BENIN
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About Benin
Page Last Updated: 28/05/2024
Nestled in West Africa, Benin beckons with its rich culture and economic promise. However, navigating its business landscape can be complex. Africa HR Solutions specialises in streamlining expansion efforts, ensuring smooth entry into this dynamic market for businesses seeking growth and success. We provide Employer of Record (EOR) solutions, and flexible payroll solutions that fit any business size – no matter what you require in your expansion ventures in Benin.
Gross Domestic Product (GDP): $21.37 B
GDP Growth: 6%
Inflation: 3%
Foreign Direct Investment (% of GDP): 1.5%
Unemployment Rate: 1.48%
Capital: Porto-Novo
Currency: West African CFA franc (XOF)
Languages: French, English
Benin Payroll at a Glance
Currency
West African CFA franc (XOF)
Income Tax
0% – 30%
Employer Taxes
16.4% – 19.4%
Employee Contribution
3.6%
Fiscal Year
1 January – 31 December
Date Format
dd/mm/yyyy
- In Benin, the official language is French, but indigenous languages such as Fon and Yoruba are widely spoken.
- The economy of Benin is largely based on agriculture, with cotton being the main export product.
- Benin is known for its rich cultural heritage, including the historic Kingdom of Dahomey and the Voodoo religion.
- Benin has two UNESCO World Heritage Sites: the Royal Palaces of Abomey and the W-Arly-Pendjari Complex.
- Benin has made significant strides in improving access to education, with primary education being compulsory and free.
- New Year’s Day
- Vodoun
- Easter Monday
- Labour Day
- Ascension Thursday
- Pentecost Monday
- Independence Day
- Assumption
- Armed Forces Day
- All Saints’ Day
- Christmas
Employment in Benin
The Benin economy is primarily agricultural led and dependent on subsistence farming. In 2017, the country’s total exports amounted to $695.6 million. Benin’s main import partners are the UAE, Brazil, China, Germany, Spain, France, India, Malaysia, Netherlands, Togo, and Thailand. Investment in the electricity sector to serve immediate energy needs, modernisation of the economy and increased trading with African countries are being planned. The country is targeting a universal healthcare system, but currently operates a public/private system.
Employees in Benin are entitled to vacation, sick and parental leave. From a termination perspective, they are generally entitled to a notice period of 1 month, except for executives where a 3 months’ notice provision applies. From a taxation perspective, employees dedicate 3.6% of their wages to social security, while employers contribute the following:
- Social security: 15.4% of gross salary
- Pension: 6.4%
- Family allowance: 9%
- Industrial injury: 1% to 4%
When recruiting locals or hiring expatriates in Benin, navigating the country’s labour laws and devising the right employee package can be complex due to the various legislative requirements, customary procedures and market practices. Engaging a specialist firm such as Africa HR Solutions, who have an in-depth understanding of Benin’s regulations and best practices across a variety of industries, will provide you with peace of mind that a competitive and relevant employee benefit scheme will be offered to your in-country resources.
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