Which labor law applies to employees in Angola?

The General Labor Law (Law 12/23 of 27 December 2023) replaced Law 7/15 and took effect in March 2024. It governs contracts, working time, leave, and termination. Draft employment contracts against the current law, not older templates written under Law 7/15.

How is salary taxed in Angola?

Salaries fall under Group A of the employment income tax (IRT). Monthly income up to AOA 150,000 is exempt, and rates rise from 16% to a top rate of 25% above AOA 10,000,000. The employer withholds IRT through payroll and files an annual return by the end of February.

How does Good Balance Global hire employees in Angola?

As your Employer of Record (EOR), we become the legal employer and hire under the General Labor Law. We register them with social security, pay salary in kwanzas, and withhold IRT and INSS each month. You manage the work while we handle the employer obligations.

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Payroll and benefits guide

Angola

CapitalLuanda

Fiscal Year1 January - 31 December

Date Formatdd/mm/yyyy

CurrencyAOA (Angolan Kwanza)

Payroll FrequencyMonthly

Employer Taxes8%

Employee Costs3%

Overview

Languages: Portuguese
Income tax: 0% – 25%
VAT: 14%

Contributions

Employer

Social security (INSS)

Total employer cost

Employee

Social security (INSS)8% for employees who already receive a retirement pension

Total employee cost

Minimum Wage & Working Hours

Minimum wage: AOA 100,000 / Monthly; National minimum wage from 16 September 2025; employers unable to pay it could request a 12-month transition
Standard working hours: 44 hours per week; 8 hours a day; The week can stretch to 54 hours under shift, modulated, or recovery schedules. Shift, night, and on-call work earn at least 120% of base salary.
Overtime: Paid at a minimum of 150% for the first 30 overtime hours in a month and 175% beyond that

Leave

Annual leave22 working days
Maternity leave3 monthsPaid by the employer and reimbursed by social security; up to 4 more weeks of unpaid complementary leave can follow
Paternity leave7 working daysUnpaid; taken consecutively or split, in addition to 1 day of paid leave for the birth
Sick leaveUp to 6 monthsEmployer-paid and reimbursable by social security

Leave type	Duration	Notes
Annual leave	22 working days
Maternity leave	3 months	Paid by the employer and reimbursed by social security; up to 4 more weeks of unpaid complementary leave can follow
Paternity leave	7 working days	Unpaid; taken consecutively or split, in addition to 1 day of paid leave for the birth
Sick leave	Up to 6 months	Employer-paid and reimbursable by social security

Termination

Probation period: 60 days for indefinite contracts, extendable in writing to 120 days, or 180 days for management roles; up to 30 days for fixed-term contracts by written agreement
Notice period: Individual dismissal for objective reasons: at least 30 days' written notice stating the reason, end date, and compensation. Collective dismissal: 60 days. Non-renewal of a fixed-term contract: 30 days. No notice during probation.
Severance pay: Redundancy: 1 month of base salary per year of service for the first 5 years, plus 50% of monthly base salary for each further year
13th salary: Mandatory. A Christmas bonus of at least 50% of base salary and a holiday bonus of at least 50% of base salary each year, prorated for less than a year of service.
Notes: During notice for non-economic objective dismissal, the employee gets 15 days of paid time off to look for work. Compensation must be available by the end of notice, and final pay is due within 3 days of termination.

FAQ

Sources

Last updated: November 1, 2026

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