Run your business seamlessly with Neeyamo as we help you go beyond borders to manage your international payroll and hire new talent in Libya.
Libya is a country located in central North Africa, bounded by the Mediterranean Sea on the north, Egypt on the east, Sudan on the southeast, Niger and Chad on the south, and Tunisia and Algeria on the west.
Neeyamo provides assistance for the onboarding and management of employees in Libya, along with processing a firm's payroll, compliance, benefits, and more.
Tools And Instances
Facts And Stats
Libyan Dinar (LYD)
1 January- 31 December
Country Calling Code
Berber, Domari, Tedega
Handling payroll for a widespread workforce can pose a major challenge for any firm. The added complication of compliance can make things worse and drastically affect the time and efforts that can be used in other equally important aspects of an organization's development.
Over the years, Neeyamo has observed these complexities and strived to provide a global payroll solution through a single technology platform, Neeyamo Payroll.
Payroll tax is the percentage amount retained from an employee's salary and paid to the government to invest in the general population's welfare.
Employees make the following tax contributions:
- 3.75% - Social Security
- 1.00% - Social Unity Fund
- 4.75% - Total Employee Cost
Employee Income Tax
5.00% - Up to 1,000 LYD
10.00% - Over 1,000 LYD
Jihad Tax is also levied in Libya on the following rates:
- 1.00% - If the monthly income does not exceed 50 LYD
- 2.00% - If the monthly income does not exceed 100 LYD
- 3.00% - On all monthly income above 100 LYD
Employers must contribute 10.5% towards Social Security.
Undoubtedly, payroll is a critical process for any organization. The pay cycle in Libya refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.
The payroll cycle in Libya is generally monthly, and employees are paid at least once a month.
13th Month Cycle
There are no provisions in the law for a 13th-month salary.
An Employer of Record service provider helps you get rid of the hassle of handling the complexities that come with setting up a new employee in remote locations. They act as legal employers, facilitate salary payments, and handle everything from health insurance, payroll taxes, and employee benefits to comply with local tax laws and regulations.
This ensures that the client company can focus on the employee’s everyday tasks safely in the knowledge that they have a cost-effective solution as they continue their global expansion.
HR Mandates and Practices
The monthly minimum wage is 450.00 LYD
All work more than the standard 48 hours a week is to be paid as overtime and is regulated by the employment contract or collective agreements, etc. In general, maximum limits for overtime are set at 3 hours per day and paid at 150.00% of the standard salary rate.
Data Retention Policy
It is not specifically regulated by law. However, there are a number of general principles that businesses should follow when collecting and storing data.
Hiring and Onboarding Requirements
The law of employment in Libya is governed by the Labor Law of 2010. This law sets out the rights and obligations of employers and employees, including the terms of employment, working conditions, and termination of employment.
The Libyan Constitution of 2011 prohibits discrimination on the basis of race, religion, gender, language, or social status. However, there are a number of laws and practices in Libya that discriminate against women, minorities, and LGBT people.
Documents required while onboarding are listed below:
Personal Details (Name, Surname, address, Date of Birth)
Proof of Identity
The probation period in Libya is typically six months.
There is a total of 11 public holidays in France however in the Alsace region or the Moselle region there’s additional 2 days.
- February 17: Libyan Revolution Day
- May 1: May Day
- June 16: Day of Arafah (Tentative Date)
- September 16: Martyrs' Day Public
- September 27: The Prophet's Birthday (Tentative Date)
- October 23: Liberation Day
- December 24: Independence Day
The annual leave entitlement in Libya is 30 working days of paid leave. The entitlement can increase to 45 working days of paid leave for employees aged 59+ who have been continuously employed for at least 20 years.
The entitlement to paid sick leave is dependent on the employee’s seniority. Employees who are sick in one continuous period are eligible for 45 days of sickness, while those who are not sick in one continuous period are eligible for 60 days of sick leave per year.
To qualify for sick leave, the employee must present a valid medical certificate.
Female employees are entitled to a maternity leave of 14 weeks, six of which are to be taken before the predicted due date and eight weeks after the birth. In multiple or complicated births, the leave entitlement is increased to 16 weeks of leave.
There are no provisions in the law for paternity leave.
There are no provisions in the law for other parental leave.
Employers can terminate a fixed-term contract by giving the following reasons – business, personal, or worker’s misconduct. It requires notice and a written explanation for the termination. If the reason is misconduct, a warning needs to be given, and the employee gets a chance to explain his or her actions.
Employers can terminate an employment agreement for the following reasons:
- Expiration of a contract
- Medical reasons that would prevent the employee from fulfilling their duties.
- Conviction of a crime
- For termination initiated by either the employee or employer- a letter of resignation or termination must be sent to the other party.
At the end of the employment term, the employer must provide a certificate that states:
- Start and end date of the employment.
- Type of work performed.
- Salary information (optional)
- Other benefits received (optional)
The notice period in Libya is typically 30 days for both the employee and employer.
A notice period is required if an employee’s employment contract has been terminated due to an employee’s failure to fulfill their obligations, the employer falsifying their identity, financial loss due to mistakes made by the employee in question, and safety instructions not being followed by the employee.
Taking an example of an employee who has been absent from work without justification for more than 20 days in a year or more than 10 consecutive days in one period. In that case, a written warning must be issued before dismissal on the 5th consecutive day or the 10th day of absence within the year.
Severance pay for Libyan nationals is not required; however, it is for ex-patriates. Ex-patriates are entitled to half a year's salary for every year of employment up to 5 years.
Libya is now known for its strict visa policy, and very few countries are visa-exempt. Only nationals of Algeria, Jordan, Mauritania, Morocco, Syria, Tunisia, and Turkey can enter and stay without a visa.
Citizens of Jordan are granted a 30-day stay, while nationals of Turkey are allowed to remain in Libya for up to three months. All other foreigners are required to visit the nearest diplomatic mission of Libya and apply for a visa.
A Libyan work visa is granted to foreign nationals who wish to work in Libya, and working in the country without a work visa is illegal.
To get a Libya business visa, you must have an invitation letter from a company that operates in Libya or sponsorship. The company must initiate the work visa process via the Work Department in Libya.
The initial work visa is usually granted for three months, which can be renewed or extended once inside Libya.
Employee Background Checks
Legal and Background Checks
A background check in Libya is a process by which an employer or other organization verifies the identity, education, employment history, and criminal record of a potential employee.
The specific requirements for background checks in Libya vary depending on the type of position and the employer. However, some common elements of a background check in Libya may include:
Verification of identity:
This may involve checking the candidate's passport, national ID card, or other government-issued identification.
This may involve checking the candidate's transcripts or diplomas.
This may involve checking the candidate's employment history with previous employers.
Criminal background check:
This may involve checking the candidate's criminal record with the police or other law enforcement agency.
This may involve checking the candidate's credit history with a credit reporting agency.
Last updated on August 28, 2023.
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