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

How Employer of Record (EoR) in Liberia Works

Workforce Africa makes it hassle free to hire and manage your remote staff in Liberia 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 Liberia

Contracts in Burkina Faso are typically written in English. They should clearly define:

• Job title and responsibilities
• Starting date and probationary period
• Working hours (standard is 48 hours per week)
• Overtime compensation (1.5x per hour)
• Compensation details (salary, benefits)
• Paid leave entitlements (annual leave, public holidays, maternity/paternity leave)
• Termination clauses (notice period, severance pay)

Working Hours in Liberia

The standard workweek in Liberia is 48 hours. This typically translates to 8 hours per day for a 6-day workweek.

Observed National Holidays and Vacation

Twelve national holidays are celebrated in Liberia:

• New Year’s Day: January 1
• Armed Forces Day: February 11
• Decoration Day: Second Wednesday in March
• Joseph Jenkins Roberts’ Birthday: March 15
• Unification Day: May 14
• Independence Day: July 26
• Flag Day: August 24
• Unification Day: October 14
• Thanksgiving Day: First Thursday in November
• William V. S. Tubman’s Birthday: November 29
• Christmas Day: December 25
• Boxing Day: December 26

Expats, Visas & Work Permits

An employer shall not employ a foreign worker unless they possess a current work permit issued by the Ministry. The Ministry shall not issue a permit to work in Liberia unless it is satisfied that:

• There is no suitably qualified Liberian available to carry out the work required by the employer; and
• the applicant satisfies the requirements for foreign residence in Liberia. The employer of any foreign worker in Liberia shall ensure that:
• The worker understands the nature of his/her employment and working conditions
• It is responsible for the cost of transport to Liberia for work
• It meets the cost of repatriation of the foreign worker upon expiration of the contract
• The worker is treated no less favourably than Liberian workers regarding wellfare and social security.

A Liberia EoR offers this service to help businesses manage their clients.

Paid Leave

• Annual Leave: Every employee is entitled to a minimum uninterrupted period of annual leave as follows:
  • During the first twelve (12) months of continuous service with an employer – the number of working days in one (1) week
  • During the first twenty-four (24) months of continuous service with an employer – the number of working days in two (2) weeks
  • For continuous service of thirty-six (36) months – the number of working days in three (3) weeks
  • For continuous service with the same employer for sixty (60) months and thereafter – the number of working days in four (4) weeks.
• Sick Leave: An employee’s entitlement to sick leave accumulates throughout their service with an employer. Every employee is entitled to five (5) days’ paid leave during each year of service with their employer, to provide care or support to a member of the employee’s immediate family who requires care or support because of: a personal illness, or personal injury, affecting the member of the employee’s immediate family.
• Maternity Leave: An employed woman is entitled, on each occasion that she is pregnant, to a minimum of 14 weeks of paid maternity leave. An employed woman who takes maternity leave shall take a minimum of 6 weeks of leave after the date of confinement.
• Paternity Leave: The employed father of a child is entitled to five (5) days’ leave without pay at the time of the child’s birth, provided that this leave: may not be taken before the mother’s confinement; and shall be taken within the first month after the birth of the child.
• 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

Personal Income Tax

Liberia employs a progressive income tax system, meaning that higher-income earners pay a higher percentage of their income in taxes.

Tax Brackets: While specific tax brackets can fluctuate, the general structure involves multiple income tiers with corresponding tax rates.

• Annual income up to 70,000 Liberian Dollars (LRD): 0%
• LRD 70,001 to 200,000: 5%
• LRD 200,001 to 800,000: 15%
• LRD 800,000: 25%

Corporate Income Tax (CIT)

The standard corporate income tax rate in Liberia is 25%.

Social Security Deductions

National Social Security and Welfare Corporation (NASSCORP)- The employer’s monthly mandatory social security contribution is 6% of all elements of earnings while the Employee’s contribution is 4% of gross salary.

Health Insurance

Provision of health insurance for employees is mandated. Dominant practice for coverage includes the employee and three (3) to four (4) legal dependents with a limited age range for coverage. An employee who suffers injury or disease as a consequence of their employment shall be entitled to compensation during his or her disability and to the extent of this disability as a right arising out of his or her employment.

Additional Compensation and Benefits

Mandatory Social Security: Employers in Liberia are required to contribute to a social security program that provides benefits for:

• Retirement: Employees contribute a part of their salary towards a pension upon retirement.
• Medical: Provides basic healthcare coverage for employees and their dependents.
• Work-Related Accidents & Illnesses: Covers medical expenses, rehabilitation, and potentially retraining in case of work-related injuries or illnesses.

Termination/ Severance in Liberia

Probationary Period

• Mandatory minimum: One month
• Mandatory maximum: Three months
• The employer determines the specific duration within this range.

Termination of Employment 

• Probationary period: Either party can terminate without notice or severance pay.
• Indefinite-term contracts: Requires just cause or operational reasons for termination. Notice period and severance pay may apply.

Termination Process

A formal notice of termination must be provided in writing to the party concerned 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.

Reasons for Termination 

An employment contract can be terminated for different reasons as outlined in the Liberian Labor Law:

1. Employee Death: The contract is automatically terminated upon the employee’s passing.
2. Restructuring or Economic Reasons: Termination may occur due to business needs, but specific regulations apply.
3. Termination with Notice: According to Labor Law, either party can terminate the contract with prior written notice (the notice period varies depending on the reason and contract type).
4. Termination for Cause: An employee can be dismissed for violating the Labor Law or engaging in misconduct.

Termination by Employee

Employees are generally not entitled to severance pay if they resign voluntarily.

Notice Period

Liberia’s labour laws mandate specific notice periods for terminating employment, depending on the employee’s length of service. This ensures employees’ fair treatment and provides employers with sufficient time to transition responsibilities.

• Less than three months of service: 1 week notice
• 3 to 6 months of service: 2 weeks’ notice
• 6 to 12 months of service: 3 weeks’ notice
• More than 12 months of service: 4 weeks’ notice

Severance Pay

1. Primarily for terminations due to economic reasons.
2. Typically, it’s four weeks’ salary for each completed year of service.

No mandatory severance pays for terminations due to other reasons like misconduct or poor performance.