Angola

Employer of Record in Angola

Setting up a business in the country requires knowledge of local laws and local languages. Angola has a high percentage of skilled, employable talent. A remote team here can bring the excellence, efficiency, diversity, and creativity you need to boost your profits. Onboarding employees in Angola can become a daunting task without an entity setup and a thorough understanding of employment regulations. Joining hands with an employer of record in Angola can take the burden of HR-related processes from hiring to termination off your shoulders, leaving you with room to focus on other aspects of expansion.

Book a demo to learn how you can operate on a centralized, self-serve human resource (HR) platform and expedite your expansion endeavors.

Angola at a Glance

Population: 37.8 million

Languages Spoken: Portuguese, Chokwe, Kikongo, Kimbundu, Oshiwambo, and Umbundu

Gross Domestic Product: USD 106.78 Billion 

Capital city: Luanda

Official currency: Angola (AO, AGO)

Governing authority: Multiparty regime with its President as the chief of state

Legal system: Based on Portuguese civil law and customary law

Employment in Angola

The General labor laws of Angola apply to citizens as well as to foreigners employed in the country. Laws and employment agreements in Angola are somewhat similar to the laws of other countries but new businesses need to perform an end-to-end check on them to avoid issues and delays.

It would be in the best interest of your company to associate with seasoned payroll experts. This will make the process uncomplicated and help in coping with any challenges of expanding in Angola or employing international talent.

Some of the highlights of the Angola employment laws are as follows.

• Angolan labor laws are biased towards employee benefits and necessitate businesses to abide by norms of employment.
• Companies with more than five employees need to employ 70% Angolan nationals.
• Employment contracts in Angola allow foreign nationals to work on a fixed-term contract only. The general threshold is from three to thirty-six months. Renewal is part of agreements wherein employers can draw multiple agreements, but mandatorily disclose the start dates. 
• In the matter of recruitment and immigration, companies are obligated to follow up with the country’s regulations.

List of Public Holidays

Twelve national holidays are celebrated in Angola.

Public Holidays 

• New Year’s Day
• Liberation Day
• Carnival
• Women’s Day
• Good Friday
• Easter Day
• Peace Day
• Labor Day
• National Heroes’ Day
• All Souls’ Day
• Independence Day
• Christmas Day and Family Day

Bonus in Angola

A bonus is rolled out for employees who remain employed for more than a year. The bonus is calculated as follows. 

• Fifty percent of the base monthly salary for the holiday bonus.
• December’s base salary is taken into consideration, of which 50% is disbursed as the Christmas bonus.

Working Hours in Angola

Generally, employers need to comply with the policy of 44 hours a week enforced by the national authority. An extension is feasible for an hour at a time with a maximum increase of nine hours a day, amounting to 54 hours a week.

 The law mandates a 10-hour break between two working days. Any additional work hours put in would be considered overtime and are subject to payment as well. The overtime limitations are as follows.

• Two hours per normal day of work
• Forty hours per month of work
• Two hundred annual hours

If employees work for an additional 30 hours per month, they should be paid at the rate of 50% of their usual salary. Any increase beyond the same would deem them eligible for payment at the rate of 75% of their salary.

Vacation in Angola

Employees in Angola get 22 vacation days per year. An add-on vacation day is provided to employees who have children below the age of 14. When the employee’s children turn 14, the vacation days are reduced to 22.

A family leave system is drawn for the employees who assist a certain family member, who can be a child or parent. In any such case, employees are eligible to take three days of leave per month for a maximum of 12 years. Eight days from the entire set of leaves are payable at 100% of the normal pay.

Maternity/Paternity Leave in Angola

The leave norms for male employees are not proportionate to those for female employees. In the system of leaves provided by the governing authority, pregnant employees can seek 12 weeks of leave and claim a sum of money as compensation from Angola’s social security fund. Categorization of leaves is enforced wherein female employees must take four weeks off before birth and rest thereafter. 

On the other hand, businesses in Angola can choose to offer an allowance to male employees, but this is not mandated under the law.

Sick Leave in Angola

A medical note is required to prove a sick leave in Angola. There is no limit on the number of sick leaves that can be taken when the required proof is provided.

Health Insurance in Angola

Employee health benefits in Angola include a free universal healthcare system funded by the state. However, the expectations of quality healthcare are not met here, which forces employers to obtain private medical insurance.

