Minimum Wage
Afghanistan follows a statutory minimum wage system where minimum wages are determined by the state for public sector employees. The employers in the private sector can set a minimum wage at the enterprise level, with the condition that it cannot fall below the minimum wage set by the government for public sector workers.
Individual wage rates, at the enterprise level, are determined on the basis of the quality and quantity of the work and with due regard to grades, ranks, given post, period of training, and practical work, as well as other conditions, as stipulated in legislation.
The minimum wage for the public sector workers, as well as organisations, is determined by the relevant ministries. If the government’s capital share is more than 50%, the minimum wage is determined by the relevant ministries. These are Ministries of Labour, Social Affairs, Martyrs and Disabled and of Finance and Civil Service Commission. The Labour Code does not prescribe any process or criteria for the determination or revision of minimum wages.
Any disputes arising from work, between the enterprise and worker (or a trainee), can be settled by mutual understanding of the parties. If the dispute is not resolved by mutual understanding, it is investigated and resolved by the intervention of the relevant trade union. If that is not successful either, the dispute can be referred to the High Commission for resolving disputes or to the authorised court.
There is no provision in law stipulating penalties or fines for non-compliance with minimum wage requirements.
Source: §59, 62, and 131 of the Afghanistan Labour Code, 2007
For updated minimum wage rates, please refer to the section on minimum wage.
Regular Pay
The Afghanistan labour Code defines wages as the amount paid to the employee on completion of work. Under the law, from the date of signing the contract or after approval of appointment, employees are entitled to receive wages. The law provides for the timely payment of wages. The employee should be paid either a time-based payment by computing the monthly or weekly work hours, or a work-based payment by computing the output. The law specifies that wages and other payments for the weekly rest day (Friday) are equivalent to normal working days.
Wages should be paid to the employee or the person nominated by the employee in writing. It should be paid during the same month and not be delayed without the consent of the employee.
Under Afghan labour law, employers may provide incentive payments to motivate employees, enhance work efficiency, and improve product quality. These incentive wages are governed by a formal rewards system, which must be developed in collaboration with the Ministry of Labour and Social Affairs, employers, and approved by the Ministry of Finance.
Additionally, wage supplements can be added to an employee’s basic salary under certain conditions. These include working in tough natural or economic environments, performing underground or hazardous tasks, using specialised professional or technical skills, or other situations specified in legislative documents. These provisions aim to fairly compensate employees for challenging or skilled work and encourage better working conditions.
There is no mandatory provision in law for a 13th or 14th month pay or a compulsory bonus. However, an employer may voluntarily provide a bonus based on employment contracts, collective bargaining agreements (CBAs), company policies or discretionary awards.
Deduction from wages is not permitted unless provided under the law. Damage compensation can be deducted from the employee’s monthly wage. However, the total deductions cannot exceed 20% of the worker’s wages.
Source: §63, 65-66, 73 & 74 of the Afghanistan Labour Code, 2007
