Equatorial Guinea Employer of Record & Payroll
What is the main language spoken in Equatorial Guinea:
In Equatorial Guinea Spanish is the official language alongside French and (as of 2010) Portuguese, being the only African country where Spanish is an official language.
What type of employment contracts can you offer in Equatorial Guinea:
- 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 3-6 months [standard]
WHAT INCOME IS TAXABLE IN Equatorial Guinea:
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.
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 Equatorial Guinea:
Most income is taxed in Equatorial Guinea. Specific allowances to cover expenses relating to the employee’s position are not taxable to the extent the expenses are effectively used for their objective and are not excessive.
Standard working hours: Number Overtime to be paid?
- The standard working hours in Equatorial Guinea are generally 8 hours per day and 40 hours per week.
- This may vary depending on the industry or specific employment contracts.
- Employees who work overtime are generally entitled to receive additional compensation for their extra hours.
Mandatory contributions?
Employee
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Social Security Fund (CNaPS) |
6% |
XAF 1,000,000 |
|
National Health Insurance Fund (CNAM) |
1% |
None |
|
National Pension Fund (CNAPS) |
1% |
XAF 1,000,000 |
Employer
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Social Security Fund (CNaPS) |
12% |
XAF 1,000,000 |
|
National Health Insurance Fund (CNAM) |
2% |
None |
|
National Pension Fund (CNAPS) |
1% |
XAF 1,000,000 |
Social
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Social Security Fund (CNaPS) |
12% |
6% |
|
National Health Insurance Fund (CNAM) |
2% |
1% |
|
National Pension Fund (CNAPS) |
1% |
1% |
What is the Maternity and Paternity policy within Equatorial Guinea:
- Leave be at least 14 weeks of which a period of six weeks compulsory leave should be after childbirth.
- No statutory paternity leave
What type of leave is allowed in Equatorial Guinea:
- Employment Contracts of Equatorial Guinea states that the employees receive at least 30 days of paid annual leave, of which 15 days of leave can be taken in consecution.
- After the third day of absence for up to 26 weeks. This is paid at 50% of the standard rate by social security if the employer has contributed towards social security in the past year.
Do I need to pay a mandatory bonus annually OR is it discretionary in Equatorial Guinea:
Employers in Equatorial Guinea are obligated to pay an annual mandatory bonus equivalent to one month’s salary to their employees.
What Gratuity / Severance payments do you need to provide for Equatorial Guinea:
- Employees who resign for just cause are entitled to a gratuity payment.
- The gratuity payment is equivalent to one month’s salary for each completed year of service.
- The maximum gratuity payment is 12 months’ salary.
- Employees who are terminated without just cause are entitled to a severance payment.
- The severance payment is equivalent to one month’s salary for each completed year of service.
- The maximum severance payment is 12 months’ salary.
CAN YOU GIVE FRINGE BENEFITS IN Equatorial Guinea:
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 Equatorial Guinea:
In Equatorial Guinea, there is no mandatory probation period required by law. Employers can set the probation period for new employees at their discretion, but it is typically between 3 to 6 months. This allows the employer to evaluate the employee’s performance and suitability for the job before making a final decision on their employment.
Is 13th month pay (Bonus) mandatory?
- a National Independence Day bonus, 15 days of their salary paid before October 12 of each year, and
- a Christmas bonus before December 24 of each year.
What are the Corporate and VAT / Sales tax rates in Equatorial Guinea:
Corporate Tax Rates: 35% [in general]
VAT / Sales Tax Rates: 15% [on most goods and services]
Public Holidays in Equatorial Guinea:
- January 1 - New Year's Day
- April 07 - Good Friday
- May 01 - Labour Day
- June 05 - President's Day
- June 08 - Corpus Christi
- August 05 - Freedom Day
- August 15 - Constitution Day
- October 12 - Independence Day
- December 08 - Immaculate Conception Day
- December 25 - Christmas Day
What Industries we support in Equatorial Guinea:
- Non-Governmental Organization’s (NGO) / Non- profit
- Engineering & Construction
- Government / Development Agencies
- Oil & Gas
- FMCG & Manufacturing
- Private Equality, Finance, Insurance & Banking
- Mining
- Agriculture
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.
