Libya EOR & PEO

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Simple, compliant hiring with Horizons EOR & PEO

Hire in Libya

Libya is a country with great potential and untapped markets in agriculture, renewable energy, and tourism. With a low cost-of living and at the cross-roads between Africa and the Middle East, Libya is an excellent option for global businesses looking to set up operations within the region.

Horizons’ Libya Employer of Record (EOR) solution enables global companies to hire in Libya quickly and cost-effectively.

Facts & Stats

hire employees in Libya

What Is a Libya EOR?

An Employer of Record (EOR) in Libya is an organization that recruits and manages local workforces on behalf of foreign employers. For an agreed fee, an EOR assumes the role of a local entity for its client’s business and legal liability for compliance with Libyan regulations. An EOR then manages hiring, contracts, onboarding, payroll, benefits, and all aspects of employment right through to termination. Working with EOR is the simplest and safest way for a foreign employer to gain reliable access to talent within Libya.

The term Libya Employer of Record (EOR) is usually used interchangeably with the term Libya Professional Employer Organization (PEO).

Save Money And Time with A Libya EOR

What Are the Benefits of a Libya EOR?

An EOR in Libya is a one-stop shop for recruitment and employee management within the territory. It allows foreign businesses to hire quickly, efficiently, and at the best possible value. It creates a mutually profitable arrangement between itself, the foreign business, and local workers. Among the specific benefits of a Libya EOR are:

Streamlining access to talent: Finding the right talent in an unfamiliar territory can be a huge challenge for even the most established global business. As an experienced local expert, an EOR is perfectly positioned to streamline this process, saving time, money, and headaches while reducing risk as it introduces vetted Libyan workers to employees with a need for their skills.
Outsourcing legal liability: A prime function of an EOR in Libya is to ensure all processes associated with hiring and managing workers are compliant with local employment laws and regulations. Beyond this, by taking on the role of legal employer and then assigning workers to the foreign business, an EOR assumes full liability for issues in rare situations where compliance is disputed.
Navigating cultural differences: While there are speakers of English, French, and Italian in Libya, most of the population uses various dialects of Arabic. This creates a language barrier for many foreign employers in addition to cultural differences, which can make recruitment and management without an intermediary challenging. A Libya EOR has the local knowledge, language skills, and cultural fluency to help build and maintain smooth relationships and ensure all partnerships are as productive and fulfilling as possible.

Horizons is Best IN Class

Why Choose Horizons?

Horizons stands out as a Libya EOR through:

A strong regional presence in North Africa, meaning senior management are on the ground to deal with any issues.
Client-focused infrastructure. Horizons won’t oversell you on products and services you don’t need. Horizons offers the easiest platform to compliantly hire and pay people worldwide.
Cost-effective solutions. At $299 per employee, per month, no EOR in Libya is more affordable. The cost is 100% transparent (onboarding, offboarding, deposit, no extra charges).
A customer-first culture. Horizons is an efficient bootstrapped company. It is not an externally-funded company burning investor cash to aggressively acquire new clients. Horizons is the only EOR that grows with its customer, reflecting the level of care and personal attention provided to each customer. Horizons will carefully advise on the best setup in each country: the type of contract needed, how to structure your benefits, and how to offboard a person while minimizing the risk of conflicts and extra cost
A long-term partnership. Horizons is the only EOR platform with a recruitment arm — a direct response to client demand. If any employee is leaving, or if our clients want to explore a new country, Horizons can recruit new candidates directly for the client. Horizons is:
- The only EOR doing this in-house — no subcontracting
- The only EOR doing this without a retainer — clients are only charged upon success
- The only EOR charging just a 2% fee per month.

Step-by-step Libya EOR

How Does a Libya EOR Work?

An EOR in Libya is an organization that connects foreign employers to local employees by establishing and maintaining a triangle of relationships. It works on behalf of global businesses to create a labor force in Libya and manages all aspects of recruitment and employment. This generates opportunities for Libyan workers while filling the client company’s need for high-value talent in the region.

