New regime on social protection for old age

Presidential Decree No. 299/20, of 23 November 2020, which defines the conditions for the entitlement of retirement and early-retirement pension and old-age allowance, was approved and came into force immediately. The new regime essentially maintains the qualifying periods, the length of service to be considered, as well as the calculation formulas for each allowance. There are, however, modifications on the exclusion of foreign employees, as well as on the calculation formula of the retirement pension and old-age allowance.

New social security regime for employees engaged in low-income activities

Presidential Decree No. 295/20, of 18 November 2020 approved a social security regime specific to employees engaged in low-income activities. The new regime introduces special contribution rates of only 4% for the employer and 1.5% for the employees, to be levied on all elements of pay, thus corresponding to only 50% of the respective general contribution rates. For the purposes of this statute, low-income activities are the ones carried out by agriculture, fishing, and commercial companies, in which the average monthly salary of the total workforce does not exceed 20 times the national statutory minimum salary for the agriculture sector, set at AOA 21,454.10 at the time of writing.

Creation of working group to propose measures on remuneration system in the oil sector

The Minister of Public Administration, Employment and Social Security, jointly with the Minister of Mineral Resources, Petroleum and Gas ("MIREMPEG"), approved Order No. 1903/20, of 24 April 2020, by means of which a working group was created with the purpose of analysing the remuneration systems currently practiced in the oil sector and proposing measures that would provide stability and equality and guarantee social peace within the industry's companies. The working group had sixty days to present a report on its activity to MIREMPEG.

KEY DEVELOPMENTS FOR 2020

Significant changes to immigration laws

New Regulations regarding the entry, exit, stay and residence of foreign citizens in Angola came into force on 8 June 2020. The new regime (approved by Presidential Decree No. 163/20, of 8 June 2020) introduces significant changes to the Angolan migration legal landscape, including clarification on the validity period of work visas, evidence required to ensure employers' compliance with the 70/30 quota before hiring any foreign non-residents and more restrictive rules regarding the grant of investor visas.

Increase in employment litigation

As a result of the global financial crisis, the unprecedented reduction in the price of oil, and the COVID-19 pandemic, companies have had no alternative but to carry out individual and collective redundancy processes. It is likely that such dismissals will lead to a substantial increase in employment litigation in Angola, particularly in light of new legislation that has been approved by the Government in connection with the COVID-19 outbreak.

KEY DEVELOPMENTS FOR 2019

Simplification of tourist visas

Nationals of the Republics of Botswana, Mauritius, Seychelles, Zimbabwe and Singapore are no longer required to hold a tourist visa when entering Angola for stays of up to 30 days per entrance and 90 days per year.

Nationals of other African countries, as well as those from America, Asia, Europe, and Oceania also benefit from a simplified regime as visa applications can now be submitted online through the official portal of the Angola Migration Services and will be issued within three business days.

Significant broadening of basis for social security contributions

A new Legal Framework for the Compulsory Social Protection Contribution (Presidential Decree No. 227/18, of 27 September 2018) came into force on 26 December 2018. The new framework significantly broadens the basis for the levying of contributions to the Social Security system. As a rule, this means that base salaries and other remuneration complements are subject to contributions to the Social Security system.

New public holidays

The Law on National and Local Holidays and Dates of National Celebration has been amended by Law No. 11/18, which came into force on 28 September 2018. This law introduced a new holiday on 23 March and a new day of national celebration on 15 January.