Workforce Africa, a Gabon employer of record service provider, simplifies hiring, payroll, talent management, and compliance for employees and contractors. No need for a subsidiary or entity setup. From contracts and onboarding to taxes, payroll, and admin tasks, partnering with us — Our Gabon employer of record service will help you focus on growth for greater levels of success.

How Employer of Record (EoR) in Gabon Works

Workforce Africa makes it hassle free to hire and manage your remote staff in Gabon without having to first set up a subsidiary or entity in the country. We handle staff contract management and onboarding, payroll, compliance, taxes, and other administrative matters. With Workforce Africa, you can now focus more on strategic activities and growing your business. These items include >>

Employment Contracts in Gabon

  • Fixed-Term Contract (CDD): Suitable for temporary positions or specific projects with a predetermined end date. The maximum duration is two years, and it can be renewed once.
  • Indefinite-Term Contract (CDI): The standard contract for ongoing, permanent employment, offering greater job security as there is no predetermined end date.
  • Contract for a Specific Task or Project: Used for specific tasks or projects with a well-defined scope.
  • Daily or Weekly Contract: Short-term agreements for daily or weekly work, typically paid at the end of the contracted period.

Working Hours in Gabon

The standard workweek is 40 hours, typically spread over five days. This usually translates to an 8-hour workday.

  • Overtime Limits
    • Overtime applies to any work beyond the standard 40-hour workweek.
    • Overtime is capped at a maximum of 20 hours per week. This is allowed under specific circumstances such as exceptional workload, urgent needs, or staff shortages.
    • Workers are entitled to a break of at least one hour after working for a maximum of five consecutive hours.
  • Overtime Pay Rates
    • Overtime must be compensated for at least 1.25 times the regular wage.
    • For hourly employees, this means they receive at least 150% of their regular hourly rate for any overtime hours worked.

Observed National Holidays and Vacation

These national holidays are celebrated in Gabon:

  • New Year’s Day – January 1
  • Easter Monday – Variable date
  • Women’s Day – April 17 (commemorates the death of Rose Francine Rogombé, the first female Head of State of Gabon)
  • Labour Day – May 1
  • Ascension Day – Variable date
  • Whit Monday – Variable date
  • Assumption Day – August 15
  • Independence Day – August 16-17 (celebrates independence from France in 1960)
  • All Saints’ Day – November 1
  • Christmas Day – December 25
  • Eid al-Fitr – Variable date (Islamic holiday marking the end of Ramadan)
  • Eid al-Adha – Variable date (Islamic holiday commemorating the willingness of Ibrahim to sacrifice his son)

Expats, Visas & Work Permits

You’ll need a visa and a work permit to work in Gabon as an expat. A Gabon employer of record will support you end to end – from documentation to compliance and onboarding.

Here’s a general overview of the process:

  • Visa Application
    • Business Visa: Initially, you may need to apply for a business visa or an e-visa at the Gabonese embassy or consulate in your home country.
    • Required Documents: Typically, you’ll need a valid passport, a letter of invitation from your Employer, proof of accommodation, and vaccination records.
  • Work Permit Application
    • Employer Sponsorship: Your Employer in Gabon must sponsor your work permit application.
    • Required Documents: This includes a letter of invitation from the company, a copy of your employment contract, recent photographs, and proof of payment for the application fees.

An EoR in Gabon offers this service to help businesses manage their clients.

Paid Leaves

  • Annual Leave: Employees are entitled to 21 days of paid annual leave. This increases with age, tenure, and changes in family status.
  • Sick Leave: Up to six months of paid sick leave is available.
  • Maternity Leave: Female employees receive 14 weeks of paid maternity leave (six weeks before birth and eight weeks after). The income should amount to at least two thirds of their salary
  • Paternity Leave: includes 3 days of paid leave for family events.
  • Other leaves:
    • Study Leave: Some employers offer paid or unpaid study leave for employees pursuing further education or professional development relevant to their work. This is typically not mandated by law but depends on individual company policy.
    • Bereavement Leave: Employees may be eligible for bereavement leave upon the passing of a close family member. Individual employers determine the specifics regarding the duration and terms of bereavement leave, which may vary.

