Mercans CountryIntel ® Tunisia Payroll And HR Insights
Offering one of the most competitive economies in Africa, Tunisia presents a number of economic advantages including sound macroeconomics, talent competitiveness, a solid entrepreneurship ecosystem and good ICT development. Tunisia is the second largest worldwide exporter of dates and olive oil, agriculture is a key sector. Supporting its geostrategic location is dedicated infrastructure (rail, air, telecommunications and more). Increasing liberalization and greater integration in the global economy is strengthened by a regulatory and tax incentive framework.
Tunisia is a favorable foreign direct investment destination with over 3,700 foreign companies settling in the country. Unfortunately, at present times, a high degree of caution is advised because of the threat of a terrorist attack. Travel is not advised for certain towns and governorates. Currently, the country suffers from both an economic and financial crisis that has been worsened as a result of the COVID-19 pandemic.
Entity Registration and Incorporation Requirements
Setting up a new business or expanding an existing one in Tunisia is straightforward. Choose how your company operates from a range of entity types that suit your individual circumstance.
Banking Hours: 8:30 am to 11:00 pm from Monday to Thursday.
The standard working week is from Monday to Friday from 8:00 am - 1:00 pm.
Labor law is governed by the Labor Code as well as collective agreements. The law permits workers to organize and strike, to obtain leave and establish their working hours.
Petroleum, mining (particularly phosphate, iron ore), tourism, textiles,footwear
Dates & Numbers
Official State Name
Republic of Tunisia
International Dialing Code
The Tunisian government and the Tunisian General Labor Union (UGTT) have recently reached agreement for the wages of state employees to be increased by 3.5%.
It is acceptable to provide employees with online payslips
Payroll reports must be kept for 4 years
Employees receive paid annual leave of 12 days
For an employee to receive sickness benefit, they must have at least 50 days of covered employment in
Employees are entitled to 1 month of paid maternity leave. There are no legal provisions regarding paternity leave
Maternity & Paternity Leave
Employees are required to be provided with 30 days of notice for termination of employment
There are no provisions mandated by law regarding the 13th month salary
13th month salary
403 TND per month
Employees are entitled to overtime pay of 1.25x of their ordinary rate of pay for up to 2 hours only
Employees paid monthly are entitled to 1 day of pay for each month of employment.
For corporations, there has been a new category of tax audit, namely the ‘spot tax audit’ which cannot be carried out more than once a year. The social security system is funded by contributions from both employers and employees.
Personal income tax is due by all individuals who are tax resident in Tunisia on the basis of their worldwide income. Non-Tunisian tax resident individuals, only Tunisian sourced income is subject to income tax.
Corporate Income Tax
Personal Income Tax
All contributions are collected from the individual by their employer for payment. However, individuals who carry out independent activities may choose to opt for one of a few social regimes which are made available by the social security authorities.
Social Security Rate
Social Security Rate for Employers
Social Security Rate for Employees
A memorandum of understanding has been reached recently between the government and UGTT pertaining to the increase of salaries for nearly 700,000 public employees.
There is no minimum duration specified for employment contracts and there are both fixed-term and indefinite employment contracts.
The general work week is set as not more than 48 hours. However, certain sectors may be subject to certain agreements and there may be a reduction of the weekly working hours.
as per the labor code
Employers are free to terminate employment agreements but dismissals shall be considered legally unfair if there is no genuine and serious cause to justify termination.
Minimum notice period for terminating an employee
Total number of public holidays
Working hours per week
Total number of days for Compassionate & Bereavement Leave
Immigration laws have not changed much in recent times and are generally restrictive. Work permits are granted to foreign workers only when a Tunisian counterpart does not exist for the needed expertise. While travel for less than 90 days may entitle an individual to a visa exemption, entry and exit conditions may change at short notice.
A foreign worker must obtain a work contract with a local employer and hold a residence card that specifies the individual is allowed to undertake a remunerated activity in Tunisia. Failure to do so will result in serious fines, deportation or even, criminal charges for both the employer and foreign worker.
Work Permit Validity
A completed visa application form
A passport issued within the last 10 years and which is valid for a minimum of six months
A copy of the first page of the applicant’s passport
1-2 passport photos (depending on the specific embassy’s requirements)
Proof of accommodation in Tunisia (such as a lease or hotel reservation)
A travel itinerary with the planned dates of travel
A letter of invitation from the applicant’s employer in Tunisia
Evidence of the visa application fee payment.
Build the best team and hire top talent compliantly in Tunisia. Get in touch with Tunisia payroll outsourcing & PEO specialists for a free consultation!