Angola Payroll Outsourcing and PEO/GEO Services Leader Publishes Payroll & HR Insights for Angola

Mercans, a leading Angola payroll outsourcingPEO/GEOemployee leasingrecruitment and BPO services provider, has published its most recent Payroll & HR Insights for Angola. These insights provide an invaluable overview of the information every Payroll & HR specialist should know before setting up their HR and payroll functions in Angola or signing up with a payroll outsourcing or PEO/GEO services provider. Mercans’ summary of labor laws, tax and social security regulations in Angola allow you to navigate the local complexities and avoid pitfalls.

Mercans’ Angola Payroll Outsourcing Solutions

While this summary will serve you as a great guide, you should still get in touch with Mercans’ Angola payroll outsourcing, compliance, PEO/GEO and BPO specialists for a free consultation on setting up fully compliant payroll and HR functions. Better yet, outsource your payroll and HR activities in Angola to Mercans and our Angola payroll outsourcing experts will ensure that your employees will always be paid on time and in accordance with the Angola regulations.

Mercans’ Angola payroll outsourcing solutions are unique and revolutionary:

  • Mercans is not an aggregator – your Angola payroll outsourcing services will be delivered by Mercans’ dedicated Angola payroll outsourcing team. No middlemen or subcontractors will ever see your confidential data.
  • We use our proprietary Angola payroll outsourcing software platform, that has been specifically designed to handle the complexities and requirements of Angola labor regulations.
  • Your data is always be secure with Mercans – Mercans is the only Angola payroll outsourcing provider with ISO 9001, 20000 and 27001 certifications; has passed SOC 1 and 2 (both Type 1 and 2) audits; is GDPR compliant and has successfully completed OWASP Type 3.0 penetration tests.
  • Mercans’ Angola payroll outsourcing software platform can be easily integrated with any global HRMS systems; i.e. Workday, SAP, SuccessFactors, Oracle, Dynamics, etc.
  • Mercans’ Angola payroll outsourcing fees are transparent and competitive – you will save 30-50% over the service fees of any other comparative Angola payroll outsourcing provider.

Mercans’ Angola PEO/GEO Services

If you are already too busy to deal with another Country or do not have a local legal entity in Angola and need to hire staff there, then Mercans’ PEO/GEO services in Angola are the right solution for you. We will employ the staff on your behalf in Angola and will ensure the full compliance with the local regulations throughout the hire-to-retire cycle in Angola. Mercans’ recruitment and immigration specialists will even help you to find the right staff and complete their immigration process in the matter of days.

Mercans does not use any subcontractor’s to deliver Angola PEO/GEO Services. This ensures that your employees receive the highest quality support in Angola and our service fees are unbeatable.

Angola – On the Path of Reforms.

Angola continues to face a challenging macroeconomic environment since the sharp drop in oil prices in 2014.

A real GDP contraction of 0.1% is estimated for 2019, indicating that the recession has not yet ended. Even so, there are signs of recovery, and growth of 2.8% is predicted for 2020.

The oil price shock of 2014 reduced oil revenues from 35.3% of GDP to 17.5% in 2017, leaving an estimated fiscal deficit of 0.1% of GDP in 2019. The value-added tax adopted in 2019 should broaden the tax base and reduce government dependency on oil-related revenues.

The current account surplus is estimated to narrow from 6.9% of GDP in 2018 to 0.5% in 2019, driven by lower export earnings from the oil sector. Pressure on the exchange rate and inflation continues. To reduce the overvaluation of the real exchange rate and ensure that international reserves remain adequate, the government tightened public spending and increased exchange rate flexibility. Reserve money targeting, introduced at the end of 2017, is beginning to stabilize inflation, which dropped from 29.8% in 2017 to an estimated 17.5% in 2019. The fiscal deficits are being financed by external debt and by budget support from multilateral organizations.

Investments in activities and value chains based on comparative advantages in agriculture, fisheries, and petrochemicals need to be aligned with skill upgrading and human capital development.

