Run your business seamlessly with Neeyamo as we help you go beyond borders to manage your international payroll and hire new talent in Togo.
Overview
Togo is a country located on Africa's west coast, bordered by Ghana, Benin, and Burkina Faso.It has a growing industrial sector, which includes phosphate mining, agricultural processing, cement, handicrafts, textiles, and beverages.
Do your organization's expansion plans require hiring employees in Togo? Do you lack a physical entity in the country – a key requisite to hire local talent? Neeyamo – one of the top Global payroll providers, assists organizations worldwide with onboarding and managing employees in Togo- processing payroll, managing local compliance requirements, benefits, and more.
Facts And Stats
Capital
Lomé
Currency
West African CFA Franc (XOF)
Official Language
French
Fiscal Year
1 January to 31 December
Date Format
DD/MM/YYYY
Country Calling Code
+228
Time Zone
UTC + 0
Global Payroll
Overview
Handling payroll for a widespread workforce can pose a significant challenge for any organization, and the added complication of compliance can make things worse and drastically affect the time and efforts that can be used in other equally important aspects of an organization's development. If companies spend more time processing payroll, it directly impacts day-to-day operations and their overall productivity.
Over the years, Neeyamo has observed these complexities and strived to provide a global payroll solution through a single technology platform - Neeyamo Payroll. Cloud-based payroll service providers, like Neeyamo, assess payroll industry trends and offer a consolidated solution in its Global Payroll Technology Stack making outsourcing payroll cost per employee easier.
Payroll Taxes
Payroll tax is the percentage amount retained from an employee's salary and paid to the government to invest in the general population's welfare.
Employee Taxes
Social Security in Togo
The employee contribution is 4% of gross remuneration.
Income Tax in Togo
- Residents are taxed on their worldwide income.
- Non-residents are taxed as residents when they have spent at least six months in Togo and have a tax domicile in Togo; otherwise, non-residents are taxed only on Togo-source 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.
- Industrial and commercial profits, non-commercial profits and agricultural profits are taxed at a rate of 30% after deduction of expenses.
- The tax rates are progressive and range from 0.5% to 35%.
- When annual earnings exceed XOF15 million, the following formula is used in the calculation of income tax: Tax = (Taxable income – XOF15 million) x 0.35 + XOF3 021 500.
- Non-residents who spend more than six months in Togo during the fiscal year are taxed at the same rates as residents.
| Taxable Income (XOF) | Rate |
| 0 – 900,000 | 0.5% |
| 900.001 – 4,000,000 | 7% |
| 4,000,001 – 6,000,000 | 15% |
| 6,000,001 – 10,000,000 | 25% |
| 10,000,001 – 15,000,000 | 30% |
| Over 15,000,000 | 35% |
Employer Taxes
Employer Contribution:
Employers must make monthly social security contributions of 17.5% of their employee’s monthly gross salary.
Payroll Cycle
Overview
Undoubtedly, payroll is a critical process for any organization. The Pay cycle is a notable feature that provides a sense of accountability for an employee to be paid consistently for their work.
Frequency
The frequency cycle is Monthly.
13th Month Cycle
There is no statutory requirement to pay the 13th or the 14th month salary.
The benefits that employees receive include retirement and parental benefits, but there is no evidence that monetary benefits are common.
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 Togo is 52,000 CFA per month.
Overtime
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
- 65% of normal pay if they work on Sundays and holidays.
Data Retention Policy
In Togo, the data protection law does not explicitly specify the retention period for employment data.
There are shorter retention periods for certain types of data, such as:
- Financial data: 5 years
- Health data: 3 years
- Biometric data: 2 years
Hiring and Onboarding Requirements
Hiring
The employment contract law in Togo mandates that all employers must provide written contracts of employment to the employees, irrespective of the category of the employees, permanent, seasonal, or temporary. The employment agreement in Togo must be in French, clearly identifying the employer and the employee. Employment contracts must also clearly indicate the details of employment, such as the agreed-upon compensation in West African CFA Franc, date of joining, term of the contract, and other conditions as applicable.
