Djibouti Employer of Record & Payroll
Africa Deployments Djibouti 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 Djibouti 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 Djibouti.
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 Djibouti, Medical, Disability, Life, and Workmen’s Compensation Insurances. Djibouti, officially the Republic of Djibouti, is a country along the Gulf of Aden.
What income is Taxable in Djibouti:
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 TYPE OF LEAVE IS ALLOWED in Djibouti:
- Public holiday – 9 Public Holidays per annum as per leave law of Djibouti.
- Annual leave – Employees in Djibouti are entitled to annual leave after one year of employment. This annual leave accrues at the rate of 2 ½ days per month from the first day the employee commences employment.
- Sick leave – Employees are entitled to 29 days of sick leave paid at 50% of the basic rate by social security. For any additional day beyond the 29 days, the employee receives 75% of the basic salary.
- Maternity leave –entitled to 14 weeks of paid maternity leave. Eight weeks are to be taken before the birth and six after.
- Paternity leave – Immediately after delivery or miscarriage entitled to 3 working days leave from work.
CAN YOU GIVE FRINGE BENEFITS in Djibouti:
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.
WHAT ARE THE EMPLOYER & EMPLOYEE CONTRIBUTIONS in Djibouti:
- Social Security:
Employer – 4%
Employee – 4%
Disability Insurance: 6%
Family Allowance: 5%
IS THERE GRATUITY PAYMENTS FOR TERMINATION in Djibouti:
Employees may be entitled to damages in the event of an unjust dismissal.
Employment can be terminated mutually or by either party after complying with a minimum notice period