Somalia Employer of Record (EOR) & Payroll
Somalia Employer of Record & Payroll
Africa Deployments Somalia 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 Somalia 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 Somalia.
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.
Somalia, officially the Federal Republic of Somalia, is a country in the Horn of Africa.
Somalia has the longest coastline on Africa’s mainland, stretching 3,025 km and shaped like the number 7, it runs along the Gulf of Aden to the north and the Indian Ocean to the east. Here you can find some of the most beautiful beaches in the world.
It would be the longest coastline in the entire continent if it wasn’t for the island of Madagascar.
Somalia is known for its immense natural beauty and for being home to Africa’s earliest known 5000-year-old prehistoric and most pristine rock art – at Laas Geel.
These paintings depict antelopes, cattle, giraffe and hunting scenes and are protected by a group of local men who actually live at the cave site, acting as security guards / tour guides.
Somalis are distinguished by their traditional clan system, Somali language and Sunni Islamic beliefs. Somalia is a nation of poets and their culture revolves around poetry. Daily life can differ significantly across Somalia.
Bananas are Somalia’s leading export and many Somalis don’t consider a meal to be complete without a banana!
Of the population of ±17 million overall, ±16% live in the capital Mogadishu [±2.6 million].
What is the main language spoken in Somalia:
In Somalia, Northern Standard Somali is the most widely spoken as a first language (±60% of the population), followed by Maay Somali (±20%) and Benadiri Somali (±18%).
What type of employment contracts can you offer in Somalia:
- 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 up to 6 months [maximum] – generally in Somalia the probationary contract is authorized for 2 months, with an additional extension of 2 months possible, at the employer’s discretion
WHAT INCOME IS TAXABLE IN Somalia:
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.
Standard working hours: Number Overtime to be paid?
- The standard work week is of 8 hours per day for 6 days a week
- Overtime is paid at 150% of the normal wage. Overtime cannot exceed 2 hours a day or 12 hours a week.
Mandatory contributions?
What is the Maternity and Paternity policy within Somalia:
Maternal leave:
- Employees are entitled to 16 weeks
Paternal leave:
- Paternity leave in Somalia is usually 2 weeks [paid]
What type of leave is allowed in Somalia:
- 15 days, full pay per annum.
- An employee is entitled to 7 days with full pay and thereafter to sick leave of 7 days with half pay.
Do I need to pay a mandatory bonus annually OR is it discretionary in Somalia:
There is no statutory requirement to pay a 13th or 14th month salary / bonus in Somalia and it is not seen as customary.
What Gratuity / Severance payments do you need to provide for Somalia:
- Severance paid at the rate of 15 days’ pay for each completed year of service.
- Severance pay for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) is equivalent to 4.3 weeks of pay
- Severance pay for redundancy dismissal for a worker with 5 years of tenure (weeks of salary) is equivalent to 21.7 weeks of pay
- Severance pay for redundancy dismissal for a worker with 10 years of tenure (weeks of salary) is equivalent to 43.3 weeks of pay
CAN YOU GIVE FRINGE BENEFITS IN Somalia:
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 Somalia:
Employee Probation Period
- The probationary period is generally 6 months (may be extended for an additional 6 months)
Notice Period in Somalia
- Either of the contracting parties may terminate a contract of employment by giving written notice as under:
- Not less than ten days in the case of manual workers;
- Not less than 30 days in the case of non-manual workers.
Is 13th month pay (Bonus) mandatory?
Not mandatory, applicable as per contract.
What are the Corporate and VAT / Sales tax rates in Somalia:
Corporate Tax Rates: 12.3% [in general]
VAT / Sales Tax Rates: 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 01 - Labour Day
- June 26 - Independence Day
- June 29 - Eid Al Adha
- July 01 - Republic Day
- July 19 - Islamic New Year
- July 28 - Ashura
- September 27 - Mawlid Nabi
- December 25 - Christmas Day
What Industries we support in Somalia:
- 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.
