Our guide to Payroll in Angola

Doing Business in Angola

Investing in Angola

Angola is very familiar with foreign investment and the oil and gas sector has invested in Africa’s second largest oil producer for a number of years. However, companies considering investing in Angola should not think that opportunities begin and end with oil and gas related enterprises.

Many investors are unaware of Angola’s rich agricultural history. Prior to the civil war, Angola was a key exporter of numerous agricultural products, including coffee, maize, tobacco and rice and in the early seventies, Angola became the world’s fourth largest coffee exporter.

Angolan real estate requires the least explanation, and as a result of the oil and gas industry, real estate prices have continually increased over the years. Though the high towers and condominiums will bring big returns, the greatest opportunity exists in lower-cost housing. About a third of the country’s population lives in the capital and as this number grows, the low-cost housing demand in Luanda will only increase.

Basic Facts about Angola

Full Name: The Republic of Angola

Population: 36.75million (WHO, 2023)

Capital: Luanda

Major Language(s): Portuguese (Official), Umbundu, Kimbundu, Kikongo

Monetary Unit: Kwanza

Main Exports: Oil, Diamonds, Minerals, Coffee, Fish, Timber

GNI Per Capita: US $ 7,280 (World Bank, 2023)

Internet Domain: .ao

International Dialing Code: +244

How to Say

Hello: Olá

Good Morning: Bom Dia

Good Evening: Boa Noite

Do you speak English? Falas Inglês?

Goodbye: Adeus

Thank you: Obrigado (if you are male) Obrigada (if you are female)

See You Later: Até Logo

Public Holidays

New Year's Day: Wednesday January 1

Day of the beginning of armed war of national liberation: Tuesday February 4

Carnival Tuesday: Tuesday February 17

International Women's Day: Saturday March 8

Southern Africa Liberation Day: Monday March 23

Angolan Peace Day: Saturday April 4

Good Friday: Friday April 3

Easter Sunday: Sunday April 5

Labour Day: Friday May 1

National Heroes' Day: Thursday September 17

All Souls' Day: Monday November 2

Independence Day: Wednesday November 11

Christmas Day and Family Day: Friday December 25

Registrations and Establishing an Entity

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:

1. Register a branch
2. Incorporate a local company

Foreign workers are required to hold a work visa in order to be able to work in Angola, with visas only being granted to foreign workers of companies incorporated or having branches registered in Angola.

Setting up of a Legal Structure

This should be the case if the company activities continue for a considerable period of time and the company decides to keep its personnel in the country for more than one year (normally a permanent establishment is triggered if the personnel stay in the country for more than 90 days in a 12-month period). In this case, the company will have to register either a branch or a subsidiary in Angola, for the purpose of developing activities.

All documents required for the registration process must be:

• Translated into Portuguese;
• Legalized by a Notary Public; and
• Certificated by the Angolan embassy in company’s country of incorporation.

The main steps for registration of a legal structure are as follows:

1. Obtain Central Company Name Registry’s approval to use investor’s corporate name in Angola;
2. File Application Form with AIPEX (Private Investment Agency & Exports Promotion) (not required if registered outside the Private Investment Law);
3. Publication in the official gazette of translated Articles of Association for Foreign Company;
4. Tax Registration;
5. Provisional Commercial Registration;
6. Open a Bank Account;
7. Definitive Commercial Registration;
8. Statistical Registration;
9. Obtaining commercial (“industrial”) Operations Permit (“alvará”), if required;
10. Social Security Registration, if applicable;
11. Import / Export license, if applicable.

For the setting up of the local structure the steps are: registration of the name, drafting of the articles, organize the public deed followed by the statistical, tax and commercial registration and the publication in the official gazette. The timeframe is roughly four working days up to one month in case private investment of a non-resident entity.

Banking

It is mandatory to make payments to both employees and the authorities from an in-country bank account.

Banks are open to the public from 08:00 – 12:30 and 14:00 - 15:00 Monday to Friday. Some banks are open on Saturdays from 08:00 – 12:30.

Working Week

The working week in Angola is Monday to Friday. The maximum number of hours per week as per the Angolan labor law is 44 hours. Commercial offices are open Monday to Friday from 08:00 - 17:00. Some offices are open on Saturday mornings.

Employment Law

Collective Labor Agreements

Most employment contracts in Angola are Collective Labor Agreements. These types of contracts must be considered by employers.

Holiday Accrual / Calculations

All workers are entitled to, for each year of actual service:

• 50% of base salary corresponding to the salary of the holiday period as a holiday bonus;
• 50% of base salary for the month of December as a Christmas bonus.

The values above may be improved by collective agreement or individual employment contracts.

Maternity/Paternal Leave

Maternity Leave entitlement is up to 90 days after the birth of the child. The salary is maintained and the employer pays 100% of the salary. The employer can request from the Social Security Authorities the reimbursement of this allowance, within the term of 120 days counting from the date of the birth.

