All You Need To Know About Angola Labor Law

Several businesses are looking inwards to Africa as part of their global expansion. Angola is now among the leading destinations for investors and entrepreneurs to benefit from emerging economic opportunities in mining, energy production, agro-livestock, and water supply. 

Since 2002, the Central African country has been upgrading its economy for near-term technological and social development. The millions of citizens in sub-Saharan Africa add to the growing scope of economic expansion in Angola. 

And to address it, the Angolan labor law has set a legal framework for employers to maintain workplace standards and protect employee rights. The most relevant labor regulations in Angola include the following: 

• Maximum of 56 hours of work weekly
• Minimum of 22 working days of annual vacation leave 
• Minimum of three months of paid maternity leave in Angola
• Angolanisation of the workforce where 70% hired must be locals, and the remaining 30% can be foreigners

This employment law in Angola guide discusses all the key aspects of employment rules in detail, relating to working hours, leave schemes, payroll obligations, minimum wage, dismissal rules, and employee data protection for employers to stay 100% compliant during global expansion. 

Who is Covered by the Employment Act?

All national residents and foreigners working for registered private employers enjoy various entitlements under the General Angolan Employment Law (Law No 7/15, June 15, 2015). 

However, specific labor regulations may apply differentially to companies classified per Angolan labor law based on the number of employees as Micro, Small, Medium, and Large. 

Employment Contract

An employment contract establishes the rules and regulations around the working relationship between an employer and an employee. 

Angolan employment rules recognize two most common contracts types between an employer and an employee: 

• Indefinite-term contract for general-purpose work
• Fixed-term contract for specific work upto 36 months 

While written employment contracts are standard, it not mandatory for employers in Angola, except when hiring foreigners. However, it is a matter of convenience for both employer and employee to conclude a written contract along with the following details: 

• Employee’s name, age, permanent address, sex
• Location of recruitment
• Job title or job description
• Employment commencement date
• Duration of the contract
• Location of work
• Number of working hours
• Remuneration, its method of calculation, information about any payments or benefits in kind

Restrictions on Foreign Non-Resident Employees 

The “Angolanisation Principle” forms the core of Angolan employment rules. The crux of the principle is to promote and enhance local employment and skill development. 

As per the principle, any company with five employees or more must employ at least 70% Angolan citizens and 30% foreign non-residents. Further, companies in Angola can only hire foreign non-residents on a fixed-term basis (3–36 months). 

Key Provisions of the Act

Angolan employment rules are broadly based on the following:  

• Constitutional law
• Labor laws and regulations
• Employment contracts
• Collective work
• International labor conventions duly ratified
• Uses and local customs, and business professionals

Together, they contribute to the labor regulations in Angola. Employers may use the given key provisions of the labor act rules in Angola to avoid legal complications while hiring and employee management. 

Working hours 

• Working hours under Angolan labor law are limited to eight hours per day. 
• Per Angola’s working hours law, mealtime or rest breaks are prescribed at 30 to 90 minutes.  
• Employers may go beyond Angolan working hours law to make different arrangements for employees working outside the company’s premises.
• However, the labor act rules in Angola mandate employers to ensure the total duration of work does not exceed 54 hours per week. 
• Special provisions for minors (less than the age of 18 years) per the labor regulations in Angola:

• Working hours for minors under 16 should be at most six hours per day or 34 hours per week. 

• Working hours for minors between 16 and 18 should be seven hours per day or 39 hours per week. 

Overtime compensation

• Employers may adhere to the following maximum limits for overtime working hours under Angolan labor law:

1. 1. two hours per day;
   2. 40 hours per month,
   3. 200 hours per year.

• The labor regulations in Angola prescribe overtime compensation for every hour of work based on the size of companies: 
• Up to 30 hours of overtime per month:

1. 1. An additional 50% of the typical hourly salary for large companies,
   2. 30% for medium-sized companies,
   3. 20% for small companies, and 
   4. 10% for micro-companies.

