Africa Deployments Djibouti (ADS) offers comprehensive Employer of Record (EOR) services across all regions of Djibouti. These services include full-time employment and fixed-term contract solutions for both local and expatriate staff based on client requirements. Under ADS’s umbrella, we manage work permits and issue local work contracts for employees, ensuring compliance with local regulations. Additionally, ADS advises clients on best Human Resource (HR) practices when setting up employment arrangements in Djibouti.

• Key responsibilities include:
  • Monthly local tax and PAYE remittances to the Revenue Services to maintain compliance.
  • Timely salary payments with accurate pay slips.
  • Provision of optional employee benefits such as medical, disability, life, and workmen’s compensation insurance.

About Djibouti
Djibouti, officially known as the Republic of Djibouti, is a beautiful nation along the Gulf of Aden. Despite its small size, it offers varied landscapes, including salt lakes, extinct volcanoes, limestone chimneys, and majestic canyons. With a population of approximately 1.13 million people, Djibouti offers eco-travel experiences such as hiking, diving, and whale-shark spotting.

• Population: 1.106 million (2021)
• Currency: Djibouti Franc (DJF)
• Capital: Djibouti City
• Languages: Arabic and French (official), Afar (25%), Somali (45%)
• GDP: USD 3.483 billion (2021)
• Industries: Dairy and Construction

Employment Contracts Offered in Djibouti
Through our EOR solutions, ADS provides:

• Fixed-term contracts: For project-based employment.
• Indefinite-term contracts: For ongoing employment.

Contracts and offer letters must be:

• In writing and in the local official language.
• Include details on salary, benefits, and termination requirements.
• Probationary periods can be up to 3 months for indefinite contracts and up to 2 months for fixed-term contracts.

Taxation and Payroll Compliance

• Taxable Income: All cash earnings, including wages, overtime, commissions, bonuses, and gratuities, are subject to taxation.
• Tax Exemptions: Companies in Djibouti’s free port may receive a 5 to 10-year tax exemption.

Standard Working Hours and Overtime

• 8 hours per day, 48 hours per week.
• Overtime rates:
  • 150% of the hourly wage for the first two hours.
  • 200% for additional hours.

Mandatory Contributions

• Social Security (CNaPS): 6% employer contribution, 6% employee contribution
• National Health Insurance (CNAM): 3% employer contribution, 3% employee contribution
• National Employment & Vocational Fund (FNEF): 1% employer contribution, no employee contribution

Leave Policies in Djibouti

• Annual Leave: 2.5 days per month after one year of employment.
• Sick Leave: 29 days at 50% of the basic rate paid by social security; 75% thereafter.
• Maternity Leave: 14 weeks (8 weeks pre-birth, 6 weeks post-birth) paid leave.
• Paternity Leave: 3 working days.

Severance and Gratuity Payments

• Less than 1 year: 1 month’s salary.
• 1 to 5 years: 2 months’ salary.
• Over 5 years: 3 months’ salary.

Fringe Benefits
Fringe benefits are allowed but subject to PAYE tax. Non-cash benefits are typically tax-exempt.

Corporate and VAT/Sales Tax Rates

• Corporate Tax: 25%
• VAT/Sales Tax: 10% on most goods and services

Public Holidays in Djibouti

• January 1: New Year’s Day
• February 18: Al Isra et Al Mirague
• April 22-23: Eid ul-Fitr and Holiday
• May 1: Labour Day
• June 27: Independence Day
• June 29-30: Eid Al Adha and Holiday
• July 19: Awal Muharram
• September 27: Prophet Mohammed’s Birthday
• December 25: Christmas Day

Industries Supported in Djibouti

• Non-Governmental Organizations (NGO)
• Engineering & Construction
• Government/Development Agencies
• Oil & Gas
• FMCG & Manufacturing
• Private Equity, Finance, Insurance & Banking
• Mining
• Agriculture

Double Tax Treaties
Djibouti has concluded agreements with China (2004) and Egypt (1998) to avoid double taxation. Agreements with Malaysia, Switzerland, and Yemen await ratification.

Africa Deployments Djibouti ensures full compliance with local employment laws, providing seamless EOR and payroll services in Djibouti, helping businesses deploy personnel effectively and efficiently.

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