Statutory Deductions

Employee Contributions

  • Retirement Insurance (CNSS): Employees contribute 2.5% of their gross salary.
  • Health Insurance (CNAMGS): Employees contribute 1% of their gross salary.

Employer Contributions

  • Family Allowances: 8% of the employee’s gross salary.
  • Retirement Insurance (CNSS): 5% of the employee’s gross salary.
  • Work Injury Insurance: 3% of the employee’s gross salary.
  • Health Sanitary Evacuations: 0.6% of the employee’s gross salary
  • Corporate Income Tax (CIT): The CIT rate is 30% for most companies.
  • Special CIT Rates:
    • Oil Companies: 35%.
    • Land Development Companies: 25%.
  • Minimum Tax: A minimum tax (Impôt Minimum Forfaitaire) of 1% of the global turnover, with a minimum payment of 1 million XAF.
  • Value Added Tax: The standard VAT rate on most goods and services is 18%.

Tax Brackets and Rates:

  • Personal Income Tax: The tax is progressive in Gabon, meaning the rate increases with higher income levels. Here are the current tax brackets and rates:
    • 0 to 1,500,000 XAF: 0%
    • 1,500,001 to 1,920,000 XAF: 5%
    • 1,920,001 to 2,700,000 XAF: 10%
    • 2,700,001 to 3,600,000 XAF: 15%
    • 3,600,001 to 5,160,000 XAF: 20%
    • 5,160,001 to 7,500,000 XAF: 25%
    • 7,500,001 to 11,000,000 XAF: 30%
    • Above 11,000,000 XAF: 35%

Additionally, there is a 5% complementary tax on salaries (TCTS), but the first 150,000 XAF of monthly income is exempt from this tax.
A Gabon employer of record assists global organizations with navigating tax laws and ensuring full compliance within the country.

Health Insurance

In Gabon, employee health benefits encompass a state-funded universal healthcare system. However, employers often need more quality healthcare provisions to acquire private medical insurance.

Additional Compensation and Benefits

  • All the employees are eligible for holiday and Christmas bonuses.
  • Additional Benefits: While not mandated by law, some employers might offer additional benefits, such as:
    • Health Insurance: Coverage for medical expenses.
    • Housing Allowances: Financial assistance for housing costs.
    • Paid Leave: Vacation days, sick leave, and maternity leave.
    • Pension Plans: Contributions towards employee retirement savings.

Termination/ Severance in Gabon

  • Termination Process
    • A formal notice of termination must be provided in writing to the concerned party to ensure proper procedure.
    • In the event of employer-initiated termination, employees are entitled to present a counterargument, which fosters fairness in the process.
    • Upon termination, employers must issue a termination certificate detailing the reasons for dismissal.
  • Notice Period: The notice period required for terminating an employment contract depends on the employee’s length of service:
    • Less than one year: 15 days
    • 1 to 3 years: 1 month
    • 3 to 5 years: 2 months
    • 5 to 10 years: 3 months
    • 10 to 15 years: 4 months
    • 15 to 20 years: 5 months
    • 20 to 30 years: 6 months
    • 10 days extra per year of service for those with more than 30 years of service
  • Severance Pay: Severance pay is mandatory under certain conditions, such as economic termination or retirement, and is calculated based on the employee’s length of service:
    • Less than ten years: 1/3 of the average monthly salary per year of service
    • 10 to 15 years: 2/3 of the average monthly salary per year of service
    • More than 15 years: Full monthly average wage per year of service.
    • In cases of voluntary resignation or dismissal for gross misconduct, severance pay is not provided.
  • Probation: The probationary period can vary based on the employment contract but is typically up to 6 months. During the probationary period, either party can terminate the contract without notice unless otherwise specified in the contract.