Running Payroll in Tunisia: Employment Taxes & Setup

Payroll in Tunisia centers on four main obligations: personal income tax withholding, social security and statutory fund contributions, any applicable local levies, and periodic payroll reporting to the tax authority and social security funds. You must coordinate between the Direction Générale des Impôts (DGI) for tax, the Caisse Nationale de Sécurité Sociale (CNSS) for social security, and, where relevant, sectoral funds that apply to your industry or headcount. Requirements can vary by income thresholds, sector, and whether your business qualifies for investment or regional incentive regimes.

Non-compliance can trigger late-payment interest, fixed penalties, and tax or CNSS audits that may uncover multi-year underpayments and lead to backdated liabilities. Errors in withholding or delayed salary payments also damage employee trust and can create disputes over net pay, benefits, and end-of-service calculations. This guide helps you and your team structure payroll calculations, understand current 2026 rates, align with filing and payment deadlines, and choose the right setup whether you operate through your own entity or an Employer of Record.

In Tunisia, payroll taxes combine progressive personal income tax, substantial social security contributions, and a training-related levy that together add a significant cost on top of gross salaries. You must calculate each component monthly, withhold the employee share, add the employer share, and remit everything on time to avoid penalties and interest.

Personal Income Tax (Impôt Sur Le Revenu)

Personal income tax is a progressive tax withheld at source by the employer on employment income, including base salary, regular bonuses, and taxable benefits. In 2026, marginal rates generally range from 0% on the lowest band up to 35% on higher income brackets, after applying allowable deductions and abatements. Employers must calculate the tax each payroll cycle, withhold it from employees, and remit it to the DGI with a monthly return.

The employer is fully responsible for correct withholding and timely payment, even though the tax is borne by the employee. Under-withholding can lead to assessments, late-payment interest, and penalties, while repeated non-compliance can trigger in-depth tax audits and potential criminal exposure for deliberate evasion.

Social Security Contributions (CNSS)

Social security contributions finance pensions, sickness and maternity benefits, family allowances, and work injury coverage, and are administered mainly by the CNSS for private-sector employees. In 2026, the standard employer contribution for most private-sector office and commercial activities is around 16%–17% of gross salary, while the employee typically contributes about 9.18% of gross salary, with some variations by scheme and risk category. Contributions are generally uncapped for most components and are calculated on the full gross remuneration subject to CNSS rules.

Employers must register with CNSS, declare wages, and pay both employer and employee shares monthly, usually by the 15th of the following month. Late or missing payments can result in surcharges, interest, and the loss of access to social benefits for employees, and CNSS can pursue enforced collection or block certain administrative procedures until arrears are settled.

Vocational Training And Apprenticeship Levies

Tunisia applies payroll-based levies to fund vocational training and apprenticeship programs, collected alongside other payroll obligations. For most employers, the vocational training tax is approximately 2% of gross wages, and the apprenticeship tax is around 1% of gross wages, both fully borne by the employer. These levies are calculated on the same wage base as social security, with some exemptions for small employers or specific incentive regimes.

Employers must include these levies in their monthly or quarterly payroll declarations and remit them with other contributions. Failure to pay can lead to the same types of penalties and interest as other payroll taxes, and it may also affect your eligibility for state-supported training reimbursements or incentives tied to workforce development.

Employees in Tunisia are typically paid in Tunisian dinar (TND) via bank transfer, with cash payments now rare and generally discouraged for compliance reasons. Most employers run monthly payroll, and salaries are commonly paid at the end of the month or no later than the first few days of the following month, in line with employment contracts and collective agreements. If you do not have a Tunisian entity, you will usually rely on an Employer of Record or a compliant payroll partner rather than paying individuals directly from abroad.

Payslips must clearly show gross salary, taxable benefits, employee social security contributions, income tax withheld, other deductions, and net pay, along with the employee’s identification details and the pay period. When operating without a local entity, your Employer of Record will issue compliant payslips and handle local filings, while you fund the total payroll cost in foreign currency. If you operate through your own entity, you must ensure your HRIS or payroll software can produce Arabic or French payslips that meet local standards and store them for audit purposes.

• Payment Method: Use bank transfers in TND to employees’ local accounts to align with common practice and banking controls.
• Pay Frequency: Set a monthly pay cycle and define the exact payday in employment contracts and internal policies.
• Payslip Content: Include gross pay, itemized allowances, employee social security, income tax, other deductions, and net pay, plus employer and employee identifiers.
• No-Entity Hiring: Engage an Employer of Record to hire staff locally, run payroll, and handle tax and CNSS filings on your behalf.
• Local Entity Route: If you have a Tunisian company, open a local bank account, register with DGI and CNSS, and integrate payroll with your accounting system.
• Foreign Currency Funding: When using an Employer of Record, fund payroll in a major currency while the provider converts and pays employees in TND.
• Record Keeping: Retain payroll records and payslips for the statutory period to support inspections by tax and social security authorities.

