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Somalia payroll, hiring, talent management, and compliance requirements for your employees and independent contractors.
Workforce Africa simplifies hiring, payroll, talent management as well as your compliance needs for employees and independent contractors in Somalia. 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 Somalia, will help you focus on growth for greater levels of success.
Mogadishu
The focus lies on three main priorities: bolstering the private sector and advancing micro-small and medium-sized enterprises (MSMEs), backing productive economic sectors to foster job creation, and enhancing governance within the labour market.
Yes
Somali Shilling
In Somalia, according to the labour code, the minimum wages for different jobs in the country are set by the minister, who considers economic and social conditions, recommendations from a remuneration council, and input from the Federal Labour Commission.
Northern Standard Somali and Arabic
Workforce Africa makes it hassle free to hire and manage your remote staff in Somalia 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 >>
There is no statutory requirement to pay a 13th or 14th month salary / bonus in Somalia.
According to the Labour Code, Employees are entitled to full remuneration on national and public holidays, and if they work on these holidays, they must receive a proportionate increase in remuneration, not less than 50 percent of their normal pay.
The probationary period typically spans six months and may be extended for an additional six months upon agreement.
Social security contributions are not mandatory.
Overtime cannot exceed 2 hours a day or 12 hours a week.
Employees paid daily must receive their salaries no later than every fortnight. For other employee classifications, salaries must be paid monthly.
The standard work week in Somalia is 8 hours per day for 6 days a week.
There are the official public holidays in Somalia:
New Year’s Day – January 1
Mi’raaj Nabi
Eid-ul-Fitr
Labour Day – May 01
Independence Day – June 26
Eid Al Adha
Republic Day – July 01
Islamic New Year
Ashura
Mawlid Nabi
Expats seeking employment in Somalia must meet eligibility criteria to apply for a work permit. The permit grants the foreigner the right to reside and work in the country for 30 to 60 days, with the option to renew it before expiration. The applicant must travel for legitimate work purposes and meet all requirements. A Somalia PEO/EoR offers this service to help businesses expand with or without an entity set up.
Annual Leave: Employees are eligible for 21 days of paid leave for each year of continuous service. Eligibility for paid leave is typically acquired after completing a full year of continuous service.
Sick Leave: Employees are entitled to seven days of full pay for sickness leave and an additional seven days at half pay.
Maternal & Paternal Leave: The labour code does not mention anything about Maternal and Paternal leave.
Bereavement leave: An employee who has worked at least six consecutive months shall be entitled to three days of family responsibility leave if any of the following occurs:
This law applies to private employees as well.
Social security contributions are not mandatory.
Corporate Tax Rate: 12.3%.
Tax: Personal Income Tax
A Somalia employer of record can help employers make provision of health insurance policy fortheir employees. The healthcare system in Somalia is predominantly within the private sector and is regulated by the Ministry of Health of the Federal Government of Somalia.
The mandatory benefits stipulated by law in Somalia encompass various aspects, such as:
Probationary period.
Public holiday compensation.
Statutory leave
Overtime pays: Somali employees are entitled to these different rates for additional work hours:
125% of their hourly rate. For every extra hour on a regular workday.
150% of their regular rate during holidays.
200% of their regular pay specifically, on Labor Day, National Commemorative Day.
Termination Process: The severance pay for redundancy dismissal varies based on the worker’s tenure:
Notice Period: Either party involved in the contract can terminate the employment contract by providing written notice as follows:
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