Employer of Record in Benin
The resilient economic conditions in Benin make it a resourceful country in West Africa for business expansion. Its monetary policies are managed by the Central Banks of West African States that pegs the CFA Franc to Euro. According to the World Bank’s Doing Business report, Benin stands at the 149th position for business regulation. It also stands tall at the 76th position on the Index of Logistics Performance. Skuad helps your company in leveraging the knowledge workers in Benin for your business operations at this strategic location in West Africa.
Benin at a Glance
Population: 11,733,059 (2019 estimate)
Total GDP: USD 29.918 billion (2019 estimate)
Languages: French (Official language) Fon, Bariba, Yoruba and Dendi
Currency: West African CFA Franc (XOF)
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Employment in Benin
What You Should Know About Employing in Benin
Compliance with Benin employment laws is important. However, if the employer and employee come into an agreement for certain modulations to the prescribed laws, they must mention those on the employment contract.
The summary of entitlements as per the 1988 Labor Code in Benin labor laws is given below
|Statutory working hours
Monday to Friday from 8 a.m. - 12:30 p.m. and 3:30 p.m. - 7 p.m.
Saturday from 9 a.m. to 1 p.m.
||According to article 210 of the Labor Code, the mandated minimum wage in Benin is XOF 40,000 per month (Last changed in 2014)
|Maximum working hours (including overtime)
|Maximum overtime hours
||240 hours per year
For 41st - 48th hour weekly: 112% of normal hourly wage
For over 48th hour weekly: 135% of normal hourly wage
||50 with a minimum of 180 months of cover
- New Year’s Day
- Independence Day
- Eid ul-Fitr
- Worker’s Day
- Assumption of Blessed Virgin Mary
- Ascension of Jesus
- Traditional Day
- Whit Monday
- National Day
- Dyngus Day
- Birth of Prophet
- Eid al-Adha
- All Saints' Day
- Armed Forces Day
- Christmas Day
- Boxing Day
Sick leave is paid in Benin depending on the term of an employee’s service in a company.
- More than 12 months of service: One month of paid leave
- 1 - 5 years of service: Three months paid leave and three months of half paid leave
An employee with more than 2 years of service at a company is eligible for 12 months of sick leave, while an employee with a lesser term of service is entitled to six months of sick leave.
An employee is allowed to take 2 paid leaves per month or 24 paid leaves annually. This duration can be extended depending on the employee’s length of service in a company.
If an employee has worked for more than
- 20 years: 2 extra days are granted
- 25 years: 4 extra days are granted
- 30 years: 6 extra days are granted
An employee can take 14 days worth of leave straight in a year. These leaves must be taken within 12 months from the date of receipt.
6 weeks before the expected delivery date and 8 weeks after that. If a woman experiences any postpartum complication, her maternity leave can be extended by 4 weeks.
If the childbirth takes place before the expected date, the employee is still eligible to complete her fourteen weeks of maternity leave as earlier calculated. However, if the childbirth takes place after the expected date, the employee has the right to complete it eight weeks after the birth.
The employee is eligible to receive free healthcare and required benefits in kind during this period.
The employer must pay her normal wage during maternity leave. Social Security Funds will work with the employer to manage this financial expense of the company.
With Skuad’s EOR solution, organizations can hire and onboard employees while being rest assured of 100% compliance with Benin’s employment laws. Learn more
Contractors Vs. Full-time Employees - laws and rules
The Ministry of Labor is responsible for reviewing and registering an employment contract. These employment contracts in Benin can only be drafted for two types of employees as listed by the law.
- Fixed-term employees: An employer hires a fixed-term employee for the duration of completing a specific task, time, or temporary agency work. Part-time employees also come under this type of employment. Employers can renew such contracts indefinitely for completing projects that extend for a longer duration than mentioned in the previous employment agreement in Benin. One fixed-term contract cannot exceed two years. The termination date of the contract must be explicitly mentioned in the contract.
- Indefinite period employees: According to the employment contract law in Benin, the employer and employee signing an indefinite period contract have the liberty to terminate the contract at any point according to the will of any one of them.
Part-time employees or contractors almost have similar laws of employment when compared with full-time employees, with a few variations. Tabulated below are the differences between the two employment types in Benin.
When the average of an employee’s period of working is much lesser than a full-time employee, they are known as part-time employees.
