Hiring Guide: Key Intel to know before Hiring Afghanistan Employees

Afghanistan is a landlocked nation that bridges the Middle East, Central Asia, South Asia, and European countries. The country has been in the news for its infamous Taliban regime, but over the years, the free economy model has contributed significantly to decent economic growth.  Currently, the country’s GDP stands at US$14.79 billion, while its FDI of around US$ 0.02 billion in 2021.

For recruitment and selection in Afghanistan, it is crucial to follow the Labor Code. Following all rules regarding employment age, hiring conditions, and related terms is vital as you learn how to hire employees in Afghanistan. 

While armed conflicts have occurred in the past few years, the Taliban government has encouraged recruitment and selection in Afghanistan from foreign companies. Once you begin recruitment and selection in Afghanistan, simply maintain the laws that oversee all employment relationships in the country.

Things to Know Before Hiring in Afghanistan

The recruitment and selection in Afghanistan can be complicated since the current Taliban government often fails to implement or execute most Labor Code norms. However, it is the onus of an employer here to adhere to all specific rules lest there are legal lapses. This smoothens the process of hiring employees in Afghanistan without attracting penalties.

• If you want to hire staff in Afghanistan, secure a work permit and visa for the required period. The renewals also need to occur on time since the validities are for a short span of time.
• When hiring staff for Afghanistan, ask for the employee’s age proof. In the country, because of the dangerous scenario post-Taliban takeover, those below 18 and even 15 years old engage in work. In such cases, such parties’ supervisors or guardians must sign a permit allowing such employment.
• Always remember that being polite to employees during recruitment and selection in Afghanistan is imperative.

Employment Contract

It is mandatory for a working relationship between an employer and employee in Afghanistan to be contracted in written format. A contract concludes with a statement that mentions all job details. The work contracts have been in Pashto since the Taliban took over the government. Earlier, Dari, too, was in use. The contracts need to adhere to all rules of the Labor Code.

For recruitment and selection in Afghanistan, the written contract is drawn up for a fixed term of not more than one year. The contracts are indefinite when these cover a tenure of more than two months. 

In the country, besides regular full-time employment, there is the presence of wage-based work, too, provided there is a contract. The minimum employment age in Afghanistan is 15 years. However, due to economic instability, there may be children younger than that in search of work. The bottom line remains to refrain from employing such young children in hazardous industries. Finally, the employer must submit a copy of the contract to the Ministry of Social and Economic Affairs.

The main details of recruitment and selection in Afghanistan that are to be mentioned in the contract:

• Employer profile
• Employee role and details
• Duties of the employee at work
• Duration of work contract
• Probation 
• Salary and benefits
• Work hours and overtime
• Annual leaves and holidays
• Notice period 
• Termination and severance terms

Probation and Termination

• According to the Labor Code in Afghanistan, the probation period is a maximum of three months.
• An employer may terminate the employee’s services with due notice except for circumstances that interfere with the organization’s running or performance-related issues.
• When hiring staff in Afghanistan, companies must remember that they can dismiss an employee on the following grounds:

1. 1. Mutual agreement
   2. Unsatisfactory work performance during the probation period
   3. End of contract
   4. Disability resulting in an inability to perform the work the company hired them for
   5. Imprisonment
   6. Disciplinary reasons
   7. Refusal to work
   8. Staff layoff
   9. Being inactive from work for six months

Notice period

• In Afghanistan, a notice period of one month is commonly followed, though labor regulations do not require it. 
• The standard practice is to provide written notice for termination. Employees under probationary period have no notice period. 
• In some instances, termination without notice is allowed. Such terminations are usually seen when an employee breaches the employment contract or is diagnosed with an incurable illness.

Working hours and breaks

Always keep the work hours in mind when you hire staff in Afghanistan:

• The standard working hours for employees over the 18-year age bracket in Afghanistan are 40 hours weekly.
• Afghanistan employees below the 18-year age bracket can work 35 hours weekly.
• Employees working in ‘dangerous’ industries can work only 30 hours every week.
• While earlier pregnant employees were allowed to work 35 hours a week, the current Taliban regime has imposed several restrictions on women working.
• A typical workday is generally eight hours with a break of 60 minutes.

Payroll

• A monthly salary payment is standard once you establish a company and hire employees in Afghanistan.
• However, wage payments can occur daily or even weekly.

Minimum wage

• The minimum wage to hire employees in Afghanistan for permanent employees is 5000 Afghani (AFN| per month).

Bonuses

• The Afghanistan government has no statutory requirement to pay bonuses, yet most employers pay a bonus.

Overtime

• Employees in Afghanistan are required to consent to work overtime. 
• Any work exceeding regular hours is considered overtime, limited to four hours daily. 
• Night-shift workers and employees doing strenuous jobs are not allowed to work overtime. 
• For compensation, overtime is paid at 25% of the standard salary on regular workdays and 50% on public holidays.

