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Employer of Record in Guinea-Bissau

Employer of Record in Guinea-Bissau

Skuad’s EOR solutionAn EOR service such as Skuad can provide helps organizations expand into Guinea-Bissau without the need for an entity set up. Skuad is a global HR platform that specializes in building remote teams, enabling companies in over 150 countries to hire, onboard, manage, and pay their overseas employees. Skuad handles everything, including employment contracts, payroll, compliance, and benefits. You can receive bespoke EOR solutions for your expansion endeavors in Guinea-Bissau by getting in touch with Skuad experts today.

Employment in Guinea-Bissau

Working in Guinea-Bissau can be a bit challenging as the economy of the country is mainly controlled by agriculture and food production, whereas the industries get lesser significance. However, as an employment market, Guinea-Bissau offers opportunities in the field of management of natural resources. The Republic of Guinea-Bissau holds the 6th largest position in the production of cashew nuts, the export of which is the main source of wealth of the country, and agriculture offers opportunities to expand in businesses.

Further, the country’s export and import activities contribute significantly to its economy. Guinea-Bissau’s main export partners are India and Vietnam. The main export commodities include fish, shrimp, cashews, peanuts, palm kernels, and raw and sawn lumber. Moreover, the key import partners are Portugal, Senegal, China, the Netherlands, and Pakistan. The country imports commodities such as foodstuffs, machinery and transport equipment, and petroleum products.

To set up a local entity in Guinea-Bissau, it is necessary to comply with the provision of the Employment & Labor Laws and Regulations of 2021. These regulations address common concerns relevant to employment and labor laws, terms and conditions regulating employee rights and representations, and industrial relations and business protocols covering the 35 jurisdictions.

Entitlement Explanations
Employment contract To hire employees in Guinea-Bissau, it is necessary to have the employment contract in writing in the local language, unless the concerned work is for or less than 30 days. The employment contract must contain certain details regarding the employment, as follows.
  • Both the parties to the contract, the employer and employee, must be identified.
  • The place of work must be specified on the contract.
  • The remuneration and the method of paying must be mentioned.
  • The working hours and annual leave duration must be specified.
  • If any other term is agreed between the parties, it must be outlined provided that it does not oppose the Guinea-Bissau employment law.
  • The contract must be signed by both parties and dated.
  • The contract can be for a specific or infinite time, following Guinea-Bissau employment laws regarding contractors and full-time employees.
  • In Guinea-Bissau, the contract for a fixed term can not exceed two years in continuation. In case an employment relationship between the employer and employee exceeds two years, it will turn into an indefinite term contract.

    The contract must be unambiguous, specifying all the terms and conditions implied concerning employment, salary, other benefits, and termination.

Working hours The working hours are 45 hours weekly, limited to eight hours per day.

The employer may schedule the working hours in any of the following ways.

  • Six working days a week and one day a week off, on Sunday.
  • Five and a half working days a week and one and half days a week off.
  • Five working days and two days of the week off, including Sunday.
  • Women and young workers can not be employed for the evening shift, between 8 pm to 7 am.

Overtime The employees are allowed to work overtime for a maximum of two hours a day or 120 hours annually. Women, young, and disabled workers can rightfully deny doing any overtime.
Public holidays Here is the list of public holidays in Guinea-Bissau.
  • New Year’s Day (January 1)
  • Heroes’ Day (January 20)
  • International Women’s Day (March 8)
  • Labor Day (May 1)
  • Eid al-Fitr (Depends on the position of the moon)
  • Eid al-Adha (Depends on the position of the moon)
  • Pidjiguiti Day (August 3)
  • National Day (September 24)
  • Readjustment Movement Day (November 14)
  • Christmas Day (December 25)
Minimum wages and bonus The employees are entitled to receive a monthly salary of a minimum of XOF 19,030 and a bag of rice.

The law does not specify the bonus, it is up to the employers if they wish to pay it, based on their employees’ performance.

