Sierra Leone Employer of Record & Payroll
Africa Deployments Sierra Leone 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 Sierra Leone 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 Sierra Leone.
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.
Sierra Leone is a fascinating country on the Atlantic Ocean in West Africa, bordered on the north and east by Guinea, and on the south by Liberia.
The country owes its name to the 15th-century Portuguese explorer Pedro de Sintra, the first European to sight and map Freetown harbour, which is home to the largest and capital city, Freetown.
Sierra Leone has a rich heritage and the original Portuguese name, Serra Lyoa (“Lion Mountains”), referred to the range of hills that surrounds the harbour.
Sierra Leone is known for the white-sand palm-fringed beaches that line the peninsula, its diverse geology and wildlife especially in the rainforest jungles, and its vast endowment in minerals.
The famous Cotton Tree is a particular historical landmark worth seeing, where thousands of fruit bats roost on the tree’s branches.
Sierra Leone’s population of ±8.4 million are found to be warm and welcoming.
What is the main language spoken in Sierra Leone:
In Sierra Leone English is the de facto official language, estimated to be spoken by ¾ of the population, especially in schools, government administration and the media.
However, Krio is the most widely spoken lingua franca in virtually all parts of Sierra Leone.
Overall Sierra Leone is a multilingual country with ±23 languages that exist, including Mende [±31%] and Temme [±37%]; some languages may be in danger of going extinct due to the prevalence of Krio.
What type of employment contracts can you offer in Sierra Leone:
- 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 6 months [maximum]
WHAT INCOME IS TAXABLE IN Sierra Leone:
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.
Standard working hours: Number Overtime to be paid?
- The standard working hours in a day are 8 hours.
- An employee cannot work for more than 40 hours in a week.
- An employee can exceed the regular working hours by not more than 10 hours in a week.
- In a week, the maximum total working hours, including overtime, is 50 hours.
- The employer is obliged to pay the employee for working overtime.
- The overtime payment should include a bonus of 25% over the average wage rate.
- If an employee is made to work on a rest day, the employer is obliged to pay 100% extra salary to the employee for that day.
Mandatory contributions?
Employee
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Income Tax Deduction at Source |
15% |
Based on income tax brackets |
|
Sales Tax |
15% |
None |
Employer
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Social Security Contribution |
10% |
None |
Social
| Contribution Type | Employers | Employees |
|---|---|---|
|
National Social Security and Insurance Trust (NASSIT) |
10% |
None |
What is the Maternity and Paternity policy within Sierra Leone:
Maternal leave:
- Entitled to 12 weeks of paid maternity leave.
Paternal leave:
- There is no statutory paternity leave in Sierra Leone
What type of leave is allowed in Sierra Leone:
- 1-5 years of service: 19 working days of leave per annum
- 6-9 years of service: 22 working days of leave per annum
- 10 years and more: 28 working days of leave per annum
- Employees in Sierra Leone typically receive at least five paid sick leave days per year.
Do I need to pay a mandatory bonus annually OR is it discretionary in Sierra Leone:
There is no statutory requirement to pay a 13th or 14th month salary / bonus in Sierra Leone – and it is not evidenced as customary in general to give bonuses.
What Gratuity / Severance payments do you need to provide for Sierra Leone:
- Severance pays for redundancy dismissal for a worker with 1 year of tenure: 8.4 weeks of salary.
- Severance pays for redundancy dismissal for a worker with 5 years of tenure: 47 weeks of salary.
- Severance pays for redundancy dismissal for a worker with 10 years of tenure:132 weeks of salary.
CAN YOU GIVE FRINGE BENEFITS IN Sierra Leone:
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 Sierra Leone:
- Up to 6 months, initially 3 or 6 months, extendable once for up to 6 months.
- Employee becomes a permanent employee of the organization.
- Minimum 30 days’ notice required.
- Failure to provide notice results in one month’s salary compensation.
- No notice required.
- 5 days’ notice required.
- Valid reason required.
- Court may require compensation if dismissal is unjust.
- Employer and employee can agree on termination terms.
Is 13th month pay (Bonus) mandatory?
Not mandatory, applicable as per contract.
What are the Corporate and VAT / Sales tax rates in Sierra Leone:
Corporate Tax Rates: 30% [in general]
VAT / Sales Tax Rates: 15% [on most goods and services]
Public Holidays in Sierra Leone:
- January 1 - New Year's Day
- February 18 - Armed Forces Day
- March 08 - International Women's Day
- April 07 - Good Friday
- April 10 - Easter Monday
- April 22 - Eid Al Fitr
- April 27 - Independence Day
- May 01 - Labour Day
- June 28 - Eid Al Fitr
- September 27 - Maulid-un-Nabi
- December 25 - Christmas Day
- December 26 - Boxing Day
- December 26 - Christmas Holiday
What Industries we support in Sierra Leone:
- 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.
