Afghanistan offers excellent potential for employers as it helps establish low-cost branches to gain access to its market. Learn more about the employment laws and regulations in Afghanistan below.
Employee Contract
Public and Provincial Holidays
Leave Information
Basic
Pashto and Dari are the common languages in use. Dari was previously used for government communications. Now with the Taliban in power, Pashto is promoted for official usage.
Probation Period
The probationary period for employees in Afghanistan is up to three months.
13th Month Pay
There is no provision for 13th-month salary.
Employee Benefits
Employers in Afghanistan may provide the following benefits to their employees:
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Maternity Leave
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Social Security
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Health Insurance
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Pension Fund
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Hajj Pilgrimage Leave
Afghan follows alternate payroll schedules – weekly, semi-monthly, and monthly.
There is no minimum wage for a permanent worker in the private sector. However, the minimum wage for a permanent worker in the government sector is AFN 6000 per month. For a non permanent private sector employee, the minimum wage is 5500 AFN.
Employees who work overtime are entitled to a 25% increase in their wages for the hours worked and 50% for overtime worked on public holidays.
Employer Payroll Cost:
Employers are not expected to pay any taxes in respect of their employers or their salaries.
Employee Payroll Cost:
For monthly income, the following tax rates are considered:
| Taxable income range (AFN) |
Tax rate |
| 0 – 5000 |
0% |
| 5000 – 12500 |
2% |
| 12500 – 100,000 |
10% + AFN 150 |
| Above 100,000 |
20% + AFN 8900 |
VAT
Afghanistan follows a standard VAT rate of 10%.
Termination of employment may occur in the following situations:
- Mutual agreement
- Completion of a fixed-term contract
- Retirement
- Demise
- Disability affecting the performance of work
- Reduction in staff by employer
- Imprisonment
- Breach of disciplinary rules
- Refusal to work after reassignment
- Unsatisfactory probation performance
As per mutual discussion between the employer and the employee, and the labor code of the country.
Severance pay
Severance pay in Afghanistan is mandatory and payable based on the duration of the service as follows:
- One month’s salary – Duration of service is up to one year
- Two month’s salary – Duration of service is between two to five years
- Three month’s salary – Duration of service is between five to ten years
- Four month’s salary – Duration of service is above ten years
If a foreigner is to work in Afghanistan, the following documents are needed:
- Valid visa
- Work permit from Ministry of Labor and social affairs, approved by Ministry of Foreign Affairs
- Health Certificate from home country and Ministry of Public Health.
- A stay permit.