Maternity Leave payments are calculated using the average salary of the most recent two remunerations attributed in the 6 months prior to the beginning of maternity leave.

Please note that for this purpose, Christmas, Vacations or variable remunerations are not included.

Supplementary Maternity Leave may also be granted for a period of four weeks, if requested by the Mother, but it is non-remunerated.

Paternity Leave entitlement is up to 7 working days, consecutive or interpolated, and it is non-remunerated.

Sickness

Sickness pay would depend on the type of sick leave combined with the work insurance policy that the employer has in place.

National Service

Angola has a conscript service obligation of 2 years for males between the age of 20 and 45 years.

General Labour Law

General Labour Law currently in force in Angola was published on December 27^th, 2023, through Law 12/23, which revoked the former Law 7/15 of 15 June. The law entered into force on March 26^th, 2024.

Amongst several changes introduced we would like to highlight the following:

• Elimination of concepts of Micro, Small, Medium and Large Companies;
• The obligation to reduce to writing the fixed-term employment contracts;
• A reduction of the maximum duration of the fixed-term employment agreements, depending on the legal grounds invoked for their conclusion;
• New Criteria for the Determination of Remuneration, Compensation and Indemnities;
• The rules on Overtime, Weekly Rest and Work on holidays were amended;
• The increase of the list of disciplinary measures by introducing the temporary category demotion and the suspension of work with loss of remuneration;
• Flexible working hours were introduced for employees with family responsibilities;
• New Rules on Personality Rights;
• Supplementary Maternity Leave (granted for a period of four weeks and non-remunerated);
• Paternity leave (granted for seven business days, consecutive or interpolated, non-remunerated);
• Flexible working hours were introduced for employees with family responsibilities

Employee Benefits

General expenses like-car mileage, company cars, etc. will only be included in the payroll if they are considered as a part of the employee’s income. If not, these are costs borne by the employer.

Tax & Social Security

Angola income tax rates for individuals (resident and non-resident) are levied on a sliding scale at rates which vary from 13% to 25%.

Tax Rates

Employment income is taxed at progressive rates up to a maximum of 25%. The withholding tax on investment income is a final tax for individuals.

Taxable capital gains are included in business income and taxed at the standard corporate income tax rate of 25% for unincorporated businesses.

Professional fees (e.g. self-employment) are subject to withholding tax at an effective PIT (personal income tax) rate of 6.5 %.

For Group A taxpayers (employees) residents and non-residents:

Income up to 150,000 Angolan kwanza (AOA) is exempt.

A progressive rate up to 25% applies to higher income brackets, with specific payable tax amounts and percentages based on the excess over each income threshold. We hereby attach the official table “AO Tabela de IRT em vigor 1 Jan 2026” in case Activ intends to incorporate in this document.

• 0% tax rate for income up to AOA 150,000.
• 16% tax rate for income from AOA 150,000.01 to AOA 200,000.
• 18% tax rate for income from AOA 200,000.01 to AOA 300,000.
• 19% tax rate for income from AOA 300,000.01 to AOA 500,000.
• 20% tax rate for income from AOA 500,000.01 to AOA 1,000,000.
• 21% tax rate for income from AOA 1,000,000.01 to AOA 1,500,000.
• 22% tax rate for income from AOA 1,500,000.01 to AOA 2,000,000.
• % tax rate for income from AOA 2,000,000.01 to AOA 2,500,000.
• 24% tax rate for income from AOA 2,500,000.01 to AOA 5,000,000.
• 24,50% tax rate for income from AOA 5,000,000.01 to AOA 10,000,000.
• 25% tax rate for income above AOA 10,000,001.

For Group B (self employees that develop independent professions listed in the PIT Code) :

Tax rate of 6,5% on services provided by Taxpayers of Group B, being that, on income not subject to PIT withholding, the tax rate applicable is 25%

Group C (self- employees that develop an industrial and commercial activity and fall outside the list of independent professions mentioned in point 2 above)

Accordingly with the respective activity are subject to the Table of Minimum Profits.

For Taxpayers of Group C without organized accounting and with a turnover equal or lower than AOA 10,000,000.00, the tax rate on income not subject to PIT withholding is of 6,5%.

Group C Taxpayers who carry out agricultural, forestry, livestock and fishing activities, with a turnover exceeding 10.000.000,00 Akz, are taxed at the rate of 10%

These income tax rates are part of the Personal Income Tax (PIT) system in Angola, which includes different groups (A, B, and C) with varying tax treatments based on the nature of their income and employment status.

Tax returns must be submitted to authorities no later than the end of the month following the one it respects to.

Expatriate employees are exempted social security discounts in Angola, provided that they are covered by a similar social security system in their home countries.

Social Security

Social Security is mandatory for all employees working in Angola who are Angolan nationals or foreign residents.

