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

How Employer of Record (EoR) in Sao Tome and Principe Works

Workforce Africa lets you build a compliant team in Sao Tome and Principe without registering a local company. We act as the legal employer in the country, while you direct the employee’s day to day work.

Our Sao Tome EoR service normally covers:

• Drafting and issuing compliant employment contracts in Portuguese (and English if needed)
• Registering employees with tax and social security authorities
• Running monthly payroll in dobra and issuing payslips
• Calculating and remitting income tax and social security contributions
• Managing leave, benefits and basic HR administration
• Supporting performance issues, discipline and terminations in line with the Labour Code

Using an EoR in Sao Tome and Principe shortens set up time, reduces fixed costs and helps you avoid errors with local labour and tax rules.

1. Employment Contracts in Sao Tome and Principe

Employment in Sao Tome and Principe can be based on different contract types, such as:

• Indefinite (open ended) contracts for ongoing roles
• Fixed term contracts for specific projects, seasonal work or temporary replacement
• Part time contracts where weekly hours are below full time
• Casual or intermittent work for occasional tasks

Fixed term contracts should have a clear business reason and clear start and end dates. Repeated renewals without cause can lead to the contract being treated as open ended. Written contracts are the norm, especially for professional roles.

Key Contractual Elements

A Sao Tome employment contract should, at a minimum, set out:

• Employer and employee details
• Job title, key duties and reporting line
• Place of work and any remote or multi site arrangement
• Type of contract (indefinite or fixed term) and, if fixed, the end date or event
• Start date and length of any probation period
• Normal daily and weekly working hours
• Base salary in STN, pay cycle and method of payment
• Overtime rules and how overtime is paid
• Entitlements to annual leave, sick leave, maternity leave and public holidays
• Basic benefits and allowances (for example transport or meal allowance)
• Notice periods and conditions for termination
• Any applicable collective agreement

Contracts should be in Portuguese as the legally binding version. An English copy can be provided for clarity.

2. Working Hours in Sao Tome and Principe

Standard working hours in Sao Tome and Principe are usually:

• Up to 8 hours per day, and
• Around 40 hours per week for a full time employee.

Some sectors and agreements allow a slightly higher weekly limit, but the general pattern is a five day week with at least one full day of weekly rest, often on Sunday.

Overtime

Overtime is work done beyond the normal daily or weekly hours. Key points:

• Overtime should be exceptional and properly approved.
• It is paid at a premium above the normal hourly rate.
• Higher rates generally apply for:
  • Night work
  • Work on weekly rest days
  • Work on public holidays

Employers should track hours worked, separate normal hours from overtime and show overtime clearly on the payslip.

3. Observed National Holidays and Vacation 

These public holidays are commonly observed in Sao Tome and Principe and are usually treated as paid days off:

• 1 January – New Year’s Day
• 3 February – Martyrs’ Day (Batepá Massacre Commemoration)
• 1 May – Labour Day
• 12 July – Independence Day
• 6 September – Armed Forces Day
• 30 September – Agricultural Reform / Nationalisation Day
• 21 December – São Tomé Day
• 25 December – Christmas Day

Other religious days may also be observed in practice, and the government can declare extra holidays or bridge days.

If an employee works on a public holiday, they are normally entitled to premium pay or a paid day off in lieu, depending on law, contract and company policy. Public holidays are separate from annual leave. If a public holiday falls during annual leave, it is usually not counted as part of the annual leave balance.

4. Expats, Visas & Work Permits

Visa and Work Permit Requirement

Foreign nationals who wish to work in Sao Tome and Principe need the correct immigration status. Short visits for some nationalities may be visa free or covered by an e visa, but regular employment generally requires:

• An appropriate entry or residence visa, and
• A work authorisation linked to an employer in the country.

Working long term on a tourist or simple business visa is not compliant.

Common Visa and Permit Types

• Short term business visa – for meetings, events and exploration, not for ongoing employment.
• Work visa and residence permit – for foreign employees with a local employer or EoR, often for a fixed period that can be renewed.
• Special status permits – for some diplomatic, international or investment roles.

Eligibility and Employer Role

The Sao Tome employer or EoR usually acts as sponsor and may need to:

• Provide an employment contract or job offer stating job title, pay and duration
• Submit company registration and tax details
• Confirm that the role and salary meet local standards

The employee is often asked to provide:

• Valid passport and passport photographs
• Police clearance from the country of residence
• Medical certificate, where required
• Copies of educational and professional qualifications

Applications are normally processed through consulates and local immigration offices. Processing times can vary, so employers should plan ahead. An EoR partner can coordinate documentation and communication with local advisers.

An Sao Tome and Principe EoR offers this service to help businesses manage their clients

5. Paid Leaves

Annual Leave

Employees in Sao Tome and Principe are entitled to paid annual leave after a period of service with the same employer. Public guidance and practice indicate:

• Full time staff usually receive between about 22 and 30 consecutive calendar days of paid annual leave per year after one year of service.
• Many employers use 30 calendar days as a standard annual leave entitlement, which meets or exceeds typical minimum standards.
• Annual leave is normally taken by agreement between employer and employee and may be split into parts, with at least one block of continuous days where possible.

Unused leave may be carried over for a limited time by agreement, or paid out on termination if it cannot be taken.

Sick Leave

The Labour Code treats sickness as a justified absence from work. In practice:

• Employees can take sick leave when they are unfit for work due to illness or injury.
• A medical certificate from a recognised health professional is usually required for absences beyond a short number of days.
• Short term sick leave is often paid by the employer at or near full pay.
• Longer absences may be paid at a lower rate, supported by social security, or treated as unpaid, depending on current rules, length of service and any collective agreement.

