Hire Employees in Sierra Leone

Two routes exist. Registering a Sierra Leonean entity gives you direct employment, followed by registration with the National Revenue Authority for tax and the National Social Security and Insurance Trust for contributions.

An Employer of Record removes that setup. The EOR is the legal employer, runs payroll, withholds PAYE and remits both NASSIT shares, while day-to-day direction stays with you.

Employers must register with both agencies and act as withholding agents for employee taxes while contributing to the social insurance system.

Employer cost is simple: 10% of salary to NASSIT. The employee contributes 5%, giving 15% in total, a split that puts two-thirds of the burden on the employer.

Two traps sit on this market, and both come from published sources rather than the law itself.

First, the minimum wage changed and most guides have not caught up. The Labour Minister announced in December 2025 that the minimum wage would rise to NLe 1,200 effective April 2026, after months of consultation with employers. Several commercial guides dated later in 2026 still publish the superseded SLE 800 figure that had been in place since April 2023, a 50% understatement.

Second, published figures mix old and new leone. Sierra Leone redenominated its currency, and guides quote SLL and SLE interchangeably. One worked example gives a monthly salary of "SLE 5,000,000", more than six thousand times the minimum wage, and almost certainly old leones. A payroll built from such a figure would be out by a factor of a thousand.

Break-even rule of thumb: EOR fees begin to exceed the running cost of a Sierra Leonean entity somewhere between 15 and 25 employees. Model both, see EOR vs Entity for the framework.

NASSIT contributions total 15% of salary, split 10% employer and 5% employee. Employers calculate, deduct and remit both shares each month.

Note that sources differ slightly on the base: some describe the contribution as applying to basic salary, others to gross. Given that housing allowances commonly run 15% to 25% of basic and transport allowances 10% to 15%, the difference is material, confirm the applicable base with NASSIT.

Employers of foreign nationals pay an additional annual payroll tax, charged per employee and set at a lower rate for ECOWAS citizens than for others. It is an employer charge rather than a deduction from the individual.

NASSIT covers only the formal sector, about 9% of the population. The Labour Minister confirmed that figure in December 2025 while outlining plans to extend social protection to the informal economy, so scheme coverage should not be assumed for anyone outside a formal contract.

Contributions are remitted to NASSIT by the 15th of the following month.

Gross monthly salaries in new leones. Employer NASSIT is 10% with no ceiling in evidence.

Benchmarks below are gross monthly salaries in new leones. Note that the average gross salary in early 2026 was around NLe 3,000 to 3,400, so senior figures sit well above the market.

Payroll is monthly, with employees usually paid at month end. The tax year runs 1 January to 31 December.

PAYE is progressive and applied on an annualised basis. The practical method is to annualise the salary, apply the bands, then convert back to a monthly figure. The first NLe 600 of monthly salary is exempt, and allowances above NLe 500 form part of taxable income.

Both PAYE and NASSIT are due by the 15th of the following month. PAYE to the NRA and NASSIT to the Trust.

Two annual obligations are easily overlooked: the annual PAYE return is due by 31 March, and employee tax deduction cards must be maintained throughout the year.

All allowances and benefits should be included in gross earnings for PAYE purposes, omitting them is a common source of underpayment.

Progressive PAYE bands applied to annualised income and converted back to a monthly deduction.

Employment is governed by the Employment Act, 2023, alongside NRA tax legislation and NASSIT scheme rules.

The minimum wage is NLe 1,200 a month with effect from April 2026. Employers must also respect any higher floors set by collective agreements for particular sectors or job categories.

The Act sets maximum normal daily hours at eight and the normal week at forty. Time worked beyond forty hours in a week is overtime, paid at a 50% premium on weekdays and a 100% premium on weekly rest days or public holidays.

Daily working time including overtime must not exceed twelve hours.

Annual leave is a minimum of 21 working days after 12 months of service, and there is no legal provision for a thirteenth month salary.

Contracts should record pay, hours, leave, notice and termination terms, and must meet the NLe 1,200 minimum or any higher sectoral floor.

A contract does not bind anyone until the Commissioner has vetted and attested it. Section 33 of the Employment Act 2023 applies this to contracts, personnel policies and HR manuals; failing to comply carries a fine of at least 12 months' national minimum wage, and attested policies lapse after three years.

