Payroll & Employment Guide Tunisia

Employment contracts in Tunisia are governed by the national Labour Code. Following reforms introduced in 2025, indefinite-term contracts are now the standard form of employment, while fixed-term contracts are permitted only in specific circumstances, such as temporary replacement, seasonal work, or an exceptional increase in workload.

Notice periods: Depend on the circumstances of termination and applicable employment rules.

Termination of employment: After probation, requires a valid reason (such as serious misconduct or economic grounds), with notice; also possible by mutual agreement or force majeure.

Employers in Tunisia must provide statutory employment benefits in line with the country’s labour and social security legislation. Entitlements may also be supplemented by applicable collective agreements, while employers can provide additional benefits to attract and retain talent.

• Mandatory benefits: Social security, healthcare coverage, and statutory leave entitlements.
• Common perks: Private health insurance, meal or transport allowances, and performance-related bonuses.
• Leave policies: Paid annual leave, paid public holidays, sick leave (CNSS benefit after a waiting period), maternity leave, and paternity leave.

Tunisia has a progressive tax system for individuals, with employers responsible for withholding personal income tax and employee social security contributions from salaries. The country also applies VAT to most goods and services, with reduced rates for certain transactions.

Under Tunisian law, a person is a tax resident if they keep their main home in Tunisia, or if they live abroad but spend at least 183 days in Tunisia in a calendar year, whether continuously or across separate stays.

When Tunisia has a Double Taxation Treaty with another country and both countries claim the person as a resident, the treaty decides. It first looks at where the person has a permanent home. If the person has a permanent home in both countries, it looks at where their personal and economic ties are closer. If that is unclear, it looks at where they spend more time, and then at their nationality. If the person holds both nationalities or neither, the two tax authorities settle the question by agreement.

Personal income tax rate: Progressive scale based on annual net taxable income, with eight brackets since 1 January 2025 and rates from 0% to 40%.

Withholding and contributions:

• Dividends: 10% for resident and non-resident individuals
• Interest: Resident individuals: 0% or 20% on interest depending on the instrument; non-residents: 10% or 20% depending on the situation. Since 2026, Tunisian nationals resident in Tunisia can open foreign-currency accounts with authorised banks without prior Central Bank approval, with interest on those accounts taxed at a symbolic 0.01%.
• Capital gains: Property sold after five years is taxed at 10% on the gain and property sold within five years at 15%, for both residents and non-residents, while residents pay 10% on unlisted shares sold after the end of the year following acquisition, 15% if sold earlier, and 10% on listed shares sold before that date, and non-residents pay a 10% withholding tax on the gain, capped at 2.5% of the sale price for individuals, or may instead file an annual return and pay 10% or 15% on the net gain, depending on the holding period, if they realise both gains and losses on shares in the same year.

Tax allowances:

• Professional expenses allowance (salaries): A flat 10% of salary net of social security contributions, capped at 2,000 TND per year.

• Pension and life annuity allowance: 25% of the gross amount, rising to 30% from 1 January 2027, 40% from 2028 and 50% from 2029.

• Employer-provided transport exemption: The value of home-to-work transport for workers (not managerial staff) is exempt from PIT from 1 January 2026, in any sector or location.

• Other exempt income: Social security and social assistance benefits, unemployment indemnities within legal limits, and justified job-related special allowances are exempt from PIT.

Personal deductions (Salary):

• Head of family allowance: 300 TND.

• Dependent children allowance: 100 TND for each of the first four dependent children (under 20 at the start of the tax year, with no separate taxable income), and 2,000 TND for a child with a disability, regardless of age or birth order.

• Dependent parents allowance: Up to 5% of taxable income, capped at 450 TND per parent, provided the parent’s income plus the deduction does not exceed twice the minimum wage.

• Education expenses allowance: 1,000 TND per child in higher education, if the child is under 25 at the start of the tax year and has no scholarship.

• Life insurance premiums allowance: Deductible up to 100,000 TND, subject to a minimum tax payment of 45% of the tax calculated before the deduction.

• Home savings contract interest: Exempt from personal income tax.

• Donations allowance: Cash donations to the State, local authorities, public enterprises, and listed social, cultural and small sports associations are deductible (extended by the Finance Law 2026, from 2025 income), with a detailed statement and proof of payment attached to the return.

Employers in Tunisia are responsible for calculating employee salaries, withholding applicable income tax and social security contributions, and completing the required payroll declarations. For private-sector employees, salaries and related benefits generally form the basis for social security contributions.

Salary payment deadline: As agreed in the employment contract and applicable employment rules.

Taxes payment deadline: Monthly tax returns are generally due by the 28th of the following month, or the 20th when filed electronically.

Social solidarity contribution (SSC): 0.5% for 2026 income, applying to all employees taxed under the personal income tax (PIT) scale, except those with annual net income up to TND 5,000. From 1 January 2027, the rate rises to 1% of net income, unless the Finance Law 2027 changes it.

Social security contributions deadline: Generally quarterly, by the 15th of the month following the end of the quarter, with different deadlines applying to certain businesses.

Payroll currency: Tunisian dinar (TND).

Tunisia’s employment framework is primarily governed by the Labour Code, alongside sector-specific collective agreements and social security regulations.

Total employment cost:

• Employer’s social security contributions: 17.07%
• Employee’s social security contributions: 9.68%
• Employer’s work accident and occupational disease contribution: 0.4%-4%, depending on the activity

Minimum wage: TND 554.736/month for a 48-hour week or TND 470.251/month for a 40-hour week.

Probation period: Up to six months, renewable once for the same duration.

Using EOR services in Tunisia allows you to legally employ individuals in the country without opening legal entities there. The EOR takes over all the legal responsibilities as an official employer, including:

• Legal employment and contracts
• Payroll processing
• Tax withholding
• Benefits administration
• Onboarding/offboarding employees

Using PEO services in Tunisia provides HR and administrative support, while you remain the legal employer. PEO services are ideal for employers who already have legal entities in Tunisia but need support to manage their workforce operations, including:

• HR support and workforce administration
• Payroll and benefits management
• Compliance and local labour law guidance
• Employment contracts assistance

Native Teams provides a payroll calculator adjusted per Tunisia’s labour laws. Using our calculator, you can easily estimate net and gross salaries, employer/employee contributions, and other mandatory deductions in the country.