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Hiring in Central african republic
Central African Republic is a country in Central Africa. Bangui is the capital and the largest city of Central African Republic. Central African Republic is rich in Diamonds, whereby they account for most of its export revenue. Agriculture is the most important sector of Central African Republic’s economy. Its main trading partners are France, the United States, India and China. Global PEO or Employer of Record (EOR) play a pivotal role in providing companies with services related to hiring employees, and ensuring compliance with Central African Republic’s legal and tax regulations. Employment regulations including probation, holidays and termination are covered by the Labor Code. The Labor Code stipulates probationary cannot exceed 2 months. Personal income tax is levied on income earned or received in Central African Republic. Income is taxed at progressive rates ranging from 10% to 35%. Global PEO’s facilitate companies by ensuring compliance with the labor code and tax laws.
statutory labor requirements
Probation Period
- Probationary cannot exceed 2 months
Annual Leave
- Employees receive 24 days of paid annual leave after one year of employment.
Public Holidays
- New Year's Day (1st January)
- Barthelemy Boganda Day (29th March)
- Easter Monday (13th April)
- Labor Day (1st May)
- Ascension Day (21st May)
- Eid al-Fitr
- Whit Monday (1st June)
- Prayer Day (30th June)
- Independence Day (13th August)
- Assumption of Mary (15th August)
- All Saints' Day (1st November)
- National Day (1st December)
- Christmas Day (25th December)
Maternity Leave
- Maternity leave is 14 total weeks
- Six weeks before the birth and eight weeks after.
- The maternity leave can be extended for 03 weeks in case of an illness, duly certified by a doctor, resulting from the birth or the pregnancy.
Paternity Leave
- There is no paternity leave
Sick Leave
- Employees have 5 days of sick leave, which are fully paid and are calculated as workers' basic wage.
Work Hours
- In every non-agricultural establishment, public or private, secular or religious, even if they are destined to educational purposes or voluntary work, the working time of regular employees or piece-rate workers, cannot exceed 40 hours per week.
Overtime
- Whenever a collective agreement does not foresee it, an order from the Minister of Labor, after having consulted the Permanent National Labor Council, shall establish:
- the minimum rates for overtime work and night work or non-working days.
Notice Period
- The notice period varies from 8 days to 3 months depending on seniority
Severance
- There is no statutory severance pay, unless it is agreed to in the employment contract or by collective bargaining agreements.
13th / 14th Month Pay
- No
- There is no evidence that there is a statutory requirement to pay the 13th or 14th month salary.
income tax
- Personal income tax is levied on income earned or received in Central African Republic
- Income is taxed at progressive rates ranging from 10% to 35%
|
Personal Income Tax Rate |
|
|
Progressive Rates |
10% to 35% |
immigration
- The Central African Republic has a specific set of regulations in place for foreign nationals who plan to travel within its borders.
- The CAR offers two categories of visas for foreigners:
- Short stay visas for visits up to three months
- Long stay visas, which allow the holder to remain in the CAR for up to one year
- Any employee who will be relocating to the Central African Republic for an extended period will need to obtain a long stay visa before they can travel abroad and start working.
- Foreign nationals will need to provide the following documents to get a visa for working in the CAR:
- A letter of invitation from the employing company based in the CAR
- Two duly completed and signed visa application forms
- A passport with at least six months of validity and one blank page
- Two identical passport photographs with a white background
- A copy of the applicant’s flight itinerary
- Proof of vaccination against yellow fever
- A letter from the applicant’s employer stating that they will leave the Central African Republic at the end of their work contract
- Payment of the visa fee
|
Type of Visa/Permit |
Documentation |
Validity |
Eligibility |
|
Short Stay Visa |
|
3 months |
|
|
Long Stay Visa |
|
1 year |
|
value added tax
- The Value Added Tax (VAT) in Central African Republic is levied at a standard rate of 19%
- Reduced rate of 5% is applicable on wheat, flour, milk, frozen fish and refined oils
- Exports and international services are zero rated
|
VAT |
|
|
Standard Rate |
19% |
|
Reduced Rate |
5% |
|
Zero Rate |
0% |
withholding tax
- Dividends are subject to 15% of withholding tax
- Interest payments are subject to 15% of withholding tax
- Royalties are subject to 15% of withholding tax
|
WHT |
|
|
Dividends |
15% |
|
Interest |
15% |
|
Royalties |
15% |
termination
- The notice period varies from 8 days to 3 months depending on seniority
- There is no statutory severance pay, unless it is agreed to in the employment contract or by collective bargaining agreements.
statutory benefits
- These are mandatory benefits as postulated by law
- These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, notice period.
- Statutory benefits also include social security benefits
|
Statutory Benefits |
|
Probationary Period |
|
Annual Leave |
|
Public Holidays |
|
Maternity Leave |
|
Sick Leave |
|
Overtime Pay |
|
Notice Period |
|
Social Security Benefits |
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 Central African Republic ranked 184th 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 % |
No mandatory severance pay unless negotiated. 0% |
| Vacations % | Employees receive 24 days of paid annual leave after one year of employment (6.59% of annual salary) |
| Notice % |
No mandatory severance pay unless negotiated. [There is one source that stated there is a notice period between 8 days and 3 months but there is no grid showing the timeline] 0% |
| 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 6.59% |
employer accruals
Additional information (Country Accruals)
| Professional risk |
3% |
| Family allowance |
12% |
| CPP |
4.00% |
| Maternity leave |
3.84% |
| Vacation |
4.11% |
| Description |
|
Employer Accruals Additional information
| Employment Accruals | ||
| Annual Leave | Employees receive 24 days of paid annual leave after one year of employment. | This equals 6.58% (24/365 days) of annual income |
| Maternity Leave | Maternity leave is 14 total weeks | This equals 26.9% (14/52 weeks) of annual income |
| Sick Leave | Employees have 5 days of sick leave, which are fully paid and are calculated as workers' basic wage. | This equals 1.37% of annual income |
| Overtime | Whenever a collective agreement does not foresee it, an order from the Minister of Labor, after having consulted the Permanent National Labor Council, shall establish: • the minimum rates for overtime work and night work or non-working days. |
Subjective |
| Social Security | Social security contributions are paid by the employer at 19% | This equals 19% of annual income |
