Employer of Record in Tunisia

An Employer of Record (EOR) in Tunisia is a company that legally hires employees on your behalf. This means you can build a team in Tunisia without setting up a local entity. The EOR handles all the legal and HR tasks that come with employment. This includes payroll, taxes, benefits, and compliance with Tunisian labor laws. If you are looking to hire in Tunisia, an EOR provider like Rivermate can simplify the process for you.

How an Employer of Record (EOR) Works in Tunisia

Using an EOR in Tunisia follows a straightforward process. Here is how it typically works:

1. You Find the Talent: You identify the candidate you want to hire in Tunisia.
2. The EOR Hires Your Candidate: The EOR legally hires the employee through a local, compliant employment contract.
3. Onboarding: The EOR manages the onboarding process, ensuring all necessary paperwork is completed correctly.
4. HR and Payroll Management: The EOR handles all administrative tasks, including payroll, taxes, benefits, and social security contributions.
5. You Manage Your Team: You manage your employee's day-to-day work and responsibilities, while the EOR takes care of the HR back-end.

Why use an Employer of Record in Tunisia

Using an EOR in Tunisia can save you time and money. It allows you to enter the Tunisian market quickly and compliantly. You can focus on your business goals while the EOR handles the complexities of local labor laws.

Here are some key benefits of using an EOR in Tunisia:

• Avoid Setting Up a Legal Entity: You can hire employees in Tunisia without the cost and complexity of establishing a local company.
• Ensure Compliance: EORs are experts in Tunisian labor law, ensuring that you comply with all local regulations, including the Tunisian Labour Code. You can find more information about labor regulations from the Tunisian Ministry of Employment and Vocational Training at their official website (http://www.emploi.gov.tn/), which is available in French and Arabic.
• Simplify HR and Payroll: An EOR manages all aspects of payroll, taxes, and benefits, reducing your administrative burden.
• Attract Top Talent: Offering competitive and compliant benefits packages is easier with an EOR, helping you attract the best talent in Tunisia.
• Reduce Risk: An EOR helps you avoid risks associated with worker misclassification and permanent establishment.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Tunisia includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Tunisia.

Hiring in Tunisia requires understanding a unique legal landscape, recently reshaped by significant labor law reforms. The country offers a skilled workforce, but navigating employment regulations is key. A major legal update in May 2025 changed the rules, making indefinite contracts the norm and heavily restricting other forms of employment.

Employment contracts & must‑have clauses

In Tunisia, the indefinite term contract is now the standard form of employment. While verbal agreements can be legally binding, a written contract is always the best practice. For the few situations where fixed-term contracts are still allowed, they must be in writing.

Your employment contracts should be in Arabic and include these key terms:

• Parties involved: Full legal names of the employer and employee.
• Start date: The official first day of employment.
• Job details: A clear description of the role, title, and responsibilities.
• Workplace: The primary location where the work will be done.
• Compensation: The salary and any other compensation, stated in Tunisian dinar.
• Working hours: The expected hours of work.
• Probation period: Terms of the trial period, if any.
• Notice period: The required notice for termination.

Probation periods

A new law in May 2025 set clear limits on probation periods.

A probation period for a new employee can last for a maximum of six months. This period can be renewed only once. During the probation period, either you or the employee can end the contract with a 15-day notice.

It is important to note that different roles may have different probation structures, often defined by collective agreements. For example, probation periods can sometimes extend up to:

• 6 months for operational roles
• 9 months for technicians and supervisors
• 12 months for executives

Always check the most current regulations and any applicable collective agreements.

Working hours & overtime

The standard workweek in Tunisia is typically 40 or 48 hours. The workday is usually eight hours.

Work performed beyond the standard hours is considered overtime. The total work time, including overtime, cannot exceed 10 hours per day or 60 hours per week.

Overtime pay is calculated as a percentage of the employee's regular wage:

Public & regional holidays

Tunisia observes a mix of secular and Islamic holidays. Business operations generally pause on these days. The dates for Islamic holidays change annually as they follow the lunar calendar.

