Benin Employer of Record & Payroll
What is the main language spoken in Benin:
French is Benin’s official language, spoken by ±34% of the population.
A total of ±55 languages are spoken in Benin, with the most prevalent being Fon, Yom and Yoruba.
English is emerging as an important language of trade in Benin due to its neighbor Nigeria. Spanish and German are also taught in many Beninese secondary schools.
What type of employment contracts can you offer in Benin:
- Fixed Term
- Indefinite term
- Be in writing
- Be in the official local language and the local currency
- Include salary/compensation, benefits and termination requirements
- 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 up to 3 months [standard] – but the employer and employee may agree on a different time period for probation
WHAT INCOME IS TAXABLE IN Benin:
Any individual who works and lives in Benin for more the 183 days a year will be subject to local taxes in Benin. The tax years is effective from 01 January to 31 December the same year.
Any income earned in the form of cash, wages, salary, overtime, leave pay or payment in lieu of leave, commissions, bonus, or any amount that has benefited the employee is taxable. All income will be taxed in accordance with the law and the final payroll issued monthly. There is no specific taxation rates for non-residents
What income is exempt from taxes in Benin:
- Net taxable Income which is less than CFA 50 000 per month is not taxable.
- The income generated by funds deposited in management for a minimum period of 3 years with venture capitalist firms.
- The treatment, emoluments, salaries and accessory fees paid to sport professionals and artists.
- Dismissal allowances.
Standard working hours: Overtime to be paid in Benin?
In Madagascar, the standard working hours are generally 40 hours per week, spread over 5 or 6 days. Overtime work, performed beyond the regular working hours, is typically compensated at a higher rate as stipulated by the Malagasy Labor Code.
Mandatory contributions in Benin?
Employee
| Contribution Type | Contribution Rate | Ceiling |
|---|---|---|
|
CNSS Employee: Retirement |
3.6% Gross Salary
|
– |
Employer
| Contribution Type | Contribution Rate | Ceiling |
|---|---|---|
|
CNSS Employer: Family |
9% Gross Salary |
– |
|
CNSS Employer: Retirement |
6.4% Gross Salary |
– |
|
CNSS Employer: Work Injuries |
1% Gross Salary |
– |
|
VPS Employer |
4% Gross Salary |
– |
What is the Maternity and Paternity policy within Benin:
- Female employees in Benin are entitled to maternity leave.
- Maternity leave typically lasts for 14 weeks (98 calendar days).
- During maternity leave, female employees receive their full pay.
- Maternity leave can start up to six weeks before the expected delivery date and can be extended if needed.
- There is no specific law mandating paternity leave in Benin.
- Some companies or organizations may have their own policies regarding paternity leave, but it can vary.
What type of leave is allowed in Benin:
- Paid leave granted at 2 days per month or 24 working days per year.
- 6 months for an employment period less than 24 months or 12 months for an employment period equal of greater than 24 months.
Do I need to pay a mandatory bonus annually OR is it discretionary in Benin:
- Holiday leave timing is decided by the employer, rather than the employee
- Domestic workers are specifically included in the labour code and a seniority bonus applies to them after a certain period.
What Gratuity / Severance payments do you need to provide for Benin:
- If a fixed-term employment contract reaches its agreed-upon end date and is not renewed, no severance payment is typically required.
- For an indefinite employment contract terminated by the employer without just cause, a severance payment is generally required.
- The severance payment is usually calculated based on the length of service and the employee’s monthly salary.
- The specific formula for calculating the severance payment may vary, but it often involves a certain percentage of the monthly salary multiplied by the number of years of service.
CAN YOU GIVE FRINGE BENEFITS IN Benin?
Yes you can but keep in mind that Fringe Benefits will be subject to employee PAYE tax.
Free accommodation and domestic support will, however, be each estimated as equal to 15% of taxable employment income under certain conditions (Art. 51 GTC, as amended by the Finance Law 2011).
If the employer covers some of the employees expenses i.e. Release of Debt 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 Benin:
In Benin, there is no mandatory probation period defined by law.
What are the Corporate and VAT / Sales tax rates in Benin:
Corporate Tax Rates: 30% [in general]
VAT / Sales Tax Rates: 18% [on most goods and services]
Public Holidays in Benin:
- January 1 - New Year's Day
- January 10 - Traditional Day
- April 10 - Easter Monday
- April 22 - Korité
- May 1 - Labour Day
- May 18 - Ascension Day
- May 29 - Whit Monday
- June 29 - Tabaski
- August 1 - Independence Day
- August 15 - Assumption Day
- September 27 - Prophet's Birthday
- November 1 - All Saints' Day
- December 25 - Christmas Day
What Industries we support in Benin:
- 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 Benin:
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.