A 9% reduction in oil production in 2018 is due to the aging of oil production infrastructure and poor performance of new oil fields. Low workforce skills are also hindering private investment and economic diversification, with only 15% of females and 21% of males completing upper secondary school. The business environment needs to improve private sector-led growth and competitiveness. Structural reforms and macroeconomic stabilization must pave way to economic recovery, diversification, and job creation

Doing Business in Angola

Entity Registration & Incorporation Requirements

Business entities in Angola:

  • The Angola LLC is the business entity most commonly used by foreign entrepreneurs when incorporating company in Angola.
  • Capital is divided into quotas and shareholders are jointly liable for their investments.
  • An Angola LLC must appoint 1 director and 2 shareholders and deposit US$1,000 as minimum paid up share capital.
  • Shareholders are allowed to defer 50% of the minimum share capital as long as the amount is paid in fully by the date of incorporation of the company.

The Angola public limited Company (SA)

  • 5 shareholders and 3 directors
  • Minimum share paid-up US$20,000, 30% of which must be fully paid before the incorporation of the company

The Angola branch office (Sucursal)

This business setup requires a local resident be appointed as the entity’s registered representative in the country. The scope of operations for this entity will be defined by the parent company, Also, the branch office will have an independent management team and corporate bank account based in Angola.

The Angola Representative Office:

An Angolan representative office us setup for the purpose of:

  • Market research
  • Promoting the business of the foreign firm it represents.
  • A representative office is not allowed to pursue production-related or commercial activities and can only have a maximum of 6 employees, with a 50% quota on foreign employees. The company must also deposit a performance bond guarantee in an Angola corporate bank account in the amount of US$60,000

Comparison between different Anglo business entities:

Angola Payroll Outsourcing

 

Procedures for Establishing Companies in Angola

A company must obtain a commercial operations permit (Alvará) from the Ministry

of Commerce.

To apply for the issuance of the commercial operations permit, the following documents must be filed with the Municipal Delegation of the Ministry of Commerce:

  • company’s notary deed of incorporation;
  • copy of the tax identification card;
  • commercial registration certificate;
  • statistical registration certificate;
  • extracts from the criminal record of the founders;
  • opinion, by the relevant administrative authority, on the company’s geographical location and social and economic feasibility;
  • a photocopy of ID or passport.

Employment

Article 3.3 of the new General Labor Law (7/15) defines an ‘employment contract’ as “a contract whereby an employee undertakes to make available his professional activity to an employer’s benefit, within its relevant organization and under its guidance and authority, in consideration for remuneration”. The definition of ‘employee’ is set out in Article 3.27 of the same

law: “Any natural person, national or foreign resident, who freely undertakes to make his professional activity available to an employer, in consideration for remuneration, within the employer’s organization and under its authority and guidance.”

Under Article 1154 of the Civil Code, a ‘services agreement’ is the “agreement whereby one of the parties undertakes to make available the result of his/her intellectual or manual work, with or without pay”

For the issuance of the commercial operations permit, one requirement is for the relevant administrative authorities to inspect the company’s premises to confirm they are suitable for commercial activities.

No all employment contracts must be in writing. However, certain specific types of employment contract (eg, fixed-term employment contracts and training contracts) must be in writing. Employment contracts for an unlimited term are always subject to an implied probation period of 60 days.

Banking & Working Weekdays:

Shops are generally open Monday to Friday from 8am-9am to 6pm-7pm; and on Saturdays 8 am-9 am to 12:30 pm.

The offices are generally open Monday through Thursday from 7:30am to 12:30pm and from 2:30pm to 6:30pm, and on Friday from 2:30pm to 5:30pm. Some offices are open on Saturdays from 8:30am to 12:30pm.

Banks are open from 8:45am to 4pm from Monday to Friday and are closed on Saturday and Sunday.

Basic Facts

Angola Payroll Outsourcing

 

Tax & Social Security

The Tax Year end in Angola 31st December. The Monthly filing deadline for taxes must be paid by the employer in the relevant tax office by the end of the month following that to which the tax relates.

The annual filing deadline is currently the end of February.

Personal Income Tax

Residents and Non-Residents

An individual is deemed to be resident in Angola for tax purposes if, they either maintain a residence (i.e. a habitual residence) in Angola on 31 December of the fiscal year or spends more than 183 days, consecutive or not, in Angola in during the fiscal year.

Irrespective of the individuals’ nationality or tax residency status, personal income tax applies to all remuneration, wages, salaries, fees, bonuses, and any other additional remuneration, including benefits in kind.