In delivering this service, a Libya EOR will:

Hire your employees: The first step to establishing a labor force is to hire the workers. An EOR in Libya may have an existing pool of talent from which it can choose the right candidates, or it may need to advertise and interview to get the ideal person for each available role. Whatever shape this process takes, an EOR will manage the recruitment process from start to finish.
Manage employment contracts and onboarding: When the best available talent has been found, a Libya EOR will confirm employment by agreeing terms and drafting contracts. At this point, the EOR becomes the legal employer of each worker. It then carries out any necessary onboarding procedures and assigns roles to the client business.
Process payroll and handle employment taxes: As the legal employer of each worker, the Libya EOR is responsible for handling all payroll and employment tax. Though the client’s business covers the costs, the employees are paid directly by the EOR, and any issues or discrepancies are managed between those two parties. All the client business needs to do is enjoy the fruits of the worker’s labor.
Administer benefits: In addition to payroll and taxes, the EOR will manage any benefits due to the worker. This includes those agreed at the time of hiring and those mandated by Libyan law. Administering bonuses, social security payments, annual leave, sick leave, public holidays, and any health, car, or accommodation packages all form part of this task.
Take care of exit procedures: When employment ends, regardless of whether it is due to changing business needs, poor performance, misconduct, or mutual agreement, certain protocols must be followed. The final responsibility of a Libya EOR in any cycle of employment is to see the worker’s exit procedures are carried out in full compliance with local laws and expectations.

stay compliant with Libya labor laws

Labor Laws

As part of its agreement with a foreign client company, a Libya EOR takes responsibility for making sure all local labor laws and regulations are followed at every step of the employment process. It also shoulders liability in the event it fails in this duty. This allows the client business to operate with minimal risk and enjoy continuity of service at every stage.

Employment contract types

Law No. (12) For 2010 concerning Labor Relations stipulates two main types of contract which should be offered to workers in Libya.

Regardless of the type offered, all employment contracts in Libya should contain clauses detailing the parties, job description, compensation, benefits, working hours, and termination procedures.

Project-based

Fixed-term

Indefinite

Working hours in Libya

Law No. 12 of 2010 concerning Labor Relations (Article 13) states employees in Libya should work no more than 48 hours in a standard week or 10 hours in a standard day. The General People’s Congress (GPC) also reserves the right to lower this maximum for certain industries. A break of at least one hour should be taken during any working day of six hours or more. One rest day should be offered every week. Overtime is permitted on mutual agreement up to a maximum of three hours per day and paid at 150% of standard hourly rates. If an employee works their rest day, they should be offered 150% of pay or an alternate day off within the next three days.

Overtime must be compensated in the following way:

Holiday Schedule in Libya [2024]

In 2024, workers in Libya will be entitled to 13 days of paid leave for public holidays. This includes four secular days – Revolution Day, Martyrs’ Day, Liberation Day, and Independence Day – plus nine days in line with the Islamic Calendar.

Date	Holiday name
17 Feb, 2024	Libyan Revolution Day
18 Feb, 2024	Libyan Revolution Day Holiday
10 Apr, 2024	Eid-al-Fitr
11 Apr to 14 Apr	Eid-al-Fitr Holiday
1 May, 2024	May Day
15 Jun, 2024	Day of Arafah
16 Jun, 2024	Eid al-Adha
17 Jun to 18 Jun	Eid al-Adha Holiday
7 Jul, 2024	Muharram
16 Sep, 2024	The Prophet’s Birthday (Tentative Date)
16 Sep, 2024	Martyrs’ Day
23 Oct, 2024	Liberation Day
24 Dec, 2024	Independence Day

Paid time off

The amount of paid time off employees are eligible to receive is based on how long they have been employed at their current company:

Sick leave in Libya

Employers in Libya are obliged to grant sick leave when necessary. This is set at a total of 45 days for continuous illness, or 60 days for irregular absences. Medical certificates may be required to validate illness or injury.

Less than 6 months of sick leave

Over 6 months of sick leave

In order for employees to receive the full wages due to them, workers must present a valid medical certificate from a certified doctor to their employer.

Maternity leave in Libya

Maternity leave entitlement in Libya is set at 14 weeks with full pay, with at least six weeks taken after the birth. No official paternity leave is mandated, so this will be at the discretion of the employer. Similarly, there are no guidelines for compassionate leave for bereavement, marriage, or public service, so this must be negotiated at the time of hiring.

Annual leave in Libya

Law No. 12 of 2010 on Labor Relations states every full-time worker in Libya is entitled to 30 days of paid vacation each year, in addition to public holidays. This is increased to 45 days for anyone who is 50 years old or older or who has worked with the same employer continuously for 20 years. During this period, workers should also be granted time off to complete a Hajj pilgrimage on one occasion.

Termination & severance in Libya

Except in the case of dismissal for gross misconduct, Law No. 58 of 1970 on Labor stipulates any employee on a monthly salary should be given 30 days written notice for termination of employment. For those on shorter salary structures, the period is 15 days. While on notice, employees must be given at least two hours leave to search for a new position. Libyan nationals are not legally entitled to any severance pay, but Law No. 12 for 2010 Concerning Labor Relations says expatriate workers should receive between 15 and 30 days’ pay for each year of employment depending on length of service and type of contract.