Public Holidays:

• New Year's Day (January 1)
• Independence Day (March 20)
• Martyrs' Day (April 9)
• Labour Day (May 1)
• Republic Day (July 25)
• Women's Day (August 13)
• Evacuation Day (October 15)
• Revolution and Youth Day (December 17)

Religious Holidays (dates vary):

• Eid al-Fitr
• Eid al-Adha
• Islamic New Year (Hegire)
• The Prophet's Birthday (Mawlid)

Hiring contractors in Tunisia

Hiring independent contractors can offer flexibility and access to specialized skills. However, a 2025 law has made it much harder and riskier. The law criminalized subcontracting for permanent, core business tasks, aiming to stop companies from using contractors to avoid providing full employment rights.

This makes correctly classifying workers more important than ever. Misclassifying an employee as an independent contractor can lead to serious penalties. Authorities will look at the actual working relationship, not just the contract. They check who controls the work, who provides the tools, and how integrated the person is into your company.

An Employer of Record (EOR) helps you avoid these risks. We hire employees on your behalf, ensuring they are classified correctly under Tunisian law. This lets you access Tunisian talent without the legal and administrative burden of misclassification. We handle the compliant contracts, payroll, and benefits, so you can focus on managing your team and growing your business.

Navigating compensation and payroll in Tunisia requires a clear understanding of the local rules. You need to follow specific laws to ensure you pay your employees correctly and on time. This involves everything from running payroll to handling taxes and social security. Staying compliant is key to building a strong relationship with your employees and avoiding legal issues.

Payroll cycles & wage structure

In Tunisia, you can pay your employees either weekly or monthly. The country's currency is the Tunisian Dinar (TND).

Tunisia does not have a single national minimum wage. Instead, the minimum wage varies by sector. For industrial jobs, the minimum wage is based on a 40-hour or 48-hour workweek. Agricultural workers have a daily minimum wage and may also receive transportation and family allowances.

Overtime & minimums

The standard workweek in Tunisia is typically 40 or 48 hours, depending on the industry. Any hours worked beyond this are considered overtime. Overtime work must be paid at a higher rate.

Employer taxes and contributions

As an employer in Tunisia, you are responsible for making several contributions on behalf of your employees. These are calculated as a percentage of an employee's gross salary. The main contribution goes to the National Social Security Fund (CNSS), which covers pensions, healthcare, and workplace injury benefits.

Employee taxes and deductions

Employees in Tunisia also contribute to social security from their gross salary. In addition to social security, they pay income tax. Income tax is progressive, with rates ranging from 0% to 35% based on income level.

In Tunisia, providing competitive benefits and understanding leave policies is key to attracting and retaining talent. The Tunisian Labor Code sets the foundation for mandatory benefits, ensuring employees receive fair treatment. This includes paid time off, parental leave, and social security coverage. Going beyond the minimums can help you stand out as an employer of choice.

Statutory Leave

Here's a breakdown of the legally required leave entitlements in Tunisia:

• Annual Leave: Employees are entitled to one day of paid leave for each month of service. This totals 12 working days per year. The entitlement increases by one day for every five years of service with the same employer.
• Sick Leave: If an employee is sick, they must provide a medical certificate within 48 hours. After the first five days, sick leave is paid at 66.7% of the employee's average daily wage through the social security system.
• Maternity Leave: Female employees receive 30 days of maternity leave, which is paid for by the social security fund. This can be extended by 15 days in case of complications.
• Paternity Leave: New fathers are entitled to one paid day off, to be taken within the first seven days of the child's birth.

Public Holidays

Tunisia observes several national and religious public holidays. Employees are entitled to a paid day off for these holidays.

Please note that the dates for Islamic holidays are tentative and may vary based on moon sightings.

Typical Supplemental Benefits

While the law mandates certain benefits, many employers offer additional perks to stay competitive.

How an EOR Can Help with Setting Up Benefits

Navigating a new country's labor laws and benefits landscape can be complex. An Employer of Record (EOR) simplifies this process for you.