Holidays

Official public holidays in Afghanistan are as below-

Other Leaves

Vacation Leave

1. Employees can avail of 20 days of annual leave.

2. If an employee is less than 18 years of age, the number of leaves per year stands at 25 days.

3. Hazardous industry workers can avail of 30 days of leave per year.

Maternity and Paternity Leave

1. The rules regarding maternity and paternity leaves have become murky since the Taliban took over. In a country as sensitive as this, companies must know the updated rules and regulations before starting recruitment and selection in Afghanistan.

2. Earlier, pregnant employees could take 90 days of paid leave. 30 days of these 90 are available before the delivery.

3. An extra 15 days of leave is available to the mother for multiple and complicated births.

4. The country doesn’t have a statutory provision for paternity leave.

Sick and other leaves

1. Employees can take sick leave for 20 days a year.

2. For Hajj, an employee can avail of 45 days of annual leave.

Taxation

• Afghanistan’s corporate tax rate is 20%.
• The standard VAT rate is 10% in the country.
• The income tax slab follows a progressive structure and is classed as follows:

The Cost of Hiring an Employee in Afghanistan

In terms of recruitment fees in Afghanistan and costs related to the hiring process in Afghanistan, the following are the main expenses:

• Advertisement expense
• Hiring and interviewing expense
• Police clearance certificate
• Payroll expense
• Taxes 
• Salary 
• Bonus 
• Vacation and mandatory leave related expense
• Contractual and legal expense
• Onboarding expense

What Does a Company Need to Hire Employees in Afghanistan?

Employers in Afghanistan can employ permanent or part-time employees. To employees in Afghanistan, companies need to comply with related laws. A work contract in Afghanistan mentions the headers that define a working relationship. 

When hiring employees in Afghanistan, you must ensure that the company follows labor regulations. Firstly, the company must register with the Ministry of Labor and Social Affairs to obtain a license. The company must then draft a standard employment contract that adheres to Afghan labor laws, including minimum wage requirements and work hours.

In addition, a company needs to obtain a tax identification number. It must also provide employees with a safe working environment, including measures to prevent workplace accidents and injuries.

Some other requirements for recruitment and selection in Afghanistan are as follows:

1. Employee ID and other details
2. Educational proof of employee
3. Employment contract 
4. Notarized certificate of company formation
5. Tax registration certificates
6. Business licenses for operating in the related industry
7. Company address proof

Various Options for Hiring Employees in Afghanistan

For recruitment and selection in Afghanistan, there are two basic structures to follow-

1. EOR service: For any need related to recruitment and selection in Afghanistan, relying on a trusted EOR service provider as a partner is a practical step. These service providers can handle hires and frame the contracts per relevant country laws. This eases all worries related to the management, and your company covers legal norms without hassles.
2. Internal hiring: This has more to do with establishing a traditional team equipped for HR and hiring functions. The HR team will then engage in hiring-related work. However, such hiring processes may be expensive and take up a lot of time.

The Steps to Hiring in Afghanistan

Recruitment and selection in Afghanistan are all about finding the perfect new hires and finally onboarding the same employees on the company payroll.

1. Picking the resources

• Initiate the hiring process in Afghanistan by posting open positions on job boards and social media sites.
• You may ask for references from among your network connections to get a list of prospective candidates.

2. Shortlist candidates for recruitment and selection in Afghanistan

• Candidates generally send a cover letter with their CV detailing all past experiences, qualifications, and personal details.
• It is easy to shortlist those candidates that fit in best with a job requirement.
• Set up an interview and inform the candidates of the venue and time.

3. Interviews for recruitment and selection in Afghanistan

• Schedule an interview to understand what the prospect can bring to the table.
• Discuss all expected work from the candidate and the candidate’s expectations too.

4. Offer letter and work contract

• Share an offer letter before drafting an employment contract per laws for recruitment and selection in Afghanistan.
• The most vital part before rounding up recruitment and selection in Afghanistan is getting a police clearance certificate and signing the employment contract.

5. Onboarding and training

• The final step in the process for recruitment and selection in Afghanistan is the induction of new employees into the company.
• If employees require training, then the company will provide the necessary training.

Let Multiplier be Your EOR Platform in Afghanistan

When you hire staff in Afghanistan, keep all legal codes in mind. Missing out on any single regulation can put your company in trouble. This is why a new company with little local experience in recruitment and selection in Afghanistan can choose to partner with a reputed PEO-EOR firm such as Multiplier.

With Multiplier, all processes around recruitment and selection in Afghanistan become smoother and help answer the question of how to hire employees in Afghanistan. Multiplier is a SaaS-based Employer of Record solution that allows you to focus on understanding the Afghani market as you set up a branch in the country!’