New minimum wages set

IMPACT – LOW

What is the change? The Angolan government has increased minimum monthly wages by economic sector.

What does the change mean? The change is an annual adjustment that reflects inflation and will take effect immediately.

• Implementation timeframe: Immediate.
• Visas/permits affected: Work visas.
• Who is affected: Companies sponsoring workers in the economic sectors affected by the change.
• Impact on processing times: No impact.
• Business impact: Businesses must factor the higher minimum salaries into hiring costs.

Background: The minimum monthly salaries were set in a presidential decree published June 9. The minimum monthly wage for the commerce and mining sector is now 22,554.50 Angolan kwanza (about US$230), and for the transport, services and manufacturing sector it is Kz 18,754 (about US$192). The minimum monthly wage for the rest of the economic sectors was adjusted to Kz 15,003 (about US$154). In all, the government raised the minimum wage by 13 percent over last year in all sectors.

BAL Analysis: The increase means greater costs for companies hiring workers 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.

Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.