Labor Law Compliance Guide for Tunisia

Tunisia's nominal GDP reached approximately USD 59 billion in 2025, with GDP growth of 2.5% and a 2026 forecast of 2.1–2.4% (IMF/World Bank). An estimated 32% of economic activity occurs in the informal sector.

Category	Details
Minimum Wage (SMIG 48h)	TND 528.32/month
Minimum Wage (SMIG 40h)	TND 448.24/month
Minimum Wage (SMAG, agricultural)	TND 20.318/day
Overtime Wage (48h workers)	175% of regular wage
Overtime Wage (40h workers)	125% for hours 40–48; 150% beyond 48h
Working Hours	8 hours/day, 48 hours/week (max 60h including OT)
Night Shift Premium	150% of regular wage
Salary Payment Cycle	Monthly
Payroll Taxes (Employer)	CNSS 17.07% + Unemployment 0.5% + CAVIS 6.0%
Payroll Taxes (Employee)	CNSS 9.68% + Unemployment 0.5% + CAVIS 3.0%
Paid Vacation	12 working days (plus seniority-based additions)
Overtime Hours	More than 48 hours/week
Holidays	12 national holidays (9 paid non-working days)
No Work Days	Sunday for most sectors
Minimum Wage	Tunisia's national minimum wage (SMIG) is TND 528.32/month for a 48-hour workweek and TND 448.24/month for a 40-hour workweek as of 2025. The agricultural minimum wage (SMAG) is TND 20.318/day.

The country's economy is supported by diverse sectors, including agriculture, manufacturing (particularly textiles and apparel), tourism, and services. The manufacturing sector plays a crucial role, with a significant portion of exports being derived from this industry. Agriculture, particularly olive oil production, also contributes notably to the economy.

Tunisia's currency is the Tunisian dinar (TND).

Hiring Laws

Businesses in Tunisia must register with the Commercial Registry to hire workers and operate legally. The cost of setting up a business entity varies depending on the type of entity, but typically ranges from TND 1,000 to TND 5,000. The process of incorporation can take between 2 to 4 weeks. Employment contracts must be in writing and include key clauses such as the job description, salary, working hours, and termination conditions. Tunisian labor laws distinguish between employees and contractors, with specific guidelines governing each category.

Under the 2025 Labor Code Reform (Law No. 9 of 2025), open-ended contracts (CDI) are now the default. Fixed-term contracts (CDD) are restricted to specific circumstances such as temporary workload increases or replacing absent workers. Subcontracting is prohibited, with fines of TND 10,000 for violations. The maximum probation period is 6 months, renewable once.

However, specific sectors such as domestic work and agriculture may have different wage structures. Employers are also required to provide holiday pay for public holidays.

Working Hours

Standard working hours in Tunisia are 8 hours per day and 48 hours per week, with some sectors using 40h or 44h schedules. The daily maximum including overtime is 10 hours, and the weekly maximum including overtime is 60 hours. For 48h/week workers, overtime is compensated at 175% of the regular wage. For 40h/week workers, hours 40–48 are paid at 125% and hours beyond 48 at 150%.

Night shifts are compensated at a premium of 150% of the regular wage.

The minimum legal working age is 16 years, and Tunisia has strict laws against child labor.

Payroll and Taxes

Employers in Tunisia must make the following payroll deductions:

Contribution	Employee	Employer
Main CNSS	9.68%	17.07%
Unemployment Insurance (new 2025)	0.5%	0.5%
CAVIS (complementary retirement)	3.0%	6.0%
Total	~13.18%	~23.57%

CAVIS applies to workers earning above 6x SMIG (TND 3,048/month threshold in 2025). A Social Solidarity Contribution (CSS) of 0.5% has been extended through FY2026.

Income Tax Rates (IRPP) — 2025 Finance Law

Annual Taxable Income (TND)	Tax Rate
0–5,000	0%
5,001–10,000	15%
10,001–20,000	25%
20,001–30,000	30%
30,001–40,000	33%
40,001–50,000	36%
50,001–70,000	38%
Above 70,000	40%

Statutory Leave Policies

Tunisia mandates the following leave policies:

• Paid Vacation: 12 working days per year, with additional days granted based on seniority.

• Maternity Leave: 30 days of paid leave, with an option for an additional 15 days of unpaid leave.

• Paternity Leave: 1 day of paid leave.

• Sick Leave: Paid sick leave is available, subject to medical certification.

• Public Holidays: 12 national holidays (9 paid non-working days).

Public Holidays (2026)

Holiday	Date
New Year's Day	January 1 (Thu)
Independence Day	March 20 (Fri)
Eid al-Fitr*	March 21–22 (Sat–Sun)
Martyrs' Day	April 9 (Thu)
Labour Day	May 1 (Fri)
Eid al-Adha*	May 27–28 (Wed–Thu)
Islamic New Year (Hegira)*	June 16 (Tue)
Republic Day	July 25 (Sat)
Women's Day	August 13 (Thu)
Mouled (Prophet's Birthday)*	August 25 (Tue)
Evacuation Day	October 15 (Thu)

*Islamic holiday dates are approximate and depend on moon sighting.

Employee Benefits

Tunisia requires employers to provide the following benefits:

• Social Security: Employers must contribute to the employee's social security, which covers healthcare, pensions, and family allowances.

• Health Benefits: Through the national social security system, employees have access to healthcare services.

• Retirement Benefits: Pension contributions are mandatory for both employers and employees.

• Annual Bonuses: Some industries and sectors offer performance-based bonuses.

Employee Termination

Tunisia does not adhere to "At Will" employment laws. Employment termination must be justified by valid reasons such as misconduct, redundancy, or inability to perform duties.

The law requires employers to provide notice periods ranging from 1 to 3 months, depending on the employee's length of service. Severance pay is mandatory for employees who have completed at least one year of service, and the amount varies based on years of service.

Employees have the right to contest wrongful termination through labor courts, and unions play an active role in protecting workers' rights.

Termination is legally permitted under conditions such as economic downturns, company restructuring, or serious employee misconduct.