Burundi Employer of Record & Payroll

ADS EOR & Payroll

Africa Deployments Burundi 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 Burundi 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 Burundi.

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. In addition to our services, we can offer you the employee in Burundi, Medical, Disability, Life, and Workmen’s Compensation Insurances.

Burundi, officially the Republic of Burundi, is a small landlocked country in the Great Rift Valley at the junction between the African Great Lakes region and East Africa. Burundi has a population of ± 10 million and 2 capital cities, Gitega and Bujumbura. Bordered by Rwanda, Tanzania and the Democratic Republic of the Congo, Burundi is home on the south west to Lake Tanganyika, the world’s longest freshwater lake [660km]. Lake Tanganyika spreads across four countries, with most of it (46%) sitting in Tanzania and the Democratic Republic of the Congo (40%).
Population

12.55 million (2021)

Currency

Burundian Franc

Capital

Gitega

Language

Kirundi/English/French

GDP

2.78 billion USD (2021)

Industries

Agriculture & Mining

What is the main language spoken in Burundi:

Burundi has 3 official languages: Kirundi, French – and English became the 3rd official language of the country in 2014.

Kirundi is the indigenous national language spoken by all Burundians and used more in informal social settings.

What type of employment contracts can you offer in Burundi:

Through our employer of record (EOR) solutions in Burundi, we can offer the following types of employment contracts:
  • Fixed Term
  • Indefinite term
Contracts and Offer Letters must:
  • 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 6 months [maximum] and/or 12 months [maximum – exceptional circumstances].

WHAT INCOME IS TAXABLE IN Burundi:

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 Burundi:

Exempt income/earnings include: rental or compensatory allowances paid to an employee or on the employee’s behalf may be exempt, but if these benefits exceed 60% of the basic salary, the excess will be treated as taxable income.

Standard working hours: Number Overtime to be paid?

In Burundi, the standard working hours are 40 hours per week. Overtime should be paid at a rate of at least 50% above the regular hourly wage, according to the Labor Code.

Mandatory contributions?

Employee

Contribution Type Contribution Rate Threshold
Social Security Fund (CNaPS)
3.5%
15,000 BIF
National Health Insurance Fund (CNAM)
3%
N/A
National Pension Fund (CNAPS)
1%
N/A

Employer

Contribution Type Contribution Rate Threshold
Social Security (CNaPS)
6%
15,000 BIF
National Health Insurance (CNAM)
3%
N/A
National Employment and Vocational Training Fund (FNEF)
1%
N/A

Social

Contribution Type Employers Employees
Social Security (CNaPS)
6%
3.5%
National Health Insurance (CNAM)
3%
3%
National Employment and Vocational Training Fund (FNEF)
1%
1%

What is the Maternity and Paternity policy within Burundi:

Maternity Leave:
  • Typically lasts around 14 weeks or 98 days.
  • Generally, female employees are entitled to paid leave during maternity leave.
  • Specific provisions and benefits may vary depending on the employer and industry.
Paternity Leave:
  • Employees in Burundi receive 12 weeks of maternity leave paid at 50% of the salary, and 4 days of paternity leave.

What type of leave is allowed in Burundi:

Annual leave
  • 20 days paid leave
Sick leave
  • Employees can take a maximum of 3 months of sick leave each year which is paid at 67% of the regular wage.

Do I need to pay a mandatory bonus annually OR is it discretionary in Burundi:

There is no statutory requirement to pay a 13th or 14th months’ salary / bonus in Burundi. Overall, bonuses in Burundi are at the employer’s discretion, and there is little evidence that they are either common or expected.

What Gratuity / Severance payments do you need to provide for Burundi:

  • Burundi labor laws may require employers to provide gratuity/severance payments to employees in certain circumstances, such as termination of employment, layoff, or redundancy.
  • The specific conditions triggering the entitlement to gratuity/severance payments may be outlined in the labor laws or employment contracts.
  • The amount of gratuity/severance payment may be based on factors such as the length of service, the employee’s salary, and the reason for termination.
  • The labor laws may specify the minimum amount or formula to calculate the gratuity/severance payment.
  • Employers are generally obligated to pay the gratuity/severance amount to eligible employees upon the termination of employment.
  • It is advisable to consult the Burundi Labor Code, seek legal advice, or contact relevant government authorities to obtain accurate and up-to-date information about gratuity/severance payment requirements in Burundi.

CAN YOU GIVE FRINGE BENEFITS IN Burundi:

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 Burundi:

  • Employees with 3 to 5 years of seniority typically have a mandatory probation period of one month and a half (45 days).
  • Employees with 5 to 10 years of seniority generally have a mandatory probation period of two months.

What are the Corporate and VAT / Sales tax rates in Burundi:

Corporate Tax Rates: 30% [in general]

VAT / Sales Tax Rates: 18% [on most goods and services]

Public Holidays in Burundi:

What Industries we support in Burundi:

  • 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.

Can we help you with Burundi?