Some items of compensation may be exempt from or not subject to income tax under certain conditions, such as:

  • Family allowances, up to 5% of the base salary.
  • Meal and transport allowances, up to the limit of AOA 30,000 per month. The limit is established for each allowance.
  • Employee’s expenses when travelling on business, provided these are duly documented in accordance with the legislation in force.
  • Employees’ contributions paid to social security.
  • Housing allowances, up to 50% of the contract value (when the rental contract is submitted to the tax authorities).
  • Holiday or Christmas bonus allowances up to 100% of base salary are not included in taxable income for income tax purposes
  • Rates and Thresholds: The tax on total income is calculated on a progressive scale with rates of 0 to 17 percent. These rates do not include self-employed of those receiving income from statutory boards.
  • 8% employee social security contribution is treated as a pre-tax deduction for income tax calculation purposes.

Personal income tax is calculated on a cumulative annual income basis based on the following progressive tax brackets.

Angola Payroll Outsourcing

 

Tax Reporting

Individuals only deriving employment income are not required to file tax returns, as the employment income tax is withheld at source by their employer. Employment income tax is assessed and paid on a pay as you earn (PAYE) basis through monthly WHT collected by employers.

Self-employed workers file an annual return disclosing their annual income during March of the following year.

By the end of February each year, employers should file the Employment Income Tax annual return (‘Modelo 2’). This return should disclose the total number of employees (including those who are self-employed), the total amount of wages and other income paid to each employee during the prior year, and the total amount of Employment Income Tax withheld.

Employment income tax is paid on a PAYE basis through monthly WHT collected by employers.

Social Security

Both employers and employees contribute to a social security plan; the National Social Security Institute (INSS).

Social security contributions amount to 11 percent of the employee’s salary. The employer is liable for 8 percent, while employees are liable for 3 percent. There is no maximum salary level.

Taxable income includes all cash or in kind benefits, with the exception of the following:

  • Social benefits paid by employers.
  • Holiday allowances.
  • Values of subscription/participation in complementary social protection schemes.

Social Security contributions must be paid to the Social Security National institute by the 10th day of the following month. Expat employees are not required to pay Social Security if they can prove to the local social security authority that they are covered by their home country system.

Reporting

Social Security contributions must be paid to the Social Security National institute by the 10th day of the following month. Expat employees are not required to pay Social Security if they can prove to the local social security authority that they are covered by their home country system.

Employers are responsible for registering workers with INSS within 30 days of the beginning of their employment.

Employer Registration

Employers are responsible for company registration to; Guichê Único da Empresa, which then distributes the relevant information to the government ministries, including the Ministry of Public Administration, Employment and Social Security and the tax office of the Ministry of Finance.

Starters

A company is required to have a legal entity established in order to carry out business in Angola with no legal restrictions, including processing a payroll. A foreign company has two options, to register a Branch or Incorporate a Local Company. Employers are responsible for registering workers with INSS within 30 days of the beginning of their employment

Leavers

After an employment contract has been terminated, the employee is entitled to receive wages for any unused leave for that year. The employee must be paid within three days following the termination of their employment.

Termination notice is 60 days for executives, middle level technicians and high-level technicians, regardless of tenure with the employer.

Angolan law allows payment in lieu of to notice for individuals dismissed for economic reasons.

Payroll

Reports

Payroll and payment methods must be maintained by the Employer. The Employer keeps a record of all payslips tax and social security payments on file.

Employment Law

Annual Leave

An employee is entitled to 22 days per year of paid leave plus a bonus of 50% of one month’s basic wage. Working mothers receive an additional paid day of leave for each child age 14 or under.

Angola treats sick leave and family care leave as a single unit. An employee is allowed three days’ leave per month, up to a maximum of 12 days per year.

Maternity Leave

Maternity leave is a mandatory 12 weeks for women who have a minimum of six months of contributions into the social security system during the previous 12 months. (supplemented by the employer if necessary). Maternity leave commences four weeks before the due date and an additional four weeks of leave may be taken without pay.

A father can take one day of leave (Paternity) when his child is born.

Paternity Leave

A father can take one day of leave (Paternity) when his child is born.

National service

An employee may take paid leave for military duties of up to 2 days per month to a maximum of 15 days per year.

Education Leave

After giving 30 days’ written notice, an employee may take unpaid leave for 60 days for education or training.

Employee Benefits

All workers are entitled to a holiday bonus and a Christmas bonus, each calculated as 50% of a month’s base wages, thereby totalling an extra month’s wage.

