Labor regulation in Tunisia
In Tunisia, the labor market is regulated by the 1966 Labor Code. It guarantees workers, both foreign and nationals, the same rights especially as concerns compensation, protection against discrimination, and the prevention of work-related accidents. The Code also includes provisions on professional training. The Labor Code is in conformity with the relevant international labor standards and international agreements.
Hiring Tunisian staff
Tunisia offers investors an educated workforce capable of being swiftly trained in new techniques and new skills. It has recourse to a large pool of young, highly-qualified new graduates whose skills and qualifications in various fields meet the needs of the business world.
Hiring Tunisians is free and competitive. To recruit staff, a foreign entrepreneur may resort to national support organizations such as The National Agency for Employment and Self Employment (ANETI), the National Bureau of Employment of Graduates and Executives (BNEC) or their regional offices, as well as private hiring consultancies.
Staffing Contract
Permanent contract (pc)
The PC is a common law contract. It is concluded either in writing or verbally for an indefinite term.
The probation or trial period for this type of contract is not obligatory, but varies depending upon the category of the employee as follows:
- 6 months renewable once for technicians/agents
- 9 months renewable once for supervisors; and
- one year renewable once for executives.
Fixed-term contracts (ftc)
This type of contract is concluded for a maximum term of four years, including renewals. Employment beyond this period will be made permanent without a trial period.
Temporary work contract
Recruitment intermediation is a recognized and regulated activity.
This type of contract allows a company to contract employees legally without having to be their employer.
Part time contract (ctp)
PCs or FTCs also can be made part time however; the maximum effective working time for part time contracts may not exceed 70% of the normal working hours of the company.
Incentives for employing Tunisians
To encourage employment, the Tunisian authorities provide additional compensation for the benefit of employees and make subsidies available to employers.
Professional life initiation internship (SIVP)
A Professional Life Initiation Internship can benefit first-time job- seekers of Tunisian nationality who have had their higher education or equivalent diploma for at least 6 months.
The duration of the Professional Life Initiation Internship cannot exceed one year; however, the Minister of Employment may, in exceptional circumstances, extend the period for an additional 6 months within the same host company or authorize a second internship with another company. The overall duration of Professional Life Initiation Internship may in no case exceed 18 months.
Throughout the duration of the contract National Agency for Employment and Self Employment (ANETI) gives the trainee a monthly allowance of 150 TND.
A company cannot have new SIVP trainees unless it has already recruited at least 50% of all trainees who completed their internship during the last three years before filing a new application for inclusion in the program.
The benefit of this program is subject to prior registration of the beneficiary at the Office of Employment and Self Employment and to the signing of Professional Life Initiation Internship contract.
Hiring Foreign personnel
To pursue paid employment in Tunisia, all foreigners must possess an employment contract or a certificate of non-submission to a work contract delivered by the Ministry of Employment and a valid residence permit containing the designation "authorized for salaried employment in Tunisia."
Recruitment of foreigners may not be done when there are Tunisian nationals with the required specializations.
Employment contracts may be concluded for a period not exceeding one year, renewable once. All employment contracts may be renewed more than once if the foreigners are working for their own company in Tunisia and are engaged in development projects approved by the relevant authorities.
Employment contracts and renewals must be approved by the Ministry of Employment. The contract's form and the conditions of its grant and renewal are fixed by an order of the aforementioned Ministry.
Totally exporting businesses may recruit up to four foreign managers and supervisors for each business. Beyond this limit, businesses must comply with a recruitment program pre-approved by the Ministry of Employment.
Upon hire, a foreign worker is entitled to the following:
- the payment of a tax set at 20% of gross income; and
- exemption from customs duty and from taxes concerning the import of personal effects and the import of one automotive vehicle for each person.
Working Conditions (wages)
- The Guaranteed Inter-Professional Minimum Wage (sMIG): 289.639 tnD (40 working hours regime)
- The GuaranteedAgricultural Minimum Wage (sMAG): 13 tnD (hourly wage)
Social Security
Social Security Bodies in Tunisia
- The National Pension and Social Security Fund (CNRPS) responsible for providing coverage to civil servants and public sector employees.
- The National Social Security Fund (CNSS), which provides social security for workers in the private sector (employees and self- employed workers in various sectors).
- The National Health Insurance Fund (CNAM) manages the various schemes of health cover for social security affiliates in the public and private sectors, the provision of sickness benefits as well as compensation schemes for damages resulting from occupational accidents and diseases.
Source: Ministry of Social Affairs www.social.tn
Health insurance
The health insurance plan has a compulsory core and optional
supplementary schemes. It is managed by the National Health Insurance Fund (CNAM).
Management is entrusted to the supplementary pension insurance companies and complementary health insurance schemes.
The contribution rate is set at 6.75%:
• 2.75% paid by the employee;
• 4% paid by the employer.
Bilateral Social Security Agreements
Anxious to coordinate legislation with several countries for the benefit of their nationals who come to Tunisia, Tunisia has concluded bilateral agreements on social security with Belgium, France, The Netherlands, Luxembourg, Germany, Italy, Libya, Morocco, Austria, Egypt, Spain, Algeria, and Portugal. Tunisia also is party to a social security agreement concluded between the states of the Arab Maghreb Union in 1991.
Renowned for its multiculturalism, Tunisia is a country open to the world. Foreigners wishing to live in Tunisia without gainful employment, such as tourists, may stay in Tunisia for 3 months (90 days) or 4 months (120 days) without a permit.
Foreigners wishing to engage in gainful employment require a residence permit (visa and residence permit).
Algeria, Andorra, Antigua, Antilles (Netherlands), Argentinak, Austria, Bahrain, Barbados, Belgium, Bermuda, Bosnia and Herzegovina, Brazil, Brunei, Bulgaria, Canada, Chile, Croatia, Denmark, Dominica, Fiji, Finland, France, Gambia, Germany, Greece, Guinea, Honduras, Hong Kong, Hungary, Iceland, Ireland, Italy, Ivory Coast, Japan, Kiribati, Liechtenstein, Luxembourg, Libya, Macedonia, Malaysia, Maldives, Mali, Malta, Morocco, Niger, Mauritania, Mauritius, Monaco, Netherlands, Oman, Poland, Portugal, Qatar, Romania, Saint Kitts and Nevis, Saint Lucia, San Marino, Senegal, Serbia, Seychelles, Solomon, South Korea, Spain, United Arab Emirates,United Kingdom
A residence visa is required for all foreigners residing in Tunisia for more than 3 consecutive months or 6 non-consecutive months in one year.
Residence visas are divided into two categories:
Temporary residence visa
This visa is granted to foreigners who do not intend to set up permanent residence in Tunisia.
A temporary residence visa valid on a five-year renewable basis also can be granted to foreign investors who have been living in Tunisia for a year or less.
If the foreign national intends to work or begin a project in Tunisia, he/she must obtain authorization before obtaining his/her visa.
Permanent residence vsia
Permanent resident visas are given to foreigners who have been living in Tunisia on a temporary basis for five uninterrupted years and to foreigners with a Tunisian spouse and/or Tunisian children.
Residence permit
The residence permit is normally granted for a period of 2 years on a renewable basis, and must be renewed each time a work contract is renewed. Each renewal may be valid for up to 5 years. The residence permit is granted by the Directorate General of National Security in the Ministry of the Interior.
It includes the foreigner's complete identity, occupation, and place of residence. It is subject to the set stamp duty.