Payroll Services in Angola

Mercans is your premier partner for top-quality payroll services in Angola, offering both Managed and SaaS solutions. Our steadfast commitment to delivering exceptional payroll outsourcing in Angola is unmatched. Drawing from extensive experience in the payroll sector, Mercans ensures precise and compliant payroll services, establishing us as the preferred option for businesses of all sizes. Count on Mercans for prompt and accurate payroll transactions, complemented by the convenience of multi-currency payments tailored to the Angolan market. As your dedicated local payroll provider in Angola, we feature a team of in-country payroll specialists well-versed in local regulations, providing comprehensive assistance for a seamless payroll experience customized to your business requirements.

Everything you need to know before running payroll in Angola

Minimum Wages

In 2022, the present minimum wage in Angola stands at AOA 32,181.15 per month, effective from February 1, 2022.

Working Hours

Employees typically work 8 hours per day, although under specific circumstances, this can extend to 10 hours. The maximum weekly working hours are capped at 44.

Payroll Cycle

In Angola, employees typically receive their salaries on a monthly basis, disbursed by the last working day of each month. It’s mandatory in Angola for employees to receive a 13th and 14th-month salary, with the 13th salary often comprising 50% designated for vacation bonuses, which must be paid before an employee’s vacation period commences.

Overtime Pay

In Angola, employees receive an extra 50% of their regular hourly wage for overtime up to 30 hours per month. If overtime exceeds 30 hours per month, the compensation increases to an additional 75% of the standard hourly wage.

Company Registration in Angola

When establishing a business entity in Angola, entrepreneurs have several options to consider. The Angola Limited Liability Company (LLC) is often the entity of choice for foreign entrepreneurs due to its flexibility and straightforward structure. In an LLC, capital is divided into quotas, with shareholders sharing joint liability for their investments. The company must appoint at least one director and two shareholders, and the minimum paid-up share capital required is US$1,000. However, shareholders have the option to defer 50% of the minimum share capital, provided it is fully paid by the company’s incorporation date.

Angola Public Limited Company (SA)

• Requires 5 shareholders and 3 directors.
• Minimum paid-up share capital of US$20,000, with 30% to be fully paid before incorporation.

Angola Branch Office (Sucursal)

• Requires a local resident as the registered representative.
• Operations are defined by the parent company, with an independent management team and corporate bank account in Angola.

Angola Representative Office

• Established for market research and promoting the foreign firm it represents.
• Prohibited from engaging in production-related or commercial activities.
• Limited to a maximum of 6 employees, with a 50% quota on foreign employees.
• Requires a performance bond guarantee deposited in an Angola corporate bank account, amounting to US$60,000.

Payroll Taxes in Angola

Personal Income Tax in Angola

In Angola, an individual is considered a resident for tax purposes if they either maintain a habitual residence in Angola on December 31 of the fiscal year or spend more than 183 days, whether consecutive or not, in Angola during the fiscal year.

Regardless of nationality or tax residency status, personal income tax applies to all forms of remuneration, including wages, salaries, fees, bonuses, and other additional compensation, including benefits in kind.

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

• Family allowances, capped at 5% of the base salary.
• Meal and transport allowances, up to AOA 30,000 per month, with limits set for each allowance.
• Employee expenses incurred during business travel, provided they are adequately documented in accordance with prevailing legislation.
• Employees’ contributions to social security.
• Housing allowances, up to 50% of the contract value, provided the rental contract is submitted to the tax authorities.
• Holiday or Christmas bonus allowances, up to 100% of the base salary, are not considered taxable income for income tax purposes.

Income tax rates in Angola are progressive, ranging from 0 to 17 percent, and are applied to total annual income. Self-employed individuals and those receiving income from statutory boards are subject to separate rates.

Additionally, an 8% employee social security contribution is treated as a pre-tax deduction for income tax calculation purposes.

The following table illustrates the progressive tax brackets for annual taxable income in AOA:

Annual Tax Tables effective 1 January 2024:

Tax Reporting 

Individuals who solely derive income from employment are not obligated to submit tax returns, as the tax on employment income is deducted at the source by their employer. This employment income tax operates on a pay-as-you-earn (PAYE) basis, whereby monthly withholding tax (WHT) is collected by employers.

