Angola.

  • The employer should maintain a register of overtime work for each employee. The record should be presented to the General Labor Inspectorate whenever needed. 
  • The upper limits of daily and weekly work periods can be decreased by collective agreement or by joint order of the Ministers.  
  • An employee is entitled to a rest interval between the end of a workday and the start of the next workday. The rest interval must be at least 10 hours. 
  • Employees who work on a public holiday are entitled to double pay and a compensatory rest day. 
  • In case of employment termination, an employee is entitled to get remuneration for unused vacation leave belonging to the year of termination. -An employee is entitled to one day of paid leave during the child’s birth. 
  • The female employees are entitled to two paid breastfeeding periods (each of 30 minutes) when the child is present in the workplace during working hours. If the child is not at the workplace, the employer can offer a 1-hour break or the mutual agreement between the employee and the employer can determine reduced daily working hours for up to 12 months. 

How to Design an Employee Benefits Program for Employees in Angola?

The process of creating a compensation package in Angola simplifies if the employer considers certain essential factors. Their details are here:

Step 1: Outline your business objectives and budget

Define the business objectives you envision accomplishing from the compensation structure in Angola. It serves as the first step towards attaining the maximum advantage from your compensation policy. Reviewing employment contracts or collective bargaining agreements helps you to validate employment relationships and entitlements associated with compensation and benefits in Angola.

Before preparing the employee compensation policy in Angola, consider the company’s available resources, commercial climate, and the business sector in which it functions. To acquire the maximum advantages of your envisioned compensation and benefits in Angola, you should also consider your company’s budget to fund employee benefits. Consequently, you can prepare the most profitable compensation structure in Angola.

Step 2: Discern employee requirements

You can organize interviews or use cases or create opinion polls to understand the employees’ requirements and anticipations thoroughly. Thus, this step in designing the compensation and benefits policy in Angola inspires employees to express their opinions confidently.

Investigate the industry standards and the benefits that other companies in your industry offer to their employees.  Based on the corresponding analysis and research outcomes, you can create a compensation and benefits policy in Angola that follows the market competition and industry principles. Subsequently, you can create a compensation package in Angola that provides all the essential employee advantages.

Conducting an internal survey helps you identify the areas that demand improvements and also mentions necessary changes that must be implemented in the compensation and benefits policy in Angola. You can discard certain superfluous benefits to decrease company expenses.

Step 3: Prepare your benefits plan

After studying the employees’ requirements and prospects as per the employee compensation policy in Angola, you should conduct a gap analysis. It helps you understand the prevailing scenario of the benefits plan. Subsequently, you should prepare a viable employee compensation policy in Angola that incorporates the dynamic facets of the business. With the help of this flexible benefits and compensation structure in Angola, employees can easily choose mandatory benefits. Besides, it guides the employer to get optimum benefits from the prepared compensation and benefits policy in Angola.

When preparing a benefits plan for worker’s compensation in Angola, you must consider the employee contributions, the company’s budget, and outsourcing requirements.

Step 4: Inform the stakeholders about the benefits and attain feedback

While implementing a feasible plan for the employees and the organization, make sure to convey the advantages of your designed compensation package in Angola to all the employees and stakeholders. They can submit feedback on the plan’s draft. Afterward, you can implement a benefits plan of worker’s compensation in Angola that supports the company and the employees.

You can incorporate any worthwhile feedback into your compensation package in Angola. If the feedback finds any redundant benefits, you can dismiss them and modify the employee benefits in Angola therefore.

Step 5: Periodically analyze the plan

To stay ahead of the market competition, companies in Angola intend to provide the optimum employee benefits in Angola. So, you must regularly analyze the compensation structure in Angola to identify the benefits plan’s practicality.

Finally, implement the employee compensation policy in Angola after confirming that it is error-free. You should properly study all the benefit plan’s components and implement them. 