Getting payroll set up correctly in Tunisia is essential because tax and social security registrations, contribution rates, and reporting formats are tightly regulated. Your approach will differ depending on whether you operate through your own Tunisian entity or rely on an Employer of Record to employ staff locally on your behalf.

With a local entity, you control employment contracts, benefits, and payroll systems but must manage all registrations, filings, and audits directly. With no entity, an Employer of Record or specialist payroll partner becomes the legal employer in Tunisia, handling compliance while you manage day-to-day work and total compensation budgets.

• Incorporation: If choosing an entity route, register your company with the Registre National des Entreprises and obtain a tax identification number from the DGI.
• Social Security Registration: Enroll the entity and employees with CNSS and obtain employer and employee social security numbers.
• Bank Account: Open a corporate bank account in TND to pay salaries, taxes, and contributions.
• Payroll Policies: Define pay dates, overtime rules, allowances, and benefits in line with the Labour Code and any applicable collective agreements.
• Payroll System: Implement software or a provider that can handle Tunisian tax brackets, CNSS rates, and payslip formats in Arabic or French.
• Data Collection: Gather employee IDs, CNSS numbers, bank details, contracts, and proof of dependants for tax and social security purposes.
• EOR Engagement: If you have no entity, sign a service agreement with an Employer of Record that covers hiring, payroll, benefits, and compliance responsibilities.
• Internal Controls: Set approval workflows for salary changes, bonuses, and terminations to ensure accurate and authorized payroll inputs.
• Compliance Calendar: Build a calendar of monthly, quarterly, and annual filing and payment deadlines for DGI and CNSS.

Example Of Salary Tax Calculation

Assume a Tunisian employee earns a monthly gross salary of 3,000 TND in 2026 under the standard private-sector CNSS scheme. You would first calculate employee social security contributions at approximately 9.18% of gross, then apply the progressive income tax rates to the remaining taxable base after any standard abatements, and finally add employer contributions of roughly 16%–17% plus training levies on top of the gross salary to determine your total cost.

The goal is to separate clearly what is withheld from the employee from what you pay as the employer, while ensuring that the total remitted to DGI and CNSS matches your payroll reports. This structure also helps you forecast the fully loaded cost of hiring and compare scenarios such as salary increases or bonuses.

• Step 1 – Determine Gross Pay: Confirm the monthly gross salary of 3,000 TND including fixed allowances.
• Step 2 – Calculate Employee CNSS: Apply the employee rate of about 9.18% to 3,000 TND to obtain the social security deduction.
• Step 3 – Compute Income Tax: Apply the progressive income tax brackets to the taxable income after social security and any standard abatements.
• Step 4 – Derive Net Pay: Subtract employee CNSS and income tax from gross salary to arrive at net salary payable.
• Step 5 – Add Employer Costs: Calculate employer CNSS at roughly 16%–17% plus around 3% for training levies on the same gross base to determine total employer cost.

Submitting Employee Tax In Tunisia

In Tunisia, employers submit payroll taxes and social security contributions primarily through electronic portals provided by the DGI and CNSS, supported by bank transfers referencing the relevant period and declaration number. To file correctly, you need your tax ID, CNSS employer number, payroll period details, employee identifiers, and a breakdown of taxable income and contributions.

• Tax Portal Filing: Use the DGI online system to submit monthly income tax withholding declarations and generate payment references.
• CNSS Online Declarations: File wage and contribution statements through the CNSS e-service platform using your employer account.
• Bank Transfers: Pay amounts due via bank transfer or authorized payment channels, quoting the declaration or reference number.
• Payroll Software Integration: Leverage payroll software that can export or directly transmit compliant files to DGI and CNSS portals.
• Third-Party Providers: Consider an Employer of Record or local payroll bureau to manage filings and payments if you lack in-house expertise.

Payroll Tax Due Dates In Tunisia

Understanding the tax obligations for both employers and employees is crucial when operating in Tunisia's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Tunisia.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 19% - 22% on top of the employee salary in Tunisia. This includes the core CNSS social security rate for most private-sector employers plus vocational training and apprenticeship levies, with some variation by sector and risk classification.

Employee Payroll Tax Contributions

In Tunisia, the typical estimation for employee payroll contributions cost is around 9.18%.

Individual Income Tax Contributions

Individual income tax in Tunisia is calculated on annual taxable income using progressive brackets, with employers withholding tax at source each month. The final liability is determined on an annual basis, taking into account deductions, abatements, and any other taxable income.

Pension in Tunisia

Pension contributions in Tunisia are primarily funded through CNSS, with both employers and employees contributing a portion of gross salary to finance old-age, disability, and survivors’ benefits. Employees may also participate in supplementary pension schemes offered by employers or financial institutions to enhance retirement income beyond the statutory CNSS pension.