How to Hire in Angola

Angola, located in Central-Southern Africa, has a diverse economy that has steadily grown in recent years. With a rich resource base that includes oil, diamonds, and minerals, the mining industries primarily drive Angola’s economy. In addition, the country is trying to diversify its economy and promote sectors such as agriculture, manufacturing, and tourism. Such a trend has resulted in an annual GDP of $67.4 billion for 2021, peaking at $137.24 billion in 2014.

The Angolan workforce is characterized by a growing young population, with most of the labor force engaged in the informal sector. The untapped young workforce of the country has attracted many foreign companies to invest in Angola in recent years. 

The government has been implementing reforms to enhance the country’s labor market to help companies in their recruitment and selection in Angola. Such reforms include improving labor regulations, increasing access to education and training, and promoting job creation. 

Businesses looking to operate in Angola need to navigate the country’s labor market regulations, hiring practices, and workforce dynamics to recruit, manage, and retain talent effectively. Employers must stay updated with the latest labor laws and regulations to ensure compliance and success in Angola’s evolving economy. Read on to learn about how to hire in Angola.

Things to Know Before Hiring in Angola

Besides being relatively stable politically, Angola has one of the few growing economies in the Central African region. As a result, various international companies have taken the initiative for recruitment and selection in Angola. However, there are certain things companies should be aware of if they want to learn how to hire people in Angola:

Languages

• Owing to its colonial history, the official language of Angola is Portuguese.
• While there can be translated copies in the employee’s native language, Portuguese must be the original language of the employment contract.
• The country also has 46 native languages, all of which have been given the status of national languages.
• Employers may interview people with different native languages during recruitment and selection in Angola.
• Kikongo, Umbundu, and Kimbundu are the most widely spoken from the pool of national languages.

Employee contract

There are certain things to note about written contracts before hiring staff in Angola. Creating a written contract is only sometimes necessary to establish an employment relationship. Sometimes, employers can form a de facto employment relationship when an individual provides services to a company as an employee, even without a signed written contract. This feature may be helpful to companies wanting to know how to hire people in Angola.

However, this rule has two main exceptions: fixed-term employment contracts and contracts with foreign non-residents. In these instances, it is mandatory to have a written employment contract in place. 

It is a great practice to have a written contract for all employees, even if it is optional. Emphasizing written contracts while hiring employees in Angola can help mitigate disputes and discrepancies due to the lack of documented terms and conditions. It ensures clarity and transparency in the employment relationship, protecting the rights and interests of both parties involved.

During recruitment and selection in Angola, a written contract should have the following:

• Names and other relevant details of both the employer and the employee
• The date of joining
• The date of contract signing
• The location of contract execution
• Contract duration, if set for a particular timeframe
• Job description highlighting the duties and responsibilities of the employee
• Details of the basic salary in Angolan kwanza (Kz/AOA), additional perks, benefits, and payment process
• Working hours and breaks
• Office guidelines, including the dos and don’ts of the workplace
• Internal regulations and restrictions should be part of the contract.
• Holidays, additional leaves, and paid time off
• Duration of the probation period, which usually varies from 15 to 180 days depending on the job in Angola
• Employers must also add details about social security contributions and pension schemes, irrespective of public or private sector work.

Working hours

• If you hire staff in Angola, the usual practice in Angola is to have a work week of five and a half days.
• The daily restriction on working hours is eight, with the weekly limit set at 44 hours.
• In cases where work is intermittent or only necessitates the worker’s presence or when the workweek is limited to five days, employers may extend the duration of work to nine hours per day. Employers must mention such changes in the contract during recruitment and selection in Angola.

Breaks

• As per Government regulations, employers must provide employees one full day of rest per week, typically on Sundays. 
• In addition to the weekly rest day, a half-day off, preceding or following the rest day, is also mandated as a complimentary benefit.
• Companies must provide employees with a break lasting one to two hours. 
• Furthermore, an employee can only work up to five consecutive hours without rest.  
• Additionally, employees must have a minimum rest period of ten hours between two consecutive working shifts. Companies must be aware of these rules before recruitment and selection in Angola.

