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

The national minimum wage is AOA 100,000 per month (effective 15 September 2025), applicable to all sectors. A reduced rate of AOA 50,000 applies to micro-enterprises and start-ups. The previous sector-based three-tier system was abolished by Presidential Decree 152/24 of 17 July 2024. Employers must ensure they apply the latest officially published rates, which are periodically revised by the Angolan government.

Working Hours

Employees typically work 8 hours per day, although under specific circumstances, this can extend in accordance with labor law provisions. The maximum weekly working hours are generally 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 is 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, the maximum daily overtime is 2 hours, with a maximum of 200 hours per year. Overtime worked within the first 60 hours annually is compensated at a 25% premium above the normal rate, while overtime exceeding 60 hours per year attracts a 50% premium. Work performed during night hours is compensated at a 25% premium above the standard rate. All overtime and night work compensation is governed by the New General Labour Law (Law 12/23), effective 26 March 2024.

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 shareholders in accordance with current company law requirements. Minimum capital requirements are defined by legislation and may vary depending on the structure and sector.

Angola Public Limited Company (SA)

• Requires multiple shareholders and a board of directors in accordance with corporate law.
• Minimum share capital and payment requirements are defined by current legislation.

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.
• Employee limitations and foreign worker quotas apply under current regulations.
• Requires a performance bond guarantee deposited in an Angolan corporate bank account as defined by law.

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.

Income tax rates in Angola are progressive and applied to total monthly employment income in accordance with the latest General Tax Administration (AGT) tables effective 1 January 2026 under Law 14/25 of 30 December 2025. The monthly tax-exempt threshold is AOA 150,000. Employers must apply the current published monthly withholding tax tables issued by the AGT.

Additionally, employee social security contributions are 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:

Monthly Tax Tables effective 1 January 2026 (Law 14/25):

Tax Reporting

Individuals who solely derive income from employment are generally 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 are required to file an annual return disclosing their yearly income, typically due in the first quarter of the subsequent year in accordance with AGT deadlines.

Employers are mandated to submit the Employment Income Tax annual return (Modelo 2) within the deadline established by the tax authority each year, outlining employee earnings and tax withheld.

Reporting

Social Security contributions should be remitted to the Social Security National Institute within the legally prescribed monthly deadline. Expat employees may be exempt where applicable.

Employers are required to register workers with INSS within the legally defined timeframe following the start of 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 relevant government authorities, 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 may register a Branch or incorporate a Local Company.

Upon contract termination, employees are entitled to compensation for any accrued but unused leave days in accordance with labor law. Payment timelines and notice periods must follow current statutory requirements, which vary depending on employee category and reason for termination.

Registration with Social Security Authorities

• Registration Requirements: In order to obtain their taxpayer number, companies and employees must complete registration procedures at the Tax Office.
• Social Security Enrollment: Employers are required to enroll their employees with INSS using the prescribed methods.

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 documents for dependents.

Angola Compliance Requirements

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

PIT

• Companies must deduct and remit PIT on salaries to the tax authorities within the statutory deadline each month based on progressive tax rates.

Social Security

• Employer and employee contribution rates apply as defined by current legislation.
• Social security contributions must be paid within the statutory monthly deadline.
• Submission of contribution reports is required monthly.

Monthly Remuneration Statement to the Tax Authority (AGT)

• Taxes must be remitted in accordance with Personal Income Tax (IRT) regulations.
• Deadlines for withholding tax remittance are set by the AGT.
• Employers are responsible for submission.

Year-End Activities

• Annual Declaration Model 2: Companies must submit employee income and tax data for the previous year within the deadline established by the tax authority.

Employee Benefits in Angola

All employees are entitled to a holiday bonus and a Christmas bonus, each equivalent to 50% of one month’s base salary, together totalling an additional month’s salary. The holiday bonus must be paid before the employee commences their annual leave period, and the Christmas bonus is paid at year-end. Employees are entitled to 22 working days of paid annual leave per year. Maternity leave is 12 weeks of paid leave. Paternity leave comprises 1 day of paid leave plus 7 days of unpaid leave. In the event of illness, employees are entitled to up to 6 months of employer-paid sick leave. All leave entitlements are governed by the New General Labour Law (Law 12/23), effective 26 March 2024.

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:

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.

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.