• More than 30 hours of overtime per month:

1. 1. An additional 75% of the regular hourly salary for large companies, 
   2. 45% for medium-sized companies, 
   3. 20% for small companies, and 
   4. 10% for micro-companies

Public holidays 

• Angolan labor law prescribes 11 public holidays:

1. 1. New Year’s Day (January 1)
   2. Liberation Movement Day (February 4) 
   3. International Women’s Day (March 8)
   4. Carnival (no fixed date)
   5. Easter (no fixed date)
   6. Peace Day (April 4)
   7. Labor Day (May 1)
   8. National Heroes Day (September 17)
   9. Memorial Day (November 2)
   10. Independence Day (November 11)
   11. Christmas (December 25)

• Employers may have a typical working day per the labor regulations in Angola on all national celebrations days:

1. 1. Colonial Repression Martyrs’ Day (January 04)
   2. Angolan Women’s Day (March 02)
   3. Expansion of Armed Struggle for National Liberation Day (March 15)
   4. Angolan Youth Day (April 14)
   5. Africa Day (May 25)
   6. International Children’s Day (June 01)
   7. International Human Rights Day (December 10)

• Angolan labor act rules stipulate employers give an extra day off on the preceding working day or immediately following the national holiday on Tuesday or Thursday. 
• Further, the labor act rules in Angola prescribe upto 50% Christmas bonus (commonly referred to as 14th-month salary)

Leave schemes

The most notable leave schemes per the labor act rules in Angola are mentioned below:  

Maternity leave:

• Employers must grant paid maternity leave per Angolan employment law for at least three months. 
• Angola’s paid maternity leave begins four weeks before the due date. 
• Further, employers may offer unpaid leaves of absence for a maximum of four weeks to monitor the child.
• Additionally, employers must grant a paid day off during pregnancy and up to 15 months after delivery for medical monitoring.
• Employers may extend the same maternity leave in Angola for foreigners. 

Paternity leave:

• Angolan labor law regarding paternity leave prescribes one day of paid leave at the time of birth. 
• There are no provisions for shared paternity leave in Angola. However, employers may frame suitable policies to incentivize their employees. 

Annual Leave:

• Angolan labor law stipulates employers grant a paid annual leave of 22 days. 
• The law allows employers to extend annual leave entitlements to employees with more than one year of service.  

• The labor code in Angola also prescribes additional vacation bonuses (commonly referred to as 13th-month salary) –

1. 1. Employees get one additional leave for each child aged 14 years.
   2. Employers must offer a bonus equal to 50% of the monthly salary paid before the beginning of the vacation period.

• The labor regulations in Angola mandate employers to exclude public holidays or weekends falling within this period for calculation purposes. 

Other leaves

Sick leave:

• The sick leave period and compensation per the Angolan labor code are based on the size of the company:

1. 1. Large companies: 100% of the standard salary during the first two months and 50% of the salary between the third and 12th month
   2. Medium companies: 50% of the typical salary for 90 days. 

• The law does not oblige small and micro companies to extend sick leave compensation.

Marriage leave:

• Employers must extend paid leaves up to ten days for marriage purposes. 

Care leave:

• Employers must grant their employees eight paid leaves in a calendar for taking care of sickness or injury to their spouse, parents, or underage children. 

Leave for legal obligations: 

• Employers must grant their employees two days per month or eight days in one calendar year to comply with legal obligations concerning the judiciary, military, police, or other identical authorities.

Bereavement leave:

• Employers must allow eight days of leave to attend to the death of household members or three days of leave for condolence in the extended family. 
• Pay compensation during the leave period is voluntary. 

Payroll taxes & obligations 

• Regardless of the company’s size, employers’ salaries are subject to income tax and social security deductions.

1. 1. Employers must withhold and file income tax from employee salaries suitably. 
   2. Employers must facilitate social security benefits through mandatory contributions and deductions from the salary component.  

• Further, employers must submit the Model 2 Labour Income Tax (IRT) form every February, declaring employee information:

1. 1. Full name
   2. Address
   3. Tax and social security identification numbers 
   4. Income paid
   5. Tax withheld in the preceding year

• The prevailing income tax in Angola is progressive and based on earned income. 
• Employers must withhold 10-25% of employee salary for earnings between 70,001 to 10,000,000 and beyond.

