Angola - new rules for foreign workers: more confusion

The Presidential Decree states that its drive is to control the performance of a subordinated activity in Angola so that they can make a balence between the Angolan and foreign workers.

The Presidential Decree, from 6 March 2017, states that its purpose is to regulate the performance of a subordinated activity in Angola, by a non-resident foreign worker, in a way that balances the treatment between Angolan and foreign workers.

In accordance with the said Presidential Decree, Angolan companies can only hire non-resident foreign workers for a maximum period of 36 months and their salary payments will have to be made exclusively in Angolan Kwanzas. Any additional benefits cannot be paid (directly or indirectly) in cash if these benefits represent more than 50% of the base salary.

These employees are still not subjected to the payment of taxes. In addition, the Central Bank will have the power to regulate the amount of transfers to any bank account abroad.

it is also foreseen that ‘foreign worker’ defines those individuals with a different nationality who do not permanently reside in Angola but, due to a certain scientific or technical qualification in which the country is not self-sufficient, are hired to perform their professional activity in Angola for a specific period of time.

It is also mentioned that the labour agreement with such foreign workers can only be done for a maximum period of 36 months (including renewals).

Furthermore, the companies should only hire 30% of non-resident foreign workers. The remaining 70% will have to be fulfilled by the “national work force” – Angolan citizens and foreign citizens who are residents in Angola.

The companies that do not fulfil the legal requirements may have to pay a fine up to 10 times the amount of the average wage.