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Hiring in Burkina faso
Burkina Faso is a landlocked country in West Africa. Ouagadougou is the capital and the largest city of Burkina Faso. It is rich in gold, copper and iron. Mining and agriculture are two of the most important sectors of the economy. Burkina Faso’s main trading partners are China, Cote d‘Ivoire, Russia and France. Global PEO or Employer of Record (EOR) play a pivotal role in providing companies with services related to hiring employees, and ensuring compliance with Burkina Faso’s legal and tax regulations. Employment regulations including probation, holidays and termination are covered by the Labor Code. The Labor Code stipulates that employees are entitled to 22 days of paid annual leave. Residents are taxed on worldwide income; non-residents are taxed on Burkina Faso- source employment income. Global PEO’s or Employer of Record (EOR) facilitate companies by ensuring compliance with Burkina Faso’s Labor Code and tax laws.
statutory labor requirements
Probation Period
- Probationary periods are based on the type of employee, but may not exceed three months.
Annual Leave
- Employees are generally entitled to 22 days of paid annual leave.
Public Holidays
- New Year's Day (1st January)
- Revolution Day (3rd January)
- International Women's Day (9th March)
- Easter Monday (13th April)
- Labor Day (1st May)
- Ascension Day (21st May)
- Eid al-Fitr
- Eid al-Adha
- Independence Day (5th August)
- Assumption of Mary (15th August)
- Prophet's Birthday
- Martyrs' Day (in Burkina Faso) (31st October)
- All Saints' Day (1st November)
- Proclamation of Independence Day (11th December)
- Christmas Day (25th December
Maternity Leave
- Female employees are generally entitled to 14 weeks of paid maternity leave.
- Both the employer and social security pay for the leave.
Paternity Leave
- Male employees are generally entitled to 20 days of leave for events concerning their home life.
Sick Leave
- For less than one year of service, the paid sick leave is two months (one month with full pay and the next month on half pay);
- For one to five years of service, the paid sick leave is 4 months (one month with full pay and the next month on half pay);
- For six to ten years of service, the paid sick leave is 5 months (two months with full pay and three months on half pay);
- For eleven to fifteen years of service, the paid sick leave is 6 months (three months on full pay and three months on half pay); and
- For more than fifteen years of service, the paid sick leave is 8 months (four months on full pay and four months on half pay)
Work Hours
- In general, the standard workweek is 40 hours.
Overtime
- Every hour worked beyond the weekly legal limit of hours of work or time equivalent shall be compensated as follows:
- 15% of compensation for each of the first 8 hours worked after the 40th hour, or equivalent time;
- 35% of compensation for each hour worked after the 48th hour, or equivalent time;
- 50% of compensation for each hour worked during the night in ordinary days;
- 60% of compensation for each hour worked on Sundays or Holidays;
- 120% of compensation for each hour worked during the night on Sundays or holidays.
Notice Period
- Notice of termination must be given:
- 8 days for hourly workers,
- one month for regular workers,
- three months for executives, supervisors, technicians, and similar staff.
- Group dismissals require a 30-day notice period.
Severance
- Severance pay corresponds to a percentage of the monthly overall wages per year of service and is set according to the length of service as follows:
- 25% of one monthly wage for every year during the first 5 years of service;
- 30% of one monthly wage for every year during the subsequent 5 years of service; and
- 40% of one monthly wage for every year after the tenth year.
13th / 14th Month Pay
- No
- There is no statutory requirement to pay the 13th or 14th months salary.
- The employees are entailed to holidays after working for a year, however there is generally no bonus paid.
income tax
- Habitual residents are taxable on income earned on a worldwide basis.
- Non-residents are subject to tax on Burkina Faso- source employment income provided the activities are carried out in Burkina Faso and the employer is located in the country.
- Habitual residents are individuals with a permanent home available for their use in Burkina Faso or who are employed by a resident corporation.
- Individuals are taxable on the same schedules of income as companies, and on employment income.
- All income is pooled and subject to a general income tax that is called the “unique tax on salaries.”
- The applicable rate is applied to the taxable income.
- The unique tax on treatments and salaries is imposed at scheduler rates ranging from 0% to 25%.