Expatriates are not required to make their social security contributions in Angola, provided they are covered by a similar social security system in their home country. Social security contributions are payable monthly by employers and employees to the National Social Security Institute (“Instituto Nacional de Segurança Social – INSS”).

The social security contribution payable by the employee amounts to 3% of the Basic Salary plus any other components subject to SS deductions. The employer must withhold the contribution due from their employees and pay the amount which has been withheld to the Authorities. The rate for employers is 8% of employees’ Basic Salary plus any other components subject to SS deductions.

In total, the employer must submit to the Angolan Social Security Authorities a total of 11% as contributions. The employer is required to withhold the employee’s contribution and pay both contributions by the 10th of the month following the one social security respects.

These contributions are used to finance various employee benefits under the social security program. Employers are responsible for withholding the social security contribution from the employee's wages and for delivering both the employer's and the employee's contributions to the social security authorities monthly.

For compliance, employers must pay these social security contributions by the 10th of every month, and failure to do so may result in interest charges on the overdue amounts.

Payroll

It is not legally acceptable in Angola to provide employees with online payslips.

Reports

Payroll reports must be kept for at least five years, as foreseen on article 22º of the PIT Code. The records can be kept electronically as long as the records can be printed out on request.

Payslip Example

It is mandatory that payslips are in Portuguese.

New Employees

In Angola, the payroll and registrations of a new employee are the responsibility of the employer. If an expat employee needs to be included in the local payroll, a local labour contract must be registered with the labour entity known as MAPTSS (Ministério da Administração Pública, Trabalho e Segurança Social), and this registration has a fee associated of 5% of the salary declared on the local labour contract.

In principle, an expat employee will be exempted of Social Security assuming they are covered by a similar system in their home country.

Unless the employee proves their contribution to another social security scheme, all employees must register with the National Social Security Institute and contribute. All new employees must be registered within the 30 days of commencing the employment.

The following information and documents are required to be provided by every new employee:

• ID card (Angolan nationals only)
• Passport (expatriate employees only)
• Work Visa (expatriate employees only)
• SS card (only applicable to expat employees in certain circumstances)
• Angolan Taxpayer Card

Leavers

Payment for leavers is to be made with the employee’s last payslip and the leaver must be de-registered from social security.

Minimum wage in 2026

The minimum wage in Angola for the year 2026 is set at 100,000 Angolan Kwanza (AOA)..

The Presidential Decree no. 152/24, dated July 17th, also foresees a minimum wage of 50.000,00 Akz only applicable to Micro-Entities and Star-Ups.

Finally, it is also foreseen that Companies that do not have the financial capacity to support the amount of the National Minimum Wage may request authorization to, temporarily, apply wages lower than the one defined by law.

Employee Benefits

General expenses like-car mileage, company cars, etc. will only be included in the payroll if they are considered as a part of the employee’s income. If not, these are costs borne by the employer.

Visas & Work Permits

A foreign citizen with a temporary employment contract, which is in the interest of the state or for an Angolan Chartered Company, can obtain a Work Visa.

After the work visa has been issued it must be used within 60 days. The visa is only valid for 12 months; it allows for multiple entries and can be extended until the end of the employment contract.

The work visa holder is only entitled to engage in the occupation that the work visa was issued for and for the employer who requested it. The employer must inform the appropriate authority of any changes in the duration of the contract.

Family or dependents of the employee need to apply for a temporary stay visa if accompanying the holder of the work visa.

Key changes for 2026

In 2026, Angola underwent significant changes in both tax and employment laws. Key changes include:

PIT Exemption Limit increased

Income up to 150,000 Angolan kwanza (AOA) is exempt.

Tax Reforms:

The tax landscape in Angola saw various reforms, including:

It was renewed the Special Contribution on Foreign Exchange Operations, with rates of 10% for corporate entities and 2.5% for individuals.

Concerning Value-Added Tax (VAT), the VAT rate on the importation or transmission of industrial equipment by the manufacturer is reduced to 5%, upon request by the taxpayer and approval from the Tax Authorities.

Additionally, in the event of a positive variation in turnover or importation transactions exceeding the thresholds of the Exclusion and Simplified VAT Regimes, taxpayers are now required to change the VAT Regime until the end of the following month the importation or the transaction that led to the change on the turnover respects to.

Regarding Tax Enforcement Code, it is now set forth in diploma that taxpayers in a non-compliant situation are prevented from proceeding with the customs clearance of their goods.

These changes are aimed at refining the taxation system and aligning labor laws with contemporary employment practices, enhancing workers' rights and responsibilities while ensuring a fairer tax regime.

Further Information

For more information, or assistance with Angolan Tax enquiries please contact: gi@activpayroll.com

About This Payroll and Tax Overview

Please note that this document gives general guidance only and should not be regarded as an authoritative or complete statement of the law, regulations or tax position in any country. You should always seek specific advice for each specific situation. This document should not be relied upon as professional advice and activpayroll accepts no liability for reliance on its contents.