How to Hire Remote Employees In 

Angola

The Basics

Currency
Angolan Kwanza (AOA)
Employer Taxes
8.0%
Payroll Frequency
Monthly
Official Language
Portuguese

Employment in 

Angola

Hire Independent Contractors

Independent contractors or freelancers are self-employed individuals who provide services to companies as a non-employee. This is one of the most common ways companies tend to hire non-local designers, engineers, support reps, etc.

For legal and tax purposes, independent contractors are not classified as employees. They may work for multiple clients, set their own work hours, negotiate their pay rate, and decide how a job gets done.

For example, the IRS says that if an independent contractor or freelancer does work that can be controlled (what will be done and how it will be done) by an employer then they are, in fact, classified as an employee.

As you can imagine, hiring someone as an independent contractor versus an employee is a fine line to tread.

While there are benefits when you choose the contractor route, there are quite a few drawbacks to consider and you’ll need to weigh them carefully to determine the best fit for your company.

Benefits of Hiring Independent Contractors
Reduced overhead: Lower cost in expenses, payroll, benefits, and more.
Greater flexibility: Contractors can be brought on as-needed. If not a good fit, you simply don’t have to move forward with the contract.
Reduced legal risk: Contractors aren’t usually protected by employment anti-discrimination and workplace safety laws.
Disadvantages of Hiring Independent Contractors
Risk of Misclassification: Not only does this deny workers their proper protections, it can also result in steep penalties and damage to your company. If the IRS determines that employee misclassification has occurred, you will be liable for a percentage of the employees wages, FICA contributions, penalty fines, unpaid taxes, up to a year in prison, and more.
Lack of Control: Contractors are drawn to being independent because it gives them greater control over the work they perform and who they work with. Because they’re not employees, you can’t tell them what to work on and how it should be done.
Lack of Loyalty: Contractors come and go as-needed. Many companies hire contractors for short-term work, which makes it difficult to cultivate loyalty.
Increased Scrutiny: Using Independent Contractors typically leads to an increased risk of being audited.

Set up a subsidiary in 

Angola

A foreign subsidiary is a company that operates overseas as part of a larger company who’s HQ is in another country.

Establishing a foreign entity is great for having an international presence and accessing new markets. Though, setting up a subsidiary in Angola can be expensive, stressful, and time-consuming. It's not for the faint of heart.

To set up a subsidiary in Angola, you have to:

  1. Register your business name and file articles of incorporation
  2. File for local bank accounts
  3. Learn and keep track of the local employment laws
  4. Set up local payroll
  5. Hire local accounting, legal, and HR people

If you're lucky, this process can take months. If you're not so lucky, it can take up to a year. And on average, it costs about $50k-$80k, all-in-all, to get setup. And that's just for Angola.

Use an Employer-of-Record (EOR)

An employer-of-record (EOR) is a company that hires and pays an employee on behalf of another company.

An EOR is typically used to overcome the financial and regulatory hurdles that often come with employing remote workers.

Each country has its own payroll, employment, and work permit requirements for non-resident companies doing business in their jurisdiction. Meeting those demands can be a huge obstacle when it comes to hiring remotely.

At Panther, we help companies employ and pay people in over 160 countries, without having to set up a foreign subsidiary. Payroll, benefits, taxes, compliance, and more are all handled by us, at a fraction of the cost.

Outside of saving you months and tens of thousands of dollars, other advantages of using Panther are:

  • Ability to attract talented and motivated employees from all over the world.
  • Full legal compliance: There is no risk of violating local employment laws.
  • Transparency: Employees are still your employees. All the work, processes, operations and day-to-day business belong to you, the company, just like with any other employee. Panther just takes on all of the responsibilities, obligations and admin work related to your team's employment.
  • No risk of misclassification

Because you no longer have to set up your own subsidiary, you’ll save a ton of time and tens of thousands of dollars using Panther.

Paying Remote Employees

Paying employees in Angola is not the same as paying workers in your own country. Employees have to be paid using Angola’s employment and payroll standards.

This means that you have to know, understand, and keep up with 1) fluctuating currency changes, and 2) local payroll and tax laws in the countries you’re looking to hire in.

