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Hiring in Guinea - bissau
Guinea-Bissau, officially known as the Republic of Guinea-Bissau, is a country in West Africa. Bissau is the capital of Guinea-Bissau. Guinea Bissau has the lowest GDP per capita in the world. Agriculture, forestry and fishing are some of the major industries of Guinea Bissau. Its main trading partners are Portugal, Senegal, China, Netherlands, and Pakistan. Global PEO or Employer of Record (EOR) play a pivotal role in providing companies with services related to hiring employees, and ensuring compliance with Guinea Bissau’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. Corporate income tax in Guinea-Bissau is imposed at a standard rate of 25%. Global PEO’s or Employer of Record (EOR) facilitate companies by ensuring compliance with Guinea Bissau’s Labor Code and tax laws.
statutory labor requirements
Probation Period
- Probation period is typically 3 months.
Annual Leave
- Employees receive 21 days paid annual leave
Public Holidays
- New Year's Day (1st January)
- Heroes' Day (20th January)
- International Women's Day (8th March)
- Labor Day (1st May)
- Eid al-Fitr
- Eid al-Adha
- Pidjiguiti Day (3rd August)
- National Day (25th September)
- Readjustment Movement Day (14th November)
- Christmas Day (25th December)
Maternity Leave
- Female employees receive 60 days of paid leave.
Paternity Leave
- There is no statutory paternity leave
Sick Leave
- Employees receive at least 5 paid days of sick leave
Work Hours
- Standard workday is 8 hours
Overtime
- Evening overtime is paid at 25%, while weekend overtime is paid at 50%
Notice Period
- There is no notice period for a dismissal.
Severance
- Severance pay after a year’s service is 13 days
- Severance pay after 5 years of service is 21.7 days and after 10 years of service is around 43 days
13th / 14th Month Pay
- No
- There is no statutory requirement to pay the 13th or 14th month salary.
- However, it is customary for employees to be given bonus regularly but they are monthly as opposed to quarterly or attached to holidays.
income tax
- Corporate income tax in Guinea-Bissau is imposed at a standard rate of 25%
|
Corporate Income Tax |
|
|
Rate (%) |
25% |
immigration
- Foreign nationals who plan to travel to Guinea-Bissau will need to obtain a visa, and visa categories in the country include:
- Short-stay visas, which are valid for a maximum of 90 days
- Long-stay visas for extended stays
- Most foreign nationals who travel to Guinea-Bissau for work will need to obtain a long-stay visa.
- Foreign nationals can generally expect the need to provide the following documents if they wish to obtain a visa and travel to Guinea-Bissau:
- A valid passport with at least one blank page for an entry stamp
- Recent passport photos
- Biometric data, including fingerprints
- Proof of vaccination against yellow fever
- Payment of the visa fee
|
Type of Visa/Permit |
Documentation |
Validity |
Eligibility |
|
Tourist Visa |
|
3 months |
|
|
Long-stay Visa |
|
1 year |
|
value added tax
- The Value Added Tax (VAT) is levied at a standard rate of 15%.
- Exports are zero rated
|
VAT |
|
|
Standard Rate |
15% |
|
Zero Rate |
0% |
withholding tax
Dividends
- Dividends are subject to 30% WHT
Interest
- Interest payments are subject to 15% WHT
Royalties
- Royalties are subject to 0% WHT
|
WHT |
|
|
Dividends |
30% |
|
Interest |
15% |
|
Royalties |
0% |
termination
- There is no notice period for a dismissal.
- Severance pay after a year’s service is 13 days
- Severance pay after 5 years of service is 21.7 days and after 10 years of service is around 43 days
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 |
|
Overtime Pay |
|
Notice Period |
|
Severance Pay |
|
Social Security Benefits |
payments and invoicing
- All legal entities in Guinea-Bissau must register for tax at the Directorate- General of Taxes and Duties (DGCI) department at Enterprise Drawing Centre (CFE) and obtain a tax identification number (NIF)
- Legal entities must submit annual returns by 30th of April following the end of the fiscal year
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 Guinea Bissau ranked 174th 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 evidence of statutory requirement |
| Vacations % | Employees are entitled to 30 days of annual leave (8.24% of annual salary) |
| Notice % |
No evidence of statutory requirement |
| 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 8.24% |
employer accruals
Additional information (Country Accruals)
| Social security | 14.00% |
| Maternity | 60days |
| Vacations | 8.22% |
| Description | It’s important to put a Guinea-Bissau benefits management plan together before you begin to recruit and hire employees. Start by providing time off for the country’s nine holidays and another 21 days of paid annual leave. Employees should also receive at least five days of paid sick leave. |
Employer Accruals Additional information
| Employment Accruals | ||
| Annual Leave | Employees receive 21 days paid annual leave. | This equals 5.75% (21/365 days) of annual income |
| Maternity Leave | Female employees receive 60 days of paid leave. | This equals 16.4% (60/365 days) of annual income |
| Sick Leave | Employees receive at least 5 paid days of sick leave | This equals 1.36% (5/365 days) of annual income |
| Overtime | Evening overtime is paid at 25%, while weekend overtime is paid at 50% | Depends on the number of overtime hours worked |
| Severance | Severance pay after a year’s service is 13 days | This equals 3.56% (13/365 days) of annual income |
| Social Security | Employers in Guinea-Bissau are obliged to submit monthly social security contributions of 14% of their employees monthly gross salaries to the Guinea-Bissau National Institute of Social Providence (INSS) | This equals 14% of annual income |
