Foreign workers need both a valid work visa and residence/work permit to legally work in Tunisia. These must be sponsored by the employer and supported by documentation like a job contract, identity proof, professional qualifications, and employer registration. Permit durations typically range between one to several years, depending on the type. Processing times and auto-renewal options vary by permit category.

Tunisia operates on a monthly payroll cycle, where employers handle income tax withholding and social security contributions. Key contributions include:

• Employer Total Cost: ~20% on top of base salary, covering social security, housing levy, development levy, and work insurance.
• Employee Social Security: Approximately 9%.
• Payslips and payroll records are mandatory, with retention requirements in place. Payroll must be accurate, compliant, and auditable.

Contracts can be written or verbal, though written is advised—especially for fixed-term roles. Probation lengths vary:

• 6 months for operational staff
• 9 months for technical roles
• Up to 1 year for executives

Working hours should not exceed 48 per week or 10 per day; overtime is paid at 125% (typically capped). Notice period is one month, and severance is one day's pay per month of service (capped at three months) unless termination was due to gross misconduct. The 13th-month salary is not mandatory.

Employees benefit from:

• Sick Leave: Requires medical certificate; social security covers up to 180 days.
• Maternity Leave: 30 days paid; additional days may apply for complications.
• Paternity Leave: 1 day paid within the first week post-birth.
• Annual Leave: A minimum of 12 days per year, plus public holidays (typically 15–16 days).
• Severance: One day per month worked, up to a max of three months.

• Tax Year: January to December
• Employment Income: Taxed via PAYE through payroll — usually no annual filing required.
• Residency: Tax residents pay on worldwide income; non-residents are taxed on Tunisian-source income.
• Optional Flat Tax: In some cases, a flat 20% withholding may apply instead of progressive tax computation.