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.

Population

17.07 million (2021)

Currency

Somali shilling

Capital
Language

Northern Standard Somali and Arabic

GDP

7.628 billion USD (2021)

Industries

Agriculture & Industry

What income is Taxable?

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 type of leaves is allowed?

  • Annual leave – 15 days, full pay per annum.
  • Public Holiday – 8 Public Holidays per annum
  • Maternity leave – Employees are entitled to 16 weeks

Can you give fringe benefits?

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.

 

What are the employer & Employee contributions?

Social Security are not mandatory

Is there Gratuity Payments for Termination?

  • 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

WHAT DOUBLE TAX TREATIES ARE IN PLACE:

Get in touch with one of our consultants should you have any further questions regarding our Employer of Record solutions or only require a payroll solution in Somalia.

 

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