Overtime

• Angolan employment regulations restrict overtime work to 200 hours a year, 40 hours a month, and a maximum of two hours per day.
• Overtime compensation is generally 150% of the monthly salary for 30 hours or less.
• However, for more than 30 hours per month, the compensation is 110% to 175% of the monthly salary for every hour of overtime. 
• Before recruitment and selection in Angola, employers must know that overtime pay depends on the company size.

Annual leave

• Angolan employees receive a paid annual leave of 22 days.
• Employees receive an additional day with children under 14 years.
• The country has 12 national holidays that companies must be aware of when they want to know how to hire employees in Angola:

1. 1. New Year’s Day (1st January)
   2. Liberation Movement Day (4th February)
   3. Carnival Day (21st February 2023)
   4. International Women’s Day (8th March)
   5. Peace Day (4th April)
   6. Good Friday (7th April 2023)
   7. Easter Monday (10th April 2023)
   8. International Labor Day (1st May)
   9. National Heroes’ Day (17th September)
   10. Memorial Day (2nd November)
   11. Independence Day (11th November)
   12. Christmas Day (25th December)

Sick and family leave

• There is no restriction on the total number of paid sick leaves as long as the employee can provide valid medical certificates and reports. Employers must know this before they start their recruitment and selection in Angola.
• For small-scale businesses, employees are paid 50% of their salary for three months.
• In the case of medium to large-scale businesses, employees are paid their total salaries for the first two months of medical leave. After that, the sick leave payout is 50% of the salary from the third to the twelfth month.
• Employees can take up to three days of monthly leave to assist household members, children, and relatives.
• In Angola, family and sick leave are considered equal. The employer is legally mandated to give employees eight days off per year as paid family leave. 

Maternity Leave

• According to Angolan laws, each pregnant female employee must receive three months or 12 weeks of paid maternity leave.
• Such a leave has to begin four weeks before the expected delivery date of the child.
• The employee can take the remaining eight weeks after childbirth.
• An employer can only recall a new mother back to work after at least five weeks following the child’s birth.
• An extra four weeks of paid leave applies if there are multiple births.
• The social security services handle the payment to the mother during this time, complemented with some amount from the employer. The exact details of such payments might be mentioned in the contract after recruitment and selection in Angola.
• In the case of stillbirths, maternity leave decreases to 45 days.

Paternity Leave

• Unfortunately, no provisions per Angolan employment laws about paternity leaves exist.
• However, some companies can offer the father a single day’s leave after the child is born. Employers must note that such leaves are entirely at their discretion and can be used as an incentive to hire employees in Angola.

Payroll & Salary

• Salaries and remuneration in Angola are generally monthly. However, no rules exist against weekly payment after 15 days of work.
• The minimum wage in Angola from 2022 varies from Kz 32181 to Kz 48,271.73, depending on the sector. Companies must comply with these if they want to hire employees in Angola.
• Companies must comply with the minimum wage policies during recruitment and selection in Angola. 

Bonus

• Angolan labor laws mandate companies to pay bonuses, which employers must include in the contract during recruitment and selection in Angola.
• As per the Angolan employment laws, employers must provide employees with a holiday bonus equivalent to 50% of their base salary. 
• In addition, a mandatory Christmas Bonus is payable in December, and employers must pay a 13th-month vacation bonus to employees before the holiday season. 

Severance pay

• Being aware of the severance pay is vital if companies want to know how to hire people in Angola. In Angola, severance pay is mandatory, except in cases of fair disciplinary dismissal. 
• In compliance with Angolan labor laws, different severance pay provisions apply to companies of varying sizes:

1. 1. Micro companies: Employees are entitled to receive two months’ salary and an additional 20% of their base salary multiplied by the employment years that exceed two years.
   2. Small companies: Employees are eligible for two months’ salary and an additional 30% of their base salary multiplied by the employment years that exceed two years.
   3. Medium companies: Employees are entitled to receive one month’s salary for each year of service, up to a maximum of three years. In addition, they receive 40% of a month’s salary for each additional year of service beyond the initial three years.
   4. Large companies: Employees are eligible for one month’s wage for each year of service, up to a maximum of five years. Additionally, they are entitled to receive 50% of a month’s salary for each additional year of service beyond the initial five years.

