Tunisia
Tunisia Employer of Record & Payroll
Africa Deployments Tunisia offers Employer of Record (EOR) services covering all regions within Tunisia. Services include:
- Full-time employment or fixed-term contracts for locals or expatriates.
- Work permit management under ADS’s umbrella.
- Issuing local work contracts to contractors.
- Advising on best HR practices for employee setup in Tunisia.
- Managing local tax & PAYE remittances to the Revenue Services monthly.
- Ensuring timely salary payments and issuing payslips.
- Offering additional employee benefits such as Medical, Disability, Life, and Workmen’s Compensation Insurance.
General Information about Tunisia:
- Population: 12.26 million (2021)
- Currency: Tunisian Dinar
- Capital: Tunis
- Language: Arabic
- GDP: 46.69 billion USD (2021)
- Industries: Services and Industry
Language Spoken in Tunisia:
- Modern Standard Arabic (Literary Arabic) is the official language.
- ±93% of the population speaks Tunisian Arabic.
- Many Tunisians also speak French.
Employment Contracts in Tunisia:
- Fixed-Term Contracts
- Indefinite-Term Contracts
- Contracts and Offer Letters must:
- Be in writing.
- Be in the official local language and local currency.
- Include salary, benefits, and termination requirements.
- Full-time employees:
- Have specific working terms and conditions.
- Can be eligible for organizational perks and benefits.
- Are generally more focused and familiar with the business.
- Probationary period: 6 months (standard) to 12 months (maximum, generally for executives).
Taxable Income in Tunisia:
- Individuals working and living in Tunisia for more than 183 days a year are subject to local taxes.
- The tax year runs from February 1 to March 25 of the following year.
- Any income earned in cash, wages, salary, overtime, leave pay, commissions, gratuity, bonus, or any other benefits is taxable.
Income Exempt from Taxes:
- Net taxable income below TND 5,000 per month is not taxable.
- Emoluments payable to employees of the East African Development Bank (effective July 1, 1997).
Standard Working Hours and Overtime:
- Workweek: Capped at 48 hours (can be reduced to 40 hours under specific policies).
- Overtime Eligibility:
- Employers must obtain explicit permission from the Labor Inspector for overtime work.
- Overtime Pay:
- Depends on whether the employee is on a 40-hour or 48-hour workweek.
- Total working hours (regular + overtime) must not exceed 10 hours per day and 60 hours per week.
Mandatory Payroll Contributions:
Employee Contributions:
- Caisse nationale de sécurité sociale (CNSS): 9.18%
Employer Contributions:
- Caisse nationale de sécurité sociale (CNSS): 17.07%
Maternity and Paternity Policy:
- Maternity Leave:
- Minimum 14 weeks (6 weeks compulsory after childbirth).
- Paternity Leave:
- 3 working days immediately after delivery or miscarriage.
Types of Leave in Tunisia:
- Annual Leave:
- 2 days per month or 24 working days per year.
- Sick Leave:
- Paid after a 5-day waiting period for up to 180 days per year.
Mandatory Bonus (13th Month Pay):
- Not mandatory but may be included in contracts.
- Bonuses based on performance are common.
- Additional bonuses may be stipulated under collective bargaining agreements.
Gratuity / Severance Pay in Tunisia:
- Severance pay cannot exceed three months’ salary.
- Employees are entitled to severance pay except in cases of serious misconduct.
- Fixed-term contracts:
- End at the term’s completion or upon work completion.
- Indefinite-term contracts:
- Can be terminated by mutual consent, force majeure, or employee’s death.
Fringe Benefits in Tunisia:
- Allowed, but subject to PAYE tax.
- Benefits not convertible to cash are tax-exempt.
- Employer-covered expenses (e.g., mobile phone) must be subject to PAYE tax.
Probation Period:
- Workers (non-supervisory roles): Up to 6 months
- First-line supervisors: Up to 9 months
- Executives: Up to 1 year
Corporate and VAT / Sales Tax Rates in Tunisia:
- Corporate Tax: 15%
- VAT / Sales Tax: 19% (on most goods and services)
Public Holidays in Tunisia:
- January 1 – New Year’s Day
- March 20 – Independence Day
- April 9 – Martyrs’ Day
- April 22-24 – Aïd El-Fitr
- May 1 – Labour Day
- June 29-30 – Aïd El Kebir
- July 19 – Ras el am el Hejri
- July 25 – Republic Day
- August 13 – Women’s Day
- September 27 – Prophet Mohammed’s Birthday
- October 15 – Evacuation Day
- December 17 – Revolution and Youth Day
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- Contact Us
For detailed assistance with Employer of Record (EOR) services in Tunisia, including specific payroll and employment solutions tailored to your needs, contact our team at Africa Deployments.