Somalia Employer of Record (EOR) & Payroll Services

Somalia EOR Services for Seamless International Deployments

Africa Deployments Somalia (ADS) offers comprehensive Employer of Record (EOR) services across all regions of Somalia, providing both full-time employment and fixed-term contracts based on your business needs. Our expert services cater to both local Somali employees and expatriates, ensuring smooth legal compliance and efficient workforce management.

EOR Solutions for Companies Operating in Somalia

With ADS, you can focus on your business operations while we handle the complexities of employment law in Somalia. We take care of work permits, issue local employment contracts, and advise on best Human Resource (HR) practices for local hires. Our EOR services ensure compliance with Somali tax regulations, including PAYE remittances to the Revenue Services, and we guarantee timely salary payments along with pay slips for your employees.

Why Choose ADS for Somalia Employer of Record Services?

• Compliance Assurance: We ensure full compliance with Somali tax and labor laws, handling employee benefits, payroll taxes, and mandatory reporting.
• Workforce Flexibility: Offer both fixed-term and indefinite-term contracts for a wide range of positions, customized to suit your project needs.
• Streamlined Payroll: ADS handles payroll and tax remittances, ensuring employees receive their salary on time every month.
• HR Support: We guide you through local HR practices, from issuing employment contracts in the local language and currency to helping manage employee benefits and severance.

General Information on Somalia

Somalia, officially known as the Federal Republic of Somalia, is located in the Horn of Africa. Boasting the longest coastline in mainland Africa (3,025 km), Somalia is rich in natural beauty, from its pristine beaches to its ancient rock art, dating back 5,000 years. The country’s culture revolves around poetry, and Somalis are deeply rooted in their traditional clan system, language, and Sunni Islamic beliefs.

• Population: 17.07 million (2021)
• Currency: Somali Shilling
• Capital: Mogadishu
• Official Languages: Northern Standard Somali, Arabic
• GDP: $7.628 billion (2021)
• Key Industries: Agriculture, Oil & Gas, FMCG, Construction

Types of Employment Contracts in Somalia

Through our EOR services in Somalia, we offer various types of employment contracts, including:

• Fixed Term Contracts
• Indefinite Term Contracts

Contract Details:

• All contracts must be written in the official local language and currency.
• Contracts must specify salary, benefits, and termination conditions.

Full-time Employment in Somalia

Full-time employees under our EOR services have access to the following:

• Working Terms & Conditions: Customized per client needs.
• Organizational Benefits: Employees may be eligible for perks such as healthcare and training.
• Probation Period: A maximum of 6 months (typically 2 months with a possible extension).

Income Taxation in Somalia

In Somalia, all forms of income (salary, bonuses, overtime, and more) are subject to tax, including:

• Wages, salary, and commissions
• Bonus payments
• Gratuities

All taxes are processed by ADS on behalf of your employees, ensuring legal compliance.

Standard Working Hours & Overtime in Somalia

• Standard Work Week: 6 days per week, 8 hours per day.
• Overtime: Paid at 150% of regular wages. Overtime is capped at 2 hours per day and 12 hours per week.

Leave Entitlement in Somalia

• Annual Leave: 15 days per year with full pay.
• Sick Leave: 7 days with full pay, followed by 7 days with half pay.

Maternity & Paternity Leave

• Maternity Leave: 16 weeks.
• Paternity Leave: 2 weeks (paid).

Severance & Gratuity in Somalia

• Severance: Paid at 15 days’ salary per completed year of service.
• Redundancy: Severance pay increases based on years of service.

Fringe Benefits & PAYE Tax in Somalia

Fringe benefits like mobile phones or housing can be offered but will be subject to employee PAYE tax unless they cannot be converted to cash.

Probation Period in Somalia

Employees in Somalia are generally subject to a 6-month probation period, extendable by up to another 6 months at the employer’s discretion.

Corporate and Tax Rates in Somalia

• Corporate Tax Rate: 12.3% (standard rate).
• VAT/Sales Tax Rate: 10% on most goods and services.

Public Holidays in Somalia

• January 1: New Year’s Day
• February 18: Mi’raaj Nabi
• April 22: Eid-ul-Fitr
• May 1: Labour Day
• June 26: Independence Day
• June 29: Eid Al Adha
• July 1: Republic Day
• July 19: Islamic New Year
• July 28: Ashura
• September 27: Mawlid Nabi
• December 25: Christmas Day

Industries Supported by ADS in Somalia

ADS provides EOR services to a wide range of industries in Somalia, including:

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

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