Benin

Africa Deployments Benin offers comprehensive Employer of Record (EOR) services across all regions of Benin. Whether you require full-time employment or fixed-term contracts for locals or expatriates, we provide tailored solutions. ADS handles all aspects of work permits, issuing local work contracts, and ensuring compliance with Benin’s HR practices. We also manage tax and PAYE remittances to the Revenue Services on a monthly basis, ensuring full legal compliance. Our team guarantees timely salary payments and provides employees with their pay slips.

About Benin
Benin, officially the Republic of Benin, is located along the Gulf of Guinea and the Atlantic Ocean, in West Africa. With a population of approximately 13 million, it is home to diverse attractions like the Parc National de la Pendjari, one of the top wildlife parks in West Africa. Porto-Novo is the capital, while Benin City is known for its historical bronzes and carvings. Visitors are drawn to Benin’s beautiful beaches, rugged northern landscapes, and vibrant culture.

  • Population: 13 million (2021)
  • Currency: West African CFA franc
  • Capital: Porto-Novo
  • Language: French (official), with Fon, Yom, and Yoruba being commonly spoken. English is emerging as a trade language.

Contract Types
Through our EOR solutions, we offer the following contract types in Benin:

  • Fixed Term
  • Indefinite Term
    Employment contracts must be in writing, use the official local language and currency, and outline salary, benefits, and termination terms. Probationary periods can be up to 3 months.

Taxable Income
Individuals living and working in Benin for over 183 days a year are subject to local tax. All types of income, including wages, salary, commissions, and bonuses, are taxable. There are no specific tax rates for non-residents.

Tax Exemptions
Certain types of income are exempt from tax, such as income below CFA 50,000 per month, income from venture capital investments, and allowances for sports professionals or artists. Additionally, dismissal allowances are exempt.

Working Hours and Overtime
Standard working hours in Benin are generally 40 hours per week, spread over 5 or 6 days. Overtime is compensated at a higher rate according to local labor codes.

Mandatory Contributions

  • Employee: Retirement 3.6% of gross salary
  • Employer:
    • Family 9% of gross salary
    • Retirement 6.4% of gross salary
    • Work Injuries 1% of gross salary
    • VPS 4% of gross salary

Leave Policies

  • Maternity Leave: 14 weeks with full pay, starting up to six weeks before the expected delivery date.
  • Paternity Leave: No mandated paternity leave, though some companies may offer it.
  • Annual Leave: 24 days per year, with paid sick leave varying based on employment duration.

Gratuity and Severance
For indefinite contracts, severance is required if termination occurs without just cause. Fixed-term contracts do not generally require severance unless otherwise stipulated.

Fringe Benefits
Employers can offer fringe benefits, such as accommodation, but these will be subject to PAYE tax. Any expenses covered by the employer must be taxed accordingly.

Probation Period
No mandatory probation period, though employers and employees may agree to a probation period.

Tax Rates

  • Corporate Tax Rate: 30%
  • VAT/Sales Tax Rate: 18% on most goods and services

Public Holidays

  • 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

Industries We Support

  • NGOs and Non-profits
  • Engineering and Construction
  • Government Agencies
  • Oil & Gas
  • FMCG and Manufacturing
  • Private Equity, Finance, Insurance
  • Mining
  • Agriculture

Double Tax Treaties
Benin has double tax treaties with countries such as Burkina Faso, Ivory Coast, France, Kuwait, Mali, Niger, Norway, Senegal & Togo

Contact Us
For detailed assistance with Employer of Record (EOR) services in Benin, including specific payroll and employment solutions tailored to your needs, contact our team at Africa Deployments.

Reach Out to us, lets chat about how we can assist

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