Outside of the laws and regulations around payroll, there may be different conditions surrounding leave, overtime, termination, and more. As you can imagine, maintaining this kind of regulatory knowledge can be challenging. But it is crucial and necessary to follow local legislation.

After, you’ll have to determine the best way to pay your international employees. This can be done in a number of ways, including but not limited to:

Pay through a local entity

One of the most challenging (and expensive) parts of paying international employees is setting up the infrastructure to do so.

Before you start to run payroll, you have to register your company as the local employer in the country the worker resides in. As you can see in the “Set up a subsidiary” section, this is a multi-step process that can take up to a year and put you on your way to bankruptcy.

Work with an EOR

Outside of EORs acting as the full admin employer, many also provide remote payroll.

For example, at Panther, in just 1-click, you’re able to pay your entire global team, anywhere in the world. We send you an invoice each month, charge you in US Dollars, and pay your employees the same amount in their local currency.

We factor in currency fluctuations and use the mid-market rate plus any applicable fee passed on by our provider at cost at the time of billing.

Angola

 Specific Information

Working Hours

The standard workweek is 5.5 days at 8 hours per day, for a total of 44 hours. Work can be extended to 9 hours per day when the work is intermittent or simply requires the presence of the worker, or when the weekly is limited to five workdays.  

Employers are required to provide a lunch break of one hour if food is available on premise, or two hours if not.  

The government mandates one full rest day per week, normally on Sunday, and a complimentary half-day preceding or following the rest day.  

Overtime

Hours worked during the mandated rest day are paid at the rate of 110% of the regular pay. Hours worked during the complimentary rest period are counted as overtime.  

Night work is paid at the rate of 125% of the regular pay  

Overtime is paid at the rate of 150% of the regular pay for the first 30 hours in a week and then at an additional 175% after that.  

The limit on overtime is 2 hours per day, 40 hours per month, and 200 hours per year.  

Payroll Tax

Employer

Employer

  • National Social Security Institute

Minimum Wage

Angola monthly minimum wage varies based on industry: Agriculture- 21,454.00 AOA Transport, services, and manufacturing- 26,817.00 AOA Extractive industry and trade- 32,181.00 AOA

Payroll

Pay Cycle

Salaries are paid monthly.

13th Salary

A 13th and 14th salary is required and are each 50% of the employee’s regular monthly wages.

The 13th salary is considered a vacation bonus and must be paid out before vacation is taken and the 14th salary is paid out before Christmas.

Leave

Paid Time Off (PTO)

PTO is calculated by the:

  • Employees are entitled to 22 days of paid leave after the completion of 1 year of employment.  

Public Holidays

There are 12 public holidays.

Sick Days

The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer:

  • Employees at large or medium-size businesses receive full pay for the first two months of illness and 50% of third to twelfth months.
  • Employees at small businesses receive 50% for 90 days.

Maternity Leave

Maternity leave is 3 months and can begin 4 weeks before the expected due date.  For multiple births, maternity leave is extended to 4 months.  For stillbirth, the leave is reduced to 45 days.

Maternity leave pay is based on the average earnings of 6 months leading up to birth.

Paternity Leave

There are no provisions in the law regarding paternity leave.

Parental Leave

There are no provisions in the law regarding paternity leave.

Other Leave

None.

Marriage Leave

None.

Bereavement Leave

None.

Termination

Termination Process

In cases where the employer claims to have just cause for dismissal, the employee has a right to a hearing. If a judge rules against employer, the employee has the right to be reinstated and paid all lost wages.  

In the event of a layoff of five or fewer people, the employer must provide a reason in writing to the employee’s representative body, who has seven days to respond. The request then goes to the Ministry of Labor, which has 10 days to stop the layoff. Not responding is viewed as acceptance.  

In the event of a larger group layoff, the employer must notify workers’ representative body and the provincial offices of the Ministry of Labor to explain the reason for layoffs.  

Notice Period

The notice period in Angola is:

Must be 60 days for senior staff or middle management and 30 days for general workers.

Severance Pay

One month of pay for every year of seniority up to five years. After that, it’s 50% of monthly salary for each year.  

Probation Period

Probation period is up to 2 months.