Definitive Guide to Hiring in Benin

Hiring in Benin

Hiring employees compliantly in Benin means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Benin so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Benin or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Labor Laws in Benin

Employment laws in Benin are uniquely suited to the country’s way of life, and crucial to understand if you want to employ local talent in this country. Get the details on Benin employment laws and Benin policies here.

Employee Probation Period

Annual Leave in Benin

• Generally, employees are entitled to 24 paid days of annual leave, with increases at the following rate
  • after 20 years, and additional 2 days
  • after 25 years, an additional 4 days
  • after 30 years, an additional 6 days.

Holidays in Benin

Benin celebrates Thirteen national public holidays as well as additional public holidays that vary by state:

Maternity Leave Benin

Paternity Leave Benin

Sick Leave in Benin

• Employees with less than 2 years of service are generally entitled to 6 months’ sick leave.
• Employees with 2+ years of service are generally entitled to 12 months’ sick leave.
• Employees with 1-5 years’ service are generally entitled to three months at full pay and three months at half pay.
• Employees with 5+ years of service are entitled to full pay for 6 months.

Working Hours in Benin

Typically, in Benin, work is convened Monday through Friday from 8am to 12:30pm and 3:30pm to 7pm, and on Saturday from 9am to 1pm.
Total working hours are generally 40 per week and should not exceed 56 per week.

Overtime in Benin

• Workers may not work more than 240 hours of overtime per year.  
• Overtime is paid at:

• 112% of normal hourly rate for 41st to the 48th hour per week.
• 135% of normal hourly rate beyond the 48th hour per week.

Termination of Employment in Benin

Employers may terminate a worker for a valid reason, including:

• worker health
• inability to hold employment
• competence or conduct
• changes in the organization or technology
• economic hardship or closure of the company
• If the employer dismisses the employee on personal grounds, the employer must notify the employee in writing and include the reasons for termination. 
• The labor inspector must also be notified in writing.
• Notice periods are as follows:
  • Hourly employees are entitled to 15 days’ notice.
  • Employees, workers, and laborers are entitled to one month of notice.
  • Supervisors and executives are entitled to 3 months’ notice.
• Employees are entitled to severance pay. 
• The amount depends on length of service:
  • First 5 years of employment–30% of average monthly salary
  • 6-10 years of service–35% of average monthly salary
  • 10+ years of service–40% of average monthly salary

Notice Period in Benin

• Notice periods are as follows:
  • Hourly employees are entitled to 15 days’ notice.
  • Employees, workers, and laborers are entitled to one month of notice.
  • Supervisors and executives are entitled to 3 months’ notice.

Severance in Benin

• Employees are entitled to severance pay. 
• The amount depends on length of service:
  • First 5 years of employment–30% of average monthly salary
  • 6-10 years of service–35% of average monthly salary
  • 10+ years of service–40% of average monthly salary

Benin Salary and Wages

13th Month  Salary in Benin

• No
• There is no statutory requirement to pay the 13th or 14th month salary.
• Instead the holiday will need to be taken within twelve months and it is set by the employer as opposed to the employee.
• Domestic workers are added to the labour code and they are entailed to seniority bonus after a certain time.
• There seem to not be the same requirement for other industries."

• The employer’s social security contribution is 15.4% of gross salary (6.4% pension and a 9% family allowance), plus 1% to 4% as industrial injury insurance, depending on the degree of risk in the employment. 
• The employee’s contribution is 3.6% of gross salary.

Immigration in Benin

• A Benin visa is an official document from the government authorizing someone to enter the country. 
• It comes as either a stamp or a sticker in a passport that foreigners must obtain from an embassy or consulate.
• Benin has three overarching types of visas:
  • Business
  • Tourist
  • Transient
• The requirements differ between types, but most of your employees will need to obtain a business visa and work permit to stay compliant. 
• Most visas are valid for either 30 or 90 days. Foreigners must apply before entering Benin, as they cannot obtain visas upon arrival.
• The requirements to obtain a working visa in Benin depend on the type of visa employees need and whether they want a single- or multi-entry option. 
• Some of the documents they must provide include:
  • A passport-style photo
  • A scanned copy of the passport
  • A copy of their flight itinerary
  • Proof of yellow fever vaccination
  • A business letter from your company
  • A completed visa application form
• Once employees obtain work visas, they’ll need to also get work permits. 
• Employers handle the application process on behalf of employees. 
• The process for obtaining a work permit is as follows: -
  • An expatriate quota approval
  • A Subject to Regularization (STR)
  • A Combined Expatriate Residence Permit and Alien Card (CERPAC)

Value Added Tax (VAT) in Benin

• The supply of goods and services carried out (or used) in Benin and imports into Benin are subject to VAT.
• The standard VAT rate is 18%. 
• Exempt activities include imports of certain products, banking and general insurance.

Mandatory Benefits in Benin

• These are mandatory benefits as postulated by law
• These include probationary period, annual leave, public holidays, sick leave, maternity leave, paternity leave, overtime pay, notice period, and severance pay
• Statutory benefits also include social security benefits

Payments And Invoicing

• The tax year is the calendar year
• Each taxpayer must file a return. Joint returns of spouses are not permitted. 
• The individual tax return must be filed by 30 April for business income, with any balance of tax due paid at that time. 
• Individual income tax is paid in quarterly advance in instalments on 10 March, June, September and December. 
• A tax return is required even when all income is from employment and tax has been deducted at source. 
• Taxes on salary must be paid monthly. 
• Penalties are assessed at rates ranging from 20% to 80% of tax due, depending on whether the taxpayer’s return was accidentally, mistakenly or fraudulently in error. 
• The 80% rate also applies to estimated assessments in the absence of a return submitted only after an injunction.

Payroll Accrual in Benin

Country Accruals Additional Information

Description

Employers contribute 15.4% of gross salary to social security, 6.4% for pension and 9% for family allowance, plus an additional 1%-4% for industrial injury assistance.

Payroll Accruals Additional Information

Accrued Benefits in Benin

Why use Global Expansion to hire in Benin

Establishing a branch office or subsidiary in Benin can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Benin labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Benin law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Benin. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Benin Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.