Afghanistan

Afghanistan PEO & Employer of Record

WeHG provides an International PEO and global Employer of Record service in Afghanistan to companies willing to enter the Afghani market or hire local/expat employees in this country.

Traditional approach requires establishing a subsidiary in Afghanistan.  However our solution allows you to start the operations in Afghanistan within days hence save time and money.  WeHG would hire candidates on your behalf while you maintain full operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf. .

Afghanistan fast facts

Population, million: 37.17
Land area: 652,230 km² 
Capital: Kabul
Local currency: Afghan afghani

Hiring, Negotiating and Doing Business in Afghanistan

Necessity of written employment contract

Under Afghan law, employment contracts may be concluded for (i) an indefinite period, (ii) a fixed term, (iii) part-time work, (iv) output work or piecework, (v) seasonal work, (vi) day labour work and (vii) student work.

The definitions used by the Labor Law are vague and sometimes contradictory with each other, and it is not always easy to determine which category an employee falls into.

Different forms of engagement: employment, contracting, work with private entrepreneur

Although the Afghan Labor Law prohibits all forms of discrimination in employment, payment of wages and benefits, the Labor Law still makes a distinction between certain categories of employees, which denotes a distinction between blue-collar and white-collar employees:

  • “workers” (kargar) are defined as employees who are hired under a fixed-term contract and are understood to perform regular functions in an administrative setting, which indicates white-collar employees;
  • “service employees” (karkon-e-khadamati) are defined as employees hired for manual and support services, which indicates blue-collar employees; and
  • “day labourers” are defined as employees who are hired and paid one day at a time, without concluding any written contract. Day labourers are commonly hired for unskilled manual or hard labour and are not entitled to most of the benefits or protections available to other employees.

Afghanistan Employment Contract

Types of employment agreements

The most common employment contract in Afghanistan is the fixed-term contract, which is concluded for a fixed duration of one year and renewable upon mutual agreement of the parties. A fixed-term contract will be considered extended for another fixed-term period on the same terms and conditions if parties continue their working relationship for a period of one month after expiry of the contract. Also, there is no limit on the maximum number of successive fixed-term contracts or their maximum cumulative duration.

With the exception of day labour work (which may be concluded orally), all employment contracts must be in writing. The contract should set forth the essential terms in writing, including the type and location of work, remuneration, work hours, leave entitlements, commencement and expiry date.

If the duration of employment is not explicitly determined in the contract, the contract is considered to be for an indefinite duration. 

Afghanistan working hours

The average working time must not exceed 40 hours per week over a 12-month reference period. The maximum working time per day is eight hours and employees are entitled to a one-hour break for lunch and Muslim prayers, which is not included in such work hours. The Labor Law sets a different maximum limit for certain categories of employees as follows:

  • young employees of 15-18 years, pregnant employees and night workers may work a maximum of 35 hours a week; and
  • employees working underground or performing in hazardous or dangerous conditions or hard labour may work a maximum of 30 hours a week.

In addition, female employees nursing their own children must be given extra breaks of a minimum of 30 minutes every three hours. Such breaks are included in official working hours.

In the event that work is temporarily disrupted due to unpredictable events for up to a month, and employees are fully paid during the period of disruption, employers may require employees to cover the disrupted hours/days when the situation returns to normal; provided that their working hours per day and week never exceed 10 and 50 respectively.

Vacation leave in Afghanistan

Employees are entitled to a minimum of 20 days’ vacation/recreational leave per annum. Employees less than 18 years old are entitled to an additional five days and employees working in underground work or hazardous conditions are entitled to an additional ten days of recreational leave.

Afghanistan Maternity Leave

Female employees are entitled to 90 days’ maternity leave, 30 days of which are taken before delivery of the child and 60 days after delivery. In the case of delivery of twins or complications during delivery, the employee will be entitled to a total of 105 days of paid maternity leave. The employee has to present medical certifications in order to avail payment of salary and other entitlements for the duration of leave.

