Workforce Africa simplifies hiring, payroll, talent management as well as your compliance needs for employees and independent contractors in Central African Republic. No need for a subsidiary or entity setup. From contracts and onboarding to taxes, payroll, and admin tasks, partnering with us — the Employer of Record in Central African Republic, will help you focus on growth for greater levels of success.

How Employer of Record (EoR) in Central African Republic Works

Workforce Africa makes it hassle free to hire and manage your remote staff in Central African Republic 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 Central African Republic

• Types of Employment Contracts:
  • Fixed-Term Contract: Suitable for temporary positions or specific projects with a predetermined end date. It must also be in writing or concluded for a period not exceeding two (2) years. It may be renewed without limitation provided that they do not exceed the maximum duration of the two years.
  • Indefinite-Term Contract: The standard contract for ongoing, permanent employment, offering greater job security as there is no predetermined end date.
• Essential Clauses:
  • Basic Information: Identifies the employer and employee and defines the employee’s position, duties, and responsibilities.
  • Compensation and Benefits: Specifies the gross salary, payment frequency, and any benefits offered, such as health insurance and transportation allowances.
  • Leave Entitlements: Details entitlement to paid leave, including annual leave, sick leave, and maternity leave.
  • Term and Termination: Specifies whether the contract is fixed-term or indefinite and defines the grounds and procedures for termination, including notice periods.
  • Probationary Period: Allows for an initial evaluation stage to assess the employee’s suitability for the role.

Working Hours in Central African Republic

• Standard Workweek: Typically, 40 hours per week; however, in the agricultural sector, it can extend up to 48 hours per week.
• Overtime: Employees are entitled to overtime pay for any hours worked that exceed the standard workweek limitations. This means overtime starts after 40 hours (or 48 hours in agriculture) have been completed in a week. There’s a legal limit on total working hours, including overtime, set at 48 hours per week.

For non-agricultural employees that work overtime, they shall be entitled to;

• 20% increase for hours worked beyond the 40th hour.
• 40% increase for hours worked beyond the 48th hour.
• 60% increase for hours worked at night.

For overtime worked during the weekly rest day or on public holidays, the salary is increased by 60% of the hourly rate during the day and 100% of the hourly rate during the night. Agricultural employees shall be entitled to;

• 20% increase for hours worked from the 49th hour to the 56th hour
• 40% increase for hours worked beyond the 56th hour
• Overtime worked during the weekly rest day or on public holidays will be increased at the rate of 60%.

Observed National Holidays and Vacation

These national holidays are celebrated in Central African Republic:

• New Year’s Day – January 1
• Barthelemy Boganda Day – March 29
• Easter Monday: Variable Dates (The day after Easter Sunday, celebrated by Christians).
• Ascension Day: Variable Dates (Observed 40 days after Easter, commemorating the ascension of Jesus).
• Whit Monday: Variable Dates
• Labour Day – May 1
• Eid al-Fitr (Korité) – Variable dates (Islamic holiday marking the end of Ramadan)
• Eid al-Adha (Tabaski) – Variable dates
• Independence Day – August 13
• Assumption Day – August 15
• All Saints’ Day – November 1
• National Day – December 1
• Christmas Day – December 25

Expats, Visas & Work Permits

To work in the Central African Republic as an expatriate, you will need a work visa and permit. The general process includes:

• Visa Application
  • Work Visa: Apply at the Central African Republic embassy or consulate in your home country.
  • Required Documents: Valid passport with at least six months of validity and one blank page, two completed and signed visa application forms, two identical passport-size photographs against a white background, a copy of the applicant’s flight itinerary, proof of vaccination against yellow fever, a letter from the applicant’s employer stating that they will leave the Central African Republic at the end of their work contract, and payment of the visa fee.
• Work Permit Application
• Employer Sponsorship: Your employer in the Central African Republic must sponsor your work permit application.
• Required Documents: Letter of invitation from the company, a copy of your employment contract, recent photographs, and proof of payment for application fees.

A Central African Republic EoR offers this service to help businesses manage their clients.

