Table of Contents

Afghanistan

Table of Contents

Currency

Afghan Afghani (AFN)

Payroll Frequency

Monthly

Employer Taxes

20%-22%

About Afghanistan

Afghanistan, a landlocked country in South Asia, had a population of 34.66 million as of 2016. It is bordered by Iran in the West, Pakistan in the South and East, China in the far northeast, and Turkmenistan, Tajikistan, and Uzbekistan in the north. In terms of agricultural production, Afghanistan is known for producing some of the highest quality fruits like grapes, mulberries, melons, apricots, and pomegranates. Agriculture contributes a lot to their economy with an annual fruit and nut export valued at $500 million in 2014. Afghanistan also had a GDP (purchasing power parity) of $69.55 billion in 2017.

Afghan culture has existed since the time of Achaemenes and their official languages are Pashto and Dari. Islam is the main religion, accounting for 99.7% of the country’s population. Sunni Islam is practiced by 90% of Afghanistan’s population while the remaining are Shias. The country also has a deep culture of poetry appreciation. Unfortunately, Afghanistan has not experienced the peace or stability necessary for business investment since the invasions by the Soviet Union in the 1980s, followed by the United States in the 2000s. Currently, the country continues to fight extremist elements like the Al Qaeda and the Taliban.

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Employment Relationship

• Permanent Employment

The labor code of Afghanistan does not define permanent employees. The distinction between permanent employees and contractual employees can be made in terms of their service contracts. Contractual employees have employment contracts for a particular term, whereas permanent employees are recruited with an employment contract specifying a particular role for an indefinite period.

• Fixed-Term or Specific-Purpose Contracts

The labor law of Afghanistan makes it mandatory to conclude written contracts of employment for a definite or indefinite period. Employment agreements for employees below 18 years of age are required to be signed by their legal representatives. After the employment contract is signed, a copy must be submitted to the Ministry of Labor, Social Affairs, Martyrs and Disabled.

• Temporary Employment Contratcs

The labor law of Afghanistan does not have a provision for temporary employment contracts.

Probationary Period

In Afghanistan, the labor code states that the employment contract can include a probationary period with an agreement of both the employee and the employer. A probationary period cannot exceed 3 months.

Working Hours

According to the labor law of Afghanistan, the regular working hours cannot exceed 40 hours per week on average. For young employees between the ages of 15 and 18 years and pregnant employees, the working hours are reduced to 35 hours per week, and for employees working in hazardous jobs, the working hours are 30 hours per week. Any work performed in excess of the regular working hours is considered overtime. Overtime hours cannot exceed the normal working hours in a day. The regular working hours for daily wage workers (those hired without a written employment contract) cannot exceed 8 hours per day.

Holidays / PTO

• Statutory Holidays

2026

  • February 15 - Liberation Day
  • February 18 - First Day of Ramadan
  • March 20 - Eid al-Fitr
  • March 21 - Eid al-Fitr Holiday
  • March 22 - Eid al-Fitr Holiday
  • April 28 - Afghan Victory Day
  • May 1 - Labor Day
  • May 26 - Day of Arafat
  • May 27 - Eid al-Qurban
  • May 28 - Eid al-Qurban Holiday
  • May 29 - Eid al-Qurban Holiday
  • June 26 - Ashura
  • August 19 - Independence Day (National Day)
  • August 26 - The Prophet's Birthday
  • August 31 - Anniversary of the Withdrawal of Foreign Troops
  • September 9 - Martyrs and Ahmad Shah Masoud Day

2027

  • February 8 - First Day of Ramadan
  • February 15 - Liberation Day
  • March 10 - Eid al-Fitr
  • March 11 - Eid al-Fitr Holiday
  • March 12 - Eid al-Fitr Holiday
  • April 28 - Afghan Victory Day
  • May 1 - Labor Day
  • May 16 - Day of Arafat
  • May 17 - Eid al-Qurban
  • May 18 - Eid al-Qurban Holiday
  • May 19 - Eid al-Qurban Holiday
  • June 15 - Ashura
  • August 15 - The Prophet's Birthday
  • August 19 - Independence Day (National Day)
  • August 31 - Anniversary of the Withdrawal of Foreign Troops
  • September 9 - Martyrs and Ahmad Shah Masoud Day

• Paid Annual Leave

Employees are entitled to 20 days of paid annual leave. For employees below 18 years of age, the annual leave is for 25 days, and for employees working in underground or hazardous conditions, the annual leave is set at 30 days.

• Sick Leave

Employees are entitled to 20 days of paid sick leave. If an employee is sick for more than 5 days, he or she is required to submit a medical certificate from a doctor. The law also provides that employees can take extra sick leave in lieu of their annual leave, based on a medical certificate issued by a government health center.

• Maternity Leave

The labor code of Afghanistan provides for a paid maternity leave of 90 days to a pregnant employee (30 days before the delivery and 60 days after). An additional 15 days of leave are provided in case of an abnormal delivery or multiple births. Nursing employees and daily workers are entitled to 30-minute breastfeeding breaks every 3 hours. Such breaks are included in the working time.

• Paternity Leave

The labor law of Afghanistan does not offer provisions regarding paternity leave.

Termination of Employment

• Notice Period

The labor law of Afghanistan requires the employee to provide written notice for termination of the contract at least one month in advance. The employer must give written notice of dismissal at least 1 month in advance.

• Severance Benefits

In Afghanistan, severance benefits depend on the time for which the employee has worked for the employer. The labor code requires the employer to pay severance benefits to employees in the following circumstances: Employment contracts have been terminated because of cessation of work for more than 6 months. Reduction in the number of staff Conviction of the employee in a criminal case The employee refuses to join after his reappointment.

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