Self-employed individuals, on the other hand, are required to file an annual return disclosing their yearly income, which is due in March of the subsequent year.

By the conclusion of February annually, employers are mandated to submit the Employment Income Tax annual return, known as ‘Modelo 2’. This return should outline the total number of employees, including self-employed individuals, the aggregate amount of wages and other income disbursed to each employee in the preceding year, and the cumulative Employment Income Tax withheld.

Social Security 

Both employers and employees contribute to the National Social Security Institute (INSS) in Angola, which oversees the social security plan.

Social security contributions are set at 11 percent of the employee’s salary. Employers are responsible for 8 percent, while employees contribute 3 percent. Notably, there is no upper limit on salary levels.

Taxable income encompasses all forms of compensation, including cash and non-cash benefits, with a few exceptions. These exceptions include social benefits provided by employers, holiday allowances, and contributions to complementary social protection schemes.

Social security contributions must be remitted to the National Social Security Institute by the 10th day of the subsequent month. Expatriate employees can be exempted from social security payments if they can demonstrate to the local social security authority that they are covered by their home country’s social security system.

Reporting

Social Security contributions should be remitted to the Social Security National Institute by the 10th day of the subsequent month. Expat employees are exempt from Social Security payments if they can demonstrate to the local social security authority that they are covered by their home country’s system.

Employers are tasked with registering workers with INSS within 30 days of the start of their employment.

Employer registration – starters and leavers 

Employers hold the responsibility of initiating company registration through the Guichê Único da Empresa, which subsequently disseminates pertinent information to various government ministries, including the Ministry of Public Administration, Employment, and Social Security, as well as the tax office of the Ministry of Finance.

For new businesses, establishing a legal entity is imperative for conducting operations in Angola without legal constraints, including facilitating payroll processing. Foreign companies have two options: registering a Branch or incorporating a Local Company. Within 30 days of employment commencement, employers must register workers with INSS.

Upon contract termination, employees are entitled to compensation for any accrued but unused leave days for that year. Payment must be disbursed within three days following employment termination.

Termination notice periods vary based on employee status: executives, middle-level technicians, and high-level technicians are subject to a 60-day notice period, irrespective of tenure with the employer. Additionally, Angolan law permits payment in lieu of notice for individuals dismissed due to economic reasons.

Registration with Social Security Authorities 

For companies equipped with computer support (computer and internet):

• Request the registration kit from service locations or download the registration application.
• Complete the registration process for the company and its employees, including generating reports.
• Submit the completed file and generated reports to the service locations.

For companies lacking computer support (computer and internet):

• Request the registration form from service locations.
• Complete the worker registration form and attach the necessary company and employee documents, ensuring they are duly signed and stamped.

Deliver the completed documents to the service locations.

Mandatory Documents:

• Photocopy of the employee’s identity card (BI).
• Tax number of the worker.
• Social security registration form, signed by the worker.
• Details of dependents (spouse and children).
• Photocopy of identity card (BI) or personal card (for minors).

Angola Compliance Requirements 

Monthly Obligations for Personal Income Tax (PIT) and Social Security:

PIT

• Every month, companies are mandated to deduct and remit the PIT amount owed on salaries to the tax authorities by the conclusion of the subsequent month. PIT deductions are calculated based on progressive tax rates.

Social Security

• The overall percentage is typically 11%, with 8% covered by the employer and 3% by the employee.
• Social security contributions are to be settled by the 10th day of the ensuing month.
• Submission of this report is required by the 10th day of the following month.

Monthly Remuneration Statement to the Tax Authority (AGT)

• Taxes must be remitted as per the personal income tax (IRT) regulations.
• The deadline for remitting withholding tax falls on the final day of the subsequent month.
• Employers are responsible for the submission process.

Year-End Activities

• Annual Declaration Model 2: Companies are obligated to furnish the tax authority with details regarding the taxable value and income disbursed in the previous calendar year. This submission is due by February 28th.

Employee Benefits in Angola

All employees are eligible to receive both a holiday bonus and a Christmas bonus, each amounting to 50% of their monthly base salary, resulting in an additional month’s pay.