They must not be full-time employees working at reduced hours due to special circumstances.
|Any person who has undertaken the task of executing any task under the direction of another person after signing an employment contract is called a full-time employee.
||Not applicable up to the normal working hours of a full-time employee.
||Minimum entitlement of annual paid leaves and public holidays.
||Minimum 24 leaves annually
||As applicable to an employee working full-time on the similar task
||As discussed by the employer and employee
Part-time employees enjoy vocational training facilities just like their full-time counterparts. Book a demo to understand the management of your global teams with Skuad
Hiring in Benin - knowledge workers, healthcare
The Labor Code of 1998 governs the employment procedures in Benin. The hiring companies in Benin must record the employment contracts in writing, even when the terms were discussed orally between the employer and employee.
Listed below are the basic details that must be included in an employment contract.
- Nature of contract (Fixed term or indefinite)
- The working location of the employee
- Stipulation of the trial period
- Severance and termination details
In Benin, stamp and registration duties are not applicable on written employment contracts.
Employee health benefits in Benin are provided at a subsidized rate by the government, along with the private insurance facilities that could be provided by an employer. According to the World Bank collection of development indicators in 2015, 59.5% of women graduated from college in Benin. If you want to hire employees in Benin, talk to the experts at Skuad for understanding the requirements.
Probation and Termination
Generally, the standard probation period in Benin is three months. However, the employer and employee have the right to agree on a different period. According to Law No. 2017-05 enacted in 2017, the employers must mention the termination notice period and probationary period in the employment contract.
Before commencing the employment period in Benin, the employee has to undergo a trial period if the employer demands it. This trial period is also known as the probationary period in Benin. During this period, the employer accesses the output and professional aptitude of the employee, and the employee understands the social environment and working conditions in the company. If the trial period is not recorded in writing, the contract is supposed to be final from the date of signing.
For a contract of indefinite duration, the trial period must be a maximum of
- Fifteen days for an employee of a company that works by the hour
- One month for employees working monthly
- Three months for executives and senior positions
If due to any reason, the employer terminates the contract during the trial period, the traveling expense of the worker back to their home must be borne by them. No notice period is required for termination during the trial period.
The termination of employment in Benin for different types of employment is listed below.
- Fixed-term employment: A fixed-term employment ends when the duration specified in the employment contract is over. It also ends if a competent court in Benin assesses gross negligence in any respect by the employer or employee, by judicial resolution, or breach of contract by any party. Force majeure can also be a reason for the termination of the employment contract.
- Indefinite period employment: Any one of the parties - employer or employee - can terminate the employment agreement at any time for any reason. Some reasons for which an employer can terminate the contract are listed below.
- Employee’s inability to work
- Employee’s health
- Employee’s conduct
- Employee’s competence
- Employee’s reasons
- Organizational changes
- Technological changes
- Closure of the company or its branch
- Employer’s reasons
If an employer terminates an employee based on the last-mentioned reason, they must notify the reason for the same in writing. The notice period for terminating this type of contract is listed below.
- 15 days for workers paid by the hour
- 30 days for monthly wage earners
- 3 months for executive and senior positions
When an employee is serving their notice period, the law allows them a break of 2 days a week to search for their new job.
The employer must mention the reason for terminating in writing along with other important details. The employer must also inform the labor inspector about the termination in writing. If the reason for termination is invalid, the process will stand canceled according to the law. For unfair dismissal, the employer must pay three to nine months’ worth of salary to the employee as compensation.
The severance pay for dismissal of individuals in Benin is:
- For 1-5 years: 30% of overall average monthly salary per year
- For 6-10 years: 35% of overall average monthly salary per year
- For beyond the 10th year: 40% of overall average monthly salary per year
However, the severance pay in terms of collective dismissal is 35%, 40%, and 45% respectively. If an employee is terminated due to gross negligence, severance pay is not applicable. Learn more about the employment termination management at Skuad by visiting our website.
Employers of Record (EOR) are global organizations having their reach across different countries around the world for locally managing the expansion of your business. When an employee from an international location is onboarded in a company for managing the operations, it becomes tedious and complex to handle the compliance and liabilities associated with the employment.
Employers of record companies in Benin are responsible for handling tax-related concerns without requiring your company’s local branch in the country. You can outsource your legalese and employee onboarding concerns to such companies to improve the efficiency of your operations in Benin. Listed below are the important functions provided by Skuad as the employer of record service for your company.
- Depositing taxes
- Filing taxes
- Processing payroll
- Funding payroll
- Managing termination and severance
- Managing compensation
- Handling bonuses
- Issuing W-2 forms
- Sponsoring work visa
- Collecting timesheets
- Drafting employment contracts
- Managing employee onboarding
- Performing background checks
- Performing drug screenings
- Administering benefits
Skuad saves you hours by providing cost-effective EOR services in Benin. Book a demo to experience our comprehensive process of employee management.
