Payroll Outsourcing in Tunisia

• Timely salary disbursement every month
• Maintain regulatory compliance
• Cost-effective alternative to in-house payroll team

Edge’s Payroll Outsourcing Services In Tunisia

Imagine entering a new country with different business regulations and building an in-house human resources team from scratch. Not only is this time-consuming, but it will also dry up a lot of your resources, hindering your international expansion. This is where Edge comes in.

More than a payroll service company, we work as an extension of your core team.  Our payroll professionals will work with you every step of setting up your operations in Tunisia. From helping you hire a Tunisian workforce to ensuring they’re paid accurately and allowing you to remain compliant, we do the legwork so you can focus on growing your business.

But don’t take our word for it. Instead, consider our immaculate track record in bookkeeping and payroll services. We have helped numerous businesses establish their business process in Tunisia, and we can do it for you!

Our Core Payroll Functions and Offerings

Most companies think corporate payroll services are limited to the distribution of employee salaries. However, business payroll processing goes beyond just salary calculations and involves complex tasks such as tax and benefit deductions, social contributions, and filing reports to tax authorities.

At Edge, we do all these and more. Our bookkeeping payroll services are designed to take things further and integrate all possible tasks without payroll errors. Here are all the global payroll processing tasks we can do for you.

• Calculate employee salaries every month based on their respective designation and salary agreements.
• Apply employee tax and insurance deductions before disbursing funds.
• Prepare and send detailed salary receipts to employees and monthly records to the company.
• Transfer salary to the respective employees on the allotted date of the month.
• Onboard new employees without complications (both residents and non-residents of Tunisia).
• Complete and file forms and paperwork associated with tax returns and payroll compliance.
• Draft employment contract criteria for both recruitment and termination of employee services (such as compensation, duration of notice period, etc.).

How Are We Different From Other Payroll Outsourcing Companies In Tunisia?

Our commitment and robust payroll outsourcing model is what distinguish Edge from other payroll services in Tunisia. Through our state-of-the-art payroll software and strategies, we ensure no payroll errors creep in.

We also take payroll data security seriously. We understand the sensitive nature of your company’s data and take every possible measure to ensure its safety. All your employee data will be safely stored in our encrypted servers, away from intrusion by third parties.

Our experts also keep an eye on the ever-evolving tax regime, and government mandates applicable to businesses in Tunisia. We simplify the challenging paperwork involved with filing tax returns and drafting employment contracts so you can stay compliant with every legal requirement hassle-free.

The Payroll System In Tunisia

When planning to run a business in Tunisia, it is important to have a good understanding of the applicable taxes,  rules to process payroll, and regulations governing business operations in the country.

Payroll Cycle

Like in most other countries, businesses in Tunisia run payroll monthly. Some employers might also opt for a bi-weekly (or semi-monthly) arrangement according to their internal policies. Salaries are usually paid to the employees on the 25th of each month.

Minimum Wages In Tunisia

The national minimum wage in Tunisia is set at 403 Tunisian dinars (TND) per month for a 48-hour workweek and 290 TND for a 40-hour workweek in the industrial sector. These values are the same, with slight differences in the corporate sector.

However, these minimum wages do not apply to agricultural workers who receive daily pay. Their earning is supplemented by transportation costs and family allowances.

When processing payroll, businesses should ensure that the payroll outsourcing provider they work with meets these requirements for all their workers.

Overtime Compensation

According to the Labour Code norms set by the Tunisian government, a work week cannot exceed more than 60 hours. The maximum work duration for a day is set at 10 hours.

For overtime work, employees are entitled to be paid based on their regular work hours.

• For a 48-hour work week or more, overtime compensation is set at 75%.
• For less than 48 hours, it is set at 25% till 48 hours and 50% beyond.
• For part-time work, the overtime compensation is standardized at 50%.

Work Leave

Work leave available to employees in Tunisia falls under one of these categories:

1. Annual Leave – Workers are entitled to 12 days of paid leave per year. This increases by 1 day for every year of service in a company, up to 18 days. However, an employee is eligible for this only after working for one whole month in that particular year.

Some employers and collective bargaining agreements also offer 30 days of paid annual leave.

1. Parental Leave – The maternity and paternity leave criteria are different in Tunisia. Fathers are eligible for one day of paid leave within the first five days of childbirth. Mothers are entitled to 30 days of paid leave with 66.7% of their daily earnings after a five-day waiting period. This is paid to the mother through social security.
2. Sick Leave – The Labor Code of Tunisia does not define the exact duration of sick leave for employees. However, workers receive sickness benefits (with a five-day waiting period) up to 180 days per year. Payment comes through social security. Employees must inform their employer and provide a medical certificate within 48 hours.

Severance Pay And Termination Of Contract

When an employee leaves the organization, there are several things to consider. The employer and employee have the right to opt to terminate the employment contract.

If an employee has worked for more than a year in a particular company and is facing termination not because of his/her fault (such as company bankruptcy or closure), they are entitled to severance pay.

The amount for severance pay is calculated as one day’s pay for each year of service by the employee for a maximum of three months’ pay.

However, if a worker is terminated due to misconduct, he is not entitled to severance pay benefits.

Special Provisions In The Labour Code Of Tunisia

The Labour Code of Tunisia ensures workplace safety, employees’ social security, and fair treatment. Right from establishing the minimum wage to guiding the working atmosphere and social security norms, it plays an integral role in quality assurance and core functions.

Social Security For Employees

The Labour Code requires employers to contribute to social security funds covering employees’ healthcare, maternity leave, disability benefits, and pensions.

• Employers must contribute 16.57% of an employee’s monthly gross salary for social security.
• Employees must contribute 9.18% of their salary to the social security fund every month.

This helps employees in case of urgent fund needs or at the time of retirement.

Trade Union Rights

The Labour Code recognizes employees’ rights to create and join trade unions. They can engage in collective bargaining and participate in union activities. These clauses give workers the ability to resolve grievances collectively. They can also provide suggestions for the companies to improve working conditions.

Tax Regime In Tunisia

Tax For Individuals

Individuals have to pay progressive tax rates ranging from 0 to 35% based on their annual taxable income and other factors such as marital status.

The tax slabs for individuals falling under different income categories are as follows:

Payroll Taxes For Businesses

Businesses and corporations operating in Tunisia are subject to the following taxes:

1. Corporate Income Tax – The standard corporate income tax rate is 25%. However, it can vary depending on a company’s financial run in a year (i.e., profits earned by the company through its local operations). Some businesses receive tax incentives and qualify for reduced rates to fuel the country’s economic growth.
2. Value Added Tax (VAT) – Tunisia imposes VAT on selling goods and services at a standard rate of 18%. Again, some goods and services are exempted from these taxes or pay VAT at a reduced rate.
3. Withholding Taxes – For payments made to non-resident individuals or entities. This is, however, hugely variable and depends on multiple factors, such as the recipient’s tax status and the type of payment made.
4. Miscellaneous Taxes – Companies should also cater to local taxes, property taxes, customs duty, and employer contributions to the social security fund  (16.57%).

Non-compliance with the set tax rates can make a business liable to penalties and reversal of trade license in the region. A trusted service provider of HR and payroll services like Edge, can ensure such a situation never arises.