Liberia Employer of Record & Payroll
Africa Deployments Liberia 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 Liberia 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 Liberia.
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.
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.
Liberia is Africa’s Oldest Republic and several monuments in the capital Monrovia are a testament to this.
Liberia has a population of ±5.4 million, including ±16 indigenous ethnic groups such as the Kpelle [20%].
Forests and Jungles are abundant in Liberia, and the Upper Guinean Forest of West Africa is a global biodiversity hotspot.
Accordingly Liberia is home to many rare and endangered animals: the Diana Monkey, Upper Guinea Red Colobus, Western Chimpanzee, and the Pygmy Hippopotamus.
The more than 6.6 Million Hectares of tropical forest also make it ideal for 700+ bird species and 800+ butterfly species including the largest butterfly in Africa, the Giant African Swallowtail.
Liberia has one of West Africa’s best surf spots – Robertsport – a small fishing village 3-5 hours from Monrovia.
Top exports include gold, passenger and cargo ships, iron ore, rubber and special purpose ships.
What is the main language spoken in Liberia:
English is the official language in Liberia, whilst more than 24 languages are spoken overall.
±3 million people [±54% of the population] speak the form of pidgin English known as Liberian Kreyol language or Liberian Pidgin English.
Predominant other languages include Kpelle, Bassa, Grebo, Dan, Kru, Mano, Loma, and Mandingo (spoken by the Malinke).
What type of employment contracts can you offer in Liberia:
- 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 1 month [minimum] and 3 months [maximum]
WHAT INCOME IS TAXABLE IN Liberia:
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 Liberia:
Taxable income includes non-cash benefits in Liberia i.e. these are not exempt.
Standard working hours: Number Overtime to be paid?
- Standard working hours in Liberia are typically set at 8 hours per day and 40 hours per week.
- Overtime pay in Liberia is often at a rate of 1.5 to 2 times the regular hourly rate.
Mandatory contributions?
Employee
| Contribution Type | Contribution Rate |
|---|---|
|
Social Insurance |
1.75% of monthly gross remuneration |
Employer
| Contribution Type | Contribution Rate |
|---|---|
|
Social Insurance |
3% of monthly gross remuneration |
|
Workmen Compensation |
1.75% of monthly gross remuneration |
Social
| Contribution Type | Employers | Employees |
|---|---|---|
|
Social Insurance |
3% of monthly gross remuneration |
1.75% of monthly gross remuneration |
What is the Maternity and Paternity policy within Liberia:
- Entitled to 3 months leaves
- Fathers are entitled to 5 days of unpaid paternity leave in Liberia
What type of leave is allowed in Liberia:
- 10 days pay leaves per annum
-
Not provided for in the law.
Do I need to pay a mandatory bonus annually OR is it discretionary in Liberia:
In Liberia bonuses are not mandatory.
What Gratuity / Severance payments do you need to provide for Liberia:
- No mandatory requirement for annual gratuity payments in Liberia.
- Employers have the discretion to decide whether to provide gratuity payments and the terms under which they are awarded.
- Severance payments are generally required in Liberia upon termination of employment.
- Eligibility for severance pay is often based on the minimum period of service, typically ranging from one to three years.
- The calculation of severance pay is usually determined by factors such as the length of service and the employee’s salary or wages.
- Severance pay is applicable in situations such as redundancy, layoff, retrenchment, or business closure.
- The exact formula or minimum requirements for severance pay may be outlined in labor laws, employment contracts, or collective bargaining agreements.
CAN YOU GIVE FRINGE BENEFITS IN Liberia:
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 Liberia:
Under Liberian employment law, probationary periods may not be less than one month and cannot exceed three months.
Is 13th month pay (Bonus) mandatory?
Not mandatory, applicable as per contract.
What are the Corporate and VAT / Sales tax rates in Liberia:
Corporate Tax Rates: 25% [in general]
VAT / Sales Tax Rates: 7% [on most goods and services]
Public Holidays in Liberia:
- January 1 - New Year's Day
- February 11 - Armed Forces Day
- March 08 - Decoration Day
- March 15 - J.J Roberts' Birthday
- April 12 - National Redemption Day
- April 14 - Fast and Prayer Day
- May 14 - National Unification Day
- July 26 - Independence Day
- August 24 - Flag Day
- November 02 - National Thanksgiving Day
- November 29 - William Tubman's Birthday
- December 25 - Christmas Day
What Industries we support in Liberia:
- 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.
