Workforce Africa simplifies hiring, payroll, and talent management, as well as your compliance needs for employees and independent contractors in Eritrea. 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 Eritrea — will help you focus on growth for greater levels of success.

How Employer of Record (EoR) in Eritrea Works

Workforce Africa allows you to build a compliant team in Eritrea without first registering a company. We act as the local legal employer, while you direct the employee’s day to day work. We prepare compliant contracts, run monthly payroll, calculate and pay income tax and social security, and keep you aligned with labour and immigration rules.

An Eritrea EoR set up in this way removes delays, reduces set up cost and lowers compliance risk for your cross border team.

1. Employment Contracts in Eritrea

Types of Contracts

Employment in Eritrea can be agreed under several contract types, such as:

• Permanent (indefinite duration)
• Fixed term
• Part time
• Seasonal or project based
• Casual or daily labour

Both written and oral contracts are recognised, but a clear written contract is strongly recommended. In practice, many employers use English and a local language such as Tigrinya for clarity.

Key Contractual Elements

Every employment contract should clearly state at least:

• Employer and employee details
• Job title, duties and reporting line
• Work location (including if work is remote or in multiple sites)
• Salary, allowances and any in kind benefits
• Normal working hours and overtime rules
• Leave entitlements (annual leave, sick leave, maternity and public holidays)
• Probation period (if any) and its length
• Notice periods and termination conditions
• Confidentiality, intellectual property and non-compete clauses where needed

2. Working Hours in Eritrea

Standard working hours in Eritrea usually follow the Labour Proclamation. A full time role is generally up to 8 hours per day and 48 hours per week. Employers must also provide at least one weekly rest day.

Overtime is work done beyond the normal daily or weekly limit. Employees who work overtime between 6:00 in the morning and 22:00 in the evening are normally paid at a premium above their regular hourly rate. Higher overtime rates generally apply to work during weekly rest days and public holidays.

Many employers use shift work in sectors such as manufacturing, construction and services. In all cases, employers should record hours worked and overtime and respect daily and weekly rest rules.

3. Observed National Holidays and Vacation 

These national and religious holidays are normally observed in Eritrea. Employees who work on these days are usually entitled to premium pay or a paid day off in lieu, depending on company policy and the law:

• 1 Jan – New Year’s Day
• 7 Jan – Orthodox Christmas Day
• 19 Jan – Timket (Epiphany)
• 8 Mar – International Women’s Day
• Good Friday (Coptic calendar)
• Easter Sunday (Coptic calendar)
• 1 May – International Workers’ Day
• 24 May – Independence Day
• 20 Jun – Martyrs’ Day
• 1 Sep – Revolution Day
• Eid al-Fitr – Islamic festival (date varies)
• Eid al-Adha – Islamic festival (date varies)
• 25 Dec – Western Christmas Day

Annual leave is separate from public holidays. If a public holiday falls during annual leave, it is normally not deducted from the employee’s annual leave balance.

4. Expats, Visas & Work Permits

Visa and Work Permit Requirement

Foreign nationals who wish to work in Eritrea must have both:

• An appropriate entry visa issued by an Eritrean embassy or consulate, and
• A work and residence authorisation approved by the competent ministry and immigration department before starting work.

Working in Eritrea on a standard business or tourist visa is not compliant.

Common Visa and Permit Types

• Short term business visa – for meetings and short visits, not for productive work
• Employment visa and residence permit – for foreign employees hired by a local employer
• NGO or mission related permits – for staff working with recognised international agencies

Eligibility and Employer Role

The Eritrean employer usually acts as sponsor and must:

• Show that the role cannot be filled easily on the local labour market
• Provide a signed job offer or employment contract
• Submit copies of the expatriate’s qualifications and experience
• Provide a motivation letter explaining the business need

The employee may need to supply:

• Valid passport and recent photographs
• Police clearance certificate from the country of residence
• Medical fitness certificate
• Copies of academic and professional documents

Applications are normally filed with the immigration authorities and the relevant ministry responsible for labour and human welfare. Processing times can vary and planning ahead is important. An EoR partner in Eritrea can support with documentation and coordination.

An Eritrea EoR offers this service to help businesses manage their clients

5. Paid Leaves

Annual Leave

Employees are usually entitled to at least 14 working days of paid annual leave after one year of continuous service. For each additional year of service, the entitlement increases by one working day, up to a ceiling of 35 working days. Employers often schedule annual leave in agreement with the employee, taking account of work needs and peak seasons.

Sick Leave

Once an employee has completed probation, they may receive sick leave if they are unable to work due to illness not caused by an occupational injury. Eritrean rules allow up to six months of sick leave in any twelve month period. Sick leave is normally split into stages, starting with a period on full pay, followed by a period on reduced pay, and then unpaid sick leave. Employees must usually provide a medical certificate from a recognised doctor.

Maternity Leave

Female employees are entitled to paid maternity leave. Eritrean labour rules provide for 60 consecutive days of maternity leave around childbirth, with pay covered either by the employer or by the social security scheme depending on the arrangement. Pregnant employees are also allowed time off for medical checks and may be entitled to pregnancy related sick leave if medically required.

