How to hire and pay employees in Tunisia

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Tunisia Facts and Stats

Currency

Tunisian Dinar TND.

Employer Costs

Estimated at 17% of the employee’s salary.

Languages

Arabic.

Population

12.2 million.

Payroll frequency

Monthly.

Hiring

Grow your team in Tunisia

No entity, no problem

To start growing your team in Tunisia, you must establish a local entity- including an account with a local bank, a local office and an address registered as a subsidiary. This allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months.

Emerald can hire and payroll your workers quickly and compliantly with their ‘ready to go’ entity. Make growing your team simple with Emerald as a global partner.

Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.

Pros & Cons of hiring in Tunisia

Employers should consider hiring remotely in Tunisia due to the country’s burgeoning tech talent pool and competitive labour costs. Tunisia has developed a strong reputation for its IT and digital skills, thanks to its growing number of tech graduates and specialized training programs. Remote hiring allows companies to tap into this talent without the overhead associated with physical office spaces. Furthermore, Tunisia’s favourable time zone for European companies facilitates smooth communication and collaboration. The country’s increasing digital infrastructure supports effective remote work, ensuring reliable connectivity and productivity. By hiring remotely in Tunisia, employers can benefit from a skilled workforce while keeping operational costs in check and maintaining flexibility in their business operations.

Why Tunisia is good for remote workers

Employers should consider hiring remotely in Tunisia due to the country’s burgeoning tech talent pool and competitive labour costs. Tunisia has developed a strong reputation for its IT and digital skills, thanks to its growing number of tech graduates and specialized training programs. Remote hiring allows companies to tap into this talent without the overhead associated with physical office spaces. Furthermore, Tunisia’s favourable time zone for European companies facilitates smooth communication and collaboration. The country’s increasing digital infrastructure supports effective remote work, ensuring reliable connectivity and productivity. By hiring remotely in Tunisia, employers can benefit from a skilled workforce while keeping operational costs in check and maintaining flexibility in their business operations.

Start growing your remote workforce now

Employer Costs
Social Security:16.5%.
Work-Accident Insurance0.5%.
Benefits

Mandatory Benefits

Pension contributions.

Social security contributions.

Transport allowance.

Employment

Probation

In Tunisia there is a mandatory probation period for new employees, typically ranging from 30 days to 180 days.

Emerald Technology can onboard employees in Tunisia within 48 hours.

Restrictive Covenants

In Algeria, restrictive covenants such as non-compete clauses and confidentiality agreements are recognized and enforceable under certain conditions. These clauses must be explicitly agreed upon in the employment contract or a separate agreement. Typically, they aim to protect the employer’s business interests, trade secrets, and client relationships. However, the enforceability of restrictive covenants in Algeria can depend on various factors, including their reasonableness in scope, duration, and geographical limitations. Courts may invalidate overly restrictive clauses that are deemed unfair or excessively burdensome to the employee. Therefore, it’s important for employers and employees to clearly define and negotiate these terms to ensure they are compliant with Algerian labour laws and conducive to fair business practices.

Insurance
01.

Health Insurance:

In Tunisia, the National Health Insurance Fund aims to provide health coverage for all Tunisian citizens and legal residents by reducing out-of-pocket healthcare expenses and it is mandatory for all employees in the formal sector to enroll. It is funded by employee, employer and government contributions and it covers many healthcare services such as, outpatient care, inpatient care and preventive services.

02.

Social Security Contribution:

Social security contributions in Tunisia are managed by the National Social Security Fund which provides pension, disability, survivor, maternity and occupational injury benefits. Employees must contribute 4.75% of their gross salary and also, for employers to contribute 16.57% of the employee’s gross monthly salary.

Leave Policy
01.

Maternity Leave:

Female employees are entitled to a minimum of 60 days of maternity leave, paid in ful by the employer

02.

Paternity Leave:

Male employees are entitled to 2 days of paternity leave paid in full by the employer.

03.

Sick Leave:

Days 1-6 paid 100% of regular salary paid by the employer. Beyond 7 days salary is paid by the National Health Insurance Fund and the percentage the employee’s salary that they will receive is decided on a case-by-case basis.

Onboarding

Onboarding

As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:

Emerald Technology can onboard employees in Tunisia within 48 hours.
Termination

Resignation and Dismissal

When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:

Termination:

The termination process in Tunisia is relatively complex. Outside of the agreed probation period, employers can not terminate an employee’s contract without just cause. Employees reserve the right to appeal their dismissal if they feel the reasoning was unjust.

Notice Periods:

Employees should provide a minimum of 1 month’s notice in the event they decide to leave their role.

Severance

If an employee is made redundant, they are entitled to a payment based on years of continuous service.

Severance Pay:

Employees should be paid 1 months salary per full year they had worked at the company.

Time off

Statutory Time off

Full-time employees are entitled to a minimum of 22 working days of paid leave per year.

Public Holidays

  • January: New Year’s Day,
  • January 14: Revolution and Youth Day,
  • March 20: Independence Day,
  • April 9: Martyrs’ Day,
  • May 1: Labour Day,
  • July 25: Republic Day,
  • August 13: Women’s Day,
  • October 15: Evacuation Day,
  • Variable: Eid al-Fitr,
  • Variable: Eid al-Adha,
  • Variable: Islamic New Year,
  • Variable: Prophet Muhammad’s Birthday.
Emerald Technology can onboard employees in Tunisia within 48 hours.
Salary / Taxes

Work, Pay and Taxes

01.

Minimum Wage:

For non-agricultural workers in 40-hour system, from TND390.692 to TND417.558 per month. For non-agricultural workers in the 48-hour system, from TND459.264 to TND491.504 per month.

02.

Working Time and Overtime:

The standard working week in Tunisia is 40 hours, typically through five days of 8 hours – 48 hours is the maxium working week. For overtime in Tunisia For employees working 48 hours per week, the rate is 175% of the employee’s regular salary. For employees working 40 hours per week, the rate is 125% for each hour worked between 40 and 48 hours, and 150% for each hour worked beyond 48 hours.

03.

Salary Payments:

Salaries are usually paid monthly. Employers are required to ensure timely payment of wages, typically by the 10th of the following month.

04.

Bonuses in Tunisia:

Tunisian law does not mandate a 13th-month salary or bonus.

05.

Income Tax:

  • Up to 5,000 TND: 0%,
  • 5,001 – 20,000 TND: 26%,
  • 20,001 – 30,000 TND: 28%,
  • 30,001 – 50,000 TND: 32%,
  • Over 50,000 TND: 35%.
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