Benin: A Guideline to Payroll and Employer of Record

Run your business seamlessly with Neeyamo as we help you go beyond borders to manage your international payroll and hire new talent in Benin.

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Overview

With a vibrant and youthful population boasting a median age of merely 17, Benin is one of the most youthful nations globally. This demographic composition not only characterizes the country's vitality but also signifies a country filled with youthful energy ready to contribute significantly to the nation's workforce. The emerging workforce is anticipated to be exceptionally skilled and talented across diverse domains, paving the way for a dynamic and promising future.

If your organization’s expansion plans require you to hire employees in Benin and you lack a physical entity in the country – a key requisite to hire local talent, your solution is right here with, Neeyamo – Payroll management services. Neeyamo's global payroll solutions assist with the onboarding and management of employees in Benin, along with the processing of a firm's payroll accounting and tax services, handling payroll risks and controls, compliance, benefits, and more.

Tools And Instances

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Global Payroll

Neeyamo’s global payroll solution covering 180+ countries

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Global Work

A tech-based EOR solution to manage your extended workforce

Facts And Stats

Capital

Porto-Novo

Currency

West African CFA franc

Official Language

French

Fiscal Year

1 January - 31 December

Date Format

DD/MM/YYYY

Country Calling Code

+229

Other Languages

Fon, Bariba, Yoruba and Dendi

Time Zone

GMT+1

Global Payroll

Overview

Handling payroll for a widespread workforce can pose as a major challenge for any firm. The added complication of compliance can make things worse and drastically effect the time and efforts that can be used in other equally important aspects of an organization's development. 

Over the years, Neeyamo has observed these complexities and strived to provide a global payroll solution through a single technology platform, Neeyamo Payroll.

Payroll Taxes

Payroll tax is the percentage amount retained from an employee's salary and paid to the government to invest in the welfare of the general population.

Employee Taxes

Employee Payroll Contributions

 

An individual, whether Beninese or a foreign national, whose tax domicile is in Benin generally is subject to personal income tax on worldwide income. 

Individuals who are not domiciled in Benin are subject to tax only on Benin source income.  

Personal income tax rates are progressive at rates ranging from 30% to 40%.  

Fees paid to a resident service provider are subject to a withholding tax (WHT) of 1%, 3%, or 5%, with the rate increasing to an effective 10% for payments to non-resident individuals and to an effective 12% for payments to non-resident legal entities (the withholding rate is set at 25% for natural persons and at 30% for legal persons after a reduction of 60% to the sums paid) 

A 4% rate applies on salary, wages, and a broadly defined concept of emoluments.  

The employer must withhold tax on salaries, wages, and other remuneration, and pay the tax to the tax administration on a monthly basis by the 10th day of the month following the month the payment is made. 

The tax on salary and wages shall be calculated by applying the following progressive rates to the tax base:  

Taxable Income (XOF)

Rate (%)

0 – 60 000

0% 

60 001 – 150 000 

10% 

150 001 – 250 000

15%

250 001 – 500 000

20% 

Employer Taxes

The employer’s social security contribution is 15.4% of gross salary (6.4% pension and a 9% family allowance), plus 1% to 4% as industrial injury insurance, depending on the degree of risk in the employment. 

Payroll Cycle

Overview

Undoubtedly, payroll is a critical aspect of any organization. The Pay cycle is a notable feature of it that provides a sense of accountability for an employee to be paid consistently for their work.

Frequency

In Benin, the payroll cycle for employees can be daily, weekly, bi-weekly, or monthly.

13th Month Cycle

In Benin, there is no statutory requirement to pay a 13th or 14th month salary to employees. Instead, holidays are taken within twelve months, and the decision regarding the length of holidays is made by the employer. This practice contrasts with many other countries where a 13th month is a common benefit.

Global Work

Overview

An Employer of Record service provider helps you get rid of the hassle of handling the complexities that come with setting up a new employee in remote locations. They act as legal employers, facilitate salary payments, and handle everything from health insurance, payroll taxes, and employee benefits to comply with local tax laws and regulations.

This ensures that the client company can focus on the employee’s everyday tasks safely in the knowledge that they have a cost-effective solution as they continue their global expansion.

HR Mandates and Practices

Minimum Wage

The current minimum wage in Benin is F CFA52,000 per month.

Overtime

Workers may not work more than 240 hours of overtime per year.  

Overtime is paid at:

  • 112% of the normal hourly rate for the 41st to the 48th hour per week.
  • 135% of the normal hourly rate beyond the 48th hour per week.

Data Retention Policy

In Benin, the specific duration for which an employer can keep an employee's data is not explicitly mentioned. 

