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

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 Togo, 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 Togo. 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 Togo will help you focus on growth for greater levels of success.

Employment Contract Termination

In Togo, either the employer or the employee may terminate a fixed-term employment contract for various reasons, including misconduct, contract expiration, mutual agreement, cancellation, or judicial settlement. If both parties agree to end the contract, the decision must be documented in writing.

While it is legally possible to terminate a contract without prior notice, the Togolese Labour Code requires that, following the probationary period, a notice period be observed or payment provided in lieu of notice. The required notice periods are as follows:

• Five days for hourly-paid workers
• One month for employees and regular labourers
• Three months for technical or managerial staff

Togo Country Overview

The Togolese Republic lies in West Africa. It is predominantly a French-speaking country. Two critical cities in Togo are Lomé, the capital and the economic hub, and Sokodé. These urban centres act as transit points to ecotourism destinations and beach resorts. With a population exceeding 9.4 million people, Togo boasts a significant demographic presence.

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

Although Togo 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 Togo facilitates swift market entry. It manages all legal complexities associated with operations in the country.

Payroll Processing in Togo

Local labour laws in Togo 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 Togo 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 Togo 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 Togo 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.

Payroll Components in Togo

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

• Salary/Wages
• Overtime benefits
• Social security contribution
• Paid leaves
• Paid holidays
• Payroll taxes
• Other laws

Navigating Togo Payroll Compliance

Employment in Togo is primarily governed by the Togolese Labour Code, Act No. 2021-013, 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-:

1. Salary/ Minimum Wage

The statutory monthly minimum wage in Togo is CFA 52,500.

2. Working hours

The standard statutory working hours in Togo are set at 40 hours per week. Overtime is calculated as follows:

• 41 to 48 hours per week: Overtime is paid at 20% above the regular hourly wage.
• Beyond 48 hours per week: Overtime is compensated at 40% above the standard hourly wage.
• Work on Sundays and public holidays: Paid at a 65% premium over the regular pay.

3. Social Security Contribution

The Employer contributes 22.5%, while the Employee pays social security contributions of 9%.

4. Health Insurance Scheme

In Togo, employers are required to contribute to the Universal Health Insurance Scheme (Assurance Maladie Universelle). The system is managed by the National Social Security Fund (CNSS) for private sector employees and the National Health Insurance Institute (INAM) for public sector workers. Contributions are shared between employers and employees.

5. Compulsory Health Insurance (CHI)

Applies to employees in both public and private sectors, as well as self-employed individuals.

6. Voluntary Health Insurance (VHI)

Available for individuals not covered under the compulsory scheme, including informal sector workers.

7. Pension Contributions

Pension contributions are governed by the National Social Security Fund (CNSS) for private sector employees and the Retirement Fund of Togo (CRT) for public sector employees.

8. Value Added Tax (VAT)

As of 2025, Togo imposes a standard VAT rate of 18% and a corporate income tax rate of 27%.

9. Income Tax (PAYE)

Personal income is taxed progressively, with rates ranging from 0% to 35%, depending on the income level.

10. Payroll Taxes Summary

Taxes	Stakeholders
Social Insurance Covers old age, disability and death benefits.	Employer: 22.5% Employee: 9%
Health Insurance Provides medical care and health services.	Employer: Included in social contributions. Employee: Same
Income Tax (PAYE) Employee pays income tax based on their earnings, with rates ranging from 0% – 35%. 43%.	Employer: 0% Employee: Variable

11. Paid Leaves

• Annual Leave: In Togo, employees are entitled to 2.5 days of paid leave for each month of service, which amounts to 30 days of annual leave per year.
• Sick Leave: Employees in Togo are entitled to a minimum of 5 days of paid sick leave annually. For extended illnesses, the duration and pay depend on the employee’s length of service:​
  • Less than 1 year: up to 1 month at full pay.
  • 1 to 5 years: 1 month at full pay, followed by 3 months at half pay.
  • 5 to 10 years: 2 months at full pay, followed by 4 months at half pay.
  • More than 10 years: 4 months at full pay, followed by 2 months at half pay.
  • Sick pay and medical expense reimbursements are provided by the National Social Security Fund (CNSS), funded through mandatory contributions from both employers and employees.​
• Maternity Leave: Pregnant employees in Togo are entitled to 14 weeks of maternity leave, comprising 6 weeks before and 8 weeks after childbirth. In cases of complications, multiple births, or health issues concerning the child, the leave can be extended by up to 3 additional weeks upon medical certification. ​During maternity leave, the employee receives full pay, with the employer and the CNSS each covering 50% of the salary.​
• Paternity Leave: While Togolese labour law does not mandate paternity leave, the Interprofessional Collective Agreement grants fathers 2 days of paid paternity leave upon the birth of a child.
• Paid Public Holidays: In Togo, the 12 paid holidays are as follows:
  • January 1: New Years Day
  • Easter Monday: Date Varies
  • Independence Day: April 27
  • May 1: Workers’ Day
  • Eid Al-Fitr: Date Varies
  • Ascension Day
  • Whit Monday
  • Martyr’s Day
  • Eid Al-Adha
  • Feast of Assumption
  • All Saint’s Day
  • Christmas Day: December 25

Payroll Outsourcing in Togo

Payroll in Togo 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.