Angola – Recent Amendments affecting payroll

Legal Framework for Mandatory Social Security Protection and Social Security Contributions

Presidential Decree No. 227/18, dated September 27th, 2018, approves the new Legal Framework for Mandatory Social Security Protection and Social Security Contributions, repealing the Decree No. 38/08, dated June 19th. Essentially, the following points stand out within this new regime:

  • Scope:
    • Employers and equivalent entities and employees who are covered by Mandatory Social Protection;
    • Other special regimes that comprise the Mandatory Social Protection.
  • The contribution rate remains set at 8% for the employer and 3% for the employee, of the total remuneration of the employee upon which the contributions are levied.
  • Significant broadening of the basis for Social Security contributions, being considered the total gross amount of allowances of the employee, namely all cash benefits which, according to the legal labour relationship, are owed by the Employers to the employees.
  • The following cash benefits are excluded from Social Security contributions taxable basis:
    • Social benefits paid by the employers within the scope of Mandatory Social Protection (e.g. Family allowance);
    • Vacation allowance.
    • The amounts corresponding to the subscription or participation made by employees and employers of complementary social protection arrangements as foreseen in specific legislation.
    • The amounts corresponding to the subscription or participation made by employees and employers of complementary social protection arrangements as foreseen in specific legislation.
    • The amounts corresponding to the subscription or participation made by employees and employers of complementary social protection arrangements as foreseen in specific legislation.
  • The contributions payment, whether owed by the employer or due by the employee, is responsibility of the employer and should be made through the withholding mechanism, directly upon the employee’s allowances.
  • The deadline for payment of the monthly contributions is maintained (until the 10th day of the following month), and the non-compliance of this deadline is subject to the payment of interests at the rate of 1% per month, upon the initial amount due.
  • This Decree enters into force 90 days after the date of its publication, this is, on December 26th, 2018.