Tax and compliance The employer is liable to contribute 18% of payroll toward social security; the employees contribute 5%.
Annual leave Thirty days of annual leave are granted to the employee per year for employment running more than a year, and if the employment is fixed for less than a year, the employee is entitled to get leave for two and a half days every month.

However, the annual leaves can not be accumulated and have to be agreed upon between the parties.

Sick leave The employees are entitled to get a minimum of five days of sick leave under the employment.
Maternity leave Pregnant employees can get 60 days of paid maternity leave that is covered by the social security or the employer, as applicable.

However, there is no provision for paternity leave under the employment laws of Guinea-Bissau.

Health insurance There is a community-based healthcare system under the fee structure, but private healthcare is recommended.

To learn more about Guinea-Bissau’s employment policies and ensure your expansion efforts fall within the ambit of the legal requirements, book a demo with Skuad experts today.

Contractors vs. Full-time Employees

In Guinea-Bissau, one can apply for a work visa with more than one employer, and in case, the employee joins any other employer, after the contract has been terminated, the employee has to apply for a fresh work visa.

The contract for a fixed term can not exceed two years in continuation. In case an employment relationship between the employer and employee exceeds two years, it will turn into an indefinite term contract.

Advantages of Hiring Contractors

  • Flexibility: Since contractors are hired on a short-term basis, you are free to determine the scope of their work temporarily. If new needs arise, new contracts can be drafted in the short term.
  • Independence: Short-term contractors usually work independently and on their own timeline. They do not require close supervision, and your resources can be transferred elsewhere, as needed.
  • Cost: Hiring contractors may be cheaper in the long run although their individual rates are higher than those of full-time employees. This is because such employees are not entitled to employment benefits such as bonuses and tax compensations.

Advantages of Hiring Full-time Employees

  • Loyalty and organizational commitment: Full-time employees are likely to be more loyal as they exclusively work for your company. As their individual success depends on the performance of your firm, they are likely to invest more effort into their work.
  • Knowledge: All employees undergo training when they join a firm. The skills and knowledge gained by a full-time employee, however, stay within the organization.
  • Legal freedom: Since full-time employees are defined as such in their contracts from the outset, misclassifications and the repercussions thereof can be avoided completely. When hiring full-time employees, you determine the terms of the contract and entitlements, and these are not liable to change unless mutually decided by both parties.

Whether your organization requires contractors or full-time employees, Skuad’s EOR solution can cater to all your hiring requirements in Guinea-Bissau. Learn more by talking to Skuad experts.

Hiring in Guinea-Bissau

Following the employment policy and compliance in Guinea-Bissau, employees can be hired on a fixed contract or probation. However, the employment terms and conditions should be mentioned on the employment contract and a letter of commitment must be issued to the employees hired on probation within two working days from the date of joining.

Generally, employers advertise for job openings on websites and portals, such as,

The best way to onboard employees is by outsourcing the hiring process according to the Guinea-Bissau employment compliance requirements. As expansion into a new country is not a simple matter, companies need to put significant effort into business operations, sales, and other HR-related factors. An EOR service such as Skuad can save you time, labor, and resources, allowing you to focus on the business side of expansion in Guinea-Bissau. Talk to Skuad experts to know more.

Probation & Termination

Termination of Service

There can be several reasons for the termination of the employment contract.

  • By consent of both the parties
  • If there is enough reason for termination such as gross misconduct, constant absence, or inability to comply with the policy
  • When there is an economic reason
  • By the expiration of the date that has been mentioned on the contract as the end date

During the standard probation period in Guinea-Bissau, both parties are capable of terminating the contract without serving any notice. However, for full-time employees, the notice period is as follows.

Notice period For the termination of the contract, a notice period that depends on the job role of the employee must be served.
  • Operational staff members are entitled to two weeks’ notice.
  • If the employee is a supervisor or foreman, they should serve a notice period of one month.
  • In case the employee is a middle manager or a similar kind, then a three-month notice period is required.

In case there is an economic reason that leads the employer to reduce the size of employment, it has to be monitored by the trade unions.

