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Hiring in Gambia
Gambia, officially known as the Republic of Gambia, is a country in West Africa. Banjul is the capital city of Gambia. Serekunda and Brikama are the largest cities of Gambia. Gambia’s main industries include agriculture, farming, fishing and tourism. Gambia’s main trading partners are the United Kingdom, European Union member countries, Senegal, the United States, China and Japan. Global PEO or Employer of Record (EOR) play a pivotal role in providing companies with services related to hiring employees, and ensuring compliance with Gambia’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 21 days of paid annual leave. Residents are subject to tax on worldwide income. Non-residents are subject taxed Gambian-source income. Global PEO’s or Employer of Record (EOR) facilitate companies by ensuring compliance with Gambia’s Labor Code and tax laws.
statutory labor requirements
Probation Period
- Probationary period shall not exceed 12 months
Annual Leave
- Employees are entitled to 21 days of paid annual leave
Public Holidays
- New Year's Day (1st January)
- Independence Day (of Gambia) (18th February)
- Good Friday (10th April)
- Easter Monday (13th April)
- Labor Day (1st May)
- Laylat al-Qadr
- Eid al-Fitr
- Africa Day (25th May)
- Revolution Day (22nd July)
- Eid al-Adha
- Assumption of Mary (15th August)
- Ashura
- Prophet's Birthday
- Christmas Day (25th December)
Maternity Leave
- Maternity leave applies to a female employee
-
- With two years of continuous service with the same employer’ or
- Whose period pf service with the same employer has been interrupted by one or more period, one of which exceeds seven months and who has in aggregate not less than eighteen months’ service with the same employer
- Female employees are entitled to maternity leave with pay at her normal rate for or less than six weeks immediately preceding the expected date of confinement and for not less than six weeks following that date
Paternity Leave
- There is not statutory paternity leave
Sick Leave
- An employee is entitled to accumulate days if paid sick leave provided for by Joint Industrial Council Agreement, collective agreement, or otherwise by his or her contract of employment up to a maximum of the entitlement attainable by any twelve months of employment
- An employer may use paid sick leave days in respect of any day of normal work on which an employee is unable to perform his other usual work because of bodily or mental illness, disease or injury
Work Hours
- Official working hours are now 08:00 to 16:00 from Monday to Thursday and 08:00 to 12:30 on Friday - making 36-and-a-half hours a week.
Notice Period
- The minimum period of notice for a contract of employment for a specified period of time is fourteen days
- A contract of employment for an unspecified period of time may be terminated by either party on giving the other party the following minimum period of notice in write where: -
-
- The contract is to pay wages at a monthly rate, one months’ notice;
- The contract is to pay wages at a fortnightly rate and the employees has been employed for less than six years, one fortnight’s notice, and
- Continuously employed for at least six years, one month’s notice
- Where the contract is to pay wages at a weekly rate and the employee has been: -
-
- Employed for less than two years. One week’s notice
- Continuously employed for a period of not less than two years but not exceeding six years, one fortnights notice, and
- Continuously employed for at least six years, one month’s notice
13th / 14th Month Pay
- No
- There is no statutory requirement to pay the 13th or 14th month salary.
- There is some evidence that the public sector may receive bonuses but it is not concrete.
income tax
- Residents are subject to tax on worldwide income.
- Non-residents are subject to tax on most Gambian-source income unless otherwise provided by an applicable tax treaty.
- Employment Income, including most employment benefits are taxed under the Pay-As-You-Earn (PAYE) system.
- Profits derived by an individual from carrying on a trade or profession generally are also taxed under the PAYE system.
- The Gambia has a progressive rates system and, for each bracket, the rate is applied to the corresponding part of the annual taxable income as follows:
|
Taxable Income (GDM) |
Rate (%) |
|
0 – 24 000 |
0% |
|
24 001 – 34 000 |
5% |
|
34 001 – 44 000 |
10% |
|
44 001 – 54 000 |
15% |
|
54 001 – 64 000 |
20% |
|
Over 64 000 |
25% |
deductible expenses
- Retirement benefit contributions to approved pension funds may be deducted up to the lesser of 25% of employment income reduced by the employer’s contributions or GMD24 000 in a tax year.
- Normal business expenses generally are deductible in computing taxable profit.
- A deduction is allowed for interest incurred in a tax year if the company used the proceeds or benefit of the debt on which the interest is payable in deriving gross income
|
Deductible Expenses |
|
immigration
- There are several types of visas available to foreign nationals who intend to visit the Republic of Gambia.
- Foreign employees and any other foreign nationals who plan to live in Gambia will need to apply for a residence permit.