- Income other than employment income earned by an individual is subject to income tax at rates that range from 10% to 27.5%.
|
Taxable Income (XOF) |
Rate (%) |
|
0 – 30 000 |
0% |
|
30 001 – 50 000 |
12.1% |
|
50 001 – 80 000 |
13.9% |
|
80 001 – 120 000 |
15.7% |
|
120 001 – 170 000 |
18.4% |
|
170 001 – 250 000 |
21.7% |
|
Over 250 000 |
25% |
deductible expenses
- Expenses deductible from general income include housing allowances, duty allowances, transport allowances, family allowances, civil and military pensions and severance pay, subject to certain limits.
- Business costs and expenses are deductible if they are strictly related to the business.
|
Deductible Expenses |
|
immigration
- In Burkina Faso, foreign travelers who wish to enter the country are typically divided into three categories when it comes to visas:
-
- Visitors from visa-exempt countries, who can stay in Burkina Faso for up to 90 days without a visa
- Nationals who are eligible for a visa on arrival, which is then valid for up to 90 days
- Visitors who do not fall under either of these categories and must go to an embassy or consulate to find a solution
- However, foreign nationals who plan to stay in Burkina Faso for an extended time to work for your company will need a long-stay visa.
- They will also need a work permit.
- Burkina Faso is somewhat unique in that the country does not have a business visa.
- If employees need to visit Burkina Faso for a short period of time for business purposes, such as a conference or training seminar, they can do so by obtaining a normal entry visa which will allow them to stay for up to 90 days.
- A long-stay visa is necessary for any foreign nationals who intend to work in Burkina Faso.
- To obtain the visa, applicants will need to provide:
-
- A passport that has at least one blank page and six months of validity after their planned entry to Burkina Faso
- Two passport photographs
- Two visa application forms
- Proof of immunization against yellow fever
- Visas for workers are issued by the Labor Administration.
- These visas can be granted for the duration of the employment contract, up to a maximum of three years.
- In Burkina Faso, work permits will need to be obtained by the sponsoring employer.
- The Burkina Faso work permit is also known as a Worker Card.
|
Type of Visa/Permit |
Documentation |
Validity |
Eligibility |
|
Long stay Visa |
|
Maximum 3 years |
Foreigners who intend to work in Burkina Faso must obtain a long stay visa |
value added tax
- VAT is imposed on production activities, the distribution of goods and the provision of services in Burkina Faso.
- VAT also is applied to imported goods and services
- The standard VAT rate is 18%.
|
VAT |
|
|
Standard Rate |
18% |
|
Zero Rate |
0% |
withholding tax
Dividends
- Dividends paid to residents and nonresidents are subject to a 12.5% withholding tax
Interest
- Interest paid to residents is taxed at 25%. This rate is reduced by half (12.5%) for income from deposit accounts and current accounts with a bank or financial broker. These rates are applicable for both residents and non-residents
Royalties
- Royalties paid to a resident are not subject to WHT. Instead, the income is subject to corporate income tax (for companies) or the unique tax on treatments and salaries (for individuals).
Management and Professional Fees
- A rate of 20% is applied on sums paid to non-resident entities for the provision of service.
- A reduced rate of 10% applies to mining companies but exclusively for their mining operations.
|
Payment |
Residents |
Non-residents |
|
Dividends |
12.5% |
12.5% |
|
Interest |
12.5%/25% |
12.5%/25% |
|
Royalties |
- |
20% |
|
Management and Professional Fees |
0%/5% |
20%/10% |
termination
Notice of termination must be given:
-
- 8 days for hourly workers,
- one month for regular workers,
- three months for executives, supervisors, technicians, and similar staff.
- Group dismissals require a 30-day notice period.
- Severance pay corresponds to a percentage of the monthly overall wages per year of service and is set according to the length of service as follows:
-
- 25% of one monthly wage for every year during the first 5 years of service;
- 30% of one monthly wage for every year during the subsequent 5 years of service; and
- 40% of one monthly wage for every year after the tenth year.
statutory benefits
- 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
|
Statutory Benefits |
|
Probationary Period |
|
Annual Leave |
|
Public Holidays |
|
Maternity Leave |
|
Paternity Leave |
|
Sick Leave |
|
Overtime Pay |
|
Notice Period |
|
Severance Pay |
|
Social Security Benefits |
payments and invoicing
- The tax year is the calendar year
- Personal income tax returns are due by 30 April following the tax year.
