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Hiring in Comoros
The Comoros, officially known as the Union of Comoros, is an Island Country in East Africa. Moroni is the capital and the largest city of Comoros. Comoros is a low income country, whereby Agriculture is the primary sector of the economy. Global PEO or Employer of Record (EOR) play a pivotal role in providing companies with services related to hiring employees, and ensuring compliance with Comoros’ 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. As the Employer of Record (EOR), Global PEO’s facilitate companies by ensuring compliance with the aforementioned Labor Code. Taxation in the Comoros is based on the French tax system, whereby individual income is taxed at progressive rates up to 30 percent. Global PEOs further facilitate companies by ensuring compliance with the tax laws.
statutory labor requirements
Probation Period
- Probationary period cannot exceed 6 months
Annual Leave
- Employees are entitled to paid annual leave of 22 days
Public Holidays
- New Year's Day (1st January)
- Cheikh Al Maarouf Day (18th March)
- Prophet's Ascension
- Labor Day (1st May)
- Eid al-Fitr
- Comoros National Day (6th July)
- Eid al-Adha
- Islamic New Year
- Prophet's Birthday
Maternity Leave
- In the case of pregnancy every woman has the right to suspend work for the period of 14 consecutive weeks, 8 of which have to be taken after the birth.
Paternity Leave
- There is no paternity leave
Work Hours
- The standard working hours are 8 hours a day and 6 days a week
Overtime
- Overtime is paid at a premium of 25% of hourly pay
Severance
- There is no statutory severance pay
13th / 14th Month Pay
- No
- There is no statutory requirement to pay the 13th or 14th month salary.
- The only bonus available is given in the form of food and shelter to expatriates that cannot afford living in the country with their salary.
- Annual leave is paid after one year of work. There is no evidence of any other special monetary remuneration.
income tax
- Taxation in the Comoros is based on the French tax system.
- However, taxes are complex and tax rates are quite high.
- Individual income is taxed at progressive rates up to 30 percent, which applies on income of more than KMF3.5m.
- No tax is paid on income up to KMF150,000.
- All individuals with a permanent occupation in the Comoros are subject to personal taxation.
|
Taxable Income |
Rate (%) |
|
Less or equal to KMF 150,000 |
0% |
|
KMF 150,001 - 500,000 |
5% |
|
KMF 500,001 - 1,000,000 |
10% |
|
KMF 1,000,001 - 1,500,000 |
15% |
|
KMF 1,000,501 - 2,500,000 |
20% |
|
KMF 2,500,001 - 3,500,000 |
25% |
|
Over KMF 3,500,000 |
30% |
immigration
- Foreigners will need a visa to enter Comoros. Individuals
- can get a visa on arrival at Hahaya airport or at other points of entry for €30.
- The main types of visas are as follows: -
-
- Tourist Visa on arrival (valid for 45 days)
- Long stay visa (valid for stays longer than 45 days)
- Travelers to the Comoros must hold a return or onward air ticket and all necessary documents for their return or onward journey.
- Comorians leaving the country must have a return ticket that cannot be refunded abroad.
|
Type of Visa/ Permit |
Documents |
Validity |
Eligibility |
|
Tourist Visa |
|
45 days |
|
|
Long Stay Visa |
|
valid for stays longer than 45 days |
|
value added tax
- There is a consumption tax that has a standard rate of 10%.
- There are two reduced rates: electricity and telephone supply and banking services (5%); water supplies, private school fees and inter-island air fares (3%).
- Basic necessities are zero-rated.
|
VAT |
|
| Standard Rate |
10% |
|
Reduced Rate |
5% |
|
Reduced Rate |
3% |
|
Zero Rate |
0% |
withholding tax
- Dividends are subject to 15% of withholding tax
- Interest is subject to 15% withholding tax
- Royalties are not subject to withholding tax
|
WHT |
|
|
Dividends |
15% |
|
Interest |
15% |
|
Royalties |
0% |
statutory benefits
- These are mandatory benefits as postulated by law
- These include probationary period, annual leave, public holidays, maternity leave, overtime pay.
- Statutory benefits also include social security benefits
|
Statutory Benefits |
|
Probationary Period |
|
Annual Leave |
|
Public Holidays |
|
Maternity Leave |
|
Overtime Pay |
|
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 Comoros ranked 160th 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 4.5 days of pay after completion of one year of service (1.23% of annual salary) |
| Vacations % | Employees are entitled to paid annual leave of 22 days (6.04% of annual salary) |
| Notice % |
Employees are entitled to 22 days of notice period for one year of service or more (6.04%) |
| 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 13.31% |
employer accruals
Additional information (Country Accruals)
| Vacations |
7.90% |
Employer Accruals Additional information
| Employment Accruals | ||
| Annual Leave | Employees are entitled to paid annual leave of 22 days | This equals 6.02% (22/365 days) of annual income |
| Maternity Leave | In the case of pregnancy every woman has the right to suspend work for the period of 14 consecutive weeks, 8 of which have to be taken after the birth. | This equals 26.9% (14/52 weeks) of annual income |
| Overtime | Overtime is paid at a premium of 25% of hourly pay | Normal hourly rate is around 1,887.5 KMF. Overtime is paid at an additional 471.8 KMF. |