Types of Guaranteed Benefits in Angola

Employees are eligible for various kinds of employee benefits in Angola. These mandatory benefits are as follows:

Minimum wage

Working hours and overtime

General Labour Law determines working hours in Angola.

  • The standard working hours in the country are 8 hours daily or 44 hours weekly.
  • The employer can extend the working hours to 9 hours daily if the work is intermittent or needs the employee’s presence. In that case, the employer limits the working week to 5 successive days.
  • The overtime hours are up to 2 hours daily, 40 hours monthly, or 200 hours annually.
  • The compensation of this employee benefits in Angola is an additional 50% of the standard hourly wage for overtime up to 30 hours monthly.
  • The overtime compensation is an additional 75% of the standard hourly wage if the overtime work exceeds 30 hours monthly. 
  • The employees in Angola are entitled to up to 30 days of paid annual leave benefits in Angola.
  • During the employment’s first year, the annual leave amasses two days for each month of employment. The employees can take a minimum of 6 days of annual vacation in a particular year. 
  • The employees who have completed one year of employment are entitled to 22 days of annual leave.
  • Female employees having children under 14 years of age are entitled to an extra day of leave per child.
  • The employees are entitled to a standard bonus amount that equals 50% of the monthly workers’ compensation in Angola. They receive this compensation before the annual leave period starts.

Public holidays

  • The employees in Angola receive 12 public holidays per year.

1 Jan

New Year’s day

04 Feb

Liberation Day

21 Feb

Carnival Tuesday

08 Mar

Women’s Day

04 Apr

Peace Day (in lieu)

07 Apr

Good Friday

09 Apr

Easter Sunday

01 May

Labour Day

17 Sep

National Heroes’ Day

02 Nov

All Souls’ Day

11 Nov

Independence Day

25 Dec

Christmas Day and Family Day

Sick leaves

  • In Angola, the employees are entitled to up to 3 days of paid sick leave.
  • In medium or large companies, the employees who take sick leave get full payment of their standard wage for the first two months of sickness.
  • The employer pays 50% of the standard wage to employees as sick leave compensation. The employees will get this payment from the third to twelfth month of sickness.
  • In small companies, the employers compensate 50% of the standard salary to employees for 90 days.
  • Presenting a medical certificate entitles medical benefits for employees in Angola while remaining absent from work.

Maternity leaves

  • The female employees who made social security contributions for at least six months before their pregnancy will receive 12 weeks of paid maternity benefits in Angola.
  • This leave period begins four weeks before the expected delivery date (8 weeks before the delivery date in case of multiple births).
  • The maternity leave period continues up to nine weeks after the child’s birth.
  • If the child’s birth is after the expected delivery date, the maternity leave period increases to at least nine weeks after the birth.
  • The calculation of maternity benefits in Angola happens using the collective earnings of the former six months.

Paternity leaves

  • As per the Angola General Labour Law, the father employees are entitled to one day of paid leave during a child’s birth.

Parental leave

  • The female employees are entitled to an additional four weeks of supplementary unpaid leave to nurture the child. They get this benefit after the maternity leave period finishes and with a former agreement from the employer.
  • The employers provide three days of parental leave monthly (up to 12 working days annually) to provide immediate assistance to employees’ family members.

Severance pay

  • The employees in Angola are entitled to severance pay as follows:

Duration of employment

Severance pay

Up to 5 years

1 month’s pay

> 5 years

50% of the standard salary

Employee Benefits for Expatriates

Foreign employees employed in Angola are entitled to the same compensation and benefits in Angola as local employees. The compensation package in Angola entitles expats to several benefits like family allowance, meal allowance, transportation allowance, house rent allowance, vacation allowance, etc.

Expats may recurrently travel to and from abroad to finish their short-term projects. Hence, businesses adopt a straightforward, economical alternative to hiring and reimbursing expats via local subsidiaries.