- An individual whose only taxable income is employment income derived from one employer is not required to file a return unless he/she is eligible for a refund.
- There is no filing exemption for married couples.
- Payments of tax relating to a business are due as described above for companies.
- Tax normally is withheld at source for other sources of income.
- Penalties are charged at a rate of 10%, increased by default interest of 1%, for late tax returns, failure to pay tax due and errors and mistakes.
ease of doing business
- The ease of doing business index is an index created by Simeon Djankov, an economist at the Central and Eastern Europe sector of the World Bank Group.
- Higher rankings (a low numerical value) indicate better, usually simpler, regulations for businesses and stronger protections of property rights.
- According to the World Bank Burkina Faso ranked 151st in the World in 2019 in terms of ease of doing business.
employee accruals
| Christmas Bonus% | 0% |
| Christmas Bonus Over Vacations % | 0% |
| Severance per Year % | Employees are entitled to severance pay that equals 25% of monthly salary (2.08% of annual salary) |
| Vacations % | Employees are generally entitled to 22 days of paid annual leave (6.04% of annual salary) |
| Notice % | Employees are entitled to 30 days of notice period for one year of service or more (8.24%) |
| Christmas Bonus Over Notifications% | 0% |
| Vacations Plus% | 0% |
| Total percentage of Salary (yearly) | The total employment accruals as a percentage of salary per anum are equal to 16.45% |
employer accruals
Additional information (Country Accruals)
| Social security |
16.00% |
| Maternity leave |
14 weeks |
| Vacations |
6.03% |
| Description |
Probationary periods are based on the type of employee, but may not exceed three months. |
Employer Accruals Additional information
| Employment Accruals | ||
| Annual Leave | Employees are generally entitled to 22 days of paid annual leave. | This equals 6.02% (22/365 days) of annual income |
| Maternity Leave | Female employees are generally entitled to 14 weeks of paid maternity leave. | This equals 27% (14/52 weeks) of annual income |
| Paternity Leave | Male employees are generally entitled to 20 days of leave for events concerning their home life. | This equals 5.47% (20/365 days) of annual income |
| Sick Leave | For less than one year of service, the paid sick leave is two months (one month with full pay and the next month on half pay); For one to five years of service, the paid sick leave is 4 months (one month with full pay and the next month on half pay); For six to ten years of service, the paid sick leave is 5 months (two months with full pay and three months on half pay); For eleven to fifteen years of service, the paid sick leave is 6 months (three months on full pay and three months on half pay); and For more than fifteen years of service, the paid sick leave is 8 months (four months on full pay and four months on half pay) |
This equals 16.66% (2/12 months) of annual income |
| Overtime | Every hour worked beyond the weekly legal limit of hours of work or time equivalent shall be compensated as follows: • 15% of compensation for each of the first 8 hours worked after the 40th hour, or equivalent time; • 35% of compensation for each hour worked after the 48th hour, or equivalent time; • 50% of compensation for each hour worked during the night in ordinary days; • 60% of compensation for each hour worked on Sundays or Holidays; • 120% of compensation for each hour worked during the night on Sundays or holidays. |
2068.75 XOF. Overtime is paid at an additional 310.3 XOF during the day and at an additional 724 XOF at night. |
| Severance | Severance pay corresponds to a percentage of the monthly overall wages per year of service and is set according to the length of service as follows: • 25% of one monthly wage for every year during the first 5 years of service; • 30% of one monthly wage for every year during the subsequent 5 years of service; and • 40% of one monthly wage for every year after the tenth year. |
This equals 25% of monthly salary |
| Social Security | Social security contributions are paid on the basis of the salary paid. The employer pays 16%, comprised of a 3.5% occupational accident contribution, a 7% family allowance and a 5.5% old age pension. |
This equals 16% of annual income |
