Definitive Guide to Hiring in Somalia

Hiring in Somalia

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

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

Labor Laws in Somalia

Employee Probation Period

• The probationary period is generally 6 months (may be extended for an additional 6 months)

Annual Leave in Somalia

• Workers shall be entitled to 21 days leave with pay for every year of continuous service.

Holidays in Somalia

Maternity Leave Somalia

• A pregnant employee shall be entitled to paid maternity leave of 3 months.

Paternity Leave Somalia

• Paternity leave is paid 2 weeks. 

Sick Leave in Somalia

• An employee is entitled to 7 days with full pay and thereafter to sick leave of 7 days with half pay.

Working Hours in Somalia

• The standard work week is of 8 hours per day for 6 days a week

Overtime in Somalia

• Overtime is paid at 150% of the normal wage. Overtime cannot exceed 2 hours a day or 12 hours a week.

Termination of Employment in Somalia

Either of the contracting parties may terminate a contract of employment by giving written notice as under:

• • Not less than ten days in the case of manual workers;
  • Not less than 30 days in the case of non-manual workers.

• Severance pay is at the following rates
  • Severance pay for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) is equivalent to 4.3 weeks of pay
  • Severance pay for redundancy dismissal for a worker with 5 years of tenure (weeks of salary) is equivalent to 21.7 weeks of pay
  • Severance pay for redundancy dismissal for a worker with 10 years of tenure (weeks of salary) is equivalent to 43.3 weeks of pay

Notice Period in Somalia

• Either of the contracting parties may terminate a contract of employment by giving written notice as under:
  • Not less than ten days in the case of manual workers;
  • Not less than 30 days in the case of non-manual workers.

Severance in Somalia

• Severance paid at the rate of 15 days' pay for each completed year of service.

Somalia Salary and Wages

13th / 14th Month Salary in Somalia

• No
• There is no statutory requirement to pay the 13th or the 14th month salary.
• Employees are entitled to 30 days annual leave.
• There is no evidence that it is customary to give bonuses.

Social security contributions are not mandatory.

Immigration Somalia

• People intending to travel to Somalia may inquire with the Directorate of Immigration & Naturalization whether they need to obtain a visa prior to arrival.
• The processing time of Somali visas is can take several working days so be sure to file an application in good time.
• The type of visa that you require for entry into Somalia depends on several different factors such as your nationality, the purpose of your planned visit and duration
• It is requirement travelers to have at least six months’ validity remaining on their passports.
• Persons wishing to enter Somalia for a temporary visit, require entry Visa, for instance:
  • on business or to take part in a conference
  • to visit relatives and friends
  • as a tourist

Value Added Tax (VAT) in Somalia

• The standard rate of GST is 5%

Mandatory Benefits in Somalia

• These are mandatory benefits as postulated by law
• These include public holidays, annual leave, sick leave, maternity leave, overtime pay, severance pay.
• Statutory benefits also include social security benefits

Payroll Accrual in Somalia

Country Accruals Additional Information

Description

Contributions vary between 5% and 7% of payroll, depending on the reported accident rate.

Payroll Accruals Additional Information

Accrued Benefits in Somalia

Why use Global Expansion to hire in Somalia

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

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

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