Hire employees in Tunisia

Thanks to its geographic location and its historic connection with France, Tunisia has always had important trade links with Europe. Despite the diminishing importance of the cultural link to France, the French language is still quite widespread, which facilitates trade and cross-border relations with French companies.  

The country’s low wage levels are among the most prominent reasons why foreign companies hire employees in Tunisia, and with an unemployment rate of nearly 17%, there are many skilled workers available for multinationals to choose from.

The employment contract can be concluded for a fixed term, for an indefinite term or for the duration of a specific project. Since the law does not require a written contract (except for fixed-term contracts), verbal agreements are legally binding.

If both parties decide to draw up a written contract, it must contain at least the following information:

• Details of the employer and the employee

• Start date of the contract (and duration of employment for fixed-term contracts)

• Qualification of the employee

• Description of the position held as well as the tasks and responsibilities

• Remuneration

• Standard working hours (either 40 or 48 hours per week)

• Other working conditions

• Probationary period (open-ended contracts only)

• Notice period for contract termination

• Confidentiality clause (under the application of a collective agreement)

Probationary period

The duration of the trial period depends on the position of the employee. It is fixed at 12 months for managers, 9 months for supervisors and 6 months for lower supervisors.

Working Hours and Breaks

Employees in Tunisia either work 40 or 48 hours per week. Each employee must have at least one day off per week. 

Overtime

Any hour worked in excess of the employee's regular workweek is considered overtime and must be compensated with a wage supplement. Overtime pay rates vary depending on the employee’s regular weekly working hours:

• For employees working 48 hours per week: 175%  

• For employees working 40 hours per week: 125% for each hour between 40 and 48 hours, and 150% for each hour thereafter

Employees in Tunisia can either be paid once a week or once a month. 

Minimum Wage 

Minimum pay rates are set in accordance with the employee's standard weekly working hours. Employees working 48 hours per week must be paid at least TND 2,208 per hour and TND 459,264 per month. Employees with a 40-hour week must earn at least TND 2,254 per hour and TND 390,692 per month.

Sick Pay

Employees who are unable to work due to illness or injury must provide a medical certificate within 48 hours. The first 5 days of sick leave are unpaid. Thereafter, the employee receives sickness benefits from Social Security amounting to two thirds of their salary for a period of up to 6 months.

Bonuses

Employees may be entitled to different bonuses under the regulations of a collective bargaining agreement.

Employees and employers in Tunisia are subject to the following tax and social security contributions (last review February 2023):

Taxes

Employers

15%

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• 15% Corporate Tax (standard rate)

• 19% VAT (standard rate)

• 1% Social Lodging Tax on gross salaries

• 2% Vocational Training Tax on gross salaries

• 3% or 4% Social Solidarity Contribution (CSS) on taxable profits

Employees

up to 35%

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• Up to TND 5,000: 0%

• TND 5,000 - TND 20,000: 26%

• TND 20,000 - TND 30,000: 28%

• TND 30,000 - TND 50,000: 32%

• Over TND 50,000: 35%

Plus 0.5% social solidarity contribution.

Social security

Employers

16.97% - 20.57%

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• 7.76% Old age insurance

• 5.08% Sickness and maternity insurance

• 2.21% Family benefits

• 1.52% Unemployment insurance

• 0.4% - 4% Industrial accident insurance

Some companies must also make a contribution to a supplementary pension fund equal to 6% of the employee's salary.

Employees

9.18%

---

• 4.74% Old age insurance

• 3.17% Health and maternity insurance

• 0.89% Family benefits

• 0.38% Unemployment insurance

Employees of some companies must also make a contribution to a supplementary pension fund equal to 3% of salary.

Please note that the social security contributions indicated above do not necessarily reflect the actual employment costs. These may differ depending on the employment contract and due to other factors (e.g. 13th and 14th salary, health insurance allowances, accrual for severance pay, etc.).

Annual Leave

Employees are entitled to one day of leave for each month worked, i.e. 12 working days or 15 calendar days per year. Annual leave increases with the employee's seniority. After completing 5 years of service, the employee receives an additional day off (this is repeated every 5 years). In addition, the country observes 6 public holidays. Workers aged between 18 and 20 are entitled to 22 paid days off (i. e. 18 working days), regardless of their length of service.

Maternity Leave and Paternity Leave

Maternity leave lasts for 30 days (45 days in case of complications). Employers are not required to provide pay during this time, since the employee receives a statutory allowance.

During the first year after giving birth, the employee is entitled to one hour of breastfeeding leave each day, which is split into two 30-minute breaks.

Fathers can take 2 days off on the occasion of the birth - to be taken within the first 7 days following the child's birth.

Parental Leave

Currently, there are no legal provisions for parental leave other than maternity and paternity leave. 

Additional Leaves and Benefits

According to the Tunisian Labor Code, additional days off must be granted in the following cases (non-exhaustive list): 

• Death of a spouse: 3 days 

• Death of an immediate family member: 3 days

• Marriage: 3 days

Fixed-term contracts end automatically upon their expiration. Permanent contracts can be terminated by mutual agreement, resignation or dismissal of the employee. Once the employee has successfully completed the probation period, the employer must present a valid reason for dismissal. Legally valid reasons for dismissal include: 

• Economic reasons

• Gross misconduct, including refusal to carry out work-related orders and unjustified absence 

• Prolonged sick leave (especially in combination with other economic reasons)

When dismissing an employee with a permanent employment contract, the employer has to give one month’s notice and provide severance pay - unless the employee is dismissed for gross misconduct. Severance pay is calculated as one day's salary for each completed month of service ( up to a maximum of 3 months' salary).