How much do social security contributions add to Tunisia's employment costs?

In Tunisia, social security contributions significantly add to the total employment cost. The combined social security contribution rate for both employer and employee is approximately 26.75% of the gross salary. Additionally, employers may pay extra contributions for occupational accident insurance, typically around 0.5% but varying by sector and risk level, which further increases the employer’s cost.

How does the 17.07% employer social security rate affect hiring costs in Tunisia?

The 17.07% employer social security contribution rate in Tunisia significantly impacts hiring costs by increasing the employer’s total payroll expenses beyond the gross salary paid to the employee. This contribution is mandatory and calculated on the employee’s gross salary, including allowances and bonuses.

How does the increase to 17.07% in 2025 impact companies' payroll budgeting in Tunisia?

The increase of the employer social security contribution rate from 16.57% to 17.07% in 2025 raises the direct labor cost for companies in Tunisia by an additional 0.5% of the employee’s gross salary. This seemingly small percentage increase has several implications for payroll budgeting.

The Best Employer of Record in Tunisia: Our Recommendations for 2025

Expanding into North Africa can unlock huge growth opportunities, and Tunisia stands out as a cost-competitive, strategically located market bridging Europe and Africa. For companies seeking rapid and compliant entry without setting up a local subsidiary, an Employer of Record (EOR) in Tunisia is the most effective pathway.

EOR solutions allow businesses to hire Tunisian professionals legally, manage payroll and benefits, and stay compliant with tax and labor laws — without the complexities of entity establishment. This guide highlights the best Employer of Record providers in Tunisia for 2025, comparing their strengths in compliance, technology, and employee experience.

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Mrs. Imen Hamdi

Senior Consultant North Africa

The EOR provider landscape in Tunisia

The EOR industry in Tunisia has been rapidly evolving as the country becomes a regional hub for outsourcing, IT development, and Francophone business services. Global EOR players have added Tunisia to their entity networks, while specialized local HR firms tailor offerings for small and mid-sized businesses.

The landscape includes:

What makes Tunisia unique?

Tunisia offers a welcoming regulatory framework for foreign direct investment, but it also has distinct labor laws, tax obligations, and social security requirements that EORs must navigate carefully. Key points:

Employment contracts: After hiring, the employer must register the employee and the contract details with the social security system and notify the labor authorities, so taxes and social contributions are properly recorded from day one. The default is an indefinite-term contract. Fixed-term contracts are allowed only for specific, temporary needs (such as seasonal work, a replacement, or a defined project), must be in writing, and are limited in duration. If a fixed-term contract is renewed too many times or exceeds the legal cap, it is typically treated as an indefinite-term contract.
Social security contributions: Significant employer obligations apply to foreign and Tunisian employees.
Severance and termination: Rules are employee-friendly; mistakes can result in costly disputes.
Language: Contracts and documentation are typically in French or Arabic, though some EORs provide bilingual versions (French-English).

How to select the best Employer of Record in Tunisia

Hard factors

Own legal entity in Tunisia: Some EORs partner with local subcontractors. To reduce legal risk, it’s safer to choose a provider with its own registered entity in Tunisia.
Compliance expertise: Knowledge of Tunisian tax law, CNSS (social security), and labor administration rules.
Payroll and benefits accuracy: Providers must integrate correctly with Tunisian tax authorities.
Payroll and benefits accuracy: Providers must integrate correctly with Tunisian tax authorities.

Soft factors

Employee experience: How well does the provider handle onboarding, leave requests, and expense claims?
Multilingual support: English support is key for international managers, while Arabic/French communication is essential locally.
Technology platform: Does the provider offer self-service HR portals, automated payroll, and reporting?
Optional HR services: Recruitment, compliance consulting, or relocation assistance.

Our ranking of the top 8 EOR providers in Tunisia for 2025

1. FMC Group

Founded in 1999, FMC Group brings more than two decades of international experience to its clients. Its Tunisian entity is supported by a dedicated local team that understands the market and takes care of employees with a people-first mindset. Beyond payroll and HR administration, FMC Group assists with recruitment, market-entry support, and the structuring of local benefits. This combination of global expertise and local presence makes it a trusted partner for companies looking to build sustainable operations in Tunisia.

2. Deel

Deel operates its own legal entity in Tunisia, providing full compliance coverage and digital-first onboarding. Companies can hire Tunisian professionals within days, with payroll, taxes, and benefits fully automated. Deel is particularly attractive for tech-driven companies that want scalability and transparent cost control.

3. Remote

Remote’s platform allows smooth integration of Tunisian hires into global teams. It manages employment contracts, benefits, tax filings, and work permits directly. With 60+ owned entities worldwide, Remote is very effective for firms hiring simultaneously across multiple regions, including North Africa.

4. Velocity Global

Operating in 185+ countries, Velocity Global brings extensive legal coverage and international expertise. Its Tunisian services include end-to-end HR solutions, from compliant contracts to local payroll. Its strength lies in serving multinational companies who want Tunisia as part of a broader international headcount strategy.

5. Safeguard Global

With a strong presence in EMEA, Safeguard Global is a preferred EOR for organizations prioritizing operational compliance in Tunisia. It combines payroll expertise with HR consulting, making it attractive for companies concerned about minimizing risks while expanding regionally.

6. Papaya Global

Papaya Global offers Tunisia coverage through its unified payroll and workforce management platform. Businesses benefit from advanced reporting tools and analytics to manage Tunisian employment alongside global operations. Particularly valuable for enterprises that manage complex payroll structures across many regions.

7. Elements Global Services (Atlas)

Elements Global Services owns legal entities across Africa, including Tunisia, which enhances compliance and reduces dependency on third-party partners. With a direct-employment model, Elements provides HR services, immigration support, and strategic workforce planning — useful for long-term operational setups.

8. Skuad

Skuad is a newer remote-work platform covering 160+ countries, Tunisia included. It emphasizes tech-driven onboarding and payroll convenience, appealing to startups and smaller businesses entering Tunisia for the first time. Its cost-effective packages make it accessible to SMEs looking to tap Tunisia’s talent pool.

Summary

Choosing the best Employer of Record in Tunisia requires balancing strict compliance with local laws and ensuring a positive employee experience.

By aligning your company’s specific needs — compliance assurance, rapid hiring, employee satisfaction, HR automation — with the right Tunisian EOR provider, you can confidently enter the market and unlock its growth potential.