Libya's compulsory social security contributions

Social security contributions are mandatory for both employees and employers. Employee contributions are set to 5.125% of the monthly gross and between 14 to 15% for employers (depending if local or foreign entities). These contributions are withheld by the employer and paid monthly to the Libyan Social Security Agency (INAS).

There’s a separate contribution of 1% of the monthly gross salary collected for the Social Unity Fund.

Libya social security for foreigners

Libyan law states that all persons working in Libya, including expatriates, are subject to social security contributions. Some countries might have reciprocal agreements with Libya regarding social security contributions. There’s a possibility of exemptions for foreign nationals working in specific roles.

Some countries might have reciprocal agreements with Libya regarding social security contributions. These agreements could potentially reduce contribution rates for residents of those countries working in Libya. However, this wouldn’t eliminate the obligation to contribute entirely.

Individual income tax

Individual income tax in Libya is levied on income derived from employment within the country, applicable to both Libyan citizens and foreign nationals working there.

An additional tax called the Jehad Tax is also levied on taxable income.

Health insurance

Libya has a public healthcare system that provides basic medical services to citizens. This includes primary care, emergency services, and some specialized treatments. There is also a private healthcare sector in Libya, which offers more extensive services for those who can afford it. Private hospitals and clinics may offer more comprehensive medical care and faster access to treatments.

Health insurance coverage in Libya is not as widespread as in some other countries. It is primarily limited to certain sectors or provided by international companies for expatriates and higher-income individuals.

hassle-free Libyan compensation & benefits

Compensation & Benefits

Libya compensation laws

Since May 22, 2023, Libya’s minimum wage has been set at LYD 1,000.00 per month, which is a little over $200.

13 month salary in Libya

Employees in Libya have no automatic entitlement to a 13th-month salary. This, along with any contracted performance bonuses and allowances towards housing, transportation, or meals should be negotiated at the time of hire.

Social security for Libyan nationals

Compulsory social contributions in Libya are set at 14.25% of a worker’s gross salary. 10.5% of this should be covered by the employer, and the remaining 3.75 by the employee. Employers are also obliged to withhold and donate 1% of every worker’s salary to the Social Solidarity Fund. Additional taxes are placed on Palestinian nationals working in Libya.

Libya Employer Of Record Peo

Navigation

Hire in Libya

What Is a Libya EOR?

What Are the Benefits of a Libya EOR?

Why Choose Horizons?

How Does a Libya EOR Work?

Labor Laws

Employment contract types

Working hours in Libya

Compensation & Benefits

Frequently asked questions

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Frequently asked questions

How does an EOR in Libya handle compliance with local labor laws?

Ensuring total compliance with local labor laws is a key element of an EOR’s role. An EOR does this by applying its experience and maintaining awareness of all regulations and upcoming changes. It also protects its client businesses by accepting full liability in the rare event a dispute or issue occurs.

What are the challenges of hiring through an EOR in Libya?

The only challenge of hiring through an EOR in Libya is finding the right one. Every foreign business should look for experience, expertise, and a proven track record of providing the best talent at the right price when deciding which EOR to work with in Libya.

Libya EOR & PEO

Start hiring in Libya

Simple, compliant hiring with Horizons EOR & PEO

Hire in Libya

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hire employees in Libya

What Is a Libya EOR?

Save Money And Time with A Libya EOR

What Are the Benefits of a Libya EOR?

Horizons is Best IN Class

Why Choose Horizons?

Step-by-step Libya EOR

How Does a Libya EOR Work?

stay compliant with Libya labor laws

Labor Laws

Employment contract types

Project-based

Probationary period

Termination

Severance

Fixed-term

Probationary period

Termination notice period

Severance

Indefinite

Probationary period

Termination notice period

Severance

Working hours in Libya

Overtime must be compensated in the following way:

For a regular workday:

For a rest day:

For a statutory holiday:

Paid time off

Under 1 year of employment

1-10 years of employment

10-20 years of employment

20+ years of employment

Sick leave in Libya

Less than 6 months of sick leave

Under 1 year of employment

1-10 years of employment

10-20 years of employment

20+ years of employment

Over 6 months of sick leave

Under 1 year of employment

1-3 years of employment

3+ years of employment

Maternity leave in Libya

Annual leave in Libya

Termination & severance in Libya

Libya's compulsory social security contributions

Libya social security for foreigners

Individual income tax

Health insurance

hassle-free Libyan compensation & benefits

Compensation & Benefits

Libya compensation laws

13 month salary in Libya

Social security for Libyan nationals

Hire in Libya in 24h without your own local entity.

Frequently asked questions

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