Talk to Skuad experts for better guidance on employment laws in Angola.

Contractors vs. Full-time Employees

The legislative instruments that employers must abide by are Act 2/2000 of February 11, the General Labor Law (“Lei Geral do Trabalho”/LGT). Proportionately, for foreign non-resident employees, they are Decree 5/1995, April 7, and Decree-Law 6/2001, January 19.

Full-time employment options are for an indefinite duration while term contracts are drawn for six months at least and 36 months maximum. Other contract types are as follows. 

• Group contract
• Construction work or task contract
• Apprenticeship and traineeship contract
• Aboard merchant ship and fishing boat contract
• Aboard aircraft contract
• At-home contract
• Civilian workers in military manufacturing establishments contract
• Rural contract
• Non-resident foreigner contract
• Temporary employment contract

Terms contracts are converted into indefinite contracts under multiple circumstances. 

• When employees continue working for more than 15 days after the end of the contract
• When replaced workers aren’t informed about the change in job roles in advance

While employing foreign nationals, it is mandatory to put all the terms of the contract in writing. This is also mandatory for other temporarily employed individuals. Briefs or parameters of the written contract for foreign employees are predetermined and must be drafted 30 days before the employees get started. Some constituents of the contract are the workplace location, salary, both parties’ details, responsibilities, type of contract, work hours, and start date.

The points to remember when hiring foreign employees and independent contractors are as follows.

• The cost of recruiting international talent through Angola EOR solutions gets cheaper, almost by 30% in comparison with engaging in-house.
• Choosing foreign employees will help you save 50% more.
• As far as the tax regime is concerned, it is the same for both residents and non-residents.
• Foreign employment mitigates as much as 95% of the legal, financial, and business risks.

Skuad’s EOR service is among the best among the varied options available in the market. Check out our visibility and expertise by getting in touch with Skuad experts today.

Hiring in Angola

As mentioned already, with the availability of a vast amount of oil deposits in the country, potential jobs exist for engineers, geologists, IT technicians, and environmental scientists. While searching for jobs in the country, individuals generally visit the following websites. 

• Oilcareers.com
• Job of Mine
• Rigzone.com
• Find a Job in Africa

Job aspirants search the Portuguese job portals for jobs and the recruitment process since it is one of the official languages of Angola. These include,

• Portal do Emprego
• Trabalho em Angola
• Emprego Angola

Background Check Before Finalizing an Employee

As authorized by the general labor law, employers can perform two routine checks before onboarding an employee.

Employers must check up on the employees before developing a contractual agreement with them for a simpler working relationship in the future. 

1. The first requisite is an up-to-date criminal record. 
2. The second requirement includes verifying the vaccination cards to crosscheck national vaccination program essentials and medical exams. 

These background checks are compulsory and subject to certain terms and conditions. Similarly, based on the requirements of the job, employers can also mandate drug screenings, credit checks, immigration status checks, and social media checks.

Successful Acquisition of Employees

Compliant laws state the process of hiring employees in Angola and the basis on which contracts are formed. However, there are no onboarding laws relating to employment, which gives your company the flexibility to determine how you onboard your employees. It could be through an event or a training program in the best interest of both parties.

The best way to mitigate any risk arising out of onboarding deals is to always draft a written agreement. Employment terms are some of the parameters of such contracts and include entitlement and termination terms, place of work, working hours, compensation, bonuses, and benefits.

Learning the local Angolan laws can be overwhelming and sap your time, labor, and resources. Outsourcing and delegating your talent acquisition process to Skuad can provide you with the best talent, 100% compliance with the local labor laws, and mitigation of business risk for a secure customer base and intellectual property. Book a demo with Skuad to learn more.

Probation & Termination

Probation Laws in Angola

The common threshold of the probationary period or the standard probation period, as stated in compliance laws, is 60 days. Extension prospects exist but you will have to form any such agreements in writing in advance.

• You should get a deed in advance for a highly skilled employee. In such a case, the probationary period is four months.
• Extension to up to six months is liable when the employee is engaged in highly complicated technical work.
• In the case of fixed-term contracts, unskilled employees are required to serve not more than 15 days. For skilled employees, it is 30 days. For both kinds of employees, probation-related details must be stated in the written contract.