Benefits of Payroll Outsourcing in Angola

For our payroll services, we have strategically implemented a robust tool designed to seamlessly operate across diverse countries, ensuring regional uniformity and meeting the specific requirements of our clients. This tool reflects our commitment to delivering:

• Stringent Data Security Measures: Incorporating industry-leading security measures to safeguard sensitive data, including compliance with GDPR, SOC, ISO, and OWASP standards.

  ISO 27001 and ISAE3402 certifications ensure adherence to stringent information security protocols, guaranteeing the highest level of data protection.

• Consistent and Sustainable Performance: Ensuring reliable performance that meets the dynamic demands of payroll services, providing clients with consistent and sustainable solutions.
• Flexibility and Scalability: Offering flexibility and scalability to accommodate evolving client needs and adapt to changing business environments, ensuring seamless integration and expansion.
• Collaborative Cloud Platform: Utilizing a cloud-based platform that facilitates collaborative work, promoting efficiency and accessibility across teams, enhancing collaboration and productivity.

Key Features of Electronic Payroll Support

• Full Traceability: Enabling a traceable process from generation to transmission and validation, ensuring transparency and accountability at every step.
• Efficiency in Human Resources: Enhancing the efficiency of the human resources area by streamlining the payroll settlement process, resulting in significant time savings and improved resource allocation.
• Certified Suppliers: Partnering with certified suppliers who uphold the highest standards of information security with ISO 27001 certification, ensuring secure data transmission processes and bolstering the integrity of our services.

Mercans, with its adherence to ISO 27001 and ISAE3402 certifications, ensures that our clients not only benefit from a state-of-the-art payroll tool but also enjoy the peace of mind that comes with top-tier information security standards.

Payroll Solutions in Angola

Uncover the potential of seamless payroll processing in Angola with Mercans’ Global Payroll Solutions. Our flexible models ensure local compliance, support multi-currency transactions, and offer connectivity to global Human Capital Management (HCM) and Enterprise Resource Planning (ERP) systems. Paying correctly has never been more straightforward.

Explore Our Flexible Models:

• SaaS (Software as a Service): Tailored for enterprise businesses managing multi-country payroll with intricate complexities arising from diverse data points, locations, currencies, and languages. Our SaaS model streamlines operations for optimal efficiency.
• Managed Services: Designed for mid-sized and large enterprise businesses, our Managed Services model caters to those operating multi-country payroll. It provides on-demand HR expertise, ensuring security, reliability, and compliance across the board.
• HRMS (Human Resource Management System): Perfect for mid to large businesses in expansion mode, our HRMS model offers a comprehensive range of functionalities, including payroll and benefits. Businesses can select the specific features they need, ensuring a tailored and efficient solution.

Streamline Payroll with Mercans’ Technology and Integrations

Mercans leads the way in providing top-tier payroll solutions in Angola, offering a diverse range of tailored options to meet our clients’ unique needs. Choose Mercans as your reliable ally, ensuring a smooth and effective payroll process in Angola’s dynamic business environment.

• Cutting-Edge Technology: Explore the forefront of innovation with Mercans’ state-of-the-art technology, driving our global payroll solutions. Learn more about our advanced technological capabilities here.
• Seamless Integrations: Effortlessly integrate your Human Capital Management (HCM) systems with Mercans’ solutions, enhancing connectivity and efficiency. Discover the benefits of integration here.
• Recognized Excellence: Partner with an esteemed organization known for its commitment to excellence. Mercans has garnered recognition and awards for delivering outstanding payroll services. Explore our accolades and achievements here.

Outsource to Payroll Company in Angola

In the dynamic business landscape of Angola, Mercans stands as a beacon of excellence, offering tailored solutions to meet the diverse needs of our clients. With a rich cultural heritage, economic growth, and strategic importance in Africa, Angola presents unique opportunities for business expansion. Mercans is your trusted partner in navigating the complexities of the Angolan market.

Our unwavering commitment to 100% local compliance, coupled with our extensive knowledge of Angolan labor laws, ensures that businesses establish a solid presence in Angola with ease. By choosing Mercans, companies can leverage our expertise to streamline operations, adhere to statutory requirements, and lay the groundwork for sustained growth in this dynamic environment. With Mercans by your side, embark on a journey of success and prosperity in Angola’s vibrant business landscape.