Angola eases rules on foreign employee pay, contracts

IMPACT – MEDIUM

What is the change? Angolan President José Eduardo dos Santos has issued a decree easing pay and contract requirements for employing foreign nationals.

What does the change mean? Effective immediately, employers (1) can pay foreign employees in foreign currencies, not just Angolan kwanza; (2) can provide allowances and benefits in excess of 50 percent of an employee’s base salary; and (3) are free to negotiate contracts with employees for any duration.

• Implementation time frame: Immediate and ongoing. The decree came into force April 25.
• Visas/permits affected: Work visas.
• Who is affected: Companies employing foreign nationals in Angola.
• Business impact: The changes ease restrictions on businesses, including lifting requirements that foreign nationals be paid in Angolan kwanza and limiting benefits and allowances to 50 percent of an employee’s base salaries.

Background: Presidential Decree No. 79/17 of March 24 amended rules for employing foreign nationals. Under the changes, companies can now negotiate with their employees over what currency they will use to pay employees, though payment must be made through a financial institution. Employers can also offer allowances and benefits totaling more than 50 percent of an employee’s base pay, after a previous regulation limiting allowances and benefits was lifted. Employers can also negotiate contracts with employees for any length of time.

BAL Analysis: The changes give employers new flexibility when recruiting, negotiating with and employing foreign nationals in Angola.

This alert has been provided by the BAL Global Practice group and our network provider located in Angola. For additional information, please contact your BAL attorney.

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