Hire in Tunisia
Tunisia PEO &
Employer of Record
Hire & manage teams remotely in Tunisia without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.
Business Language
Arabic
Salary Currency
Tunisian Dinar (TND)
Payroll tax
N/A
Payroll Cycle
Monthly
Time zone
UTC +1
Capital city
Tunis
Hire Employees in Tunisia
The NNRoad Advantage ☺
Pay as you go
Global account manager
Compliance
Fast Onboarding
Foreigner Visas
Platform
Employer of Record in Tunisia
01.
Candidate Selection
02.
Employee Onboarding
03.
Compliance & Payroll
04.
Payroll Reporting
Recruiting process outsourcing – including but not limited to resume screening, shortlisting candidates, coordination for interviews, and assistance for salary negotiation.
Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).
On-boarding and off-boarding employees following labor law practice.
Complete payroll solution and benefit administration
Employee management – employee record retaining, time keeping, bonus and allowance management, expense and claims, and leave employee database management accordingly to the local law.
Mandatory insurance compliance (i.e. pension, labor and health insurance) according to the local labor laws.
Payment management (Invoicing customers/clients and vendor payments).
Work VISA application assistance, if needed.
Local individual income tax reporting.
Payroll & PEO in Tunisia
01.
Compliance & Payroll
02.
Payroll Reporting
Registering the necessary company and personnel information for payroll calculation in the payroll software and system
Monthly Payroll Processing
Year-End Adjustment and Annual Declaration
Taxes & Payroll in Tunisia
Employee Income Taxes:
Tunisian income tax rates for individuals range from 0% to 35%, with several tax brackets based on income levels. The tax rates are applied progressively, with higher rates being applied to higher income levels. Deductions and allowances are available to reduce the taxable income, including deductions for social security contributions, family expenses, and other eligible expenses.
To determine the taxable income, various types of income are taken into account, such as employment income, business income, rental income, capital gains, and other sources of income. The tax code provides specific rules and guidelines for the treatment of each type of income.
In Tunisia, income tax is collected through a Pay-As-You-Earn (PAYE) system, where employers deduct taxes from employees’ salaries and remit them to the tax authorities on a monthly basis. Self-employed individuals and taxpayers with other sources of income are required to file an annual tax return by April 30th of the following year.
Tax Brackets
26%: 5,000 – 20,000 TND
28%: 20,000 – 30,000 TND
32%: 30,000 – 50,000 TND
35%: Over 50,000 TND
Sample Calculation
0% * 5,000 = 0
26% * 15,000 = 3900
28% * 10,000 = 2800
32% * 10,000 = 3200
3900+2800+3200 = 9900
Yearly income tax = 9,900 TND
Employer Costs in Tunisia
Employer Contribution
16.57% – Social security
2% (1% in case of manufacturing companies) – Development Levy
1% – Housing Levy
0.5% – Work insurance
Total employment cost: 20.07%
Employee Contribution
9.18% – Social security
Total employment cost: 9.18%
Benefits & Insurance in Tunisia
Social Security
Social security systems in Tunisia provide:
Health coverage which gives citizens the possibility to recover the costs of treatment, or to provide coverage for employees, retirees and their family members.
Retirement pension, widow allowance, and temporary allowances for orphans, the elderly and in death cases.
Family allowances, – Compensation allowances (maternity, sickness…).
Some allowances for categories of employees and their families in case of interruption of professional activity due to illness or death.
Protection to face work accidents and occupational diseases.
Social security is managed by three funds:
National pension and welfare fund (CNRPS)
National social security system (CNSS)
National Health Insurance fund (CNAM)
Working Hours in Tunisia
Working Hours Per Week
The normal working hours shall not exceed 48 hours per week, exclusive of overtime. The duration of weekly working hours can also be reduced, but cannot be less than 40 hours a week.
Overtime
Any work which is performed beyond the regular weekly hours (48 hours) is considered overtime. The maximum weekly working hours including overtime shall not exceed 60 hours.
An employee working overtime is entitled to an increase of wage as follows:
75% increase for full time employees working more than 48 hours per week;
If the full time employee works with a working arrangement of less than 48 hours per week, the increase is 25% for the hours worked up to 48 hours and 50% for the subsequent hours.
Termination Laws in Tunisia
An employer must provide a compelling and just reason for terminating an employee. The employee has the right to appeal their case to a discipline council before being fired.
Severance
Unless they were fired for misconduct, employees are entitled to severance pay. For each month of employment, payment is determined as one day’s pay. Three months’ pay is the maximum amount of severance pay.
Notice Period
Employers and workers can both give notice to terminate an employment contract. Unless a lengthier notice time is required by a collective or employment agreement, the notice period is one month.
Employment Contract in Tunisia
Employment Contract
The employment contract in Tunisia can be determined or indefinite. It can take the form either of a full time or a part time contract. Sectorial collective agreements can change the structure and the elements to include in the employment contract. The preferred practice is to put a strong, written (in Arabic) contract in place, clearly setting out the terms of the employee’s compensation, benefits, and termination requirements.
Probation Period
According to Tunisian labor legislation, a worker’s probation period is limited to six months. For first-line supervisors, it’s nine months, and for executives, it’s one year.
Types of Leaves in Tunisia
Annual Leave
An employee who has worked for a company for at least one month is entitled to one day of paid yearly leave per month. They will have accrued 12 vacation days after one year of employment.
Sick Leave
To be eligible for sickness benefits, an employee must have worked for at least 50 days in the previous two quarters or 80 days in the previous four quarters before sickness began. After a five-day waiting period, the insured employee receives 66.7% of their daily average wages for 180 days. They receive 50% for up to 180 days a year for the next years.
Maternity Leave
Female employees are entitled to a total of 30 days of paid leave. The employee must have contributed to social insurance for at least 80 days in the four quarters leading up to the birth in order to receive 66.7% of their daily earnings.
Paternity Leave
Within the first seven days after the birth of the child, fathers are entitled to one day of paid leave.