Definitive Guide to Hiring in Eritrea

Hiring in Eritrea

Hiring employees compliantly in Eritrea means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Eritrea 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 Eritrea; or

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

Labor Laws in Eritrea

Employment laws in Eritrea 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 Eritrea employment laws and Eritrea policies here.

Employee Probation Period

Annual Leave in Eritrea

• An employee shall be entitled to annual leave with pay amounting to: 

• fourteen working days for the first year of se and 
• fourteen working days plus one working each additional year of service. 

• Annual leave may not exceed thirty-five working

Holidays in Eritrea

Maternity Leave Eritrea

• A pregnant employee shall be entitled to sixty consecutive days of paid maternity leave beginning from the next day of- her delivery. 
• She may, however choose to take her maternity leave in two parts, one preceding her presumed confinement and the other after her delivery.

Paternity Leave Eritrea

Sick Leave in Eritrea

• Where an employee, after having completed his probation, is rendered incapable to work owing to sickness resulting other than from an employment injury, lie shall be entitled to sick leave.
• The leave may not exceed six months counted consecutively or separately in any twelve-month period starting from the first day of the employee's sickness.
• The period of sick leave shall be granted in the following manner:-
• the first one month with 100% of his wages
• the next two months with 50% of his wages
• the next three months without pay

Working Hours in Eritrea

Overtime in Eritrea

• An employee who works overtime between six o'clock in the morning and ten o'clock in the evening shall be paid at the rate of one and a quarter (2/2) multiplied by the regular hourly rate.
• For overtime work from ten o'clock in the evening up to six in the morning, he shall be paid at the rate of one and one half (1.5) multiplied by the regular hourly rate. 
• An employee who works overtime on weekly rest day shall be paid at the rate of two (2) multiplied by the regular hourly rate. 
• An employee who works overtime on public holidays shall be paid at the rate of two and one half (2 1/2) Multiplied by the regular hourly rate.

Termination of Employment in Eritrea

• Unless specifically provided for in a contract of employment, the period of notice for termination both for the employer and the employee shall be as follows: 
  • seven days' notice for a contract of employment which lasted for less than a year;
  • fourteen days’ notice for a contract of employment which lasted for one year up to two years; 
  • twenty-one days' notice for a contract of employment which lasted for more than two years up to five years; and 
  • thirty days' notice for a contract of employment which lasted for more than five years.

• An employee who has completed a year of service or more shall, upon the termination of his employment, be paid severance pay by the employer as follows:
  • two weeks’ wages for each of the first five years of employment; 
  • three weeks’ wages for each year of employment after the fifth year up to and including the tenth year; and 
  • four weeks’ wages for each year of service after the tenth year. 

• The severance pay of an employee who has served for less than a year shall be calculated at the rate of two weeks’ wages per annum.

Notice Period in Eritrea

• Unless specifically provided for in a contract of employment, the period of notice for termination both for the employer and the employee shall be as follows:
  • seven days' notice for a contract of employment which lasted for less than a year;
  • fourteen days’ notice for a contract of employment which lasted for one year up to two years; 
  • twenty-one days' notice for a contract of employment which lasted for more than two years up to five years; and 
  • thirty days' notice for a contract of employment which lasted for more than five years.

Severance in Eritrea

• An employee who has completed a year of service or more shall, upon the termination of his employment, be paid severance pay by the employer as follows:
  • two weeks’ wages for each of the first five years of employment; 
  • three weeks’ wages for each year of employment after the fifth year up to and including the tenth year; and 
  • four weeks’ wages for each year of service after the tenth year. 

• The severance pay of an employee who has served for less than a year shall be calculated at the rate of two weeks’ wages per annum.

Eritrea Salary and Wages

13th/14th Month Salary in Eritrea

• No 
• There is no statutory requirement to pay the 13th or the 14th month salary.
• Employees are entitled to regular annual leave.
• There is no suggestion that it is customary to give bonuses.

• Eritrea has not introduced a social security system yet.

Immigration Eritrea

• Eritrea offers tourist visas for foreigners intending to visit for a short period of time
• The following documents are necessary for a tourist visa: -
  • Valid passport
  • Completed visa application form
  • Proof of vaccination for yellow fever
  • Two passport size photos
  • Proof of sufficient funds
• Tourist visas are issued for single entry only. 
• The validity of the visa is based on consulate's discretion.
• Business visas are issued to foreigners visiting Eritrea for business purposes
• The following documents are required for a Business Visa: -
  • Valid passport
  • Completed visa application form
  • Proof of vaccination for yellow fever
  • Two passport size photos
  • Proof of sufficient funds
  • Business Cover Letter
  • Proof of Travel Arrangements
• Business visas are issued for single or multiple entries based on applicant's request and consular fee paid. 
• Multiple entry visas are usually valid for 3 months, 6 months, or 1 year.

Value Added Tax (VAT) in Eritrea

• Value added tax is normally called sales tax, and is levied on the supply of taxable goods and services and upon the importation of taxable goods and services.
• VAT rate ranges from 5% to 12%

Payments And Invoicing

Description

Couldn't find much on Eritrea

Payroll Accruals Additional Information

Accrued Benefits in Eritrea

Why use Global Expansion to hire in Eritrea

Establishing a branch office or subsidiary in Eritrea 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 Eritrea labor laws are complex.

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

Global Expansion makes it easy for you to expand into Eritrea. 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 Eritrea 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.