Afghanistan Severance Laws

Notice Periods/Severance

An employer is required to provide one month’s notice in the event of termination of fixed-term contracts, and two months’ notice for open-ended contracts. During probation, any party may terminate the contract with immediate effect.

As to termination by an employee, the Labor Law gives an employee the right to terminate the employment contract with or without prior notice if the employer is in breach of their employment contract, or if the employee becomes physically disabled and therefore unable to carry out his or her job.

Severance pay is mandatory when an employment contract is terminated due to cessation of work, reduction of workforce, imprisonment of the employee or his refusal to be assigned to his previous job, which is payable depending on the duration of service, as follows:

  • one gross salary when the duration of service is up to one year;
  • two gross salaries when the duration of service is from one to five years;
  • three gross salaries when the duration of service is five to ten years; and
  • four gross salaries when the duration of service is more than ten years.

Apart from the notice obligations stated above, no other specific or special procedures are required to be followed.

A statutory right to severance pay exists only in particular cases, such as downsizing, dissolution of the employing organisation, and disruption of work for more than six months. The expiry of fixed-term contracts, retirement and the death of an employee or a dismissal on disciplinary grounds does not give the right to severance pay. The amount of severance pay is based on the gross wages of the last month and depends on the length of service with the same employer.

Afghanistan Tax

Taxable Income

Exceeding AFN

Not Exceeding AFN

Tax on Lower Amount

Tax Rate %

0

60,000

0

0

60,000

150,000

0

2

150,000

1,200,000

1,800

10

1,200,000

106,800

20

Social Security Contributions Paid By Employers : none.

Health Insurance Benefits in Afghanistan

In addition to mandatory paid recreational leave, all employees are entitled to a minimum of 20 days’ paid sick leave per annum. In exceptional circumstances, sick leave may be availed for up to one year depending on the duration of service with the same employer. 

Employees are also entitled to ten days’ urgent leave that could be used in urgent and emergency situations at short notice, such as attending funeral ceremonies, the birth of a child and marriage.

Additional Benefits in Afghanistan

Bonuses

‌The Labor Law defines bonuses as one-off incentives for completion of a specific task (ie, good performance or achieving targets), which are payable in accordance with the applicable regulations. However, no such regulation is enacted yet. As such, bonuses are currently governed by the respective employment contract and/or the employer’s policies. In addition, all employees (except for day labourers) are entitled to a mandatory monthly food allowance. Furthermore, the Labor Law provides for certain social security benefits, such as financial assistance for shelter, health services, at childbirth and retirement. The government has also recently enacted a new regulation paving the way for the establishment of pension plans for retired employees.

Afghanistan Holidays

Afghanistan observes a number of public holidays, which include the first day of the Afghan solar year, 28th Asad, or August 19th (independence day); the first day of the Muslim months of Ramadan and the tenth of the Muharram, Arafa and Eid holidays; the birthday of Prophet Muhammad; and February 15th (withdrawal of the USSR).

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.

 

FAQ Afghanistan

  • Afghanistan working hours

    The average working time must not exceed 40 hours per week over a 12-month reference period. The maximum working time per day is eight hours and employees are entitled to a one-hour break for lunch and Muslim prayers, which is not included in such work hours.

  • Afghanistan Holidays

    Afghanistan observes a number of public holidays, which include the first day of the Afghan solar year, 28th Asad, or August 19th (independence day); the first day of the Muslim months of Ramadan and the tenth of the Muharram, Arafa and Eid holidays; the birthday of Prophet Muhammad; and February 15th (withdrawal of the USSR).

  • Health Insurance Benefits in Afghanistan

    In addition to mandatory paid recreational leave, all employees are entitled to a minimum of 20 days’ paid sick leave per annum. In exceptional circumstances, sick leave may be availed for up to one year depending on the duration of service with the same employer. 

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