Onboarding
The specific onboarding documents required for employees in togo 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
Employee Probation Period
For workers paid monthly, the probationary period is one month (renewable once) for workers, employees and others; three months (renewable once) for supervisors, technicians and associated professionals six months (non-renewable) for managers and others.
Leave
Public Holidays for 2024
- 1 January - New Year
- 1 April - Easter Monday
- 10 April - Eid al-Fitr
- 27 April - Independence Day
- 1 May - Labour Day
- 9 May - Ascension Day
- 20 May - Whit Monday
- 17 June - Tabaski
- 21 June - Day of the Martyrs
- 15 August - Assumption of Mary
- 1 November - All Saints' Day
- 25 December - Christmas Day
Annual Leave
Workers are entitled to an annual holiday of 30 days a year for two and a half days per month.
Maternity Leave
The Labor Code provides 14 weeks (98 days) of maternity leave for women, including six weeks of post-natal leave.
Maternity leave may be extended by a further three weeks in the case of a complication and illness resulting from pregnancy, childbirth or multiple pregnancies or for reasons of the child’s health duly noted by the doctor.
Paternity Leave
There is no mandatory paternity leave
Sick Leave
According to the Labor Code, a worker is entitled to sick leave for 5 days a year
Termination
Termination of Employment in Togo
- The fixed-term contract terminates on the expiry of its term or upon termination by one of the parties.
- The fixed-term contract can also be broken in case of force majeure, agreement of the parties, provided that it is recorded in writing, heavy mistake, and the judicial resolution.
- The employment contract of indefinite duration may be terminated by the will of one of the parties, provided that the party initiating the termination gives notice.
Notice Period in Togo
The Collective Agreement specifies the minimum duration of the notice period as follows:
- One month for workers, employees and the like.
- Three months for supervisors, managers and others.
- Five days for paid workers per hour.
Severance Pay
A 2011 collective agreement requires employers to provide severance pay in cases of dismissal on economic grounds to employees with at least one year of continuous service with the same employer.
The amount varies according to the years of continuous service:
- a lump sum of 35% of the employee's average annual salary during the employment period with one to five years
- a lump sum of 40% with six to nine years
- a lump sum of 45% with 10 or more years.
Visa
Overview
Nationals from certain countries, including Benin, Ghana, Guinea, Mali, Niger, and Senegal, do not need a visa to enter Togo. Individuals with diplomatic and service passports from China and Morocco do not require a visa.
Everyone else must obtain one of the following visa types:
- Tourist visa: Individuals travelling to Togo for tourism, a visit, or other nonbusiness-related purposes should apply for this single- or multiple-entry visa, which is valid for up to 90 days.
- Business visa: Foreigners entering the country for business-related purposes should obtain a single- or multiple-entry business visa for up to 90 days.
- Immigration visa: This visa is for foreigners intending to live in Togo long-term.
The most common documents that applicants will need across visa types include:
- A passport valid for at least six months from the end of the stay with two blank pages
- Copies of the employee’s first two passport pages
- A completed visa application form
- Two recent passport-size photos
- Proof of a return flight
- Travel insurance for the duration of the stay
- A yellow fever certificate
Immigration visas require proof of income, such as a bank statement, as well as proof of health insurance and a motivational letter for moving to Togo.
Employee Background Checks
Legal and Background Checks
- Privacy Law: Togo's data protection law, Loi n°2020-007, governs the collection, processing, and disclosure of personal data. This includes background check information. Employers must obtain consent from individuals before conducting any checks and ensure data privacy throughout the process.
- Employment Law: Togo's labour laws generally allow employers to conduct background checks, but specific limitations may apply depending on the nature of the job and the information being sought. Consulting with a legal professional is recommended.
Types of Background Checks:
- Employment Verification
- Identity Verification
- Education Verification
- Medical Examinations
- Criminal Record Checks
- Education and Employment Verification
- Professional License Verification
- Financial Checks
Last updated on December 22, 2023
If you have any queries or suggestions, reach out to us at irene.jones@neeyamo.com
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