Tunisia: A Guideline to Payroll and Employer of Record

Establish your presence globally with Neeyamo as we help you go beyond borders to manage your international payroll and hire new talent in Tunisia.

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Overview

With the recent addition of the Island of Dreams (Djerba), no other African country boasts more UNESCO cultural world heritage sites than Tunisia. Apart from its rich history, the country's strategic location at the crossroads of Europe, Africa, and the Middle East and its improving business environment and skilled workforce make it an ideal destination for organizations seeking global expansion. 

If your organization's expansion plans involve hiring in this historically significant country, and you lack a physical presence there – a crucial requirement for hiring local talent – Neeyamo can be your partner in managing all aspects of employee onboarding and management in Tunisia. We handle tasks ranging from payroll processing to local compliance, benefits administration, and more, ensuring a seamless and compliant expansion process for your organization. 

Tools And Instances

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Global Payroll

Neeyamo’s global payroll solution covering 180+ countries

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Global Work

A tech-based EOR solution to manage your extended workforce

Facts And Stats

Capital

Tunis  

Currency

Tunisian Dinar (TND) 

Official Language

Arabic  

Fiscal Year

1 January - 31 December

Date Format

DD/MM/YYYY

Country Calling Code

+216

Time Zone

Central European Standard Time (GMT +1) 

Global Payroll

Overview

Payroll: Meaning 

Payroll is the list of compensation to be paid to employees of a company or organization for a set period or date. Global payroll companies allow organizations to outsource their payroll, allowing employers to focus on other aspects of their business. 

How does payroll software work?

Handling payroll for a widespread workforce can pose a significant challenge for any organization, and the added complication of compliance can make things worse. If companies spend more time processing payroll, it directly impacts day-to-day operations and their overall productivity.

Over the years, Neeyamo – Global Payroll Services, being one of the top payroll providers, has observed these complexities and strived to provide global payroll solutions through a single technology platform – Neeyamo Payroll. Neeyamo’s global payroll solution eases the process for companies looking to outsource their global payroll requirements and aids them in maneuvering the tricky payroll system in Tunisia. Neeyamos payroll software provides the perfect solution for all your global payroll needs – for employees working in primary geographies, the long-tail region, remote or internationally located.

 

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. These are statutory in nature and are levied from both the employer and employee. Additional statutory contributions are made by employers towards aiding both short-term and long-term benefits for their employees.

Employee Taxes

The employee taxes in Tunisia are computed as follows: 

Social Security - 9.18% 

Total Employee Cost - 9.18% 

Employer Taxes

The employer taxes in Tunisia are computed as follows: 

Social Security - 16.57% 

Work Insurance - 0.5%  

Housing Levy - 1.0% 

Development Levy - 2.0% (1% for manufacturing industrial companies) 

Total Employment Cost - 20.07% 

Payroll Cycle

Overview

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

Frequency

Employees are either paid weekly or monthly but no later than the end of the month. 

13th Month Cycle

Legislation in Tunisia doesn’t require the payment of a 13th month salary.

Global Work

Overview

An Employer of Record services (EOR) provider helps you eliminate the hassle of handling complexities while onboarding a new employee in an international location. They help bridge the gap that otherwise mandates organizations to have a local registered entity and a local bank account, prior to making a job offer to an international hire.

An Employer of Record services (EOR) provider acts as a legal employer, facilitates salary payments, and manages other statutory requirements such as health insurance, payroll taxes, and employee benefits ensuring compliance with local tax laws and regulations.

This allows organizations to focus on collaborating with the employee in Tunisia for operational tasks, with the knowledge that they have a cost-effective solution support their global payroll & HR requirements, as they continue their global expansion.

HR Mandates and Practices

Minimum Wage

Tunisia's minimum wage is set at 340 Tunisian dinars per month for a 48-hour workweek and 290 dinars per month for a 40 hour workweek for the industrial sector.  

Agricultural workers are paid 9 dinars to 14 dinars per day and supplemented with transportation and family allowances.  

Overtime

A workday should not exceed 10 hours per day or 60 hours per week.    

Data Retention Policy

The records in Tunisia must be maintained as long as the legal purpose exists.  

Hiring and Onboarding Requirements

Hiring

To hire employees in Tunisia, the employer must understand the Tunisian laws that govern this process. For instance, the employment contract can be written and/or oral. The contracts can be both for a fixed term or an indefinite period. However, a fixed-term contract cannot exceed four years.   

When you hire in Tunisia, negotiating the terms of an employment contract and offer letter with an employee in Tunisia is essential. The employment contract should be oral or written. Still, it is best practice to put a strong, written agreement in Arabic, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Tunisia should always state the salary and any compensation amounts in Tunisian Dinar rather than a foreign currency.   

Onboarding

There is no specific policy, as the requirements vary from company to company.

Probation

The probation period in Tunisia is capped at six months for workers as per the labor laws in Tunisia. However, for first-line supervisors, it is nine months and one year for executives.  