1. 1. Employers must also register with a competent Social Insurance Authority to deposit social security contributions.
   2. Employer social security contributions amount to 8.00%  

• Employers must also deduct 3.00% of the employee share of social security contributions 

Minimum wage

• The decree of the Council of Ministers periodically fixes the national minimum wage in Angola.  
• The national minimum wage exerts legal obligations on employers to guarantee a minimum salary level to every employee.  

• The minimum wage in Angola, by economic groupings, is set at –

1. 1. Commerce and extractive industry – Kz. 48,271.73
   2. Transport, services, and manufacturing – Kz. 40,226.44
   3. Agriculture – Kz. 32,181.15

Payslip

• There are no specific Angolan labor regulations regarding payslips. 
• Employers may generate payslips including standard details like the identity of employer and employee, work attendance, statutory deductions, and total salary paid to adhere to good employment practice. 
• Companies must pay wages in cash and partially in benefits, including food, shelter, and clothing.
• Further, Angolan labor law allows non-payment of wages in extreme cases. However, this should be at most 50% of the total.

Termination of employment

• Both employees and employers can terminate the indefinite period employment contract. The employment law on termination in Angola prescribes a minimum 30-day notice period. 
• However, employers must provide 15 working days of written notice to terminate fixed-term employment contracts (more than three months). 
• Employers must clear all payment dues within three days of employee termination. 
• Angolan labor law mandates prior intimation to employee representative bodies and General Labour Inspectorate concerning mass layoffs (20 employees or more). 

Severance pay

Severance pay in Angola is mandatory, except on the grounds of fair disciplinary dismissal. 

Employers may fix severance pay according to their company size: 

Micro companies:

20% of the basic salary is multiplied by the number of years of service beyond two years, along with the salary of two months

Small companies:

30% of the basic salary is multiplied by the number of years of service beyond two years, along with the salary of two months

Medium companies:

Employees are eligible to receive a severance payment equivalent to one month’s salary for each year of service, with a maximum cap of three years. 

Additionally, for each additional year of service beyond the three-year mark, they are entitled to receive 40% of a month’s salary as part of their severance package.

Large companies:

Employees are entitled to receive a severance payment equivalent to one month’s salary for each year of service, capped at a maximum of five years. 

Additionally, for each additional year of service, they are eligible for 50% of a month’s salary as part of their severance package.

Data protection and employee privacy

• There is no specific regulation on employee data privacy under Angolan employment rules. 
• However, employers are encouraged to follow good employment practices such as seeking prior consent from employees and using relevant information for intended purposes only. 
• Companies could employ good employment practices in various activities, including background checks, payroll processing, biometric attendance, workplace surveillance, IT system monitoring, etc. 
• Employers can use the General Data Privacy Law No. 22/11, June 17, to comply with local laws when using personal information.

Compliance Strategies for Employers

Startups and enterprises looking to expand businesses in Angola can take note of the following strategies for compliant employee onboarding and team management.     

Following standard templates:

• Angolan labor law presents comprehensive guidelines on managing employees through employment contracts. 
• Specific provisions under the law also prescribe reasonable working hours, applicable leave schemes, pay compensation, dismissal rules, and more. 
• Entrepreneurs can draft employment-related documents using standard templates, including offer letters, employment contracts, and termination notices, in compliance with Angolan employment law. 

Developing in-house resources:

• An in-house team of HR experts can hire and manage employees in total compliance with the Angolan labor law.  
• Further, a dedicated HR manager can supervise employee training and the transfer of statutory benefits under the labor code in Angola.  
• However, developing in-house resources can be time-consuming and costly for most employers. 

SaaS-based team onboarding and management 

• Outsourcing employment contract management will help companies save on onboarding costs. 
• Contemporary businesses prefer third-party providers for drafting employment-related documents, compliance audits, managing payroll and extending other statutory benefits under Angolan employment laws, and more. 

How Can Multiplier Help?

Hiring and team management in Angola demand compliance with Angolan labor act rules to avoid legal complications. Here’s how HR expert solutions like Multiplier can help. 

Multiplier is an EOR/PEO platform that helps businesses comply with various employment regulations in 150+ countries, including Angola. 

Our tailor-made global employment solutions and products help entrepreneurs and global companies in employee onboarding and team management. Our services include automating employment contracts, drafting multi-lingual contracts, complying with statutory payroll obligation services, easy salary payments, and much more.