Tunisia

Tunisia payroll and benefits guide

What global businesses need to know about payroll in Tunisia

Tunisia’s recent economic history has been a turbulent one, for a host of reasons. A boom in the 1970s followed by a collapse in the ‘80s, a further economic slump after the Arab Spring in 2011, and a major hit to tourism (one of its biggest industries) after a terror attack on a museum in Tunis in 2015.

However, in recent years, there have been more reasons for optimism. GDP increased by more than 25% between 2019 and 2024. The economy is becoming increasingly service-driven (more than two-thirds of the total), moving away from previous reliance on oil, tourism and automotive manufacturing. And the country is much more open to private enterprise and foreign investment than it was in the past.

Tunisia’s payroll and employment legislation was substantially revised at the start of 2025, with new income tax thresholds, a higher rate of corporation tax, and expanded entitlements for paid maternity and paternity leave. These changes, and all the other key facts you need to know, are in this guide to running payroll in Tunisia.

Getting Started 

Most incoming foreign businesses register either as a private company (SA) or a limited-liability company (SARL). However, if setting up an LLC, you should be aware that at least 51% of the shares have to be owned by Tunisian nationals, and that there is a minimum share capital requirement of TND 1,000 (approx. £260; $350; €300).

The process starts with reserving an available company name with the National Institute of Standardization and Industrial Property, then preparing the Articles of Association. You should then open a bank account and deposit the required share capital, and use the certification of this deposit, along with the Articles of Association, to register with the Tunisian Trade Register.

Once this has been approved, you can obtain a Tax Identification Number, apply for any relevant licenses or permits for your industry, and register for social security and with the local Labor Inspectorate.

Employment Considerations in Tunisia

Oral contracts can be used in some cases in Tunisia, but for fixed-term agreements, a written contract is mandatory.

The standard working week in Tunisia is 48 hours, which is typically spread over six days. Employees get one of Saturday or Sunday as a day of rest, and will normally work a shorter shift on Fridays so that they can attend Islamic prayers. However, many businesses and industries (especially those where collective bargaining is active) run a shorter working week of 40 hours.

There are maximums in place of ten hours per day and 60 hours a week, inclusive of any overtime worked. Overtime should be paid at a minimum of 125% of the normal rate, increasing to 150% for work at night, and 175% for work at weekends or on public holidays; again, collective bargaining can lead to higher rates than these being agreed through negotiation.

Notice periods are generally one month (and must be given in writing) although this can be extended to two or even three months through collective bargaining. Probation periods can range between three and 12 months, depending on collective bargaining and the industry involved.

Compensation, Bonuses and Severance

Minimum wage rates in Tunisia were increased at the start of 2025, and vary depending on the hours that an employee works per week. An employee working a standard 48-hour week should receive at least TND 528.32 per month (approx. £135; $185; €155), which reduces to TND 448.24 per month (approx. £115; $155; €135) for those on a 40-hour week. A slightly lower monthly rate of TND 442.37 per month applies to agricultural workers, while any employees under 18 should receive at least 85% of the relevant minimum.

Non-agricultural workers are also entitled to transport and attendance allowances, which collectively add up to TND 38.19 per month (approx. £9.80; $13.30; €11.40). Apart from this, the provision of other employee benefits and bonuses is entirely discretionary and up for negotiation. The payment of a 13th-month bonus isn’t customary.

Severance pay entitlement is one day’s salary for each month worked, and is capped at a maximum of three months’ salary.

Tax and Social Security

New income tax thresholds were introduced in Tunisia on January 1 2025, which has resulted in more bands, lower tax rates for lower earnings and higher rates for higher earnings. The 0% rate for the first TND 5,000 earned per year remains in place (approx. £1,290; $1,740; €1,490). Bands of 15%, 25%, 30%, 33%, 36% and 38% then kick in at regular intervals, before the highest rate of 40% is applied to all earnings over TND 70,000 per year (approx. £18,000; $24,300; €20,800). Payroll can be run weekly or monthly.

The main social security contribution is 16.57% by employers and 9.18% by employees. There are also additional employer contributions of a 2% development levy (1% for industrial manufacturers), a 1% housing levy and 0.5% for work insurance.

The general rate of corporation tax was increased from 15% to 20% at the start of 2025. There is a reduced rate of 10% for selected companies and activities, but there are some higher rates, such as 35% for oil and gas, automotive and telecoms businesses, and 40% for banks and insurance companies. VAT is levied at 19%.

Holidays and Leave in Tunisia

Paid leave entitlement in Tunisia is relatively low at just 12 days per year after one year of service, rising to 18 days after five years’ service and 24 days after 20 years. Leave is normally accrued on a monthly basis (i.e. one, 1.5 or two days per month worked). When leave is taken is normally determined by the employer, and unused leave can only be carried over with the employer’s agreement.

Employees are, however, entitled to paid time off on Tunisia’s 15 days of public holidays each year. Several of these are Islamic holy days, which means the dates of them are liable to move slightly from one year to the next.

Pay for medically certified sick leave varies, depending on whether the absence is short-term or long-term. For short-term absences of up to six months, employees receive two-thirds of normal salary (although this only kicks in on the sixth day of absence). This rate reduces to 50% for long-term absences of between six months and three years.

The entitlements to paid maternity and paternity leave were expanded by new legislation that took effect in August 2024. Maternity leave is now three months on full pay, whereas previously it was 30 days on two-thirds salary. This can be extended to a fourth month if there are difficulties with the baby, or multiple births. Maternity pay is still covered by social security. The new paternity leave entitlement is seven days (extended to ten in special circumstances), on full pay covered by the employer.

Payroll in Tunisia: A summary

You’ve probably noticed that the phrase ‘collective bargaining’ comes up quite a lot in this guide to running payroll in Tunisia. The strength of union activity in the country, combined with some major changes introduced in 2025, mean that there’s plenty for your payroll team to get your head around to run payroll effectively and stay compliant. Working with in-country payroll expertise can help you in this endeavor, and keep you up-to-date with any other changes that come up in the months and years ahead.

This article is for informational purposes only and not intended to convey or constitute legal or any other advice. It is not a substitute for advice from a qualified professional. Click here to see more country payroll guides from CloudPay.

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