The official name of Libya is the “State of Libya” (Dawlat Libya) and its capital and largest city is Tripoli.
Payroll and Benefits Guide - Libya
Fun Facts
Libya has a rich historical heritage, with evidence of human presence dating back thousands of years.
The Libyan flag colors represent the three historical regions of Libya, and the crescent and star are traditional symbols of Islam.
The Sahara Desert in southern Libya is the largest hot desert in the world.
Libya has a diverse population with Arab-Berber groups forming the majority.
Libya is one of the largest oil-producing countries in Africa.
Contributions
Employee Payroll Tax
| Contribution Type | Rate |
| Social Security | 3.75% |
| Social Unity Fund | 1.00% |
Employer Payroll Tax
| Contribution Type | Rate |
| Social Security | 10.50% |
Payroll
Payroll Cycle
Employees are paid at least once every month in Libya, where the payroll cycle is typically monthly.
13th Salary
A 13th-month wage does not appear in the law at all.
Work Hours and Week
48 hours a week, or 10 hours per day, are considered standard working hours in Libya.
Overtime
Any work done in excess of the required 48 hours per week must be compensated as overtime and be in accordance with the employment contract, collective bargaining agreements, etc. Generally speaking, the daily maximum for overtime is fixed at 3 hours, and it is compensated at a rate of 150.00% of the hourly rate.
Leave
Paid Time Off
In Libya, each year’s leave entitlement is 30 paid working days. For workers who have been continuously employed for at least 20 years and are 59 years of age or older, the right to paid leave can grow to 45 working days.
Public Holidays
The local government frequently chooses to designate a weekday as a day off in place of official holidays that fall on weekends.
The lunar cycle governs the religious festivals, which will be confirmed closer to the celebration.
Sick Days
The employee’s seniority determines whether they are eligible for paid sick leave. Employees who are ill for one continuous workweek are entitled for 45 days of sick leave, whereas those who are not ill for one such workweek are eligible for 60 days of sick leave annually.
The employee must provide a legitimate medical certificate in order to be eligible for sick leave.
Maternity Leave
Employees who are female are eligible to a 14-week maternity leave, which can be taken six weeks before the expected due date and eight weeks after the baby is born. The leave entitlement is enhanced to 16 weeks of leave in cases of multiple births or problematic deliveries.
Paternity Leave
In Libya, there are no legal provisions for paternity leave.
Parental Leave
In Libya, there are no legal provisions for parental leave.
Termination
Termination Process
A fixed-term employment agreement may be terminated by the employer for any of the following reasons: business, personal, or employee misbehavior. It necessitates notification and a justification for the termination in writing. A warning must be delivered and the employee is given the chance to defend their actions if the cause is misbehavior.
For the following reasons, an employer may end an employment contract:
- Contract expiration
- Medical conditions that would make it impossible for the employee to perform their tasks.
- Verdict for a crime
- A letter of resignation or termination must be submitted to the other party in the event that either the employee or employer initiates the termination.
Brazil follows the usual termination procedure, with notice periods necessary unless an employer can demonstrate good cause for removal without notice.
The employer is required to give a certificate that says the following at the conclusion of the work term:
- Dates that the employment will begin and terminate.
- The nature of the task done.
- Salary details are optional.
- Additional advantages obtained (optional)
Notice Period
In Libya, the standard notice period is 30 days for both the employee and the employer.
If an employee’s employment contract has been terminated due to their failure to fulfill their obligations, the employer misrepresenting their identity, financial loss as a result of their errors, or their failure to follow safety instructions, a notice period is necessary.
Considering an employee who missed more than 20 days of work in a calendar year or more than 10 days in a row in a single period as an example. If this occurs, a written warning must be given before termination on the 10th absence day of the year or the fifth consecutive day.
Severance Pay
For Libyan natives, severance pay is not necessary; for ex-patriates, it is. For each year of employment up to five years, ex-patriates are entitled to half of one year’s wage.
Probation Period
Probation Period
In Libya, the probationary period lasts usually six months.
Immigration
Few nations are free from the rigorous visa requirements that Libya has become notorious for. The only citizens who can enter and remain without a visa are those of Algeria, Jordan, Mauritania, Morocco, Syria, Tunisia, and Turkey.
Jordanians are permitted a 30-day stay in Libya, but Turkish nationals may stay for up to three months. All other foreigners must apply for visas at the Libyan diplomatic mission that is closest to them.
Foreign citizens who want to work in Libya must get a Libyan work visa; it is forbidden to work there without one.
You need a letter of invitation from a business that conducts business in Libya or sponsorship in order to obtain a business visa for Libya. The Libyan Work Department is where the employer must start the application procedure for a work visa.
Once inside Libya, the original work visa can be extended or renewed for another three months.
VAT
Libya does not have a standard VAT rate.