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Overview
West African CFA Franc (XOF)
CURRENCY
Porto-Novo
CAPITAL
monthly
PAYROLL FRECUENCY
16
PUBLIC HOLIDAYS
16.4 to 19.4
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Benin
Employer
Company Payroll Contributions
15.4% - 15.4%
Social Security(6.4% for pension and 9% family allowance)
1% - 4%
Assistance for Work Accidents
16.4% - 19.4%
Total Employment Cost
Employee
Worker Payroll Contributions
- 3.6%
Social Security
0% - 3.6%
Total Employee Cost
Employee Income Tax in Benin
Worker Income Taxes
0%
XOF 0 – XOF 60,000
10%
XOF 60,001 – XOF 150,000
15%
XOF 150,001 – XOF 250,000
20%
XOF 250,001 – XOF 500,000
30%
Over XOF 500,000
Payroll Contributions in Benin
Payroll Cycle
Pay your employees on time with payroll outsourcing during the cycle, which can be daily, weekly, biweekly, or monthly.
13th Salary
In Benin, the payment of the 13th month is not obligatory.
Employee Benefit in Benin
Visa and work permit in Benin
A Professional Employment Organization helps you manage the visas of the employees you want to hire in Benin. Thus, this document comes in the form of a stamp or a sticker in the passport, which the employee must obtain at an embassy or consulate. In addition, in Benin there are three main types of visa, which are the following:
- Business.
- Tourist.
- Transit.
However, the requirements for each of them differ, although employees need a business visa and a work permit. In addition, these visas commonly have a validity period of between 30 and 90 days. Additionally, foreigners who wish to work in the country must apply before entering the country since they cannot obtain it upon arrival.
Likewise, the process depends on whether the visa that the employee aspires to is for a single or multiple entries. Then, after the worker obtains the work visa, they must opt for a work permit. In this case, through an employer of record in Benin, your company will be able to obtain this permit for its employees.
In contrast, if a person does not receive approval for the business visa immediately, the employee will be able to enter with another of the 2 visas.
VAT in Benin
The standard tax in Benin is 18%.
Working Hours in Benin
General
In Benin, working hours are from 8 a.m. to 7 p.m. with three hours of rest, and on Saturdays from 9 a.m. to 1 p.m. In general, it is 40 hours of work per week and cannot exceed 56 hours per week.
Overtime
Employees cannot work more than 240 hours of overtime per year, which can be easily managed with payroll outsourcing services. In the same way, the employer must pay them as follows:
- From 41 to 48 hours per week at 112% of the normal salary.
- More than 48 hours per week at 135% of the normal salary.
Working Week
From Monday to Friday.
Employee Termination in Benin
Termination Process
Employees may be terminated for reasons valid by their employer, this includes the following circumstances:
- The health status of the worker.
- The inability to hold a job.
- Bad behavior or performance.
- Changes in company logistics.
- An economic difficulty of the company or its closure.
Otherwise, the dismissal of a worker for a personal cause has to be written by the employer. Likewise, said letter must contain the reasons for the dismissal and must notify the labor inspector of the dismissal. In this case, PEO services are of great help to manage this process smoothly.
Notice Period
Employment laws state that companies must provide employees with the following notice periods:
- Hourly workers receive 15-day notice.
- Those who work shifts receive notifications of at least 1 month.
- Employees holding executive or supervisory positions receive up to 3 months of notice.
Additionally, workers who have received notice can take 2 days to find a new job.
Severance Pay
Most employees are entitled to severance pay that you can arrange with a PEO. Thus, the amount to be canceled is governed by the duration of the contract as follows:
- A time of employment between 1 and 5 years: at least 30% of the average monthly salary.
- A time between 6 and 10 years: at least 35% of the average monthly salary.
- A period of more than 10 years: 40% of the average monthly salary.
However, the employee who has been terminated for a serious reason, such as negligence, is not entitled to receive any compensation.
Probation Period
The employer of record in Benin manages the trial periods for you, which can be extended for a maximum of 3 months.
Employee Leaves in Benin
Paid Time Offs
Workers are entitled to receive up to 24 paid days of annual vacation in general. Additionally, you can manage this permission with an EOR, which can have increments as follows:
- After 20 years of service, the employee receives 2 additional days.
- After 25 years of service, the employee receives 4 additional days.
- Likewise, after 30 years of service, the employee receives 6 additional days.
Likewise, the employer can divide the leave and it has to be of a duration of at least 14 days. Generally, accrued leave cannot be exceeded by more than 30 business days in a year. In addition, the employee must use this leave within 12 months of receiving it.
Public Holidays
There are 16 national holidays throughout the year.
Vacation Holidays
There are 24 vacation holidays throughout the year.
Sick Days
Employees in Benin, with at least 2 years of service, can generally receive up to 6 months of sick leave. On the other hand, an employee with more than 2 years is entitled to up to 12 months of sick leave. However, if a worker has less than 12 months of service, they may receive one month of leave.
Similarly, an employee who has 1 to 5 years of work is entitled to receive 3 months of pay and 3 months of half salary. In addition, those who have been with the company for more than 5 years can receive the full 6 months of salary. Also, each of these payments and procedures can be carried out with HR and payroll outsourcing.
Paternity Leave
Fathers have the right to receive 3 days of paid paternity leave.
Paternal Leave
In Benin, there are no other parental licenses.
Other Leave
In Benin, there are no other licenses
Maternity Leave in Benin
In the case of a pregnant employee, she must receive 6 weeks of canceled leave before the birth. Furthermore, after the birth, he receives 8 weeks of salary, where the employer cancels half and the social security the rest. In this case, it is also useful to have the services of an Employer of Record in Benin to fulfill this license.
There are 98 leave throughout the year.