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Payroll and Benefits Guide Libya

Last updated: May 09, 2023

Currency
Libyan Dinar (LYD)
Employer Taxes
Unknown
Payroll Frequency
Monthly
Employee Costs
4.75%
Capital
Tripoli
Date Format
dd/mm/yyyy
Fiscal Year
1 January - 31 December
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Contribution

Employer  Employer Payroll Contributions
 10.50%
Social Security
10.50%                         Total Employment Cost
Employee Employee Payroll Contributions
3.75% Social Security
1.00% Social Unity Fund
4.75% Total Employee Cost
Employee Employee Income Tax *
5.00% Up to 1,000 LYD per month
10.00% Over 1,000 LYD  per month
Jehad Tax
1.00%
If the monthly income does not
exceed 50 LYD per month
2.00%
If the monthly income does not
exceed 100 LYD per month
3.00%
On all monthly income above
100 LYD per month
* Palestinian nationals are subject to an additional 7% income tax

Employer taxes

Highest
Lowest

Employee taxes

Highest
Lowest

Minimum Wage

General

The monthly minimum wage is 450.00 LYD.

MINIMUM WAGE (PER MONTH)

Highest
Lowest

Payroll

Payroll Cycle

The payroll cycle in Libya is generally monthly, and employees are paid at least once a month.

13th Salary

There are no provisions in the law for a 13th-month salary.

Working Hours

General

Standard working hours within Libya are 48 hours per week, 10 hours per day.

Overtime

All work more than the standard 48 hours a week is to be paid as overtime and is regulated by the employment contract or collective agreements etc. In general, maximum limits for overtime are set at 3 hours per day and paid at 150.00% of the standard salary rate.

Leave

Annual Leave (vacation)

The annual leave entitlement in Libya is 30 working days of paid leave. The entitlement can increase to 45 working days of paid leave for employees aged 59+ who have been continuously employed for at least 20 years.

Public Holidays

The local government often decides to move public holidays falling on weekends to a week day as a day off in lieu.

The religious holidays are determined by the lunar cycle and will be confirmed nearer the date of the holiday.

 

Date Day Holiday Note
17 Feb 24 Saturday Libyan Revolution Day
19 Mar 24 Tuesday Commemoration of the Victory over Gaddafi
10 Apr 24 Wednesday Eid al-Fitr Tentative Date
11 Apr 24 Thursday Eid al-Fitr Holiday Tentative Date
12 Apr 24 Friday Eid al-Fitr Holiday Tentative Date
01 May 24 Wednesday May Day
15 Jun 24 Saturday Arafat Day
16 Jun 24 Sunday Eid al-Adha Tentative Date
17 Jun 24 Monday Eid al-Adha Holiday Tentative Date
18 Jun 24 Tuesday Eid al-Adha Holiday Tentative Date
07 Jul 24 Sunday Islamic New Year
15 Sep 24 Sunday Prophet Muhammad’s Birthday Tentative Date
16 Sep 24 Monday Martyrs’ Day
23 Oct 24 Wednesday Liberation Day
24 Dec 24 Tuesday Independence Day

Sick Days

The entitlement of paid sick leave is dependent on the employee’s seniority. Employees who are sick in one continuous period are eligible for 45 days of sickness, while those who are not sick in one continuous period are eligible for 60 days of sick leave per year.
To qualify for sick leave, the employee must present a valid medical certificate.

Maternity Leave

Female employees are entitled to a maternity leave of 14 weeks, six of which are to be taken before the predicted due date and eight weeks after the birth. In multiple or complicated births, the leave entitlement is increased to 16 weeks of leave.

Paternity Leave

There are no provisions in the law for paternity leave.

Parental Leave

There are no provisions in the law for parental leave.

Other Leave

There are no additional statutory leave requirements in Libya.

 

Vacation Days
Public Holidays
Highest
Lowest

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

Termination

Termination Process

Employers can terminate a fix term contract by giving the following reasons – business, personal or worker’s’ misconduct. It requires notice and a written explanation for the termination. If the reason is misconduct, a warning needs to be given and the employee gets a chance to explain his or hers actions.
Employers can terminate an employment agreement for the following reasons:

  • Expiration of a contract
  • Medical reasons that would prevent the employee from fulfilling their duties.
  • Conviction of a crime
  • For termination initiated by either the employee or employer- a letter of resignation or termination must be sent to the other party.

At the end of the employment term, the employer must provide a certificate that states:

  • Start and end date of the employment.
  • Type of work performed.
  • Salary information (optional)
  • Other benefits received (optional)

Notice Period

The notice period in Libya is typically 30 days for both the employee and employer.
A notice period is required if an employee’s employment contract has been terminated due to an employee’s failure to fulfil their obligations, the employer falsifying their identity, financial loss due to mistakes made by the employee in question, and safety instructions not being followed by the employee.
Taking an example of an employee that has been absent from work without justification for more than 20 days in a year or more than ten consecutive days in one period. In that case, a written warning must be issued before dismissal on the 5th consecutive day or the 10th day of absence within the year.

Severance Pay

Severance pay for Libyan nationals is not required; however, it is for ex-patriates. Ex-patriates are entitled to half a years’ salary for every year of employment up to 5 years.

Probation Period

The probation period in Libya is typically six months.

VISA

VISA

Libya is now known for its strict visa policy, and very few countries are visa-exempt. Only nationals of Algeria, Jordan, Mauritania, Morocco, Syria, Tunisia, and Turkey can enter and stay without a visa.
Citizens of Jordan are granted a 30-day stay, while nationals of Turkey are allowed to remain in Libya for up to three months. All other foreigners are required to visit the nearest diplomatic mission of Libya and apply for a visa.
A Libyan work visa is granted to foreign nationals who wish to work in Libya, and working in the country without a work visa is illegal.
To get a Libya business visa, you must have an invitation letter from a company that operates in Libya or sponsorship. The company must initiate the work visa process via the Work Department in Libya.
The initial work visa is usually granted for three months, which can be renewed or extended once inside Libya.

VAT

General

There is no standard rate of VAT in Libya.

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Payroll and Benefits Guide in Libya

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Payroll and Benefits Guide
in Libya

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

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All questions are answered by our in-house compliance department working in conjunction with our local in-country partner for this specific country

Public Holidays Calendar

Libya
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Date Day Holiday Note
17 Feb 24 Saturday Libyan Revolution Day
19 Mar 24 Tuesday Commemoration of the Victory over Gaddafi
10 Apr 24 Wednesday Eid al-Fitr Tentative Date
11 Apr 24 Thursday Eid al-Fitr Holiday Tentative Date
12 Apr 24 Friday Eid al-Fitr Holiday Tentative Date
01 May 24 Wednesday May Day
15 Jun 24 Saturday Arafat Day
16 Jun 24 Sunday Eid al-Adha Tentative Date
17 Jun 24 Monday Eid al-Adha Holiday Tentative Date
18 Jun 24 Tuesday Eid al-Adha Holiday Tentative Date
07 Jul 24 Sunday Islamic New Year
15 Sep 24 Sunday Prophet Muhammad’s Birthday Tentative Date
16 Sep 24 Monday Martyrs’ Day
23 Oct 24 Wednesday Liberation Day
24 Dec 24 Tuesday Independence Day