Chad: 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 Chad.

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Overview

Chad is a landlocked country in north-central Africa, bordered by Libya to the north, Sudan to the east, the Central African Republic to the south, and Nigeria and Cameroon to the west. The country is known for its diverse landscapes, ranging from deserts in the north to wetlands and lakes in the south.

Chad has a relatively small economy, with a heavy reliance on agriculture and livestock. Oil production and exports have become important in recent years, along with cotton production and the development of a small manufacturing sector.

Chad shares borders with six countries: Libya, Sudan, the Central African Republic, Cameroon, Nigeria, and Niger.

Neeyamo provides assistance for onboarding and management of employees in chad along with processing of a firm's payroll, 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

N'Djamena

Currency

Central African CFA franc (XAF)

Official Language

French and Arabic

Fiscal Year

1 January - 31 December

Date Format

DD/MM/YYYY

Country Calling Code

+235

Time Zone

West Africa Time Zone (UTC+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

Social Security in Chad:

Employee contributions are 3.5% of the gross salary limited to XAF 500,000 per month (XAF 17,500 upper limit).

Income Tax in Chad:

The income tax rates are progressive from 0% to 30%.

Employer Taxes

Social Security in Chad:

Employer contributions are 16.5% of the gross salary limited to XAF 500,000 per month (XAF 82,500 upper limit).

Payroll Cycle

Overview

Undoubtedly, payroll is a critical aspect of 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 in Chad is Monthly.

13th Month Cycle

Chad does not commonly follow the 13th, 14th, or 15th-month salary cycle.

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

Chad does not have a standardized national minimum wage. Instead, wages are determined through collective bargaining agreements between employers and employees or their representatives.

Overtime

  • Any work performed beyond 39 hours per week shall be considered overtime. An employee cannot work more than 94 hours of overtime in a year.
  • Employees shall be required to perform overtime work for tasks related to urgent work which requires immediate action to prevent accidents via equipment, installations, or repair the consequences of damages. 
  • Employees shall not perform work for a duration of more than 11 hours a day and 54 hours per week inclusive of overtime hours.
  • If there is an interruption during a work shift, it may result in an increase in working hours in order to compensate for the loss of working time because of such interruption. These hours thus recovered shall not be considered overtime. However, the total duration of work shall not be more than 11 hours a day and 54 hours per week.
Pay:
  •  Employees shall be entitled to overtime pay decided by the Labor Authority. A collective agreement may also set the premium for overtime. In accordance with the general collective agreement, employees who work beyond the regular working hours shall be entitled to the following premium on the basic salary – 
  1. 10% premium for the first 8 overtime hours;
  2. 25% premium for overtime worked beyond the 8th hour.

Data Retention Policy
Law No. 007/PR/2015 on the Protection of Personal Data ('the Law'), the Republic of Chad has organized the protection of personal data. The purpose of this law is to put in place a mechanism to protect private and professional life following the collection, processing, transmission, storage, and use of personal data, subject to the protection of public order.

Hiring and Onboarding Requirements

Hiring

Chad's Labor Code governs employment relationships and sets out the rights and obligations of employers and employees. It covers topics such as working conditions, wages, rest periods, and termination procedures.

Chad's labor laws prohibit discrimination in hiring based on factors such as race, color, sex, religion, political opinion, or social origin.

Onboarding

In Chad, when hiring new employees, there are several key documents that are typically required as part of the onboarding process. Here is a list of common onboarding documents for employees in Chad:

  • Name 
  • Address 
  • Contact information
  • Emergency contact information
  • Proof of Identity
  • Proof of Qualifications
  • Identity and Work Permit Documentation
  • Employment Contract

Probation

The standard maximum duration of a probation period in Chad is 3 months. This allows employers to evaluate the suitability of an employee for a permanent position.

Leave

Public Holidays

The dates below can be modified if there are any changes in the gazette.

  • 1 January - New Year
  • 8 March - International Women's Day
  • 1 April - Easter Monday
  • 10 April - Eid al-Fitr
  • 1 May - May Day
  • 6 May - Presidential Election Day
  • 16 June - Eid al-Adha
  • 11 August - Independence Day
  • 12 August - Independence Day observed
  • 16 September - The Prophet's Birthday (Tentative Date)
  • 1 November - All Saints' Day
  • 28 November - Proclamation of the Republic
  • 1 December - Freedom and Democracy Day
  • 2 December - Freedom and Democracy Day observed
  • 25 December - Christmas Day

Annual Leave

  • Employees earn 24 working days of annual leave after 1 year of service.
  • Paid annual leave is provided at a rate of 2 working days per month of actual work.
  • The duration of leave may be increased for young workers, mothers, and employees with seniority.
  • Annual leave must be taken within 12 months of accrual.
  • Vacation pay is provided, excluding certain allowances and benefits.

Sick Leave

  • Employees are entitled to sick leave for non-occupational illnesses certified by a doctor.
  • The leave period is up to 6 months, with potential extensions for work accidents or occupational diseases.
  • Pay during sick leave varies based on seniority, ranging from full salary to half salary after a certain period.

Maternity Leave

  • Female employees receive 14 consecutive weeks of paid maternity leave (6 weeks prenatal, 8 weeks postnatal).
  • Maternity benefits are provided by the Social Insurance System for 14 weeks.
  • Breastfeeding breaks are provided for 15 months after childbirth, with a total duration of up to 1 hour per day.

Leave for Family Events

Paid leave is granted for various family events, such as weddings, childbirth, and deaths, with a limit of 10 days per year.

 

Union Activities and Elected Representatives:

Employees involved in union activities or serving as elected representatives are entitled to paid time off for their duties.

 

Military Leave:

The employment contract is suspended during an employee's military service, compulsory mobilization, or military training.

Employees must report back to work within 1 month of release from military service.

Termination

Notice Period

The notice period in Chad is 8.67 weeks for those with at least five years of service.

Severance Pay

The notice period is 8.67 weeks for those with at least five years of service. Severance pay is 5.42 weeks for those with more than five years of service. Those with 10 years of service receive 11.9 weeks of severance pay.

Visa

Overview

Work permits must be obtained before beginning work in Chad. Employers obtain the permits on behalf of foreign workers.

Only one type of work permit is available in Chad. Employers are required to justify employing a foreign national instead of a Chadian.

If the foreign national changes employment, his or her new employer is responsible for obtaining a new work permit.

Employee Background Checks

Legal and Background Checks

Here are some key aspects of legal and background checks in Chad:

  • Identity and Work Permit Verification
  • Identity Verification
  • Education and Qualification Verification
  • Employment History and Reference Checks
  • Health Examinations

Last updated on August 12, 2024.

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

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