Navigating the complex labour laws governing employment practices is essential when running Burkina Faso payroll. However, building an in-house compliance team may not be the most efficient way to manage your remote team’s payroll in Burkina Faso.

Regardless of size, global companies need help to secure in-country expertise for localised payroll service. This is where a partner like Workforce Africa provides significant value in supporting global firms to maintain compliance when handling payroll in Burkina Faso, addressing every intricate detail, including;

• Salary computation requirements,
• Taxation legislation specifics (social security, employee income tax, corporate tax, VAT and other employee deductions.
• Benefits administration, and more (health insurance, pension, paid leaves, holiday compensation.

Workforce Africa simplifies hiring and payroll compliance for offshore talent management in Burkina Faso. No need for a subsidiary or entity setup. From contracts and onboarding to taxes, payroll, and admin tasks, partnering with us – a payroll firm in Burkina Faso will help you focus on growth for greater levels of success.

1. Employment Contract Termination

In Burkina Faso, a fixed-term contract ends automatically on its expiry date. No notice is required at expiry. The employee may be entitled to an end-of-contract allowance in line with the applicable collective agreement.

Early termination of a fixed-term contract is only permitted in the following cases:

• Mutual agreement recorded in writing
• Gross misconduct
• Force majeure

If either party ends the contract early outside these grounds, the other party may claim damages corresponding to the loss suffered. During the probationary period, either party may end the contract without notice and without indemnity unless the contract states otherwise.

Notice periods

The statutory notice periods below apply to contracts of indefinite duration and to early termination where notice is required. They do not apply when a fixed-term contract simply reaches its agreed end date.

Three months for executives, supervisors and similar staff

Eight days for hourly or daily paid workers

One month for monthly paid workers who are not executives, supervisors or technicians

2. Country Overview

The People’s Republic of Burkina Faso Republic lies in West Africa. It is predominantly a French-speaking country. Two critical cities in Burkina Faso are Ouagadougou, the capital and the economic hub, and Bobo-Dioulasso. These urban centres act as transit points to ecotourism destinations and beach resorts. With a population exceeding 23.6 million people, Burkina Faso boasts a significant demographic presence.

In recent years, key industries experiencing growth include textile and agriculture. Burkina Faso boasts a market-based, diversified economy comprising gold, mining, and services. Considerations such as the low labour cost and abundant natural resources make Burkina Faso attractive for businesses seeking expansion opportunities.

Although Burkina Faso possesses a highly skilled workforce, hiring and establishing a team can be time-consuming and challenging. However, partnering with an Employer of Record (EOR) or Professional Employer Organisation (PEO) in Burkina Faso facilitates swift market entry. It manages all legal complexities associated with operations in the country.

3. Payroll Processing in Burkina Faso

Local labour laws in Burkina Faso govern payroll processing, with each employee’s salary potentially calculated differently. Due to compliance concerns, processing payroll at scale can become complex, cumbersome, and risky. Here are the phases of payroll processes global businesses should understand:

• Pre-payroll Phase: Your organisation’s unique approach to payroll compliance shapes its policies and processes, including payroll preparation. Global firms must prioritise essential business elements in the pre-payroll phase, such as accurate business profile documentation and tailored work location policies, which is crucial. Customise leave and work policies to align with local standards in Burkina Faso to ensure compliance and transparency while collaborating closely with compliance teams or partners to help adhere to statutory requirements throughout the payroll management process for your remote team. In this phase also, standardising compensation packages to conform with local payment norms, such as payment cycles, which enhance compliance and meet employee expectations, is necessary.
• Payroll Calculation Phase: Streamlining input collection and validation processes ensures accurate wage calculations in this phase of payroll processing. This phase involves the actual calculation of wages, with a primary focus on this task. Utilising software automation and digital document submission tools makes payroll calculations efficient and reduces the risk of human error in this process.
• Post-payroll Phase: The post-payroll phase in Burkina Faso refers to the period after payroll processing, where employers review and settle any outstanding issues related to employee compensation, benefits, and taxes. This phase typically includes: salary payment, compliance reporting, benefit administration, audit and reconciliation. The post-payroll phase is crucial in Burkina Faso as it ensures that employers comply with regulatory requirements, maintain a good employer-employee relationship, and reduce the risk of penalties or fines associated with non-compliance.