Immigration

Visas

Foreign workers must obtain a work permit in order to work in Angola. A work visa is valid for two years and allows multiple entries but is not valid beyond the date on the work contract. (an employment contract for a foreign worker must be for at least three months but no more than 36 months)

Work Permits

Work permits for Angola are granted to expats who are temporarily employed by an Angolan company or the state.

Holders of a work visa can stay in the country for the duration of their work contract (usually up to 12 months) and are allowed multiple entries into the country. Expats are restricted to the job for which the visa was issued and are only allowed to work for the employer who requested the visa.

It’s important to note that Angolan work visas don’t allow the holder to establish residence, and expats wanting to live in the country need to apply for a residence permit for Angola.

Angola Payroll Outsourcing

Make sure your employees are always paid accurately and on time with real-time access to your HR and payroll data by allowing Mercans’ Angola payroll outsourcing team to manage all aspects of your payroll function in Angola. Mercans’ cutting-edge HRBlizzTM payroll suite is intuitive and transparent: save time, and let technology do the hard work. Mercans’ Business Intelligence and HRIS integration tools tie all of your systems into a single harmonious platform.

Mercans’ Angola payroll outsourcing offering, leverages Mercans’ more than 20-year experience in delivering payroll outsourcing and PEO/GEO services in Angola. HRBlizzTM SaaS Global Payroll Suite features, designed for Angola payroll software and payroll outsourcing clients, include:

  • Integration Angola tax and social security systems and process.
  • Ability to generate electronic bank files for all major bank in Angola.
  • Built-in working hours rules in compliance with Angola labor law.
  • Holiday/annual leave calculations in accordance with Angola labor regulations
  • Sick pay calculations in accordance with Angola labor laws
  • Collective bargaining agreements related configurations and support.
  • Income tax calculations in accordance with Angola tax regulations
  • Tax calculations for non-resident individuals.
  • Foreign tax relief based tax credits.
  • Personal deductions and employment expenses support for tax calculations.
  • Fully configurable setup for unemployment, accident and group life insurances.
  • Customizable and configurable benefits plans.
  • Restricted Stock Units (RSU) tax calculation in accordance with Angola regulations.
  • Online Employee Self Service (ESS) for delivery of payslips.
  • Fully automated integration with the existing HRIS and third-party systems.
  • Wage type specific gross-to-net or net-to-gross calculations and simulations.
  • Customized calculations formulas for employee benefits.
  • In-kind benefits calculations.
  • Private pension plans administration.
  • Formula and eligibility driven calculations.
  • Automated conversions of annual compensation amounts to monthly, daily and hourly rates.
  • Wage type specific pro-rata calculation rules.

Angola PEO/GEO Services

React quickly to the market demands and deploy staff anywhere in the world in just days: this is Mercans’ global employee outsourcing and employee leasing services. Mercans PEO/GEO and employee leasing services in Angola provide you agility, increase your competitiveness and are easy to implement. There is no need for you to worry about setting up a local company, recruiting and payrolling staff. Enjoy the security of Mercans’ guaranteed compliance with the regulations in Angola. Mobilize any number of resources quickly— and focus on building your business while we take care of the rest.

Angola Talent Acquisition & Recruitment

Get access to a large pool of global and local talent in Angola, reduce time-to-hire, and improve hire quality all in one. Our Mesaar recruitment suite uses innovative matching and psychometric assessment tools to identify the best candidates for your business at record speed. Our consultants have extensive experience placing candidates across industries and organizational levels, and we have led executive searches and outsourcing mobilization projects for large multinationals involving thousands of candidates in Angola and other parts of the world.

Angola HR Advisory

Tap into the experience of our seasoned HR advisory team in Angola. Their expertise ranges from HR policies and procedures, salary benchmark studies, and HR due diligence to sophisticated HR transformation projects. Get a speedy and precise needs analysis, and have us design, implement, and monitor the execution of any project—carried out by subject-matter experts who understand your needs, and who know what it takes for your business to stay ahead of the competition.

Angola BPO Services

Make your business thrive and concentrate on the essentials and let Mercans’ business process outsourcing services minimize your administrative and overhead costs. Fully outsource your back-office functions to a team of HR, finance, accounting, immigration, and administration specialists. Our BPO team will take care of it all while you have the time and freedom you need to nurture your business.

Get in touch with Mercans’ Angola payroll outsourcing, compliance, PEO/GEO and BPO specialists for a free consultation!

Download PDF: Angola Payroll & HR Country Guide 2020