Employer of Record & PEO in Tunisia
Hire & manage teams remotely in Tunisia without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.
How NNRoad Employment & PEO Services Work?
NNRoad provides professional employment organization (PEO) & employer of record (EOR) services for companies looking to hire and manage teams in Tunisia. Registering a legal entity in Tunisia as a means for employment is an outdated practice that takes both time (months) and money (thousands of USD). NNRoad’s employer of record and PEO services enables companies to hire and manage employees in Tunisia in full accordance with local labor laws in under a week.
Employer of Record in Tunisia
Employer of Record (EOR) services are for companies who do not have a legal entity in Tunisia, but who want to hire in Tunisia. Employment and full liability are outsourced to NNRoad.
➊ You interviews & select the candidates you want to hire in Tunisia.
➋ NNRoad arranges a local labor contract with your new employee.
➌ NNRoad arranges a service contract between your organization & NNRoad.
➍ NNRoad organizes, manages & processes payroll in Tunisia in full compliance with local employment laws.
➎ You maintain a normal working relationship and manage your team in Tunisia while NNRoad manages payroll & HR liabilities.
Payroll & PEO in Tunisia
Professional Employment Organization (PEO) services are for companies who have a legal entity in Tunisia, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.
➊ You interviews & select the candidates you want to hire in Tunisia.
➋ NNRoad organizes, manages and processes payroll for your local employees in full compliance with local employment laws.
➌ You maintain a normal working relationship and manage your team in Tunisia while NNRoad manages payroll & HR compliance.
Advantages of NNRoad's Tunisia Employment Services
- With EOR/PEO solutions you can manage client meetings, sales, quality control, marketing, R&D and customer support without a local company in Tunisia.
- Pay as you go
- Dedicated account manager – One point of contact for multiple locations
- Employment & termination processing
- Complete payroll solution and statutory benefit according to local laws
- With EOR/PEO solutions you can hire staff while waiting for the registration of your company in Tunisia.
- NNRoad only works with professional locally licensed partners
- GDPR compliant
- NNRoad manages employee record timekeeping, bonus and allowance, expenses claims and personal leaves according to local law.
- NNRoad provides foreigner VISA application services, if needed
Employment Compliance in Tunisia
Taxes & Payroll in Tunisia
Employee Income Taxes:
Individual income tax rates in Tunisia are based on progressive tax brackets.
0%: 0 – 5,000 TND
26%: 5,000 – 20,000 TND
28%: 20,000 – 30,000 TND
32%: 30,000 – 50,000 TND
35%: Over 50,000 TND
Yearly income = 40,000 TND
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
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%
9.18% – Social security
Total employment cost: 9.18%
Working Hours and Overtime in Tunisia
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.
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 subsequenst hours.
Mandatory Contributions in Tunisia
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)
Termination Laws and Severance Pay in Tunisia
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.
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.
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.
Holidays in Tunisia
Public Holidays in Tunisia
- New Year’s Day – January 1
- Revolution and Youth Day – January 14
- Independence Day – March 20
- Martyr’s Day – April 9
- Labour Day – May 1
- Eid al-Fitr – May 2-3-4
- Eid al-Adha – July 9-10
- Republic Day – July 25
- Islamic New Year – July 30
- Women’s Day – August 14
- Prophet Muhammad’s Birthday – October 8
- Evacuation Day – October 15
Paid Leave in Tunisia
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.
Employment Contract in Tunisia
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.
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
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 and Paternity 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. Within the first seven days after the birth of the child, fathers are entitled to one day of paid leave.
Immigration Laws in Tunisia
A residence visa is required for all foreigners residing in Tunisia for more than 3 consecutive months or 6 non-consecutive months in one year. There are two types of residence visas.
- Temporary Residence Visa – A one-year visa that is intended for foreigners who do not wish to set up a permanent residence.
- Permanent Residence Visa – Permanent resident visas are given to foreigners who have been living in Tunisia on a temporary basis for five uninterrupted years.