4. Payroll Components in Burkina Faso

Here are some aspects comprehensively needed to navigate Burkina Faso’s payroll compliance:

• Salary / Wages
• Overtime premiums
• Social-security contributions
• Health-insurance cover
• Payroll taxes (corporate & personal)
• Paid leave & public holidays
• Other statutory benefits

5. Navigating Burkina Faso Payroll Compliance

Employment in Burkina Faso is primarily governed by the Decree No. 2023-016, along with relevant provisions from other applicable laws and regulations. The Labor Law outlines critical aspects of payroll processing and compliance with crucial employment practices-:

A. Salary/ Minimum Wage

The statutory monthly minimum wage in Burkina Faso is XOF 45,000 per month for non-agricultural workers.

B. Working hours

• Standard hours: 40 hours per week
• Limits: Daily working time should not exceed 11 hours
• Overtime pays:
  • First 8 hours above the standard week: 15 per cent premium on the average hourly wage
  • Hours beyond 48 in a week: 35 per cent premium on the average hourly wage
    Check the relevant collective agreement for any higher sectoral premiums.

C. Social Security Contributions

• Employer: 16% in total, typically comprising approximately 3.5% for occupational accident insurance, 7% for family allowances and 5.5% for old-age pension, calculated on applicable earnings ceilings.
• Employee: 5.5% for old-age pension.
• Health Insurance Scheme: Burkina Faso has adopted a Universal Health Insurance Scheme known as RAMU, administered by the Caisse Nationale d’Assurance Maladie Universelle. Roll-out is ongoing and, in the private sector, there is presently no separate, standardised statutory health insurance payroll deduction nationwide. Many employers provide private medical cover or join mutual schemes pending full implementation.
• Pension Arrangements: Pensions for private-sector employees are administered by the National Social Security Fund (CNSS). Civil servants are covered by the Autonomous Public Service Pension Fund (CARFO).
• VAT and Corporate Income Tax: The standard VAT rate is 18%. The corporate income tax rate is 27.5%.
• Personal Income Tax on Salaries (IUTS)
  • XOF 0 to 30,000: 0%
  • XOF 30,100 to 50,000: 12.10%
  • XOF 50,100 to 80,000: 13.90%
  • XOF 80,100 to 120,000: 15.70%
  • XOF 120,100 to 170,000: 18.40%
  • XOF 170,100 to 250,000: 21.70%
  • Above XOF 250,100: 25.00%

D. Payroll Taxes Summary

6. Paid Leaves

• Annual leave: Annual leave accrues at 2.5 calendar days for each month of effective service, which equates to roughly 30 calendar days or about 22 working days per year.
• Maternity leave: Maternity leave is 14 weeks of paid leave, commonly arranged as eight weeks before birth and six weeks after birth, with cash benefits coordinated through social insurance.
• Paternity leave: Paternity leave is around three days of paid leave, subject to company policy or the applicable collective agreement.
• Sick leave and special leave: Sick leave entitlement depends on seniority and medical certification, and short absences for family events may be granted under company policy or a collective agreement.
• Paid Public Holidays: Burkina Faso observes approximately 13 to 15 public holidays each year.
  • New Year: January 3
  • International Women’s Day
  • Easter Monday
  • Labour Day
  • Traditional Day
  • Ascension Day
  • Eid al-Fitr
  • Eid al-Adha
  • Independence Day
  • Assumption
  • Martyrs’ Day
  • All Saints’ Day
  • Proclamation of the Republic
  • Christmas

7. Payroll Outsourcing in Burkina Faso

Payroll in Burkina Faso also encompasses termination and probationary periods law. Employees are not generally eligible for severance pay, except the termination is unjustified, or the employer voluntarily decides to make severance payment.

Collaborate with an Africa employer of record and payroll solutions provider such as Workforce Africa to strategically outsource your payroll operations while ensuring compliance with local labour regulations. Additionally, leverage our flexible service offerings to expand your international teams as needed.