An EOR helps you:

• Ensure Compliance: We make sure your benefits packages meet all of Tunisia's legal requirements.
• Save Time: You avoid the lengthy process of setting up a legal entity in the country.
• Offer Competitive Packages: We provide insights into local market expectations, helping you attract top talent.
• Manage Administration: We handle the day-to-day tasks of payroll and benefits administration.

By partnering with an EOR, you can confidently hire and support employees in Tunisia while you focus on your business goals.

Ending a working relationship in Tunisia requires you to follow specific legal steps. You must handle termination and offboarding carefully to comply with local labor laws. The process involves set notice periods, potential severance payments, and clear documentation. Failing to follow these rules can lead to legal issues and extra costs.

Notice periods

When you end an employment contract in Tunisia, you must provide a written notice period. The standard notice period is one month. This applies to all employee categories unless a collective or individual agreement specifies a longer period. You must state the reasons for termination in the notice letter.

Severance pay

Employees in Tunisia are entitled to severance pay unless they are terminated for disciplinary reasons or misconduct. If an employee is dismissed for economic reasons or without just cause, severance pay is required.

There are a couple of ways severance pay is calculated:

• One common calculation is one month's salary for each year of service.
• Another calculation is one day's pay for each month of employment, with a maximum of three months' pay.

How Rivermate handles compliant exits

Navigating employee exits in a different country can be complex. We make sure every step of the offboarding process is compliant with Tunisian law.

Here’s how we handle it:

• Legal Compliance: We manage the entire termination process according to Tunisian labor laws. This includes ensuring the reason for termination is legally valid.
• Documentation: We prepare and handle all necessary documents, like termination notices.
• Final Payments: We calculate and process all final payments, including any required severance and pay for unused leave.
• Dispute Resolution: If any disagreements arise, we manage the resolution process to ensure everything is handled correctly under local law.

We stay up to date on any changes to labor laws in Tunisia so you don’t have to. We handle the complexities of offboarding so you can focus on your business.

Navigating visas and work permits in Tunisia requires a clear understanding of the local rules. The process is manageable, but you need to follow the steps carefully. Tunisian immigration laws are known for being restrictive, so it's important to get it right. Work permits are generally only approved when there's a demonstrated lack of qualified Tunisian candidates for a specific job.

For anyone planning to work in Tunisia for more than 90 days, a long-stay visa and a work permit are necessary. Upon arrival, you'll also need to apply for a temporary residence permit. It's a multi-step process, and your employer plays a key role in sponsoring your application.

Employment visas & sponsorship realities

An Employer of Record (EOR) can be a practical solution for hiring in Tunisia. They can legally employ workers on your behalf, which means they can also sponsor work permits for foreign employees. This removes the need for you to set up a local entity to handle hiring and immigration.

Here's a breakdown of what an EOR can typically do and where the limitations are:

• What an EOR can sponsor: An EOR can sponsor a foreign worker for a position as long as all legal requirements are met. This includes situations where a company needs to hire international talent and can justify the hire to the Tunisian authorities. The EOR manages the application process, payroll, taxes, and ensures compliance with local labor laws.

• What an EOR likely can't sponsor: An EOR is bound by the same immigration laws as any other local employer. This means they cannot sponsor a work permit if the role can be filled by a qualified Tunisian citizen. The government's approval is essential. Independent contractors are also not eligible for employer-sponsored work permits.

The most common route for foreign workers is to secure a job offer from a company in Tunisia. The employer then needs to get the employment contract approved by the Ministry of Employment before applying for the work permit.

Here are the typical documents required for a work permit application:

Business travel compliance

For short-term visits, the rules are more straightforward. Many nationalities, including citizens of the United States and the European Union, can enter Tunisia for up to 90 days without a visa for business purposes.

These short stays allow for activities like:

• Attending business meetings and conferences.
• Negotiating contracts.
• Participating in short-term training.

It's important to remember that a short-stay or business visa does not permit you to take on paid employment in Tunisia. If you are traveling for business, be prepared to provide documents that support the purpose of your visit, such as a letter of invitation from a Tunisian company.

Always check the latest visa requirements for your specific nationality before you travel. Visa policies can change, and it's best to have the most current information.