Guinea Employer of Record & Payroll
What is the main language spoken in Guinea:
The Republic of Guinea is a multilingual country, with over ±40 indigenous languages spoken. The official language is French, but is used almost exclusively as a second language.
6 indigenous languages have the status of national languages: Pular (or Fula), the most widely spoken (35% of the population), followed by Maninka (25%), Susu (18%), and then Kissi, Kpelle and Toma.
What type of employment contracts can you offer in Guinea:
Through our employer of record (EOR) solutions in Guinea, we can offer the following types of employment contracts:
- Fixed Term
- Indefinite term
Contracts and Offer Letters must be:
- 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]
WHAT INCOME IS TAXABLE IN Guinea:
Any individual who works and lives in Algeria for more the 183 days a year will be subject to local taxes in Algeria. They maintain a permanent home in Algeria. The tax years from effectively from 01 May to 30 April the following year.
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 Guinea:
Taxable income generally consists of all remuneration received, including, salaries, treatments, indemnities, allowances, premiums and bonuses paid, benefits in kind and benefits in cash.
Standard working hours: Number Overtime to be paid?
- The standard working hours in Guinea are 8 hours per day and 40 hours per week.
- Any work performed beyond these standard hours is considered overtime.
- Employees who work overtime are entitled to receive a premium rate of pay, which is at least 50% higher than their normal hourly rate.
- Employers must provide their employees with at least one day of rest per week, which should be a Sunday, unless the nature of the work requires otherwise.
- The maximum number of hours an employee can work in a week is 48 hours, including any overtime worked.
- Employers must ensure that their employees receive the required compensation for any overtime worked.
Mandatory contributions?
Employee
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Social Security Fund (CNaPS) |
8% |
None |
|
National Health Insurance Fund (CNAM) |
4.5% |
33,000 GNF |
|
National Pension Fund (CNAPS) |
1% |
33,000 – 133,000 GNF |
Employer
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Social Security (CNaPS) |
16% |
None |
|
National Health Insurance (CNAM) |
4.5% |
33,000 GNF |
|
National Employment and Vocational Training Fund (FNEF) |
2% |
33,000 – 133,000 GNF |
Social
| Contribution Type | Employers | Employees |
|---|---|---|
|
Social Security (CNaPS) |
8% |
8% |
|
National Health Insurance (CNAM) |
4.5% |
4.5% |
|
National Employment and Vocational Training Fund (FNEF) |
1% |
0.5%
|
What is the Maternity and Paternity policy within Guinea:
- leave be at least 14 weeks of which a period of six weeks compulsory leave should be after childbirth.
- No statutory paternity leave in Guinea
What type of leave is allowed in Guinea:
- Employees in Guinea are usually entitled to leaves of 2.5 days per month paid by the employers.
- Employees are generally entitled to up to 26 weeks of paid sick leave.
Do I need to pay a mandatory bonus annually OR is it discretionary in Guinea:
- After a year of service employees receive a National Independence Bonus which equates to 15 days of salary payable before 12th
- Employees also get 15 days of salary for a Christmas bonus payable before 24th
What Gratuity / Severance payments do you need to provide for Guinea:
- For employees terminated for just cause (such as gross misconduct), no gratuity or severance payment is required.
- For employees terminated due to redundancy or economic reasons, the gratuity or severance payment is equivalent to 1/3 of one month’s gross salary for each year of service, pro-rata for any incomplete year of service.
- For employees who resign, there is no legal requirement for the employer to provide a gratuity or severance payment.
CAN YOU GIVE FRINGE BENEFITS IN 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 Guinea:
- The law does not specify a mandatory probationary period
- Employers commonly include a probationary period in employment contracts
- Length of the probationary period can vary (1-6 months)
- During the probationary period, the employer can terminate employment without notice or compensation if the employee fails to meet required standards
- Termination during or after probation must comply with labor law
- Unjustified or discriminatory termination may result in employer liability for compensation or penalties.
Is 13th month pay (Bonus) mandatory?
Not mandatory, applicable as per contract.
What are the Corporate and VAT / Sales tax rates in Guinea:
Corporate Tax Rates: 25% [in general]
VAT / Sales Tax Rates: 18% [on most goods and services]
Public Holidays in Guinea:
- January 1 - New Year's Day
- April 10 - Easter Monday
- April 18 - Lialat-al-Qadar
- April 22 - Korité
- May 01 - Labour Day
- May 25 - Africa Day
- June 29 - Tabaski
- August 15 - Assumption Day
- September 27 - Mouloud
- October 02 - Independence Day
- November 01 - All Saints' Day
- Decemeber 25 - Christmas Day
What Industries we support in 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.
