Angola has had more than its fair share of economic, political, and social issues over the years, but there are still opportunities in the country. The economy is still largely centered around the oil industry, but the nation may well benefit from diversification in coming years.
If your organization is planning an expansion into Angola, your progress may be stalled by the difficult, often slow, legal and cultural procedures in the country. If you are unfamiliar with the local customs, procedures, and language, you may hit delays, which could result in costs mounting and cutting into your profits.
At New Horizons, we help organizations of all kinds to expand abroad, including with an Angola PEO. Our Africa Professional Employer Organization (Africa PEO), employer of record, and payroll services can provide your organization with everything you need to begin your Angolan expansion in a matter of just days, not the weeks or months it could otherwise take, even if you don’t have an established entity in the country.
We have an in-house recruitment team, so we can source, recruit, and onboard your new staff members. Additionally, you can use our Angolan subsidiary to act as employer of record for your new hires, so you don’t even need to register an entity in the country but will have total autonomy over your employees.
Our outsourcing solutions could save you thousands in expansion costs and can help you expand in a compliant, flexible, and scalable way.
How can New Horizons help you expand into Angola?
Establish and grow your business in Paraguay, whether or not you already have a Paraguayan subsidiary.
Hiring in Angola: Employment law overview
Employment contracts in Angola
Technically, not all contracts of employment in Angola need to be written. However, we strongly recommend that you always do provide a written contract for every employee you hire. In these contracts, you should include all the details of the agreement such as working hours, salary/wage, benefits, and so on. Also, contracts should be written in Portuguese and reference the local currency of the Angolan kwanza.
Working hours in Angola
The standard working week for employees in Angola is 44 hours, although this can be extended to 54 hours in some cases. Overtime is paid at rate of 150% of normal pay for the first 30 hours, then 175% for anything beyond that.
Public holidays in Angola
There are several nationally recognized public holidays in Angola. Many employees receive the following days as paid leave every year:
- Liberation Day
- Good Friday
- Easter Day
- Women’s Day
- New Year’s Day
- Peace Day
- Independence Day
- Christmas Day/Family DayLabour Day
- National Heroes’ Day
- All Souls’ Day
Vacation leave in Angola
Employees in Angola are entitled to 22 days of paid vacation leave every year. This allowance is increased for parents of children under the age of 14, who receive 23 days per year.
There is also a family leave system, where employees can take up to three days per month (a maximum of 12 days each year) for assisting household members (such as children or parents). Eight days of this should be compensated at 100% of normal pay.
Sick leave in Angola
There is no limit to the number of sick days employees in Angola are able to take, as long as they can provide a medical note as proof. Employers classed as either medium or large companies need to compensate the employee’s full salary for the initial two months of leave, then from three to 12 months at half pay.
Parental leave in Angola
In Angola, female employees are entitled to a total of 12 weeks of maternity leave. Four weeks of this are to be taken prior to giving birth and the remaining nine after. While on leave, the employees can receive compensation from the state (via social security), and the employer should supplement payments.
Male employees in Angola are not legally entitled to any paternal leave, although some employers may choose to offer an allowance.
Terminations and severance in Angola
Employees in Angola can usually only be terminated from indefinite-term contracts in specific circumstances such as for demonstrable economic reasons or severe misconduct. For terminations, there is generally a notice period of one to two months, depending on how senior the employee is.
For fixed-term contracts, the minimum notice period is two weeks.
Probation periods in Angola are limited to 60 days in most cases.
Taxation in Angola
Employees and employers in Angola must contribute a percentage of salaries to a social security fund, at rates of 3% and 8% respectively.
Income tax in Angola is progressive, with higher earners paying a higher percentage of income as tax. The rates range from 0% to 25%, plus a fixed payment which also varies on a progressive scale.
Corporate tax in Angola is 25%.
Health coverage in Angola
Angola has a state-funded universal healthcare system, but the quality of care is often relatively low. For this reason, some employers choose to offer private medical insurance for employees, and foreign employees may expect it.
Angola compensations & benefits
Compensation laws in Angola
The minimum wage for employees in Angola varies depending on the type of work they are engaged in. For this reason, it is crucial that you understand the regulations effecting each of your employees before setting a rate of compensation.
Benefit management in Angola
Setting up a system of employee benefits for your employees in Angola can be difficult. The complex regulations and organization can require a lot of time, effort, and investment on the part of employers.
Outsourcing your benefit management process can save you time and money, and ensure you are fully compliant with the relevant laws. New Horizons can simplify your Angola benefits management, with our Angola experts setting up and managing everything for you to help you focus on a successful expansion operation.
New Horizons will help you expand your business into Angola more efficiently
New Horizons’ Angola PEO, employer of record, and payroll outsourcing services pro your business with everything you need to start trading in Angola rapidly and compliantly. Our specialized team of experts will ensure that you are set up and trading in Angola in as little as 48 hours, and could save you up to 82% in expenditure, even if you haven’t established an entity in Angola.
New Horizons can manage your company’s payroll, benefits, and expenses in Angola. Additionally, we can oversee HR duties, as well as employment and tax compliance. And as the only Angola PEO with an in-house recruitment team, New Horizons will source, hire, and onboard your local workforce.
Contact us today to discover how our Angola-specific services can support your expansion.