Register with both the NRA and NASSIT before the first payroll run.

Set up employee tax deduction cards from the outset, since they must be maintained across the whole year.

The normal week is 40 hours across eight-hour days. Overtime attracts a 50% premium on weekdays and 100% on rest days and public holidays.

There is a hard daily ceiling of twelve hours including overtime, which caps how much additional time can lawfully be scheduled in a day.

Because NASSIT has no ceiling in evidence, overtime and allowances attract the full 10% employer charge wherever they form part of the contribution base.

Sierra Leone observes Christian, Muslim and national public holidays, including Independence Day in April. Islamic dates follow the lunar calendar.

Sierra Leone observes Christian, Muslim and national public holidays. Islamic dates follow the lunar calendar and are confirmed close to the time. Dates and any substitution rules are set out below.

NASSIT provides the statutory social insurance, funded by the 15% combined contribution.

Coverage is narrow in practice. The scheme reaches only the formal sector, which the Labour Minister put at about 9% of the population in December 2025. Government policy is to extend protection to the informal economy, but that expansion is prospective.

Statutory entitlements include 21 working days of annual leave after a year of service, paid public holidays and sick leave.

Typical salary structures pair basic salary with housing allowance at 15% to 25% of basic and transport allowance at 10% to 15%, with variable pay often representing 10% to 30% of total compensation for eligible roles.

Termination follows the Employment Act, 2023. Notice is one month on either side (section 84).

An end-of-service benefit is owed after one year of service whenever employment ends other than for gross misconduct, including on resignation, retirement or death (section 80). The Act does not set the amount, which comes from the contract or the applicable trade group or collective agreement. It must be paid within one month; late payment carries a fine of at least 24 months' national minimum wage.

The benefit must be funded in advance. Section 25 requires a separate end-of-service or gratuity bank account, co-signed by worker representatives where there is a union, with an annual status report to the Commissioner. Breach carries a fine of at least 300 months' national minimum wage or at least three years' imprisonment, and a repeat offender's business may be closed.

Redundancy needs three months' written notice to the Commissioner and the union, last in first out, and best endeavours to negotiate redundancy pay (section 82). Unfair termination costs at least 24 months' national minimum wage (section 90).

Final pay including accrued leave is due on separation and must be reflected in the month’s PAYE and NASSIT remittance.

Because both the NRA and NASSIT can audit and penalise, outstanding contributions should be settled before an exit rather than reconciled afterwards.

Non-compliance can trigger penalties, interest and audits from either authority.

Employers of foreign nationals pay an annual payroll tax per employee, set at a lower rate for ECOWAS citizens than for non-ECOWAS citizens. Budget it as a fixed annual cost per foreign hire rather than a percentage.

A work visa and work permit are both required for foreign nationals. Eligibility and documentation vary by nationality and assignment, and applications are typically initiated by the employer.

Confirm the current charge in new leones specifically, given how frequently published figures appear in the superseded denomination.

The heaviest penalties sit in the Employment Act 2023, not in tax. Section 25 requires a separate end-of-service account with an annual report to the Commissioner, on pain of a fine of at least 300 months' minimum wage or three years' imprisonment, and section 33 makes a contract unenforceable until the Commissioner has attested it.

Using the SLE 800 minimum wage is now wrong. The rate rose to NLe 1,200 with effect from April 2026, yet guides published later in 2026 still carry the old figure, a 50% understatement that would produce an unlawful offer.

Confusing old and new leone is the more dangerous error. Published examples quote SLL and SLE interchangeably, including one monthly salary given as "SLE 5,000,000". Check the denomination of every figure before using it.

The NASSIT base is not uniformly described. Sources differ between basic salary and gross, which matters given how large housing and transport allowances typically are.

Note also the twelve-hour daily ceiling including overtime; the 31 March annual PAYE return; and that NASSIT reaches only about 9% of the population.

Work backwards from the start date. An EOR hire takes three to six weeks; entity formation runs two to five months across two registrations.

Use NLe 1,200 as the wage floor and check the denomination of every published figure before it enters a model.

Confirm the NASSIT base with the Trust, budget the annual foreign national charge separately, diarise the 15th monthly and 31 March annually, and maintain deduction cards from day one.