Guide
Minimum wage, overtime and bonuses
We accurately calculate the minimum wage, all statutory salary increases, and bonuses, with the correct tax treatment and filings.
The minimum price of labor is the lowest amount an employer may pay for one working hour, and the employee's monthly minimum wage is calculated from it. Beyond the base salary, the Labor Law prescribes mandatory increases for overtime, night work, work on public holidays, and years of service with the employer (past-service pay), while bonuses and rewards are paid at the employer's discretion. All of these payments, including bonuses, are treated as salary and are subject to tax and contributions. That is why every element of pay must be calculated correctly, since both the employee's rights and the accuracy of your tax filings depend on it.
What you should know
- The minimum price of labor is set by the Social and Economic Council, and if it fails to agree, by the Government, once a year as a net amount per working hour; for 2026 it is 371 dinars net per working hour and applies from January 1.
- The monthly minimum wage is not a fixed amount but is obtained by multiplying the minimum price of labor by the number of working hours in that month, so the minimum wage varies from month to month depending on the number of working days.
- The Labor Law prescribes mandatory salary increases: at least 26% for overtime, at least 26% for night work (if such work has not already been valued in the base salary), at least 110% for work on a public holiday, and at least 0.4% for each completed year of service with the employer (past-service pay).
- The increases are calculated on the base set by the company's general act and the employment contract, and if grounds for several increases are met at once (for example night work and overtime), the increase cannot be lower than the sum of the percentages for each ground.
- Bonuses, incentives, and work rewards are treated as salary and are taxed like regular pay, with the 10% salary tax and the corresponding contributions, so they also enter the base for calculating future entitlements.
- Some payments are not treated as salary (for example a retirement severance, solidarity aid, or a gift to children up to the prescribed non-taxable amount) and have a special, more favorable tax treatment, so they should be clearly distinguished from bonuses.
How we handle it
- 01 Review of contracts and rulebooks We review employment contracts and the work rulebook to determine the salary base, agreed increases, and the right to past-service pay for each employee.
- 02 Minimum wage and hours calculation For employees on the minimum wage we multiply the current minimum price of labor by the working hours in the month and check that the payment does not fall below the legal minimum.
- 03 Calculation of statutory increases We record overtime, night work, and holiday work and calculate the prescribed increases, taking care to sum the percentages when grounds overlap.
- 04 Including bonuses and rewards We correctly classify bonuses, incentives, and rewards as salary and apply tax and contributions to them, while handling non-taxable payments under their separate regime.
- 05 Tax filing and payment orders We prepare and electronically submit the PPP-PD return to the Tax Administration before each payment and prepare orders to pay salaries, increases, bonuses, taxes, and contributions.
- 06 Records and payslips We keep records of hours and payments and issue employees clear payslips in which each element of the salary is shown separately.
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