Afghanistan: A Guideline to Payroll and Employer of Record

Run your business seamlessly with Neeyamo as we help you go beyond borders to manage your international payroll and hire new talent in Afghanistan.

Contact Us


Afghanistan, officially the Islamic Emirate of Afghanistan, is a landlocked country at the crossroads of Central and South Asia.

Neeyamo assists with onboarding and managing employees in Afghanistan, along with processing a firm's payroll, compliance, benefits, and more.

Tools And Instances

SVG Icon
Global Payroll

Neeyamo’s global payroll solution covering 180+ countries

SVG Icon
Global Work

A tech-based EOR solution to manage your extended workforce

Facts And Stats




Afghani Afghan (AFN)

Official Language

Dari and Pashto

Fiscal Year

21 March - 20 March

Date Format


Country Calling Code


Time Zone

GMT +04:30

Global Payroll


Handling payroll for a wide spread workforce can pose as a major challenge for any firm. The added complication of compliances can make things worse and drastically effect 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 Taxes

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.

Employee Taxes

The income tax of legal persons shall be 20 percent of taxable income for the tax year.

The income tax shall be assessed and exchanged for Afghani currency.


Employer Taxes

Income Tax in Afghanistan

Natural and legal persons are obliged to pay the tax as follows, based on the provisions of this Law:  

  • Resident persons: from overall income (income from both Afghan and Non-Afghan sources) 
  • Non-resident persons: Only from Afghan revenue sources. 

The income tax of legal persons shall be 20% of taxable income for the tax year. 

The income tax shall be assessed and exchanged for Afghani currency.

The exchange rate shall be the average of open rates determined by Da Afghanistan Bank on the basis of the buy rate at the end of each month. 

Effective as of 1 Hamal 1388, the new tax law reduced the monthly exemption from AFN 12,500 to AFN 5,000 (or prorated share for alternate payroll periods) per person. 

The tax law also added a 2% tax bracket. 

The Income Tax Law (Article 4) provides a monthly schedule of withholding rates.  

Social Insurance Program

Employed persons in private-sector establishments, cooperatives, social organizations, joint enterprises, and government are covered.

Payroll Cycle


Undoubtedly, payroll is a critical process for any organization. The pay cycle in Afghanistan 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.


Afghanistan Payroll Frequency is Monthly.

13th Month Cycle

There is no statutory requirement to pay the 13th or 14th month salary, however many employers have decided to offer the 13th month salary to their employees. There is no 14th month salary.

Global Work


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

Minimum Wage

There is no minimum wage for a permanent worker in the private sector. However, the minimum wage for a permanent worker in the government sector is AFN 6000 per month. For a nonpermanent private sector employee, the minimum wage is 5500 AFN.


The typical workweek is Sunday through Thursday.  

Business hours are typically 7:30 AM to 4:30 PM.

The Labor Law sets a maximum of 40 work hours per week on average.

The overtime may not exceed four hours a day 

An hourly wage for overtime is paid 25% more than the official working hour rate on ordinary days and 50% more than the hourly rate on off days (weekends or holidays)

Data Retention Policy

There is no general personal data protection law. Regulator: There is no data protection authority. Summary: Whilst there is no general data protection law in Afghanistan, the Constitution of Afghanistan provides for the right to confidentiality and privacy of communications.

Hiring and Onboarding Requirements


Hiring employees compliantly in Afghanistan means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Afghanistan so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

  1. Establish your own new legal entity, banking, accounting, and payroll service in Afghanistan, or
  2. use an Employer of Record like Global Expansion who can handle all of the details for you.


New employees are required to bring the following:

  • Personal Details(Name, Surname, DOB)
  • Passport
  • Full Birth Certificate
  • Identity Document
  • Proof of educational qualifications
  • Police Clearance Certificate from the country of origin


The probationary period should not exceed 2 weeks.


Public Holidays

The following leaves are observed in Afghanistan

  • February 15 - Wednesday: Liberation Day
  • April 22 - Saturday: Eid al-Fitr
  • April 23 - Sunday: Eid al-Fitr Holiday
  • April 24 - Monday: Eid al-Fitr Holiday
  • April 28 - Friday: Afghan Victory Day
  • May 1 - Monday: Labor Day
  • June 27 - Tuesday: Day of Arafat
  • June 28 - Wednesday: Eid al-Qurban
  • June 29 - Thursday: Eid al-Qurban
  • June 30 - Friday: Eid al-Qurban
  • July 28 - Friday: Ashura
  • August 15 - Tuesday: Anniversary of Taliban Rule
  • August 19 - Saturday: Independence Day (National Day)
  • August 31 - Thursday: Anniversary of the Withdrawal of Foreign Troops
  • September 9 - Saturday: Martyrs and Ahmad Shah Masoud Day
  • September 27 - Wednesday: The Prophet's Birthday (Tentative Date)

If National Day falls on a weekend, a day in lieu is granted either on the day preceding or following the weekend.

Payments over holidays:

According to Article 50 of the Labour Code, an employee will be paid in advance for authorized recreational leave.

According to Article 44, in companies where the employer is unable to give holidays during public holidays because the work cannot be delayed, the employee will be entitled to 50% salary in addition to the normal overtime wage as an incentive.

Annual Leave

The employees are entitled to 20 days of paid recreational leave per year. Employees are entitled to 10 days of paid essential leave.

Maternity Leave

A female employee is entitled to 90 days of paid maternity leave. 30 days of leave is granted before the delivery, and the remaining is granted post-delivery.

Paternity Leave

There is no provision for paternity leave.

Sick Leave

An employee is entitled to 20 days of sick leave with pay and other allowances per year. 

Employee’s sick leave for up to three days can be granted on the basis of a written notice. 


Notice Period

If the employer wishes to terminate the employment agreement for any of the reasons provided for in the law, one month’s notice is required.  

Although the law does not state explicitly that the notice must be given in writing, it is generally recommended.

Termination upon immediate notice is possible during the probationary period unless the reason for termination is the unsatisfactory performance of the employee.

Employees may terminate the employment agreement without prior notice if the employer has violated the labor law or breached the provisions of the employment agreement.

Termination without notice to the employer is also allowed in the case of incurable illness of the employee. In other circumstances, one month’s prior written notice is the general rule.

Severance Pay

When an employee is terminated because of cessation of work, reduction in staff, imprisonment, or refusal to work, the employer is obliged to make severance payments, based on the duration of employment as follows:

  • less than one year: one month’s salary, including entitlements;
  • one to five years: two months’ salary, including entitlements;
  • five to ten years: four months’ salary, including entitlements, and
  • more than ten years: six months’ salary, including entitlements.



Afghan visa applicants must follow the Islamic Republic of Afghanistan laws and have a standard processing time of 5-7 business days. Work visa applicants must obtain a work permit from relevant agencies and provide an official letter of introduction from their employer, sponsoring government, or organization. Applicants must be below 65 years old and provide educational documents, visa applications, invitations, and confirmation letters from the Consular Affairs Directorate-General of the Ministry of Foreign Affairs. Afghan Business Visa applicants must provide an introduction, work permit, business license, address, and documentation for commercial activities, tax payments, and bank account numbers.

Employee Background Checks

Legal and Background Checks

Background checks are not mandatory in Afghanistan, but if this is a requirement of employment, an employer may legally conduct one and/or ask for a police clearance from the PNG authorities.

  • Educational Background 

  • Employment History

  • Employment Verification

  • Passport Validation

Last updated on September 06, 2023

If you have any queries or suggestions, reach out to us at

Have Queries? Get In Touch With Us

Get in touch with one of our experts and take a quick demo of our services

Contact Us