Termination in Angola

Both the employer and employee can choose to terminate the employment contract. It is not compulsory to justify it. No notice or compensation is part of termination during the probationary period.

Termination of employment for indefinite contracts is usually made based on demonstrable economic reasons or severe misconduct in Angola. The notice period in such situations ranges from a month to two months and the terms are drawn based on the experience level of the employee.

Contact Skuad experts to obtain tailor-made EOR solutions for probation and termination norms as per Angola’s local laws.

EOR Solution

Expanding your business in Angola can boost your profit significantly. However, the country’s labor and employment laws are intricate, and navigating them is time- and labor-intensive. Any misstep can set your expansion efforts back considerably. An EOR service is helpful for this purpose since it can take over all the HR work, giving you time to focus on the business side of things. Further, an EOR firm will ensure your subsidiary is compliant with the local laws and meets Angola’s legal requirements. 

Skuad’s Angola EOR solutions can simplify the tedious task of expansion. We provide bespoke HR-related solutions for processes such as payroll, contracts, work permits, visas, and taxation before you incorporate a holding company in Angola. 

Get in touch with Skuad’s highly skilled team of industry experts to kick-start your expansion in Angola. Book a demo to learn more.

Types of Visas in Angola

The document requirements stated below must be translated to Portuguese by an official translator and legalized by a public notary, the Ministry for Foreign Affairs, or an Angolan embassy.

Work Visa Types

• Type C 
• Type D

Requirements of the Application Process

• no criminal record 
• Not an ex-Angolan national 
• Never received a scholarship from an Angola entity or foreign company working in Angola 
• An employment contract or the promise of employment 
• Certificate of necessary qualifications 
• At least 18 years old

Application Process

• A letter addressed to the Embassy 
• Completed application form
• Photocopy of the applicant’s passport
• Two passport-size photos
• A declaration that the applicant will abide by Angola’s laws
• Proof that the applicant has no family ties to individuals living in the country 
• An employment contract 
• A criminal record from the applicant’s country of residence 
• A certificate showing good health from an official health institution in the country of residence 
• Academic and professional certificates 
• A curriculum vitae 
• Proof of your company’s legal status in Angola

Several types of work visas are issued by the Ministry of Public Administration, Employment, and Social Security. Angola work visa requirements include an application process for individuals who have a work contract from a registered company.

A basic permit is provided for 12 months, which is extendable two times after making multiple entries. Different category visas are provided. These vary based on the type of professional activity in which the individual is involved. A type C work visa is exclusive to foreign nationals in the petroleum industry or civil construction. A type D visa is allowed for individuals in the commercial, industrial, or fishing sectors. The cost of obtaining a work visa is about USD 100 or 64,200.00 Angolan Kwanza.

If you wish to expand in Angola, you could use the expertise of Skuad’s HR platform to manage your employee visas.

Work Permits

Angola EOR solutions include work permits. In Angola, a work permit cannot be obtained without a job offer since employers need to apply for a work permit on behalf of their employees. 

The Angolan consulate authorizes and manages work permits for foreign employees. According to the application process, the following documents are required to secure a work permit.

• Letter from the Angolan entity applying for a work permit
• Application forms duly filled
• A photocopy of the applicant’s passport with a validity of at least 18 months
• Declaration by the applicant to abide by the laws of Angola
• Declaration of no existence of family relations with Angola or foreign citizens living in Angola
• Two passport-size photographs
• Contract of employment or contract of the promise of employment
• Extract from the criminal registry issued by authorities in the applicant’s country of residence
• Certificate of good health issued by an official health institution in the applicant’s country of residence
• Academic and professional certificates translated into Portuguese authenticated by a notary and the Consular and Diplomatic Mission of Angola
• Curriculum vitae (CV)
• Proof of the legal status of the contracting institution

Skuad is the foremost EOR solutions service catering to over 150 countries. Our Angola EOR solutions can handle and execute the process of securing work permits for your employees on your behalf. You can talk to Skuad experts to book a demo today.

Payroll & Taxes in Angola

Payroll in Angola

Four types of payroll options are available for business entities in Angola.

• A remote team is generally paid from the parent company’s payroll with a slight variation in the regulation, as enforced by the employees’ countries of residence.
• An internal payroll requires the businesses to have an HR staff and a labor law expert who is well versed with the Angolan laws. Here, large subsidiaries set up an internal payroll and have all the resources required to maintain an in-house HR department.
• Some companies choose to comply with the laws by delegating the payroll process to a local payroll processing company.
• Finally, some companies choose to work with global partners such as EOR solution firms that are responsible for payment and compliance. 