Leave

Public Holidays

They have 12 paid holidays in Tunisia.  

They have 12 paid holidays in Tunisia.  

  • January 1: New Year’s Day
  • January 14: Revolution and Youth Day
  • March 20: Independence Day
  • April 9: Martyr’s Day
  • May 1: Labor Day
  • April 22: Eid al-Fitr
  • June 29: Eid Al-Adha
  • July 25: Republic Day
  • August 13: Women’s Day
  • October 15: Evacuation Day

Annual Leave

Employees receive a minimum of 12 days of annual leave per year. This increases by one day for every five years of service up to 18 days of annual leave. However, many employers and collective bargaining agreements give employees 30 days of annual leave.

All workers shall justify the performance of at least one month of work. All workers shall perform at least one month of work during the reference year to be entitled to enjoy one day of leave per month with a total duration not exceeding 15 days, of which 12 will be working days. Exception young workers under 18 year olds are entitled to 2 days per month to a maximum of 30 days of which 24 are working days.

Young workers between 18 and 20 years old are entitled to 1.5 days per month and a maximum of 22 days of which 18 are working days. Paid leave that is not more than six weekdays must be continuous. Leave periods above 6 weekdays may be divided by the employer, one of which has to amount to six days between 2 weekly rest days.

Sick Leave

Tunisia does not specify the number of sick days an employee can receive. However, employees must inform their employer within 48 hours of the illness and provide a medical certificate. Eligible employees receive payments while on sick leave from social security. Sickness benefit is paid after a five-day waiting period for up to 180 days a year.

Two-thirds (66.7%) of the insured employee’s average daily wage is paid for the first three years, 50% for up to 180 days a year for each subsequent year. Benefits are paid every two weeks. In case of hospitalization, the government recognizes long-term illnesses, or incapacity that is the result of a non-work-related accident; there is no waiting period or time duration limit.

 

Maternity Leave

Female employees receive 30 days (private sector) or 60 days (public sector) of paid maternity leave, which can be extended by 15 days in the event of a pregnancy-related illness or complication.

Paid maternity leave is provided to the employee with at least 80 days of contribution during the four calendar quarters preceding that in which confinement occurs. Employees are paid two-thirds (66.7%) of the average daily wage as a maternity leave benefit during the period of maternity leave (30 days) and any extension thereof on medical grounds by Social Security. A female employee is entitled to 2 paid nursing breaks, each of 30-minute duration, to breastfeed their child until the child is 12 months old.

One break is fixed during the morning work, and the other during the afternoon. They can be taken by mothers at the hours fixed by agreement between them and the employers. The breastfeeding breaks are in addition to the normal breaks an employee receives during the working day and it is counted in the working hours of such an employee.

 

Paternity Leave

The spouse is entitled to 1 day of paid leave for the birth of the child. This leave can be taken in a period of 7 days calculated from the date of birth of the child. The employer shall make the payment to the employee immediately after the expiration of his leave. The employer can further be reimbursed by Social Security upon the production of relevant documents.

Parental Leave

Social Security provides benefits for one day to employees in an amount equal to the average daily wage calculated based on the insured’s earnings received in the last quarter.

Other Leave

Work-related injury leave:   

There is no qualifying period, but the accident must be reported to the employer within 48 hours and assessed. The injured employee will receive 66.7% of their average daily earnings for the highest-paid period before the disability begins. Payments will be given after a three-day waiting period and last until the employee has recovered.  

Termination

Notice Period

One month’s notice period should be given in writing.  

Severance Pay

Employees are entitled to severance pay unless they have been terminated for misconduct. Payment is calculated as one day’s pay for each month of employment. The maximum amount of severance is three months’ pay.  

  • Any worker dismissed after the expiration of the probationary period is entitled to severance pay, except in cases of dismissal for fault.   
  • Severance pay is calculated as one day per month in the same firm, based on the last wage and considering all bonuses and benefits.    
  • Severance pay cannot exceed three months, except when collective agreements stipulate favorable conditions for workers. 

Visa

Overview

Citizens of several countries, including the United States and member states of the European Union (EU), are free to visit Tunisia for up to 90 days without a visa. Foreign nationals who are not from visa-exempt countries will need to obtain a short-stay visa for temporary visits under 90 days, such as business trips and conferences.  

Any foreign national who intends to remain in Tunisia for more than 90 days must apply for a long-stay visa and obtain a temporary residence permit upon arrival in Tunisia, including citizens of visa-exempt countries.  

A residence permit is normally granted for a period of 2 years on a renewable basis. These permits must be renewed with each new work contract. Residence permit renewals can be valid for up to 5 years

Employee Background Checks

Legal and Background Checks

Tunisia conducts the following background checks:   

  • Criminal Records  
  • Education Degree/qualification  
  • Professional References  
  • Passport Validation  
  • Social Media  

Last updated on September 28, 2023

If you have any queries or suggestions, reach out to us at irene.jones@neeyamo.com

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