Probation Period

The probation period must not exceed three months for the employees working in executive roles, and for others, it should not be more than one month.

To ensure your expansion endeavors adhere to the laws regarding probation and termination in Guinea-Bissau, talk to Skuad experts and book a demo today.

EOR Solution in Guinea-Bissau

Skuad’s Guinea-Bissau EOR solution can provide your organization with all the required assistance in the matter of HR-related tasks. We extend our service to hire employees in Guinea-Bissau and take care of all the risks involved in the management of the expansion process. Therefore, you get more time and scope to concentrate on managing your business.

Skuad has a high-tech, unified HR platform for businesses to manage and pay their remote teams. Some of Skuad’s primary functions are,

  • Talent discovery: We discover exceptional talent and skill to onboard the employees for the companies.
  • Updated EOR: The tech-enriched HR platform enables seamless and easy control over the hiring procedure, including onboarding, paying, and managing the hiring process.
  • Local compliance: Not limited to the hiring process only, we release you from the hassle of complying with the local laws to create entities and manage tax.
  • Conducting formalities: We help in creating a suitable employment contract, following all the legal provisions of the land, and ensuring an easy collection of documents for taxation.

Thus, Skuad can offer tailor-made EOR solutions for all your expansion needs. To avail yourself of our services, speak to Skuad experts today.

Types of Visas in Guinea-Bissau

Work Visas: Types

Obtaining a work visa in Guinea-Bissau is considerably easy if you already have a well-settled business. Before proceeding with the procedure of obtaining a work visa, it is necessary to know the kinds of visas offered in Guinea-Bissau.

  • Short-stay visa: It is valid for 90 days maximum and is mainly obtained by tourists.
  • Long-stay visa: It is valid for an extended period based on your requirements and foreign nationals coming to Guinea-Bissau for employment purposes are advised to obtain a long-stay visa.

Requirements for Obtaining a Work Visa in Guinea-Bissau

The procedure for obtaining a work visa in Guinea-Bissau varies in different embassies, so the applicant should approach the embassy where they are going to be located for the work.

To obtain a work visa, applicants must furnish the following documents.

  • Valid passport with at least one blank page for the entry stamp
  • Recent passport-size photos
  • Biometric data, including registered fingerprints
  • Vaccination proof against yellow fever and COVID-19

Further, the visa fee must be submitted in the prescribed manner.

Procedure of Obtaining a Guinea-Bissau Work Visa

There are two ways in which foreign nationals can obtain a work visa.

1. Online

In this case, the employee applies for a visa online and the approval is sent via email. The approval email should be printed and produced before the visa officer along with the valid passport when the employee travels to Guinea-Bissau.

2. On Arrival

To obtain a visa on arrival, the foremost requirements are a valid passport and a letter of authorization issued by the Migration Office in Guinea-Bissau. The letter of authorization must be obtained by the following procedure.

  • The applicant must send a scanned copy of their valid passport to the contact person, clearly stating the reason for the trip (for visit Guinea-Bissau) and the duration of stay. Here, the contacting person shall be the employer for the employee.
  • On receiving all the required documents, the employer shall transfer those to the Migration Office in Guinea-Bissau, requesting to issue a letter of authorization.
  • When the request is approved, the employer sends the authorization letter to the applicant, usually by email.
  • The applicant should get the authorization letter printed and produce it at the time of applying for a visa on arrival.

Work Permit

Guinea-Bissau Work Permit Requirements for Foreigners

Particulars Details
For immigration The expatriates working in Guinea-Bissau should hold a valid work permit and residence permit. The work permit should be sponsored by a local employer. There is no limitation of the work permits one can possess while working in Guinea-Bissau.
For fixed-term contracts and temporary employment services It is a rule in Guinea-Bissau that the fixed-term contract that is running for more than two years shall stand as an infinite contract of employment.
Currency of Payment The salary should be paid in the local currency.

