Ultimate Guide to Hiring In Benin with Salary, Laws and Taxes

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2. Back to Countrypedia Definitive Guide to Hiring in Benin Find everything you need to confidently hire in Benin - labor law, tax law, compliance, payroll, benefits and more. Capital Porto-Novo Population 13 Million Monetary Unit West African CFA franc Download Guide PDFmyURL converts web pages and even full websites to PDF easily and quickly.

3. Hiring in Benin Hiring employees compliantly in Benin means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Benin so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can: Hiring in Benin Labor Laws in Benin Benin Salary and Wages Income Tax in Benin Social Security in Benin (a) Establish your own new legal entity, banking, accounting and payroll service in Benin or Immigration Benin Value Added Tax (VAT) in Benin (b) use an Employer of Record like Global Expansion who can handle all of the details for you. Mandatory Benefits in Benin Need assistance hiring in Benin? Contact us about our International EOR Service Payments And Invoicing Payroll Accrual in Benin Accrued Benefits in Benin Labor Laws in Benin Why use Global Expansion to hire in Benin Employment laws in Benin are uniquely suited to the country’s way of life, and crucial to understand if you want to employ local talent in this country. Get the details on Benin employment laws and Benin policies here. Download Guide Employee Probation Period PDFmyURL converts web pages and even full websites to PDF easily and quickly.

4. Probation period is up to 3 months. Annual Leave in Benin 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. Holidays in Benin Benin celebrates Thirteen national public holidays as well as additional public holidays that vary by state: 1st January New Year’s Day PDFmyURL converts web pages and even full websites to PDF easily and quickly.

5. 10th January Fête du Vodoun     13th April Easter Monday 1st May Labor Day 21st May Ascension Day     Eid al-Fitr   1st June Whit Monday  26th December Eid al-Adha 1st August Benin Independence Day 15th August Assumption of Mary   Prophet's Birthday 1st November All Saints' Day 25th December Christmas Day   Onboard employees in days, anywhere in the world PDFmyURL converts web pages and even full websites to PDF easily and quickly.

6. Maternity Leave Benin 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 Benin Fathers are generally entitled to 3 days of paid paternity leave. Sick Leave in Benin 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. Working Hours in Benin Typically, in Benin, work is convened Monday through Friday from 8am to 12:30pm and 3:30pm to 7pm, and on Saturday from 9am to PDFmyURL converts web pages and even full websites to PDF easily and quickly.

7. 1pm. Total working hours are generally 40 per week and should not exceed 56 per week. Overtime in Benin Workers may not work more than 240 hours of overtime per year.   Overtime is paid at: 112% of normal hourly rate for 41st to the 48th hour per week. 135% of normal hourly rate beyond the 48th hour per week. Termination of Employment in Benin 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 periods are as follows: PDFmyURL converts web pages and even full websites to PDF easily and quickly.

8. - 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. Employees are entitled to severance pay.  The amount depends on 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 Notice Period in Benin Notice periods are as follows: - 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 in Benin Employees are entitled to severance pay.  PDFmyURL converts web pages and even full websites to PDF easily and quickly.

9. The amount depends on 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 Benin Salary and Wages Start onboarding your new team 13th Month  Salary in Benin No There is no statutory requirement to pay the 13th or 14th month salary. Instead the holiday will need to be taken within twelve months and it is set by the employer as opposed to the employee. Domestic workers are added to the labour code and they are entailed to seniority bonus after a certain time. There seem to not be the same requirement for other industries." PDFmyURL converts web pages and even full websites to PDF easily and quickly.

10. Income Tax in Benin 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 Beninsource 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 PDFmyURL converts web pages and even full websites to PDF easily and quickly.

11. monthly basis by the 10th day of the month following the month the payment is made.  The tax on salary and wages for 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% Over 500 000 30% Hire anyone, anywhere Social Security in Benin 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.  The employee’s contribution is 3.6% of gross salary. PDFmyURL converts web pages and even full websites to PDF easily and quickly.

12. Contribution Employer Employee Social Security 15.4% 3.6% Immigration in Benin A Benin visa is an official document from the government authorizing someone to enter the country.  It comes as either a stamp or a sticker in a passport that foreigners must obtain from an embassy or consulate. 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: PDFmyURL converts web pages and even full websites to PDF easily and quickly.

13. - 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) Need assistance hiring in Benin? Contact us about our International EOR Service Type of Visa/Permit Documentation Validity Eligibility PDFmyURL converts web pages and even full websites to PDF easily and quickly.

14. A passport- style photo A scanned copy of the passport Must possess a valid invitation from a genuine company located in the country with whom you are/will be doing business. A copy of their flight itinerary Proof of yellow fever vaccination 30 or 90 days Business Visa A business letter from your company A completed visa application form A copy of the company’s expatriate quota grant. Foreigners must obtain a work permit in order to gain employment in Benin Work Permit Varies A copy of the offer of employment. A copy of the letter of acceptance. CV of the PDFmyURL converts web pages and even full websites to PDF easily and quickly.

