Benin Employer of Record & Payroll

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Africa Deployments Benin 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 Benin 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 Benin.

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. Benin, officially the Republic of Benin, is a country along the Gulf of Guinea and the Atlantic Ocean, in the subregion of West Africa.

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.

WHAT TYPE OF LEAVE IS ALLOWED IN BENIN:

  • Annual leave – Paid leave granted at 2 days per month or 24 working days per year.

  • Sick leave – 6 months for an employment period less than 24 months or 12 months for an employment period equal of greater than 24 months.

  • Maternity leave – leave be at least 14 weeks of which a period of six weeks compulsory leave should be after childbirth. Women retain the benefits of their salary and other benefits during the period.

  • Paternity leave – Immediately after delivery or miscarriage entitled to 3 working days leave from work.

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.

WHAT ARE THE EMPLOYER & EMPLOYEE CONTRIBUTIONS IN BENIN:

  • Social Security Pension CNSS – (Employer 6.4% & Employee 3.6%).
  • Voluntary Pension – 10% Voluntary contributor.
  • Family Allowance – 8.8% employer.
  • Sickness & Maternity – 0.2% employer.
  • Work injury – 1%-4% employer.

IS THERE GRATUITY PAYMENTS FOR TERMINATION in benin:

An Employer and Employee can agree on severance pay.  However it should be noted that the Bill seeks to legislate a fixed severance pay as of 1 month’s gross salary for each year of service.  Dismissal will not be entitled to severance.  Severance must be agreed by both parties and paid within 21 days of acceptance.

WHAT DOUBLE TAX TREATIES ARE IN PLACE:

Get in touch with one of our consultants should you have any further questions regarding our Employer of record solutions or only require a payroll solution in Benin.

 

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