Tunisia
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Learn about local payroll, taxes, and employment laws in Tunisia
Minimum Wage Standards
The minimum monthly wage for full-time employees working a 48-hour week is TND 528.32. For employees on a 40-hour workweek, the minimum is TND 448.24 per month.
Tunisia's statutory minimum wage is determined by a two-part framework: SMIG (Salaire Minimum Interprofessionnel Garanti) for industrial and service workers, and SMAG (Salaire Minimum Agricole Garanti) for agricultural workers.
Income Tax Structure
The individual income tax ranges from 0% to 40%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.
| Gross Annual Income | Personal Income Tax Rate |
|---|---|
| Up to TND 5,000 | 0% |
| TND 5,001 - 10,000 | 15% |
| TND 10,001 - 20,000 | 25% |
| TND 20,001 - 30,000 | 30% |
| TND 30,001 - 50,000 | 33% |
| TND 50,001 - 70,000 | 36% |
| Over TND 70,000 | 40% |
Employer Contributions
Total employer social security contributions amount to approximately 17.07% of the gross salary, calculated on the employee's total remuneration.
Mandatory Contributions:
- Social Security (CNSS): 16.57%
- Economic Loss of Employment Insurance Fund: 0.50%
- Development Levy (TFP): 2% (1% for industrial manufacturers)
- Housing Levy (FOPROLOS): 1%
- Work Accident Insurance: 0.5%
Employee Contributions:
- Social Security (CNSS): 9.18%
- Economic Loss of Employment Insurance Fund: 0.50%
Important Note: These figures are estimates for informational purposes. Actual costs vary based on employment terms and specific circumstances. Contact our team for accurate calculations tailored to your situation.
Overtime & Working Hours
Overtime payment is not mandatory and may be included in the salary. Employees can work a maximum of 20 hours of overtime per week, compensated between 150%-200% of the hourly wage.
Standard working hours: 8 hours daily, 48 hours weekly. The standard workweek runs Monday through Saturday, though many sectors operate on a 40-hour week (Monday to Friday).
Maternity Leave
Female employees are entitled to 3 months of maternity leave with full pay, effective from the August 2024 reform. For multiple births or children with disabilities, an additional month is granted.
Previously, private sector maternity leave was 30 days. The updated legislation significantly improves this entitlement. Social security covers the maternity leave benefits.
Paternity Leave
Following the 2024 reform, fathers in the private sector are entitled to 7 days of paternity leave with full pay. For twins or children with disabilities, this extends to 10 days.
Previously, private sector paternity leave was only 1 day. Public sector employees receive 2 days.
Parental Leave
Tunisian labor law does not currently provide a specific statutory parental leave entitlement beyond maternity and paternity leave. However, employees may negotiate additional unpaid leave arrangements with their employer.
Sick Leave
Tunisia's leave laws do not specify a set number of paid sick days. Instead, absence due to sickness temporarily suspends the employment contract.
State social insurance covers sick payments for up to 180 days per year, after a waiting period of 5 days. Employees receive 2/3 (67%) of their average salary for the initial three years and 50% of their salary for up to 180 days in each following year.
Bereavement Leave
Employees are entitled to bereavement leave as follows:
- 4 days for immediate family (parents, spouse, children, grandparents)
- 2 days for extended relatives or spouse's family members
Termination Framework
There is no at-will termination in Tunisia outside the probation period. Employers must have a substantial and fair reason to terminate employment. The employee has the right to appeal to a discipline council before termination.
The employer must notify the employee of the intended dismissal, specifying the reasons for termination, in writing by registered letter or a personally delivered letter with acknowledgment of receipt as per the Tunisian Labor Code, Article 14.
Valid grounds for termination include:
- Economic redundancy circumstances
- Serious misconduct proven through disciplinary procedure
- Performance deficiencies
- Professional incompetence
- Repeated unjustified absences
Legal Requirement: An employer can dismiss an employee without notice or compensation only in cases of severe misconduct proven through a disciplinary procedure. In all other cases, proper notice and severance must be provided.
Notice Period Requirements
Tunisian labor law mandates a minimum of one month's written notice for termination by either the employer or the employee.