15. applicant. A copy of the company’s expatriate quota grant. A copy of the offer of employment. A copy of the letter of acceptance. CV of the applicant. Onboard employees in days, anywhere in the world Value Added Tax (VAT) in Benin The supply of goods and services carried out (or used) in Benin and imports into Benin are subject to VAT. The standard VAT rate is 18%.  Exempt activities include imports of certain products, banking and general insurance. PDFmyURL converts web pages and even full websites to PDF easily and quickly.

16. VAT Standard Rate 18% Zero Rate 0% Mandatory Benefits in Benin These are mandatory benefits as postulated by law These include probationary period, annual leave, public holidays, sick leave, maternity leave, paternity leave, overtime pay, notice period, and severance pay Statutory benefits also include social security benefits Hire anyone, anywhere Mandatory Benefits Overview PDFmyURL converts web pages and even full websites to PDF easily and quickly.

17. Probationary period Annual Leave Public Holidays Maternity Leave Paternity Leave Sick Leave Overtime Pay Notice period Severance Pay Social Security Benefits Payments And Invoicing The tax year is the calendar year Each taxpayer must file a return. Joint returns of spouses are not permitted.  The individual tax return must be filed by 30 April for business income, with any balance of tax due paid at that time.  Individual income tax is paid in quarterly advance in instalments on 10 March, June, September and December.  PDFmyURL converts web pages and even full websites to PDF easily and quickly.

18. A tax return is required even when all income is from employment and tax has been deducted at source.  Taxes on salary must be paid monthly.  Penalties are assessed at rates ranging from 20% to 80% of tax due, depending on whether the taxpayer’s return was accidentally, mistakenly or fraudulently in error.  The 80% rate also applies to estimated assessments in the absence of a return submitted only after an injunction. Payroll Accrual in Benin Country Accruals Additional Information 6.40% Pension 15.40% Social security 9.00% Family Allowance 4.00% Industrial injury assistance 10.14% Vacations PDFmyURL converts web pages and even full websites to PDF easily and quickly.

19. Dont lose your competitive advantage Description Employers contribute 15.4% of gross salary to social security, 6.4% for pension and 9% for family allowance, plus an additional 1%-4% for industrial injury assistance. Payroll Accruals Additional Information Employment Accruals     Generally, employees are entitled to 24 paid days of annual leave This equals 6.5% (24/365 days) of annual income Annual 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. This equals 50% of 27% (14/52 weeks) of annual income Maternity Leave PDFmyURL converts web pages and even full websites to PDF easily and quickly.

20. This equals 0.82% (3/365 days) of annual income Paternity Leave Fathers are generally entitled to 3 days of paid paternity leave. Employees with less than 2 years of service are generally entitled to 6 months’ sick leave. This equals 50% (6/12 months) of annual income Sick Leave Workers may not work more than 240 hours of overtime per year. Overtime is paid at: Normal hourly rate is around 2,125 XOF. Overtime is paid at an additional 255 XOF. 112% of normal hourly rate for 41st to the 48th hour per week. Overtime 135% of normal hourly rate beyond the 48th hour per week. First 5 years of employment–30% of average monthly salary This equals 30% of monthly salary 6-10 years of service–35% of average monthly salary Severance 10+ years of service–40% of average monthly salary PDFmyURL converts web pages and even full websites to PDF easily and quickly.

21. The employer’s social security contribution is 15.4% of gross salary This equals 15.5% of annual income Social Security Accrued Benefits in Benin Christmas Bonus % 0% Christmas Bonus Over Vacations % 0% Severance per Year% Severance pay is equal to 30% of the average monthly salary for the first five years (2.5% of annual salary) 2.5% Vacations % Generally, employees are entitled to 24 paid days of annual leave (6.59% of annual salary) 6.59% Notice % Employees are entitled to 30 days of notice period for one year of service or more (8.24%) 8.24% Christmas Bonus Over Notifications % 0% PDFmyURL converts web pages and even full websites to PDF easily and quickly.

22. 0% Vacations Plus % Total percentage of Salary (yearly) 17.42% The total employment accruals as a percentage of salary per anum are equal to 17.42% Why use Global Expansion to hire in Benin Establishing a branch office or subsidiary in Benin can be time- consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Benin labor laws are complex. The company also has a responsibility to comply with specific employment practices dictated by Benin law to maintain its good standing as an equal opportunity employer. Global Expansion makes it easy for you to expand into Benin. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees. We enable you to stay in control of everything. Our Benin Global Professional Employer Organization (PEO) and Employer of Record PDFmyURL converts web pages and even full websites to PDF easily and quickly.

23. (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.   Ready to hire anywhere in the world? Grow your team the right way with Global Expansion. Request a Proposal Contact Solutions Why Global Expansion Tools Global-Expansion-Black-1 United States Employer of Record How we’re different CountryPedia Follow 4,847 United Kingdom Employment Compliance About GX Global Hiring Guides Portugal Global Immigration Total Cost of Employment Calculator Technology Group 735 coalfire-logo France Global Taxes BBB A+ GX One Resources PDFmyURL converts web pages and even full websites to PDF easily and quickly.

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