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.

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 Afghan labor code allows for fixed-term employment agreements, provided the duration of employment is stated in the written contract of employment. The fixed-term contract is made for one year but can be extended with the agreement of both parties.

• 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 three 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 age 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.

Holidays / PTO

• Statutory Holidays

The labor code of Afghanistan provides the following paid public holidays (the dates are subject to change every year, based on the lunar cycle): First day of the Afghan new year (Nawruz) The twenty-eighth day of Asad (The Independence Day of Afghanistan) The eighth day of Sawr (Victory of the Islamic Revolution of Afghanistan) The first day of Ramadan 3 days of Eid-al-Fitr Four days of Eid-al-Adha and Arafat (three days of Eid and one day of Arafat) The twelfth day of Rabi al-Awwal, the Holy birthday of Hazrat-e-Muhammad The tenth day of Muharram-ul-Haram​​​​​​​ (the day of Ashura) ) The twenty-sixth day of Dalwa (withdrawal of USSR forces from Afghanistan) Any other days announced as public holidays by the Islamic Republic of Afghanistan

• 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). Additional 15 days of leave are provided in case of an abnormal delivery or multiple births.

• 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 one 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 six months. Reduction in the number of staff Conviction of the employee in a criminal case The employee refuses to join after his reappointment.