Types of Visas in Benin
For getting a Benin work visa, you must send an application to the Beninese diplomatic missions in your country or apply online for an e-Visa. People from other African countries, Haiti, Macau, Israel, and Indonesia can visit Benin for up to 90 days without a visa. Similarly, people from Hong Kong and Singapore can visit for up to 14 days.
Visa at arrival facility is not readily available at Benin airports. Therefore, it is recommended to get a visa in advance to avoid complications at the airport or deportation. Listed below are the Benin work visa requirements.
- Valid passport
- Photos (passport size according to the Beninese Consulate requirements)
- Filled Benin Visa Application form
- Proof of sufficient funds for stay
- Proof of travel arrangements
- Letter of appointment
- A copy of their company’s expatriate quota grant
- Vaccination for yellow fever
Three types of work visas can be used for working in Benin. The validity of most of these visas is 30 days (single or multiple entries) or 90 days (multiple entries).
If you don’t receive approval for a business visa straight away, you can enter the country using any of the other two visas. Skuad saves you from the hassle of arranging visas by managing the documentation of your ex-pat employees seamlessly. Connect with us to know better about our visa sponsorship schemes.
A foreign individual can only work under a work permit in Benin that is backed by a fixed-term employment contract. A Benin work permit for foreigners is valid for twelve months, and it is issued by the Ministry of Labor. This temporary work permit can be renewed any number of times after sending a request to the Ministry of Labor. Employing a worker without a valid work permit can attract a penalty of 140,000 - 350,000 francs along with 2 months - 1 year of imprisonment.
Generally, it takes 90 days to issue a Benin work permit. There is only one type of available work permit in Benin, and it is a long-term one. You must apply for the following to complete the procedures.
- Expatriate Quota Approval
- Subject to Regularization (STR)
- Combined Expatriate Residence permit and Alien card (CERPAC)
Payroll and Taxes in Benin
Listed below are the Benin payroll and tax rates.
By employer: 6.4% of gross monthly salary for pensions and 9% of gross monthly salary for family allowance. Also, considering the risk of employment, they must pay 1% - 4% to industrial injury insurance.
By employee: 3.6% of gross monthly salary for Social Security Contribution (SSC).
|Standard tax rate
|Capital gains of non-resident corporations
|Carry forward of losses
||Up to 6 years
|Benin employer payroll taxes
|Transfer of shares resulting in company takeover, land, or building
|Real property tax
6% of developed property’s rental value
5% of an underdeveloped property
|Annual radio tax
|Annual television tax
|Dividend withholding tax
Talk to our experts for payroll outsourcing in Benin and employee management.
Incorporation: Setting up a Business in Benin
Incorporating a holding company in Benin requires help from a local expert like Skuad because of the complex procedures and documentation requirements. Limited Liability Companies (LLC), also known as SARL in Benin, are the most commonly used corporate mechanism for incorporation in Benin. If a company has larger investments, it can set up a public limited company (locally known as SA). Another way to expand your business in Benin is by setting up a branch office or any other permanent establishment in the country.
Skuad helps you in realizing business opportunities in Benin by allowing you to operate in the country and hire local knowledge workers without worrying about the compliance, tax, and onboarding procedures. Book a demo to understand the process and experience the results.
Professional Employer Organization (PEO)
Professional employer organization in Benin manages your local employees and legalese with many restrictions. Unlike EOR services, they need your company’s physical location in the desired country for managing your HR activities. The comprehensive EOR services by Skuad ensure the complete freedom of your company from the complex web of tax and payroll procedures. Points of difference are given in the table below.
||No Legal co-employer
|Services for a minimum of
|Local business registration
||Workers Compensation provided
Learn more by connecting with our professionals today.
Conclusion: How Skuad leverages its local resources for your business expansion
Sharing borders with Togo, Burkina Faso, Nigeria, and Niger, in the West African country of Benin makes for a strategic location for business expansion. The resilient economy of this country makes it an attraction for entrepreneurs who wish to expand their operations in West Africa with the help of local knowledge workers. By outsourcing your HR responsibilities to Skuad, you can manage your global employees from one comprehensive platform that takes care of each employee management procedure like onboarding, payroll, contracts, termination, probation, visa sponsorship, health insurance, and other services.
Connect with us to start your operations in Benin today.