Taxes

• The Labor Income Tax (IRT) is a tax that is payable on the income earned by self-employed workers, including liberal, commercial, and industrial professionals, as well as employees who are dependent workers.
• As per the tax regulations, all employees must pay a monthly payroll tax deducted from their salary payments. Organizations should mention this in the contract during recruitment and selection in Angola.
• The Personal Income Tax (PIT) Code outlines different groups for income segmentation, each with its specificities. These groups include:

1. 1. Group A: This group typically applies to employee income.
   2. Group B: This group is relevant for income earned by self-employed workers.
   3. Group C: This group pertains to income earned when individuals engage in an industrial or commercial activity listed in the minimum profits table as prescribed in the PIT Code.

• Group A is the applicable tax group for employees, with the maximum tax being 25% in a progressive taxation system.

Social Security contributions 

• The rates are typically 3% for employees. 
• On the other hand, employers must contribute 8% of an employee’s monthly salary to their social security fund if they want to hire staff in Angola.
• Foreign citizens working in Angola without a residence permit may be exempt from social security contributions. However, during recruitment and selection in Angola, they must provide proof of coverage under their home country’s social security system to be exempted.

Employment Termination

• Angolan employment law is designed to protect employees extensively. When an employer fires employees, terminations are subject to stringent regulations. Companies should be well-versed in these laws before embarking on recruitment and selection in Angola.
• The employment contract can be terminated mutually by both parties in Angola.
• Generally, a company can only terminate employees for serious misconduct, breach of the contract signed during recruitment and selection in Angola, or legitimate economic reasons beyond the employer’s control. 
• As a result, disputes related to termination are prevalent and often prosecuted.

Notice Period

• In Angola, employers must provide a written reason to the employee’s representative body when laying off 20 or fewer employees. The representative body then has a seven-day window to respond. 
• If there is no response, the request is considered accepted. The case is subsequently referred to the General Labour Inspectorate, which has 15 working days to take action and prevent the layoff.
• Sometimes, after new rounds of recruitment and selection in Angola, companies may want to lay off older redundant staff. The procedure remains similar in the event of a more extensive layoff involving more than 20 employees. However, the General Labour Inspectorate receives a more extended period of 22 days to intervene and prevent layoffs.
• For fixed-term employment contracts extending beyond three months, employers must provide their employees with a written notice of 15 working days before the contract expires. 
• A 30-day notice period applies to individual terminations based on objective reasons, with a 60-day notice period for collective dismissals.

The Cost of Hiring an Employee in Angola

A significant part of knowing how to hire employees in Angola is to be aware of the expenses in the entire process. A company has to go through several costs:

• Cost of posting job advertisements
• Recruitment fees in Angola, including HR team and recruiter expenses
• Costs incurred from employee background checks
• Cost of legal teams
• Travel allowances
• Expenses from training employees
• Annual salary, bonuses, and benefits
• Paid leaves
• Tax and social security contributions

What Does a Company Need to Hire Employees in Angola?

Companies must establish a local legal entity before they learn how to hire employees in Angola. Another option is to engage an Employee of Record (EOR) to initiate the hiring process on their behalf. Alternatively, forming subsidiaries can be viable for companies seeking recruitment and selection in Angola. 

However, it is imperative that all such company formations and EOR partnerships strictly adhere to the laws and regulations of Angola to ensure compliance with the local legal framework.

