Tunisia Employer of Record & Payroll

Tunisia Employer of Record & Payroll
Africa Deployments Tunisia offers our clients Employer of Record (EOR) services covering all of the regions within.  We offer full-time employment or fixed terms contracts based on your requirements in Tunisia for locals or expatriates.  ADS will take care of the work permit under our umbrella and will issue local work contracts to your contractors.  We will also advise our client’s on best Human Resource (HR) practices when setting up the employee’s locally in Tunisia. ADS takes care of the local tax & PAYE remittances to the Revenue Services on a monthly basis ensuring that they are fully compliant with the law.  We will also ensure that their salaries are paid on time monthly and issue them with their pay slips. In addition to our services, we can offer you the employee in Tunisia, Medical, Disability, Life, and Workmen’s Compensation Insurances. Tunisia, officially the Republic of Tunisia, is the northernmost country in Africa and a part of the Maghreb region, bordered on the west and east by Algeria and Libya respectively, and the Mediterranean Sea to the north and east. Tunisia’s population of ±12.2 million includes mostly Arabs, Berbers, some sub-Saharan migrants, and a minimal number of Europeans. Around one quarter of Tunisians live in the capital, the greater metropolitan area of Tunis [Grand Tunis]. Tunisia’s Mediterranean coastline is ±1,100 kms long, providing both golden beaches and sunny weather. Tunisia is rich culturally with its unique blend of Arab and Berber influences, evident in its ceramics, ironwork, mosaics and music. Tunisian cuisine is typically Mediterranean and couscous, the staple and versatile food derived from semolina, can be found on nearly all dinner tables. The national symbol of Tunisia is the crescent moon and the five-pointed star. Tunisia has served as the sand-covered backdrop to scenes in several “Star Wars” films!
Population

12.26 million (2021)

Currency

Tunisian Dinar

Capital
Language

Arabic

GDP

46.69 billion USD (2021)

Industries

Services and Industry

What is the main language spoken in Tunisia:

Of the languages of Tunisia, Modern Standard Arabic, or Literary Arabic is the sole official language according to the Tunisian Constitution. The vast majority of the population today [±93%] speaks Tunisian Arabic as their native language.

The balance of the population in Tunisia alternatively speak the local Tunisian dialect, Arabic and/or French.

What type of employment contracts can you offer in Tunisia:

Through our employer of record (EOR) solutions in Tunisia, we can offer the following types of employment contracts:
  • Fixed Term
  • Indefinite term
Contracts and Offer Letters must:
  • Be in writing
  • Be in the official local language and the local currency
  • Include salary/compensation, benefits and termination requirements
Full-time Employees:
  • Have specific working terms and conditions
  • Can be eligible for organizational perks and/or other benefits
  • Tend to be more focused [as only one employer] and familiar with the specific business – due to e.g. ongoing company training etc.
  • Probationary period is 6 months [standard] to 12 months [maximum – generally for Executives]

WHAT INCOME IS TAXABLE IN Tunisia:

Any individual who works and lives in Tunisia for more the 183 days a year will be subject to local taxes in Tunisia.  They maintain a permanent home in Tunisia.  The tax years from effectively from 1 February to 25 March  the following year.  They may not be present for more than 122 days in the tax year and the two preceding tax years after that. Any income earned in the form of cash, wages, salary, overtime, leave pay or payment in lieu of leave, commissions, gratuity, bonus, or any amount that has benefited the employee.  All income will be taxed in accordance with the law and the final payroll issued monthly.

What income is exempt from taxes in Tunisia:

  • Net taxable Income which is less than TND  5000 per month is not taxable.
  • Emoluments payable to employees of the East African Development Bank with effect from 01st July 1997

Standard working hours: Number Overtime to be paid?

Working Hours:
  • The workweek is capped at 48 hours.
  • Depending on the applicable labor policy, the workweek may be reduced to 40 hours.
Overtime Eligibility:
  • Employers must obtain explicit permission from the Labor Inspector if they require employees to work overtime.
Overtime Pay:
  • Overtime pay depends on whether the employee is working a 48-hour workweek or a 40-hour week.
  • Regardless of the workweek, the total work hours, including regular and overtime hours, cannot exceed 10 hours per day and 60 hours per week.

Mandatory contributions?

Employee

Contribution Type Contribution Rate

Employer

Contribution Type Contribution Rate

What is the Maternity and Paternity policy within Tunisia:

Maternal leave:

  • Leave be at least 14 weeks of which a period of six weeks compulsory leave should be after childbirth.

Paternal leave:

  • Immediately after delivery or miscarriage entitled to 3 working days leave from work.

What type of leave is allowed in Tunisia:

Annual leave
  • Paid leave granted at 2 days per month or 24 working days per year.
Sick Leave
  • However, sickness benefit is paid after a five-day waiting period for up to 180 days a year.

Do I need to pay a mandatory bonus annually OR is it discretionary in Tunisia:

In Tunisia, employers are not required to include bonuses as part of employees’ compensation packages but bonuses based upon performance are common.

Also, employees may be entitled to different bonuses under the regulations of a collective bargaining agreement in Tunisia.

What Gratuity / Severance payments do you need to provide for Tunisia:

  • Severance pay cannot exceed three months of the employee’s salary.
  • Every employee is entitled to a severance allowance upon termination of the employment contract, except in cases of serious misconduct.
  • Termination of a fixed-term contract occurs either at the end of its term or upon completion of the specific work stated in the contract.
  • An employment contract of indefinite duration can be terminated through mutual consent, force majeure, or the employee’s death.

CAN YOU GIVE FRINGE BENEFITS IN Tunisia:

Yes you can but keep in mind that Fringe Benefits will be subject to employee PAYE tax.  Only benefits that cannot be converted to cash will not be subject to tax.  If the employer covers some of the employees expenses i.e. mobile phone then it must be subject to PAYE tax and either the employer will cover this portion for the employee or the employee will bear the PAYE tax.

Mandatory Probation period of Tunisia:

Workers (non-supervisory roles):
  • Probation period: Up to 6 months.
First-line supervisors:
  • Probation period: Up to 9 months.
Executives:
  • Probation period: Up to 1 year.

Is 13th month pay (Bonus) mandatory?

Not mandatory, applicable as per contract.

What are the Corporate and VAT / Sales tax rates in Tunisia:

Corporate Tax Rates: 15% [in general]

VAT / Sales Tax Rates: 19% [on most goods and services]

Public Holidays in Tunisia:

  • January 1 - New Year's Day
  • March 20 - Independence Day
  • April 09 - Martyrs' Day
  • April 22 - Aïd El-Fitr
  • April 23 - Aïd El-Fitr
  • April 24 - Aïd El-Fitr
  • May 01 - Labour Day
  • June 29 - Aïd El Kebir
  • June 30 - Aïd El Kebir
  • July 30 - Aïd El Kebir
  • July 19 - Ras el am el Hejri
  • July 25 - Republic Day
  • August 13 - Women's Day
  • September 27 - Prophet Mohameed's Birthday
  • October 15 - Evacuation Day
  • Dec 17 - Revolution and Youth Day
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The information provided above is for an “informative decision” and may change at any given time without prior notice.  We always suggest speaking to one of our Sales Consultants before engaging in country.

Can we help you with Tunisia?