- The Gambian government issues three categories of residence permits:
- Type A: International students and retired foreign citizens are eligible to apply for Type A permits.
- Type B: This category of residence permit is available to citizens of the Economic Community of West African States (ECOWAS) and other foreign nationals who are working in skilled employment.
- Type C: Skilled workers and small traders fall under the Type C residence permit category.
- Applicants should obtain the necessary immunizations and gather all necessary documents to support the residence and work permit application.
- After completing the application, they should submit it to the embassy and wait in their country of residence for approval.
|
Type of Visa/Permit |
Documentation |
Validity |
Eligibility |
|
Type C Residence Permit |
|
1 year |
|
|
Work Permit |
|
1 year |
|
value added tax
- The standard rate of VAT is 15%.
- Exemptions are provided for basic foods, financial services, educational services and certain imports, etc., and a zero rate may apply to certain supplies.
|
VAT |
|
|
Standard Rate |
15% |
|
Zero Rate |
0% |
withholding tax
- An individual or entity making certain payments as listed below is required to withhold tax and remit the amount withheld to the Revenue Authority.
- WHT is final tax for non-residents.
|
Payments |
Residents |
Non-Residents |
|
Dividends |
0%/15% |
15% |
|
Interest |
0%/15% |
15% |
|
Royalties |
0%/15% |
15% |
|
Payments to contractors and subcontractors |
10% |
15% |
|
Certain other payments |
15% |
15% |
termination
- A contract of employment for a specified period of time terminated automatically on the date specified for its termination and, unless it is expressly or tacitly renewed or prolonged, no notice is required for its termination
- The minimum period of notice for a contract of employment for a specified period of time is fourteen days
- A contract of employment for an unspecified period of time may be terminated by either party on giving the other party the following minimum period of notice in write where: -
-
- The contract is to pay wages at a monthly rate, one months’ notice;
- The contract is to pay wages at a fortnightly rate and the employees has been employed for less than six years, one fortnight’s notice, and
- Continuously employed for at least six years, one month’s notice
- Where the contract is to pay wages at a weekly rate and the employee has been: -
-
- Employed for less than two years. One week’s notice
- Continuously employed for a period of not less than two years but not exceeding six years, one fortnights notice, and
- Continuously employed for at least six years, one month’s notice
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, and severance pay
- Statutory benefits also include social security benefits
|
Statutory Benefits |
|
Probationary Period |
|
Annual Leave |
|
Public Holidays |
|
Maternity Leave |
|
Sick Leave |
|
Notice Period |
|
Severance Pay |
|
Social Security Benefits |
payments and invoicing
- The taxable period for individuals is the same as that for companies.
- Joint returns are not permitted; each taxpayer must file his/her own return.
- Rules regarding tax returns and assessments are the same as those for corporate entities.
- However, an individual whose income consists entirely of employment income is not required to submit an income tax return.
- Similarly, the tax payment obligations of individuals carrying on a business activity are the same as those for companies.
- Employed individuals are subject to a PAYE system, under which the employer withholds the tax on the employment income and remits the tax to the GRA along with a monthly return.
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 Gambia ranked 155th 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 6 months of salary after one year of service (50% of annual salary) |
| Vacations % | Subject to Contract |
| Notice % |
Employees are entitled to 14 days of notice period for one year of service or more (4.12%) |
| 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 *54.12% |
employer accruals
Additional information (Country Accruals)
| Pension | 15.00% |
| Provident fund | 10.00% |
| Maternity | 12 weeks |
| Vacations | 5.75% |
| Description | Employed persons aged 18 to 60 in quasi-government institutions and participating private companies. Exclusions: Casual workers and self-employed persons. Provident fund: Private-sector employees aged 18 to 60. Exclusions: Casual workers. Special system for civil servants covered by the 1950 Pensions Act and armed forces personnel. |
Employer Accruals Additional information
| Employment Accruals | ||
| Annual Leave | Employees are entitled to 21 days of paid annual leave | This equals 5.75% (21/365 days) of annual income |
| Maternity Leave | Female employees are entitled to maternity leave with pay at her normal rate for or less than six weeks immediately preceding the expected date of confinement and for not less than six weeks following that date | This equals 23% (12/52 weeks) of annual income |
| Social Security | Employers that are members of the National Provident Fund scheme are required to make social security contributions equal to 10% of an employee’s basic salary to the Social Security and Housing Finance Corporation (SSHFC). The employer is required to pay 1% of the employee’s gross monthly earnings up to a maximum contribution of DMD 15 per employee per month to the SSHFC (the only approved national retirement fund administrator in The Gambia). | This equals 16% of annual income |