Let us look at certain things to keep in mind if companies want to learn how to hire employees in Angola:

• The minimum age to hire employees in Angola is 12 to 14 years old for light jobs.
• Those between 14 and 16 can only work up to 34 hours per week or six hours daily.
• Minors between 16 and 18 years can work up to 39 hours per week or seven hours per day.
• Hazardous jobs are only allowed for employees above 18 years.
• In Angola, the retirement age for employees is 60 years.
• For companies with over five employees, a minimum of 70% must be Angolan.
• Companies setting up their offices in Angola can only hire foreign non-resident employees on fixed-term contracts ranging from three to 36 months. 
• Companies must obtain the necessary licenses and work permits before starting the hiring process in Angola.

Various Options for Hiring Employees in Angola

There are two primary options to start recruitment and selection in sub-Saharan country:

Owning a legal entity

Companies can start their businesses in Angola to hire Angolan workers. International companies comply with all the legal requirements to start their own business through this option. After registering the company, hiring employees in Angola can begin, depending on vacant posts.

However, registering a company in a foreign country can be time-consuming. Newly registered would also require considerable effort to grasp how to hire people in Angola and the laws governing the hiring process. Additionally, bureaucratic challenges, including red tape and administrative hurdles, may complicate and hinder recruitment and selection in Angola.

Hiring an EOR

Establishing a legal entity in Angola can be expensive and time-consuming, so many companies use an Employer of Record (EOR) instead. An EOR in Angola offers a practical solution for hiring and employing workers in compliance with local employment laws. By partnering with an EOR, companies can outsource HR functions such as onboarding, payroll, benefits management, and recruitment and selection in sub-Saharan country.

Leveraging an EOR can provide several advantages to companies looking to learn how to hire employees in Angola. It can save valuable time and resources, allowing businesses to concentrate on their core operations while ensuring compliance with local regulations during the hiring process in Angola.

The Steps to Hiring in Angola

Wondering how to recruit employees in Angola? You can start to hire staff in Angola by following these easy steps:

Step 1: Job adverts

Creating a job advertisement and posting it in strategic locations is critical in the recruitment process in Angolan companies.

For Angolan jobs, websites such FindAJobInAfrica, Careers in Africa, JobnetAfrica, and Rigzone are some of the best places to search for. Since the country’s primary language is Portuguese, potential candidates can find various Angolan jobs online on Portuguese job sites such as Trabalho em Angola, Emprego Angola, and Portal do Emprego. 

Step 2: Screening/background checks

Companies hire managers or an Employer of Record (EOR) who often performs the screening task as part of the recruitment and selection in Angola. They carefully assess the applications to shortlist the most suitable candidates for further evaluation. After receiving adequate CVs for the open position, the company can begin screening to identify the most qualified candidates.

Background checks commonly conducted during the hiring process in Angola include:

• Criminal record checks 
• Credit checks 
• Immigration status checks for foreign workers
• Social media checks
• Drug screenings

Adhering to the relevant legal requirements and regulations is vital when conducting background checks to ensure fair and lawful hiring practices.

Step 3: Interviewing applicants

Once the company has selected suitable applicants, they call the candidates for interviews. Interviews are an essential part of recruitment and selection in Angola. 

Employers gain a deeper understanding of the candidate’s professional and educational experience during the interviews by asking relevant questions. It allows employers to assess the candidates’ skills, qualifications, and overall suitability. 

Step 4: Selecting Applicants

After the interview, the company or the EOR will select the most suitable applicants. Consequently, employees and employers negotiate contracts, and the selected applicants receive offer letters during this stage of recruitment and selection in Angola.

Step 5: Onboarding

Employee onboarding is the final step of recruitment and selection in Angola. To complete the hiring process in Angola, the company can begin onboarding the new employee once they sign the contracts.

Let Multiplier be Your EOR Platform in Angola

Multiplier offers a comprehensive system for recruiting top talent in Angola, efficient payroll management services, and simplified procedures for obtaining work permits. Our all-in-one platform helps businesses save time and reduce costs, enabling them to focus on expanding their operations. So, if you need clarification about how to hire employees in Angola, consider Multiplier as your go-to solution.