Our guide to Payroll in Tunisia

Doing Business in Tunisia

Investing in Tunisia

Tunisia in 2026 offers opportunities in renewable energy, hydrocarbons, aerospace, ICT, agribusiness, tourism, and manufacturing, as noted by the U.S. International Trade Administration.

Tunisia ranks 7th in Africa for entrepreneurial ease according to the StartupBlink Innovators Business Environment Index 2026, driven by improvements in governance, digital infrastructure, and access to credit.
Key growth sectors include tourism, olive oil exports, manufacturing, and energy—though business risks remain due to low economic freedom and political centralization.

Basic Facts

Capital: Tunis

GDP: USD 53.4 billion (2025)

Languages: Arabic (official), French widely used in commerce.

Public Holidays (2026)

Includes:

Jan 1 – New Year

Mar 20 – Independence Day

Apr 9 – Martyrs' Day

May 1 – Labour Day

Jul 25 – Republic Day

Aug 13 – Women’s Day

Oct 15 – Evacuation Day

Dec 17 – Revolution Day

Islamic holidays vary by lunar calendar (Eid al-Fitr, Eid al-Adha, Islamic New Year, Prophet’s Birthday).

How to say?

French (widely used in business)

Hello: Bonjour

Good Morning: Bonjour (works for morning and daytime)

Good Evening: Bonsoir

Do you speak English? Parlez-vous anglais ?

Goodbye: Au revoir

Thank you: Merci

See you later: À bientôt / À plus tard (common French farewell)

Arabic (everyday local greetings)

Hello: Marhaba

Peace greeting: Salam (informal)

Thank you: Shukran

Goodbye: Wada'an

Registrations & Establishing an Entity

Foreigners may generally own companies except in specific regulated sectors requiring special permits. Common structures include:

• Joint-Stock Companies
• Private Limited Liability Companies
• International Trading Companies
  These are widely used by export-oriented investors.

Setting up a Legal Structure

Tunisia’s investment law allows up to 30% foreign executives in a company for the first 3 years, decreasing by 10% in year 4; permissions required thereafter.

Fixed-term contracts (CDD) became highly restricted under the 2025–2026 reforms, making CDIs the default employment model.

Working Week

Legal working hours:

• 48 hours/week maximum, reducible to 40 hours by regulation/sector agreements.

Employment Law

Holiday Accrual

Minimum statutory annual leave: 1 day per month, i.e., 12 days/year, with many industries offering more.

Maternity / Paternal Leave

Tunisia’s labor code includes maternity protections; reforms in 2024–2025 updated parental rights. (Referenced in compliance guide.)

Sickness

Employees may access paid/unpaid sick leave depending on medical justification and sectoral agreements.

National Service

No indication from 2026 data of compulsory national service impacting employment contracts.

Labor Law Reforms (Major Updates)

Law No. 2025-9 (effective into 2026) introduced sweeping reforms:

• CDIs are mandatory default contracts.
• CDDs permitted only in 3 limited cases; otherwise auto-converted to CDI.
• Probation capped at 6 months (renewable once).
• Subcontracting criminalized; illegal use fined at TND 10,000+

Tax & Social Security

Tax Rates (2026)

Corporate Tax

• 20% flat corporate tax on profits (baseline rate).
  Additional surtaxes:
• Social Solidarity Contribution (SSC): 3% or 4% depending on sector (extended to 2027).
• Financial institutions/banks: 4% contribution (minimum TND 10,000).

Personal Income Tax (PIT)

Tax residents pay PIT on worldwide income. Net salary calculation deducts social contributions + 10% professional expenses (up to TND 2,000).
Progressive PIT applies through annual calculation; non-residents may be taxed at 20% flat in specific cases.

Wealth Tax (Starting Jan 1, 2026)

• 0.5% on assets TND 3–5 million
• 1% on assets above TND 5 million
  Primary residence exempt.

VAT

VAT reductions to 7% for EV charging devices, battery inputs, audiovisual equipment; several VAT exemptions for medical, agricultural, and industrial materials.

Social Security

Total contribution: ~25.75%, shared by employer and employee. Covers pensions, health insurance, family benefits.

Minimum Wage 2026

Tunisia has two minimum wage systems:

SMIG (Non-Agricultural Workers)

• TND 528.32/month (48-hour week)
• TND 448.24/month (40-hour week)

SMAG (Agricultural Workers)

• TND 20.32/day

International indices show Tunisia ranking 3rd in Africa with ~$185/month minimum wage purchasing parity.

Payroll

Payroll Requirements

• PIT withholding monthly
• Social security deductions
• Compliance with electronic invoicing (expanded under Finance Law 2026)
  
  

Reports

• Monthly CNSS filings
• Annual employee income declarations
• Submission of employer tax statements per Finance Law 2026 adjustments

Reporting (New Employees & Leavers)

• Employers must register workers with social security (CNSS) before employment start.
• Monthly payroll filings and social contribution submissions required.
  (Confirmed through Tunisia labor law and payroll compliance sources.)

Employee Benefits

Mandatory benefits include:

• Social Security coverage (pension, health, family benefits)
• Paid annual leave
• Paid public holidays
• Maternity/paternity rights

Visas & Work Permits

• Companies may hire up to 30% foreign executives in first 3 years, dropping to 20% in year 4, with ministerial authorization required afterwards.
• Work permits required; employment must comply with Tunisia labor code.

Key Updates in 2026

Tunisia’s payroll and employment landscape continues to evolve in 2026, with employers facing new obligations linked to social security funding, minimum wage adjustments and increased tax transparency initiatives.

A major payroll-related development is the introduction of temporary solidarity contribution measures under the 2026 Finance Law. The Tunisian government introduced an exceptional 0.5% levy on individual income during 2026 to support the financing of social security funds, alongside a 3% contribution on company profits. Employers may need to update payroll withholding calculations and ensure that payroll systems correctly apply the temporary contribution throughout the year.

Tunisia also confirmed the continuation of revised social solidarity contribution rules for 2026. Guidance issued by the Ministry of Finance clarified the application of reduced and additional contribution rates affecting both employees and employers. The measures form part of broader government efforts to stabilise Tunisia’s social insurance system and may increase payroll administration complexity for employers operating across different worker categories.

Another important change for employers is the increase in the guaranteed minimum wage for non-agricultural sectors. Effective from 1 January 2026, new minimum salary levels apply depending on weekly working hours, requiring employers to review payroll structures and ensure ongoing compliance with statutory pay requirements.

Tunisia’s existing social security framework also continues to place significant contribution obligations on employers and employees. Employer social security contributions generally remain above 17% of salary, with additional unemployment insurance funding introduced from 2025 continuing into 2026. Businesses should therefore closely monitor payroll costs and contribution reporting obligations.

In parallel, Tunisia is moving toward implementation of the OECD Common Reporting Standard (CRS), with data exchange processes expected to begin from late 2026. Although primarily tax-focused, the changes are likely to increase scrutiny of international remuneration arrangements, expatriate payroll structures and undeclared offshore income.