Paid Leaves

• Annual Leave: After completing one month of service, employees are entitled to two leave days per month, which can be accumulated up to a maximum of 30 days per year. Additional leave may be negotiated through individual or collective agreements.
• Sick Leave: The Social Security System in Central Africa includes provisions for sick leave, which is granted through mutual agreement between the employer and the employee. Additionally, the labor code mandates that employers provide paid sick leave.
• Maternity Leave: Female employees are entitled to 14 weeks of paid maternity leave, typically divided into six weeks before birth and eight weeks after birth. This leave can be extended in cases of complications arising from childbirth. A worker’s income should amount to at least two thirds of your preceding salary during maternity leave.
• Paternity Leave: Male employees are entitled to 2 working days of paid paternity leave.

Statutory Deductions

Social Security Contributions

• Employers contribute 4% of an employee’s gross monthly salary for social security and an additional 12% for family allowances, applied to capped earnings of 600,000 CFA francs per month. They are also required to provide work-related injury insurance, with rates varying based on risk factors.
• Employees contribute 3% of their salary toward social security, with potential adjustments for professional risk coverage.

Tax Brackets and Rates

• Personal Income Tax (PIT): Individuals are taxed on income earned or received within CAR, with rates applied progressively as follows:
  • 0% on income up to XAF 378,000
  • 8% on income between XAF 378,001 and XAF 1,680,000
  • 15% on income between XAF 1,680,001 and XAF 3,360,000
  • 28% on income between XAF 3,360,001 and XAF 5,040,000
  • 40% on income exceeding XAF 5,040,000
• Corporate Income Tax (CIT): The standard rate is 30%, in accordance with OHADA standards. Agricultural businesses are taxed at a reduced rate of 3%, with a minimum turnover tax of 1.85%.
• Value Added Tax (VAT): Applied at a standard rate of 19% on goods and services, with a reduced rate of 5% for essential goods.

Health Insurance

In Central African Republic, 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

While not mandated by law, some employers might offer additional benefits, such as:

• Health Care: Employers and employees contribute to health care benefits.
• Occupational Benefits: Coverage for accidents and diseases related to work.
• Pensions: Various pension schemes are available.
• Paid National Holidays: Employees receive paid national holidays.

Termination/ Severance in Central African Republic

• Probationary Period
  • Eight days for workers paid by the hour, day, week, or fortnight.
  • One month for workers paid monthly.
  • Three months for supervisors, engineers, and similar roles.
  • During the probationary period, either party may terminate the contract without notice unless otherwise specified in the contract.
• Termination of Employment
  • Completion of Work: Fixed-term contracts naturally end upon the project’s or timeframe’s completion.
  • Employee Death: The contract is automatically terminated upon the employee’s passing.
  • Restructuring or Economic Reasons: Termination may occur due to business needs, with specific regulations applying.
  • Termination with Notice: Employers must provide prior written notice to employees before termination, with notice periods varying by employment duration.
  • Termination for Cause: An employer can dismiss an employee for violating labor laws or engaging in misconduct.
  • Termination by Employee: Employees who voluntarily resign may not be entitled to severance pay.
• Termination Process
  • A formal notice of termination must be provided in writing to ensure compliance with labor regulations.
  • Employees have the right to present a counterargument if terminated by their employer, promoting fairness in the process.
  • Upon termination, employers must issue a termination certificate detailing the reasons for dismissal.
• Notice Period
  • Eight (8) days for workers paid by the hour, by the job, by the day, by the week or fortnightly
  • One (1) month for workers paid by the month
  • Two (2) months for supervisors and similar staff
  • Three (3) months for managers.
• Severance Pay
  • 3 to 5 years: 1/2 month’s salary
  • 5 to 7 years: 1 month’s salary
  • 7 to 10 years: 2 months’ salary
  • 10 to 15 years: 3 months’ pay
  • 15 to 20 years: 4 months’ pay
  • Over 20 years: 6 months’ pay Employees who resign voluntarily or are dismissed for gross misconduct are generally not entitled to severance pay.
  • If a worker is dismissed solely due to a staff reduction and has been with the employer for at least one year, they are entitled to a dismissal indemnity equivalent to 15% of their average monthly salary over the last twelve consecutive months.
• Reasons for Termination
• Termination by Employer (without cause): The employer must provide written notice and severance pay.
• Termination by Employer (with cause): In cases of misconduct or poor performance, the employer may not be obligated to pay severance. However, legal consultation is advised for specific cases.