Chad Employer of Record & Payroll
Africa Deployments Chad offers our clients Employer of Record (EOR) services covering all of the regions within. We offer full-time employment or fixed terms contracts based on your requirements in Chad for locals or expatriates. ADS will take care of the work permit under our umbrella and will issue local work contracts to your contractors. We will also advise our client’s on best Human Resource (HR) practices when setting up the employee’s locally in Chad.
ADS takes care of the local tax & PAYE remittances to the Revenue Services on a monthly basis ensuring that they are fully compliant with the law. We will also ensure that their salaries are paid on time monthly and issue them with their pay slips. In addition to our services, we can offer you the employee in Chad, Medical, Disability, Life, and Workmen’s Compensation Insurances.
Chad is the fifth largest country in Africa, with a population of ±17.7 million people.
The country is named after Lake Chad, the second-largest wetland in Africa, and is also known as “The Babel Tower of the World” because of its cultural diversity.
The Sahara Desert covers ± ⅓ of Chad overall and the country has ample reserves of gold and uranium. Primary occupations are agriculture and the oil industries.
The goat and lion are the national symbols of Chad in the north and south respectively.
What is the main language spoken in Chad:
French and Modern Standard Arabic are the 2 main, and official, languages spoken in Chad.
French is a largely used for administration and education, and there are over 120 indigenous languages Chadic languages, Nilo-Saharan languages, Adamawa languages.
Chadian Arabic, is a vernacular lingua franca and the language of commerce, spoken by ±60% of the population. English is not widely spoken.
What type of employment contracts can you offer in Chad:
Through our employer of record (EOR) solutions in Chad, we can offer the following types of employment contracts:
- Fixed Term
- Indefinite term
Contracts and Offer Letters must:
- Be in writing
- Be in the official local language and the local currency
- Include salary/compensation, benefits and termination requirements
Full-time Employees:
- Have specific working terms and conditions
- Can be eligible for organizational perks and/or other benefits
- Tend to be more focused [as only one employer] and familiar with the specific business – due to e.g. ongoing company training etc.
- Probationary period is 3 months [maximum] – annually.
WHAT INCOME IS TAXABLE IN Chad:
Any income earned in the form of cash, wages, salary, overtime, leave pay or payment in lieu of leave, commissions, gratuity, bonus, or any amount that has benefited the employee. All income will be taxed in accordance with the law and the final payroll issued monthly.
What income is exempt from taxes in Chad:
Net taxable Income which is less than XAF 800 000 per month is not taxable.
Standard working hours: Number Overtime to be paid?
In Chad, the standard working hours are generally set at 40 hours per week, with 8 hours per day being the standard. Any work performed beyond these standard working hours is typically considered overtime.
Mandatory contributions?
Employee
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Social Security Fund (CNaPS) |
5% |
None |
|
National Health Insurance Fund (CNAM) |
3% |
None |
|
National Pension Fund (CNAPS) |
0.5% |
None |
Employer
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Social Security (CNaPS) |
12% |
None |
|
National Health Insurance (CNAM) |
3% |
None |
|
National Employment and Vocational Training Fund (FNEF) |
0.5% |
None |
Social
| Contribution Type | Employers | Employees |
|---|---|---|
|
Social Security (CNaPS) |
12% |
5% |
|
National Health Insurance (CNAM) |
3% |
3% |
|
National Employment and Vocational Training Fund (FNEF) |
0.5% |
0.5% |
What is the Maternity and Paternity policy within Chad:
- Female employees are generally entitled to 14 weeks of paid maternity leave, through social security benefits.
- Fathers are generally eligible for 2 weeks of employer-paid paternity leave.
What type of leave is allowed in Chad:
- Employees are generally entitled to 24 days of paid annual leave. Those with 10+ years of service are entitled to 26 days of paid leave.
- Employees are generally entitled to at least 5 paid sick days per year.
Do I need to pay a mandatory bonus annually OR is it discretionary in Chad:
There is no statutory law in Chad for 13th month salary pay / bonus.
What Gratuity / Severance payments do you need to provide for Chad:
Probationary periods should not exceed 3 months.
In cases of redundancy, employees who have worked for at least 5 years are generally eligible to receive 8.67 weeks of notice and 5.42 weeks of severance pay.
Those with 10 years of service are eligible for 11.9 weeks of severance pay.
CAN YOU GIVE FRINGE BENEFITS IN Chad:
Yes you can but keep in mind that Fringe Benefits will be subject to employee PAYE tax. Only benefits that cannot be converted to cash will not be subject to tax. If the employer covers some of the employees expenses i.e. mobile phone then it must be subject to PAYE tax and either the employer will cover this portion for the employee or the employee will bear the PAYE tax.
Mandatory Probation period of Chad:
The probation period for employees in Chad cannot exceed 3 months annually. Fixed-term contracts cannot be renewed more than once and the duration cannot exceed 24 months.
What are the Corporate and VAT / Sales tax rates in Chad:
Corporate Tax Rates: 35% [in general]
VAT / Sales Tax Rates: 18% [on most goods and services]
Public Holidays in Chad:
- January 1 - New Year's Day
- March 8 - International Women's Day
- April 18 - Easter Monday
- May 02 - Labour Day
- May 03 - Korité
- May 04 - Korité Holiday
- July 10 - Tabaski
- August 11 - Independence Day
- October 09 - Prophet's Birthday
- November 01 - All Saints' Day
- November 28 - Republic Day
- December 01 - Freedom and Democracy Day
- December 25 - Christmas Day
What Industries we support in Chad:
- Non-Governmental Organization’s (NGO) / Non- profit
- Engineering & Construction
- Government / Development Agencies
- Oil & Gas
- FMCG & Manufacturing
- Private Equality, Finance, Insurance & Banking
- Mining
- Agriculture
What Double Tax Treaties are in place in Chad:
The information provided above is for an “informative decision” and may change at any given time without prior notice. We always suggest speaking to one of our Sales Consultants before engaging in country.