- Less than 5 years of service: 1 month notice
- More than 5 years of service: 2 months notice
If proper notice is not provided, the terminating party must compensate the other with an amount equivalent to the wages payable for the remaining notice period. Collective bargaining agreements may stipulate longer notice periods.
Severance Compensation
Severance pay is calculated as one day's pay for every month of employment, up to a maximum of three months' pay.
Employees with indefinite-term contracts and those with fixed-term contracts are entitled to severance pay, provided the termination occurs before the expiry of their contract and is not due to serious misconduct.
Employees who resign or are dismissed for serious misconduct are not entitled to severance pay. Upon termination, employees must also be compensated for any unused vacation time.
Risk Management: To minimize unforeseen financial exposure from terminations, our employer of record service includes a Severance Reserve for all employment agreements. Unused reserve amounts are returned to you if employees resign or are not entitled to severance.
Paid Annual Leave
Employees are entitled to a minimum of 12 working days of paid annual leave per year, accrued at 1 day per working month (up to 15 calendar days).
Seniority bonuses apply: employees earn an additional day of vacation for every 5 years of service at the same company, up to a maximum of 18 days total.
Public Holidays
Tunisia observes 12 official public holidays annually.
National public holidays include:
- New Year's Day (January 1)
- Independence Day (March 20)
- Martyrs' Day (April 9)
- Labor Day (May 1)
- Republic Day (July 25)
- Women's Day (August 13)
- Evacuation Day (October 15)
- Revolution Day (December 17)
- Eid al-Fitr (varies)
- Eid al-Adha (varies)
- Islamic New Year (varies)
- Mawlid - Prophet's Birthday (varies)
Onboarding Timeline
The onboarding process is typically completed within 2-5 business days following client execution of the Statement of Work.
Compensation Structure
Salaries in Tunisia are typically paid on a monthly basis. Employers are required to pay employees on or before the last day of each month.
The 13th month salary is not mandatory in Tunisia but may be provided as a bonus depending on the employer's policy or collective bargaining agreements.
Employment Contract Specifications
Employment contracts in Tunisia can be either fixed-term or indefinite-term. Written contracts are strongly recommended, though oral agreements are legally valid for indefinite-term employment.
Essential contract elements include:
- Employee and employer identification
- Commencement date
- Job title and description
- Compensation and benefits
- Working hours and schedule
- Duration (for fixed-term contracts)
- Termination provisions
Fixed-term contracts may be renewed up to a total maximum duration of 4 years. Beyond this period, the contract automatically converts to an indefinite-term agreement.
Probationary Period
Probation periods are capped at six months, renewable once, for a maximum total of 12 months. Termination during the probation period requires a 15-day notice.
During the probation period, either party may terminate the employment relationship without providing a specific reason, subject to the notice requirement.
How it works
Your Global Hiring Process
We take care of employing your team, so you can focus on growing
You choose the talent
You select the candidate you want to hire, anywhere in the world.
We employ them for you
MB Remote becomes the legal employer and handles contracts, payroll, and local labor laws.
Your team starts working
Your employee works directly with you, just like an in-house team member.
We manage compliance
We ensure ongoing payroll, taxes, and legal compliance in the employee’s country.
Frequently Asked Questions
These are the most commonly asked questions about the Employer of Record
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Is it free to contact MB Remote?
Yes. Contacting us is completely free and without obligation. We’ll discuss your needs and explain how our EOR solution works before anything else.
How long does it take to hire an employee?
Hiring can usually be completed within a few days, depending on the country and local requirements.
What is an Employer of Record (EOR)?
An Employer of Record is a legal entity that employs workers on your behalf. MB Remote handles contracts, payroll, taxes, and local labor law compliance, while you manage the day-to-day work.
Who is the legal employer of the employee?
MB Remote is the legal employer, but the employee works exclusively for you as part of your team.
In which countries can you hire employees?
We support hiring in multiple countries. Contact us to check availability for a specific location.
How does payroll work?
We manage payroll, taxes, and social contributions in compliance with local regulations. You receive one simple monthly invoice.
Is my company still in control of the employee?
Yes. You manage tasks, schedules, and performance. We handle the legal and administrative side.