Afghanistan

Afghanistan has a nominal GDP of $21.7 billion and has a GDP per capita of $2024 on the basis of purchasing power parity.  Agriculture and mining are significant sources of income for most of the people of Afghanistan.

Major economic hubs:

Kabul, Kandahar, Herat, Jalalabad (Major Cities)

Skills in demand :

Construction Skills, Agriculture Skills

Afghanistan offers excellent potential for employers as it helps establish low-cost branches to gain access to its market. Learn more about the employment laws and regulations in Afghanistan below.

Employee Contract

Pashto and Dari are the common languages in use. Dari was previously used for government communications. Now with the Taliban in power, Pashto is promoted for official usage.

Probation Period

The probationary period for employees in Afghanistan is up to three months.

General Components of Salary Package in Afghanistan

Salaries are one way companies recognize and reward their employees for working hard. Salaries may include both monetary benefits like pay rates, bonuses or profit sharing agreements as well as non-monetary rewards such as health care plans with no deductibles that come straight out of your paycheck every month.

In Afghanistan, the Salary Package can be included in:

The employee is entitled to certain leaves under law. The following are some of these statutular rights and benefits as provided by Afghan authorities;

Resident Tax Brackets

There is a single, standard rate of personal income tax in Afghanistan that applies to both residents and non-residents.

Social Security

The employer has a responsibility to contribute 50% of the employees salary for social security.

Statutory Benefits

In Afghanistan, the government provides employees with several benefits. These include things such as healthcare and retirement plans through their employment contracts- it's not optional.

• Education Allowance: This benefit ensures that the employee is compensated for educational purposes.

• Food Allowance: This ensures that the employee is benefitted with food compensation as per the market rates.

• Healthcare Insurances: This social security benefit provides compensational benefits to the employee for healthcare purposes.

• Paid Leaves: The employer must provide the employee with statutory paid leaves.

Fringe Benefits

In Afghanistan, fringes benefits are given to employees. These can be either monetary or non-monetary depending on the business requirements and budgets set for providing them as well as what goals one might want their company reach through this practice of offering perks that help attract quality staff members who will work hard towards achieving those objectives.

Commonly provided fringe benefits include:

• Food Allowance
• Transportations
• Work equipment
• Travel Allowances
• Wage for work stoppage
• Medical Services
• Financial Aid

Exempt Benefits

No specific requirements on Exempt Benefits.

Long-term Incentives

No specific requirements on Long-Term Incentives.

Termination Process

Termination of employment may occur in the following situations:

• Mutual agreement
• Completion of fixed-term contract
• Retirement
• Demise
• Disability affecting the performance of work
• Reduction in staff by employer
• Imprisonment
• Breach of disciplinary rules
• Refusal to work after reassignment
• Unsatisfactory probation performance

Notice Period

As per mutual discussion between the employer and the employee, and the labor code of the country.

Severance Pay

Severance pay in Afghanistan is mandatory and payable based on the duration of the service as follows: