Tunisia Labor Law Guide for Hiring Employees and Contractors
Tunisia’s economy recorded modest growth in 2023, with a GDP increase of around 2.5%.
The country’s economy is supported by diverse sectors, including agriculture, manufacturing (particularly textiles and apparel), tourism, and services. The manufacturing sector plays a crucial role, with a significant portion of exports being derived from this industry. Agriculture, particularly olive oil production, also contributes notably to the economy.
Tunisia’s currency is the Tunisian dinar (TND).
Minimum Wage
TND 491.00 per month (for 48-hour workweek)
Overtime Wage
1.25 times regular wage for overtime hours
Meal Breaks
1-hour meal break
Rest Breaks
15 minutes
Working hours
8 hours/day, 48 hours/week
Salary Payment Cycle
Monthly
Payroll Taxes
Social Security, CNSS Contribution, CSG Tax
Paid Vacation
12 working days
Overtime Hours
More than 48 hours/week
Night Shift Hours
1.50 times the regular wage
Holidays
9 public holidays
No Work Days
Sunday for most sectors
Businesses in Tunisia must register with the Commercial Registry to hire workers and operate legally. The cost of setting up a business entity varies depending on the type of entity, but typically ranges from TND 1,000 to TND 5,000.
The process of incorporation can take between 2 to 4 weeks. Employment contracts must be in writing and include key clauses such as the job description, salary, working hours, and termination conditions.
Tunisian labor laws distinguish between employees and contractors, with specific guidelines governing each category.
Tunisia has a national minimum wage that is set at TND 491.00 per month for a 48-hour workweek as of 2024. The minimum wage is centrally regulated, and there are no regional variations.
However, specific sectors such as domestic work and agriculture may have different wage structures. Employers are also required to provide holiday pay for public holidays.
Standard working hours in Tunisia are 8 hours per day and 48 hours per week. Any work beyond this threshold qualifies as overtime and must be compensated at 1.25 times the regular wage.
Night shifts are compensated at a higher rate of 1.50 times the regular wage.
The minimum legal working age is 16 years, and Tunisia has strict laws against child labor.
Employers in Tunisia must make the following payroll deductions:
Social Security Contributions: 16.57% of the employee’s gross salary.
CNSS Contribution: 9.18% paid by the employer.
CSG (Contribution Sociale Généralisée): 1% of gross salary.
Income Tax Rates (2024)
Income Level (TND) | Tax Rate |
Up to 5,000 | 0% |
5,001 to 20,000 | 26% |
20,001 to 30,000 | 28% |
30,001 to 50,000 | 32% |
Above 50,001 | 35% |
Tunisia mandates the following leave policies:
Paid Vacation: 12 working days per year, with additional days granted based on seniority.
Maternity Leave: 30 days of paid leave, with an option for an additional 15 days of unpaid leave.
Paternity Leave: 1 day of paid leave.
Sick Leave: Paid sick leave is available, subject to medical certification.
Public Holidays: 9 official public holidays.
Public Holidays (2024)
Holiday | Date |
New Year’s Day | January 1 |
Revolution Day | January 14 |
Labour Day | May 1 |
Eid al-Fitr | Varies |
Eid al-Adha | Varies |
Republic Day | July 25 |
Women’s Day | August 13 |
Mouled (Prophet’s Birthday) | Varies |
Independence Day | March 20 |
Tunisia requires employers to provide the following benefits:
Social Security: Employers must contribute to the employee’s social security, which covers healthcare, pensions, and family allowances.
Health Benefits: Through the national social security system, employees have access to healthcare services.
Retirement Benefits: Pension contributions are mandatory for both employers and employees.
Annual Bonuses: Some industries and sectors offer performance-based bonuses.
Tunisia does not adhere to “At Will” employment laws. Employment termination must be justified by valid reasons such as misconduct, redundancy, or inability to perform duties.
The law requires employers to provide notice periods ranging from 1 to 3 months, depending on the employee’s length of service. Severance pay is mandatory for employees who have completed at least one year of service, and the amount varies based on years of service.
Employees have the right to contest wrongful termination through labor courts, and unions play an active role in protecting workers’ rights.
Termination is legally permitted under conditions such as economic downturns, company restructuring, or serious employee misconduct.