Data retention policies are regulated by the law, specifically by the "Loi n° 2019-1093 du 19 décembre 2019 portant régime juridique des fichiers informatisés et des bases de données" (Law No. 2019-1093 of December 19, 2019, concerning the legal regime of informatized files and databases). This law aims to protect the privacy of individuals and the confidentiality of data, ensuring that the handling of personal data is in compliance with the principles of legality, necessity, and proportionality.

Hiring and Onboarding Requirements

Hiring

Benin's employment law is governed by the Labor Code of 1998, which outlines the legal framework for hiring and employment practices within the country. 

The essential aspects of employment law in Benin, include working hours, wages, leave policies, and health benefits. Compliance with these laws is crucial for businesses looking to employ talent in Benin.

Onboarding

The specific onboarding documents required for employees in Benin may vary depending on the employer and the industry. However, some of the most common onboarding documents include:

  • Name 
  • Address 
  • Contact information
  • Emergency contact information
  • Proof of Identity
  • Educational Documents

Probation

Probation period is up to 3 months.

Leave

Overview

The statutory public holidays in Benin for the year 2024 are as follows:

  • 1 January - New Year
  • 10 January - Vodoun Festival
  • 1 April - Easter Monday
  • 10 April - Korité (Tentative Date)
  • 1 May - Labour Day
  • 9 May - Ascension Day
  • 20 May - Whit Monday
  • 17 June - Tabaski (Tentative Date)
  • 1 August - Independence Day
  • 15 August - Assumption of Mary
  • 16 September - Maouloud (Tentative Date)
  • 1 November - All Saints' Day
  • 25 December - Christmas Day

Annual Leave

Generally, employees are entitled to 24 paid days of annual leave, with increases at the following rate

  • after 20 years, and additional 2 days
  • after 25 years, an additional 4 days
  • after 30 years, an additional 6 days.

Sick Leave

  • Employees with less than 2 years of service are generally entitled to 6 months’ sick leave.
  • Employees with 2+ years of service are generally entitled to 12 months’ sick leave.
  • Employees with 1-5 years’ service are generally entitled to three months at full pay and three months at half pay.
  • Employees with 5+ years of service are entitled to full pay for 6 months.

Maternity Leave

Female employees are generally eligible for 6 weeks of paid leave before the birth and 8 weeks after the birth, with the employer paying for half and social insurance the balance.

Paternity Leave

Fathers are generally entitled to 3 days of paid paternity leave.

Termination

Overeview

Employers may terminate a worker for a valid reason, including

  • Worker health
  • Inability to hold employment
  • Competence or conduct
  • Changes in the organization or technology
  • Economic hardship, or closure of the company

If the employer dismisses the employee on personal grounds, the employer must notify the employee in writing and include the reasons for termination. 

The labor inspector must also be notified in writing.

Notice Period

  • Hourly employees are entitled to 15 days’ notice.
  • Employees, workers, and laborers are entitled to one month of notice.
  • Supervisors and executives are entitled to 3 months’ notice.

Severance Pay

The amount of severance pay depends on the length of service:

  • First 5 years of employment–30% of average monthly salary
  • 6-10 years of service–35% of average monthly salary
  • 10+ years of service–40% of average monthly salary

Visa

Overview

Benin has three overarching types of visas:

  • Business
  • Tourist
  • Transient

The requirements differ between types, but most of your employees will need to obtain a business visa and work permit to stay compliant. 

Most visas are valid for either 30 or 90 days. Foreigners must apply before entering Benin, as they cannot obtain visas upon arrival.

The requirements to obtain a working visa in Benin depend on the type of visa employees need and whether they want a single- or multi-entry option. 

Some of the documents they must provide include:

  • A passport-style photo
  • A scanned copy of the passport
  • A copy of their flight itinerary
  • Proof of yellow fever vaccination
  • A business letter from your company
  • A completed visa application form

Once employees obtain work visas, they’ll need to also get work permits. Employers handle the application process on behalf of employees. 

The process for obtaining a work permit is as follows: 

  • An expatriate quota approval
  • A Subject to Regularization (STR)
  • A Combined Expatriate Residence Permit and Alien Card (CERPAC)

Employee Background Checks

Legal and Background Checks

Below are types of background check for Benin:

  • Employment Verification
  • Identity Verification
  • Education Verification
  • Medical Examinations
  • Criminal Record Checks
  • Education and Employment Verification
  • Professional License Verification
  • Financial Checks

Last updated on March 13, 2024

If you have any queries or suggestions, reach out to us at irene.jones@neeyamo.com

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