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Overview
Central African CFA franc (CFA)
CURRENCY
Malabo
CAPITAL
monthly
PAYROLL FRECUENCY
11
PUBLIC HOLIDAYS
0 to 22.5
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 Equatorial Guinea
Employer
Company Payroll Contributions
0% - 21.5%
National Institute of Social Security (INSESO)
0% - 1%
Work Protection Fund (WPF)
0% - 22.5%
Total Employment Cost
Employee
Worker Payroll Contributions
0%- 4.5%
National Institute of Social Security (INSESO
0%- 0.5%
Work Protection Fund (WPF)
0% - 5%
Total Employee Cost
Employee Income Tax in Equatorial Guinea
Worker Income Tax
0%
0 to 1.000.000
10%
1.000.001 to 3.000.000
15%
3.000.001 to 5.000.000
20%
5.000.001 to 10.000.000
25%
10.000.001 to 15.000.000
30%
15.000.000 to 20.000.000
35%
More than 20.000.000
Minimum Wage in Equatorial Guinea
General
The minimum wage in Equatorial Guinea is 128.000 CFA. Therefore, this is the lowest amount a worker can receive for his or her work.
Nonetheless, the salaries vary depending on the job position and industry. For this reason, it is important to opt for HR and payroll outsourcing to determine the best compensation.
$209,32 Minimum Wage per month
Payroll Contributions in Equatorial Guinea
Payroll Cycle
The payroll cycle in Equatorial Guinea is monthly. So, with payroll outsourcing, you can forget about calculations and ensure accuracy.
13th Salary
There are no provisions regarding a 13th-month salary payment in Equatorial Guinea.
Employee Benefit in Equatorial Guinea
Employees in Equatorial Guinea are entitled to the following benefits:
- Probation period.
- Annual leave.
- Maternity leave.
- Sick leave.
- Notice period.
- Overtime pay.
- Social security benefits.
If you want to provide supplemental benefits, you can look for PEO services. Therefore, you can even add some bonuses to complement your package offer.
Visa and work permit in Equatorial Guinea
Any foreign individual that wants to enter Equatorial Guinea must apply for a valid visa first. The process to obtain a visa is through the Equatorial Guinea Embassy in the employee’s country of residence.
Once the employee has applied for a visa, it is mandatory to obtain a work permit. The processing time may be up to two weeks. In this regard, there are several types of work permits in Equatorial Guinea:
- BI: the initial work permit which is valid for a year.
- BR: after the work permit BI expires, you can renew it and obtain a BR work permit which is valid for two years.
- C: you receive a C work permit after the renewal of the BR work permit. Thus, it is valid for three years.
- A: this work permit is for temporary employees and it is valid for 6 months and is renewable.
- I: aimed at self-employed workers with one-year validity and renewable.
- PCP: for businesspeople and self-employed. Valid for three years.
- PTA: self-employed or workers in the agricultural sector. Valid for three years.
- PP: it is a permanent work permit. Furthermore, it is only available to those that meet certain conditions.
Since obtaining visas for employees can be troublesome, it is good to look for an Employer of record in Equatorial Guinea.
VAT in Equatorial Guinea
In Equatorial Guinea, the standard VAT rate is 15%. However, there is also the reduced rate of 6% which is for some products. Also, some products are exempted while others are assessed a 30% of special duty tax.
Working Hours in Equatorial Guinea
General
Generally, employees in Equatorial Guinea have to work a maximum of 8 hours per day. Thus, 48 working hours total per week.
Therefore, with an EOR you can manage employees’ working hours better.
Overtime
Employees can work overtime but only 2 hours maximum per day. Also, the total overtime hours per year cannot exceed 200 hours.
Since calculating overtime rates may be confusing, it is best to look for payroll outsourcing services.
Working Week
A typical working week in Equatorial Guinea consists of six days. Nonetheless, in certain circumstances such as for young workers, the working week is reduced.
So, with an Employer of record in Equatorial Guinea you can have better management of rest days.
Employee Termination in Equatorial Guinea
Termination Process
According to employment laws, either party has the right to terminate the employment contract. Thus, it can be by dismissal or by an employee’s resignation.
In the case of dismissal, the employer has to provide justified reasons such as economic, violent acts, robbery, provide false information, or others.
Also, the employer has to submit a written notice to the employee stating the reasons for dismissal.
Furthermore, if the employee decides to resign, he or she must submit a written resignation with a month's notice.
Notice Period
The notice period in Equatorial Guinea depends on the following:
- After one month of service: 1 weeks’ notice.
- After six months of service: 20 days’ notice.
Severance Pay
Severance pay in Equatorial Guinea ranges from 15 and 45 days of wages for each year of service.
Since it may seem challenging to calculate severance pay, a PEO could be helpful.
Probation Period
The probation period varies depending on the following:
- Unqualified workers: 1 month.
- Middle-level technicians: 3 months.
- Senior technicians: 6 months.
During the probation period, any of the parties can decide to terminate the contract. Since probation can be hard to handle, it is advisable to look for an Employer of record in Equatorial Guinea
Employee Leaves in Equatorial Guinea
Paid Time Offs
In Equatorial Guinea, employees are entitled to 30 days of paid leave once they have completed a year of service. Thus, they can enjoy a month of vacation.
Although managing leaves may seem simple, with an employer of record you can make it seamless.
Public Holidays
There are 11 national holidays throughout the year.
Vacation Holidays
There are 30 vacation holidays throughout the year.
Sick Days
Sick leave in Equatorial Guinea is mandatory. An employee is entitled to a 26-week leave at 50% of wages. But this is as long as the employee has enrolled for social security in the previous year.
Paternity Leave
There are no provisions regarding statutory paternity leave in Equatorial Guinea.
Paternal Leave
Other Leave
In the case of the death of a relative, an employee can get up to two weeks of paid leave.
So, if you need extra support with leaves, you can look for an Employer of record in Equatorial Guinea.
Maternity Leave in Equatorial Guinea
Female employees are entitled to a 12-week maternity leave. Furthermore, they have to take 6 weeks before delivery and 6 weeks after. In case arises a medical complication, the employee may extend the leave.
Also, social security funds the maternity benefits of the employees.
There are 84 leave throughout the year.