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Mercans CountryIntel ® Tunisia Payroll And HR Insights

Mercans offers complete payroll, PEO and HR services in Tunisia

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.

Doing Business in Tunisia

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

Banking Hours: 8:30 am to 11:00 pm from Monday to Thursday.

Working Week

The standard working week is from Monday to Friday from 8:00 am - 1:00 pm.

Labor Law

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.

Main Industries

Petroleum, mining (particularly phosphate, iron ore), tourism, textiles,footwear

GDP Growth

-1%

Dates & Numbers

dd/mm/yyyy

Official State Name

Republic of Tunisia

Population

12.26 million

Capital

Tunis

Major Languages

Arabic

Currency

Tunisian Dinar

Internet Domain

.tn

International Dialing Code

+216

Tunisia
Tunisia, TN
10:05 am, December 2, 2022
15°C
overcast clouds

Payroll

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

Payslip

Payroll reports must be kept for 4 years

Reports

Employees receive paid annual leave of 12 days

Annual Leave

For an employee to receive sickness benefit, they must have at least 50 days of covered employment in

Read more the last two quarters or 80 days in the last fourth quarters before sickness began.

Sick Leave

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

Employee Termination

There are no provisions mandated by law regarding the 13th month salary

13th month salary

403 TND per month

Minimum Wage

Employees are entitled to overtime pay of 1.25x of their ordinary rate of pay for up to 2 hours only

Overtime

Employees paid monthly are entitled to 1 day of pay for each month of employment.

Severance Pay

Tax and Social Security

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.

Tax

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.

15%

Corporate Income Tax

35%

Personal Income Tax

19%

Sales Tax

19%

VAT

Social Security

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.

25.7%

Social Security Rate

16.5%

Social Security Rate for Employers

9.1%

Social Security Rate for Employees

Employment Law

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.

Employment Agreement

There is no minimum duration specified for employment contracts and there are both fixed-term and indefinite employment contracts.

Working condition

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.

Leaves

as per the labor code

Employment termination

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.

30 days

Minimum notice period for terminating an employee

15

Total number of public holidays

48

Working hours per week

2 days

Total number of days for Compassionate & Bereavement Leave

Immigration

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.

Residency permits

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

2 years

Required Documents

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.

Compliant, reliable, error-free and touchless payroll in Tunisia

Build the best team and hire top talent compliantly in Tunisia. Get in touch with Tunisia payroll outsourcing & PEO specialists for a free consultation!

This document was prepared for informational purposes only. As local laws & regulations keeps on changing. Please consult your tax & legal advisors as well.
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