Special Rule For Foreign Employees in Guinea-Bissau

In case the employee changes the job while being in Guinea-Bissau, the foreign national is required to make a fresh application for a visa with the new employee.

To know more about work permits in Guinea-Bissau and how Skuad can secure them for you, speak to our experts today and kick-start your expansion.

Payroll and Taxes in Guinea-Bissau

Setting Up Payroll in Guinea-Bissau

The payroll options offered in Guinea-Bissau are listed below.

  • Remote payroll: Where the parent company follows their payroll, the onboarded employees can be paid accordingly, but that should comply with the existing labor laws in Guinea-Bissau.
  • Internal payroll: If the companies wish to establish an internal payroll at the time of expanding to Guinea-Bissau, they can proceed accordingly. Usually, this payroll method is adopted only by big companies that have a huge number of employees and are capable of carrying out a compliant payroll.
  • Local payroll processing company: This payroll is applicable if you prefer to keep the money in the local economy; however, you may still have to handle the required compliances following the local law.
  • Payroll outsourcing: A payroll outsourcing service such as Skuad can handle payroll and compliance, working as an EOR firm for your organization.

Guinea-Bissau: Taxes

You must be aware of several personal and corporate tax obligations. There are numerous taxes levied on the payroll that you must be mindful of while working in Guinea-Bissau.

  • The corporate income tax is paid by the corporations at a rate of 25% flat. The legal entities liable to pay the corporate income tax should,
    A. Register themselves for tax at the Directorate-General of Taxes and Duties (DGCI) at the Enterprise Drawing Centre (CFE). The applicants are required to obtain a tax identification number for the purpose.
    B. The returns should be filed annually by April 30, following the end of the fiscal year.
  • Value-added tax (VAT) is standardized at 15%. All the businesses in Guinea-Bissau are required to register for VAT and comply with its monthly filing.
  • To the social security program, employees pay 8% tax and employers contribute 14%. The employers are obliged to conduct a monthly submission of the social securities.
  • Along with the existing taxation law in Guinea-Bissau, dividends are levied at 30% tax and both resident and non-resident companies are liable to pay 15% tax on the interest received.
  • The employees also pay tax following the slab based on personal income subject to the top bracket of 20%.

For further details, the income tax rates applicable to resident individuals in Guinea-Bissau are given below.

Income (XOF) Tax Rate
Up to 500,000 1%
500,001–1,000,000 6%
1,000,001–2,500,000 8%
2,500,001–3,600,000 10%
Over 3,600,000 12%

To understand how payroll and taxes are managed in Guinea-Bissau and expedite your expansion process, talk to Skuad experts and book a demo.

Incorporation: How to Set Up a Subsidiary in Guinea-Bissau

To establish a subsidiary, Skuad’s team of experts can be of great help. Moreover, Guinea-Bissau has adopted a one-stop-shop incorporation system, which enables a smooth establishment of the subsidiaries of the companies. However, the procedure varies depending on the location the company wishes to establish its subsidiary.

What are the Requirements for Setting Up a Subsidiary in Guinea-Bissau?

Guinea-Bissau has a favorable law for incorporating a subsidiary with the minimal requirements of,

  • At least one shareholder
  • At least one director

For the subsidiary to be incorporated, the company must be wholly foreign-owned and neither the shareholder nor the director should live in Guinea-Bissau.

How is a Subsidiary Incorporated in Guinea-Bissau?

To establish a subsidiary in Guinea-Bissau, the following procedure is followed.

  • The company statutes must be notarized.
  • The company must be registered at the Commercial Registry.
  • The Tax Identification Number (TIN) must be obtained.
  • The foreign investors should have a work permit for Guinea-Bissau; if not, they must proceed to obtain the same.
  • The company must register for licenses that are required according to the industry, such as for tourism or commercial and industrial trade.
  • After the urban inspection is conducted and receives a green signal, a local bank account should be opened in the name of the organization.

To avail of Skuad’s Guinea-Bissau EOR services and find a bespoke solution for your expansion, get in touch with Skuad experts and book a demo.

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