Employers should have a clear internal sick leave policy that aligns with legal requirements.

Maternity Leave

Female employees have a right to maternity protection. Common practice includes:

• At least 60 days of maternity leave around childbirth, taken partly before and partly after the birth.
• Protection from dismissal due to pregnancy or maternity leave, except on strong and lawful grounds.
• Cash payments during maternity leave, funded by the employer and/or social security depending on the scheme and contribution record.

An EoR must ensure social security contributions are up to date so employees can access maternity benefits.

Paternity Leave

Sao Tome and Principe does not yet have a long, clearly defined statutory paternity leave for all fathers. In practice:

• Some employers grant a short period of paid or unpaid leave (for example a few working days) when a child is born.
• Fathers may also use annual leave or other family leave to support their partner and new child.

It is good practice for employers to state any paternity leave policy clearly in the contract or staff handbook.

Compassionate and Family Leave

Employers often allow compassionate or family leave for:

• Death of close family members
• Serious illness of a spouse, child or parent
• Important family events

Whether this leave is paid or unpaid depends on law, contract and company policy.

Paid Public Holidays

Employees are entitled to paid rest on official public holidays. If they must work on a public holiday, they are usually entitled to higher pay than normal or to a replacement paid day off, as set in the Labour Code and their contract.

6. Statutory Deductions

A. Social Security Contributions

Sao Tome and Principe has a mandatory social security system. Typical contribution rates for standard employees are:

• Employer: about 8% of the employee’s gross salary
• Employee: about 6% of gross salary

These contributions help fund pensions, disability and survivors’ benefits and other social protection. The employer (or EoR) deducts the employee’s share from payroll, adds the employer share and pays the total to the social security body each month.cial 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)

Personal income tax on employment income is progressive. For residents, a commonly used annual structure is:

Taxable Annual Income (STN)	Tax Rate
0 – 11,700,000	0%
11,700,000.01 – 50,000,000	10%
50,000,000.01 – 100,000,000	13%
100,000,000.01 – 150,000,000	15%
150,000,000.01 – 240,000,000	20%
Above 240,000,000	25%

Other Main Taxes

• Corporate Income Tax: a standard rate of about 25% applies to many companies on taxable profits.
• Value Added Tax (VAT):
  • Standard rate around 15% on most goods and services.
  • A reduced rate (for example 7.5%) may apply to some items.

VAT is not deducted from salaries but applies to many business costs, including EoR service fees.

7. Health Insurance

Sao Tome and Principe does not yet have a single comprehensive national health insurance fund for all employees. Public hospitals and clinics provide basic health sPublic health services in Sao Tome and Principe are funded mainly by the state and supported by social security. However, public facilities can be limited in capacity, equipment and specialist care.

Because of this, many employers, especially international companies, provide extra health benefits such as:

• Private medical insurance for employees (and sometimes their dependants)
• Direct reimbursement of medical expenses up to a set limit
• Cover for medical evacuation in serious cases, particularly for expatriates

Any extra health benefits should be clearly described in offer letters and internal policies so employees understand what is covered and what is not.

8. Additional Compensation and Benefits

Beyond the legal minimum, employers in Sao Tome and Principe often offer extra benefits to remain attractive in the labour market, such as:

• Transport or fuel allowance
• Meal allowance or access to a staff canteen
• Housing, hardship or location allowance for some roles
• Sales commissions or performance bonuses
• Training and development, including language and technical courses
• Group life or accident insurance for senior or key staff

There is no strict legal requirement for a 13th month salary, but some employers pay an annual bonus or “13th cheque” at year end or during festive seasons. Where bonuses are offered, the rules should be written down and applied consistently.

9. Termination/Severance in Sao Tome and Principe

Probationary Period

Employment contracts in Sao Tome and Principe often include a probation period. In practice:

• Probation is commonly between 3 and 6 months, depending on the role.
• The probation period should be set out clearly in the contract.
• During probation, either party can normally end the relationship on shorter notice than after confirmation, while still respecting basic legal protections.

Termination of Employment

After probation, employment can end for several lawful reasons, including:

• Expiry of a fixed term contract
• Resignation by the employee with proper notice
• Mutual agreement between employer and employee
• Dismissal for just cause, such as serious misconduct or repeated failure to perform duties
• Dismissal for economic or organisational reasons, such as restructuring or closure

Termination should never be based on prohibited reasons such as pregnancy, union activity, race or religion. A fair process should be followed, with reasons documented and the employee given a chance to respond where required.

Notice Periods

Notice rules depend on the circumstances, the Labour Code and any collective agreement. Public guidance and practice suggest:

• Shorter notice during probation, as stated in the contract.
• After probation, many employers apply notice periods of at least 15 to 30 days, with longer periods often used for senior staff.
• For some economic or collective dismissals, longer notice and consultation duties may apply.

Instead of having the employee work through the notice period, the employer may pay salary in lieu of notice if the law and contract allow.

Severance Pay

Severance pay depends on the reason for termination and the employee’s length of service. In practice:

• Employees dismissed without just cause, or for economic reasons, are often entitled to severance based on years of service and their last regular salary.
• A commonly used formula is around one month of base salary per completed year of service, unless law or a collective agreement sets a different amount.
• Employees who resign voluntarily or are dismissed for proven serious misconduct usually do not receive severance, but they must still be paid salary up to the last day and any unused annual leave.

On termination, the employer or EoR should pay:

• Final salary up to the last working day
• Pay in lieu of untaken annual leave
• Any severance owed under law or contract
• Any earned bonus or commission that has become due

A certificate of employment should be issued on request, confirming the employee’s role and employment dates.