Togo Employer of Record & Payroll
Africa Deployments Togo 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 Togo 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 Togo.
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.
Togo officially the Togolese Republic is a sub-Saharan country in West Africa bordered by Ghana to the west, Benin to the east and Burkina Faso to the north. Togo extends south to the Gulf of Guinea, where its capital, Lomé, is located.
As a small 56,785 km² tropical nation less than 115km wide [between Ghana and Benin], it is home to ±8.8 million people.
Togo is known for its palm-lined white sandy beaches, among them Aneho Beach and Lomé Beach, as well as rolling savannas, beautiful waterfalls, hilltop villages and centuries of interesting architecture.
Culturally Togo is richly diverse, with over 30 ethnic groups. The Ewe, who emigrated from Nigeria between the 14th and 16th centuries, form the major group, followed by the Mina and Kabre.
Top sights in Togo include: Lomé Grand Market, Monument de l’independence, Palais de Lomé, Lake Togo and Mount Agou. Designated in 2004 as a UNESCO World Heritage Site at the border between northern Togo and Benin, Koutammakou, the Land of the Batammariba is a cultural landscape worth seeing. The area features traditional mud tower-houses which remain the preferred style of living.
Diverse wildlife can be enjoyed in Kéran National Park near Kara and the Fosse aux Lions (Lions’ Den) southwest of Dapaong, while exotic butterflies abound in the lush forests around Kapilmé.
The Togolese are welcoming people whose climate is very warm and whose economy depends mostly on agriculture.
What is the main language spoken in Togo:
The official language, and the language of commerce in Togo, is French but other languages are spoken, particularly those of the Gbe family.
Mina and Ewe are two of the major African languages spoken in the south.
The word Togo means ‘water shore’ in Ewe.
What type of employment contracts can you offer in Togo:
Through our employer of record (EOR) solutions in Togo, we can offer the following types of employment contracts:
- Fixed Term
- Indefinite term
Contracts and Offer Letters must:
- Be in writing
- Be in the official local language and the local currency
- Include salary/compensation, benefits and termination requirements
Full-time Employees:
- 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.
- There is a collective agreement in Togo that means the probationary period can vary per kind of employment as follows:
- Probationary period for regular employees is 1 month [renewable once]
- Probationary period for supervisory employees is 3 months [renewable once]
- Probationary period for managers / more senior employees is up to 6 months [non-renewable i.e. maximum]
WHAT INCOME IS TAXABLE IN Togo:
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 Togo:
Residents are taxed on their worldwide income. Taxable income includes industrial and commercial profits, non-commercial profits, agricultural profits, employment income (including benefits in kind), capital gains and income from property, securities and other assets.
Standard working hours: Number Overtime to be paid?
- Normal working hours are 40 hours per week.
- In accordance with the Interprofessional Collective Agreement, an employer is required to pay overtime pay at the following rates:
- 20% of their hourly wage for the first 8 hours during the day (41 to 48 hours);
- 40% of their hourly wage for overtime of more than 48 hours during the day; and
- 65% of normal pay if they work on Sundays and holidays.
Mandatory contributions?
Employee
| Contribution Type | Contribution Rate |
|---|---|
|
Social Security |
6% |
|
Pension Fund |
1% |
|
National Housing Fund |
0.5% |
|
Professional Training Fund |
0.25% |
|
Health Insurance |
5% |
|
Work Accident Insurance |
1% |
Employer
| Contribution Type | Contribution Rate |
|---|---|
|
Social Security |
8% |
|
Pension Fund |
3% |
|
National Housing Fund |
1% |
|
Professional Training Fund |
0.5% |
|
Work Accident Insurance |
2% |
Social
| Contribution Type | Employers | Employees |
|---|---|---|
|
Social Security |
15% |
6%
|
|
Pension Fund |
4% |
1% |
|
National Housing Fund |
1.5% |
0.5% |
|
Professional Training Fund |
0.75% |
0.25% |
|
Health Insurance |
- |
5% |
|
Health Insurance |
3% |
1% |
What is the Maternity and Paternity policy within Togo:
Maternal leave:
- Entitled to 14 weeks of maternity leave.
Paternal leave:
- There is no statutory paternity leave in Togo
What type of leave is allowed in Togo:
Annual leave
- 22 days
Sick Leave
- A worker is entitled to sick leave for 5 days a year.
Do I need to pay a mandatory bonus annually OR is it discretionary in Togo:
There is no statutory / mandatory 13th or 14th month salary / bonus in Togo.
What Gratuity / Severance payments do you need to provide for Togo:
- Employers in Togo are required to provide severance pay to employees who are dismissed due to economic reasons.
- The severance pay amount depends on the number of years the employee has continuously worked for the same employer.
- For employees with one to five years of continuous service, the severance pay is a lump sum of 35% of their average annual salary during the employment period.
- Employees with six to nine years of continuous service are entitled to a lump sum of 40% as severance pay.
- Employees who have worked for 10 or more years continuously receive a lump sum of 45% as severance pay.
- These percentages serve as the basis for determining the amount of severance pay according to the years of continuous service.
CAN YOU GIVE FRINGE BENEFITS IN Togo:
Yes, you can but keep in mind that certain Fringe Benefits will be subject to employee PAYE tax.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 Togo:
- Workers, employees, and others: 1-month probation (renewable once)
- Supervisors, technicians, and associated professionals: 3-month probation (renewable once)
- Managers and others: 6-month probation (non-renewable)
- Workers, employees, and similar positions: 1-month notice
- Supervisors, managers, and others: 3-month notice
- Paid workers per hour: 5-day notice
- Fixed-term contracts: End on expiry or termination by either party
- Reasons for contract termination: Force majeure, mutual agreement (in writing), serious mistake, judicial resolution
- Employment contracts of indefinite duration: Can be terminated with notice
- Notice period for termination: 1 month for workers, employees, and similar positions; 3 months for supervisors, managers, and others; 5 days for paid workers per hour
Is 13th month pay (Bonus) mandatory?
Not mandatory, applicable as per contract.
What are the Corporate and VAT / Sales tax rates in Togo:
Corporate Tax Rates: 27% [in general]
VAT / Sales Tax Rates: 18% [on most goods and services]
Public Holidays in Togo:
- January 1 - New Year's Day
- April 10 - Easter Monday
- April 22 - Korité
- April 27 - Independence Day
- May 01 - Labour Day
- May 18 - Ascension Day
- May 29 - Whit Monday
- June 21 - Martyrs' Day
- June 29 - Tabaski
- August 15 - Assumption Day
- November 01 - All Saints' Day
- December 25 - Christmas Day
What Industries we support in Togo:
- 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.
