New minimum wage levels set

IMPACT – MEDIUM

What is the change? Angola has set new minimum wage rates.

What does the change mean? Authorities have set the general monthly minimum wage at 16,503.30 kwanzas (about US$100). The minimum wage rate for workers in the commerce and mining sectors was set at 24,754.95 kwanzas. It was set at 20,629.13 kwanzas for workers in the transportation, services and manufacturing sectors. The wage rate for agricultural workers was set at 16,503.30 kwanzas, the same as the general minimum wage.

• Implementation time frame: Immediate and ongoing. The new wage rates went into effect June 7.
• Who is affected: Employers and foreign nationals working in Angola.
• Business impact: Businesses may need to adjust their budgets to meet the new wage minimums.

Background: Angola has a general minimum wage, but also sets higher wage minimums for certain economic sectors. The new wages rates took effect June 7 under Presidential Decree No. 91/17 and apply to all workers in Angola, including foreign workers. A separate decree increased employer payments for social protection pensions. From June 7, employers will be required to pay 21,380.78 kwanzas for retirement pensions, 16,503.30 kwanzas for survivor’s pensions and 16,503.30 kwanzas for welfare payments (old-age and disabled pension programs).

BAL Analysis: Employers should factor the new wage minimums and required pension payments into their budgets.

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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