Paternity Leave

Current Eritrean labour law does not clearly set out a specific statutory paternity leave entitlement. In practice, some employers grant a short paid or unpaid leave period for new fathers under internal policy or collective agreements.

Compassionate and Family Leave

Employers in Eritrea often allow short paid or unpaid leave in cases such as the death or serious illness of a close family member, based on company policy or agreements.

Paid Public Holidays

Employees are entitled to paid time off on recognised public holidays. If employees must work on a public holiday, they are usually entitled to premium pay above the normal wage, or an alternative paid rest day, according to the Labour Proclamation and any company policy.

6. Statutory Deductions

A. Social Security Contributions

Eritrea operates a national social security scheme. Both employer and employee must contribute based on the employee’s gross monthly wage:

• Employer contribution: typically 6% of the employee’s gross salary
• Employee contribution: typically 6% of gross salary, withheld from payroll

These contributions help fund benefits such as pensions, sickness, maternity and other social protection benefits as set out in the social security rules. Some guidance reports slightly different employer rates, so it is important to confirm the latest percentage when setting up payroll.

B. Tax Brackets and Rates

Personal Income Tax (PIT)

Employment income tax in Eritrea is usually deducted at source under a progressive monthly schedule. The following table gives a commonly referenced structure for monthly taxable income in Nakfa:

Taxable Monthly Income (ERN)	Tax Payable
0 – 200	2% of taxable income
201 – 1 200	ERN 4 + 10% of amount over 200
1 201 – 2 500	ERN 104 + 20% of amount over 1 200
2 501 – 3 500	ERN 364 + 25% of amount over 2 500
Over 3 500	ERN 614 + 30% of amount over 3 500

Other Main Taxes

• Corporate Income Tax: standard headline rate around 30% on company profits.
• Sales Tax or GST: indirect taxes apply on goods and services at different bands, commonly between 5% and 12% depending on the type of supply.

7. Health Insurance

Eritrea does not yet have a single comprehensive national health insurance fund for all employees. Public hospitals and clinics provide basic health services, but coverage and service levels can vary by region.

Because of this, many employers that hire skilled workers, managers or expatriates offer extra health benefits. This may include:

• Private medical insurance plans for employees and sometimes their dependants
• Direct reimbursement of medical expenses within agreed limits
• Access to private clinics or hospitals under company arrangements

Employees may also receive cash benefits from the social security scheme during certified sickness or maternity, subject to eligibility and contribution conditions.

8. Additional Compensation and Benefits

While Eritrean law sets the basic floor for wages and protections, many employers choose to offer extra benefits to attract and retain talent. Common examples include:

• Transport, housing or hardship allowances, especially for work in remote regions
• Meal allowances or canteen meals during work days
• Performance or productivity bonuses linked to company results
• Training and development support, including language and technical skills
• Voluntary retirement or savings plans on top of social security
• Top up life and accident insurance beyond statutory coverage

A 13th month salary is not mandatory under Eritrean law. Some organisations may pay a discretionary annual bonus during local festive periods or at year end.

9. Termination/Severance in Eritrea 

Probationary Period

The Labour Proclamation sets a clear limit on probation. A probation period may not be longer than 90 consecutive days. During probation, most working conditions still apply, but it is generally easier for either party to end the relationship with shorter notice, provided basic legal rules are followed.

Termination of Employment

After probation, employment may end on several grounds recognised by Eritrean labour law, such as:

• Natural expiry of a fixed term contract
• Employee resignation
• Mutual agreement between employer and employee
• Redundancy or operational reasons
• Incapacity to perform the job due to long term illness or disability
• Misconduct or poor performance, subject to fair procedure and evidence

Termination decisions should be documented and should follow any internal disciplinary steps, especially in cases of misconduct or poor performance. Trade unions or workers’ representatives, where present, may also play a role.

Notice Periods

Where notice is required, Eritrean rules commonly reflect the following minimum periods based on length of continuous service:

• Employment of less than 1 year – 7 days’ notice
• Employment of 1 year to less than 2 years – 14 days’ notice
• Employment of more than 2 years up to 5 years – 21 days’ notice
• Employment of more than 5 years – 30 days’ notice

During probation, shorter notice may apply, as provided in the contract and the law.

Severance Pay

Employees who have completed at least one year of service are normally entitled to severance pay when their employment ends for reasons such as redundancy, incapacity or other reasons not linked to serious misconduct. Eritrean rules commonly state:

• For service under one year – severance is calculated pro rata at two weeks of wages per year
• For the first five years of service – two weeks’ wages for each completed year
• For years 6 to 10 – three weeks’ wages for each completed year in that band
• For service above 10 years – four weeks’ wages for each completed year beyond the tenth year

Severance is calculated on the employee’s final regular wage and is paid in addition to any outstanding salary, unused annual leave and other amounts due at termination. Employers should also issue a work certificate if requested.