If the last option sounds the most suitable for your expansion plans, Skuad can partner with you to take care of all your payroll needs.

Taxation in Angola

Corporate Income Tax

The corporate income tax also referred to as the industrial tax in Angola is 25%.

Income Tax

• 0% to 25% for Employees
• 20% for Individual business owners receiving salary income
• 15% (levied on 70% of gross income) for Self Employed Individuals

Sales Tax

14%

Withholding Tax

Withholding tax (WHT) of 6.5% on payments for services provided to the resident and non-resident entities. 

Employee Social Security (EE SS)

3% of gross monthly remuneration

Employer Social Security (ER SS)

8% of gross monthly remuneration

The income tax ranges from 0% to 25% of monthly earnings. Also, a social contribution regime is followed in Angola for employer payroll taxes, wherein,

• Employees contribute 3%
• Employers contribute 8%
  

Incorporation: Setting up a Subsidiary in Angola

Setting up a subsidiary is profitable in Angola since the country’s policies encourage foreign investments. However, the setup differs according to different sectors in terms of the associated costs, availability, and local laws. The establishment of entities permitted includes the following. 

• Limited liability company (LLC)
• Branch office
• Representative office

The requirements for setting up a subsidiary are as follows. 

• Minimum capital requirement of USD 1,000 or 6,42,000.00 Angolan Kwanza.
• At least two shareholders in the LLC
• Recent facilitator of single shareholder companies, either a natural person or a corporate person
• Compliance with Angola’s subsidiary laws
• One manager in LLC
• Elected general meeting and board of directors
• Appointment of a chartered accountant

Skuad’s EOR solutions can handle incorporation in Angola, ensuring to work within the ambit of the local laws. To avail of our services to seamlessly establish a subsidiary in Angola, get in touch with Skuad experts today.

Professional Employer Organization (PEO)

A professional employer organization (PEO) renders similar services offered by an EOR solutions company. The key difference is that a PEO acts as a co-employer of your remote team and manages all human resources activities while you remain the legal employer, whereas an EOR besides handling all human resources operations becomes the legal employer of your employees and the liability of employees lies with them. 

Skuad offers both PEO and EOR solutions. You may opt for a PEO or an EOR depending on the level of involvement you prefer in human resources operations.

Skuad’s EOR solutions for Angola can handle all HR-related processes from hiring and onboarding to payroll and termination for your company. To learn more about expediting your expansion endeavors in Angola, get in touch with Skuad experts today.

Conclusion: What Gives Skuad’s Angola Solutions an Edge?

If you are looking to expand your business to Angola and leverage the highly skilled employable talent in the country, collaborating with an employer of record can make an otherwise arduous process of expansion simple. Join hands with Skuad. Its high-tech HR platform and a team of experts offer the best-in-class services. 

Book a demo with Skuad experts for a customized solution for your business requirements.

FAQs

1) What is an employer of record in Angola?

An Employer of Record (EOR) in Angola legally hires your Angolan employees and manages their onboarding, payroll, taxes, HR compliance, and social security contributions without setting up a local entity. To see how much it will cost to hire in Angola, click here. 

2) What is the difference between EOR and PEO?

An employer of record (EOR) legally employs individuals on behalf of another company and handles all compliance, payroll, and HR tasks. A Professional Employer Organization (PEO) co-employs staff, sharing accountabilities with the client company but typically requires the client to have a local entity in the country.

3) How does EOR work?

An Employer of Record becomes the legal employer for your international workers, taking on full-fledged global workforce management. This includes ensuring compliance with local employment laws, managing payroll and taxes, and administering benefits.

4) Is an employer of record the same as PEO?

No. An EOR takes up the legal responsibilities for your international hires, handling everything from payroll to compliance. However, a PEO only co-employs your staff, sharing some HR tasks but requiring you to be the legal employer and have a local entity.

5) Why use an EOR?

Employer of Record helps you handle HR complexities like payroll, taxes, and compliance overseas, acting as the legal employer for your foreign hires. This eliminates the need for a local entity setup, saving you time, and resources, and helping you expand your hiring network.