The documents that expats require to apply for a work permit must be notarized, photocopied, and translated into Portuguese. The expats must only contribute to social security if they have a Residency Permit. They must have a visa to work in Angola. The visas are granted to only those expats who have their companies incorporated or branched registered in the country. The expats will be exempt from Social Security if they are covered under an identical system in their home country. 

How are Employee Benefits Taxed in Angola?

Employees in Angola must pay income tax ranging from 0% to 25% (based on their income). Moreover, each employee and employer should make 3% and 8% of social security contributions respectively. The tax residents must pay on their worldwide income, whereas the non-residents must only pay for their income received from Angola. Furthermore, self-employed individuals must contribute to a pension, general sickness, and disability.

Restrictions for Angola Benefits and Compensation

Most benefits entitled to Angolan employees are taxable. So, you must know the benefit’s monetary worth to correctly calculate the tax amount payable by the employer. Also, an employer should ensure that they timely disburse and submit all tax payments to the corresponding authorities.

Ensure your business is incorporated and legally functions in Angola before designing employee benefits in Angola. According to the business sectors, companies should pay minimum wages to employees. Moreover, the benefits and compensation package in Angola should also conform to all the labor laws controlled by the government.

The restriction on the standard working hours in Angola is 8 hours daily or 44 hours weekly. Usually, it can be extended to 9 hours daily if the work is intermittent or needs the employee’s presence, and the employer restricts the working week to 5 successive days.

The parties who signed an employment contract can also sign a non-competition agreement. Under this agreement, the employee can agree not to perform competitive undertakings during employment or for a fixed period after termination. Besides, an employee can sign another employment bond during employment, except for the employment contract of the compensation package in Angola stipulating otherwise. 

Supplemental Benefits for Employees in Angola

The following section discusses some additional benefits entitled to employees according to the compensation package in Angola.

13th-month pay

It is mandatory to provide the 13th and 14th-month pay to employees in Angola. The employees are compensated with 50% pay as a 13th salary for vacation bonus (should be paid before an employee takes vacation). They get the 14th salary payment as a Christmas bonus. 

A few additional compensation and benefits in Angola are.

  1. Private medical insurance: Certain employers provide private medical insurance for employees to ensure quality medical facilities.
  2. Supplementary pension insurance: Some large companies offer retirement plans to their employees via a licensed Insurance company.
  3. Dental and Vision insurance: Certain companies support employees with vision care and dental benefits in Angola.
  4. Mental Health Counseling: For this compensation and benefits in Angola, employers run employee counseling sessions for their mental well-being.
  5. Physical Therapy: Certain companies allow employees to take physiotherapy sessions either at home or during office breaks.
  6. Weight Management programs: These programs help companies to decrease the health risks of employees.
  7. Yoga or Fitness Classes: Several companies provide this compensation and benefits in Angola to address their employees’ mental, physical, and social well-being of s.
  8. Women’s health programs: Some companies provide various women-centric health programs like PCOS and fertility treatment.

How Multiplier Can Help with Benefits Management in Angola

Establishing a business abroad and recruiting a practiced workforce is strenuous and challenging. An employer should conform to the local laws and regulations before outlining employment contracts and validating employee benefits. You can streamline this process using services from a global PEO platform like Multiplier.

Multiplier provides compliance with Angola’s labor rules. Also, we support you with hiring proficient employees. Our experienced staff can help you effectively manage the workforce without establishing a subsidiary in the country. So, you can reduce your employment expenses and inspect new markets.

Frequently Asked Questions

The standard VAT rate is 14% in Angola.

It is optional to provide written employment contracts in Angola. The following contracts are exempt from this obligation

  • Part-time
  • Fixed-term
  • Telework and service commission regime contracts
  • Contracts with foreign employees
  • Contracts with underage employees

The social security system covers holiday allowances, sickness benefits, maternity benefits, work injury compensation, death grant, survivor pension, disability benefits, and medical benefits for employees in Angola.

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