Definitive Guide to Hiring in Sierra Leone

Hiring in Sierra Leone

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

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

Labor Laws in Sierra Leone

Employee Probation Period

• Probation periods of up to six months are permitted.

Annual Leave in Sierra Leone

• In general, employees are entitled to the following paid annual leave:
• One to five years of employment: 19 days of leave
• Five to 10 years of employment: 22 days of leave
• 10+ years of employment: 28 days of leave

Holidays in Sierra Leone

Maternity Leave Sierra Leone

• Female employees are generally entitled to 12 weeks of paid maternity leave.

Paternity Leave Sierra Leone

• There is no mandatory paternity leave

Sick Leave in Sierra Leone

• In general, employees are eligible for at least five paid sick days per year.

Working Hours in Sierra Leone

• The Sierra Leone work week is generally 40 hours.

Overtime in Sierra Leone

• Overtime is paid at an additional 50%
• Work on rest days is paid at an additional 100%.

Termination of Employment in Sierra Leone

• Employees can be dismissed for just cause, and after two written warnings, they can be dismissed without compensation.
• Severance pay is between 30 and 40 days per year served

Severance in Sierra Leone

• Severance pays for redundancy dismissal for a worker with 1 year of tenure: 8.4 weeks of salary.
• Severance pays for redundancy dismissal for a worker with 5 years of tenure: 47 weeks of salary.
• Severance pays for redundancy dismissal for a worker with 10 years of tenure:132 weeks of salary.

Sierra Leone Salary and Wages

13th / 14th Month Salary in Sierra Leone

• No
• There is no statutory requirement to pay the 13th or the 14th month salary.
• There is no evidence that it is customary to give bonuses.

• The employer and the employee contribute 10% and 5%, respectively, of the employee’s salary to the social security fund.

Immigration Sierra Leone

• Business visa is typically for self-employed individuals who can demonstrate their ability to operate a business in the country.
• Minimum capital requirements are based on the applicant’s business type and sector.
• A work permit is the most common option for employees of foreign companies.
• Foreign nationals from the Economic Community of West African States (ECOWAS) can come and stay in Sierra Leone without a visa. Everyone else needs a tourist visa from the Sierra Leone embassies and consulates in their country of residence.

Value Added Tax (VAT) in Sierra Leone

• Sierra Leone levies a GST instead of VAT.
• GST is a consumption tax applied on most goods and services and taxable imports supplied by registered businesses.
• The amount of GST chargeable is calculated by applying the rate to the GST-exclusive value of the taxable supply or import, as follows:
• If the supply or import is zero-rated: 0%
• If the supply or import is standard rated: 15%.

Mandatory Benefits in Sierra Leone

• 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

Payments And Invoicing

• The tax year for individuals is the same as that for companies.
• The income tax return must be submitted within 120 days of the end of the tax year, i.e. by 30 April for a tax year from 1 January to 31 December.
• Employers pay monthly PAYE on the 15th day of the month following the tax period.
• Penalties:
  • 10% if paid within 30 days from the due date
  • 15% if paid after 30 days but less than 90 days from the due date
  • 20% if paid after 90 days but less than 180 days after the due date
  • 25% if paid after 180 days from the due date

Payroll Accrual in Sierra Leone

Country Accruals Additional Information

Description

Public- and private-sector employees.Voluntary coverage for self-employed persons and for persons who previously had mandatory coverage.

Payroll Accruals Additional Information

Accrued Benefits in Sierra Leone

Why use Global Expansion to hire in Sierra Leone

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

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

Global Expansion makes it easy for you to expand into Sierra Leone. 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 Sierra Leone 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.