Statutory Employer Contributions across all of Africa

Country

Statutory Employer Contributions in Africa

Algeria

Employers contribute a total of 26%, broken down as follows:

• Social Security (Caisse Nationale des Assurances Sociales – CNAS): Employers contribute 12.5% of an employee’s gross salary
• Retirement and Early Retirement: A combined 10.25% must be paid to the retirement schemes
• Unemployment Insurance (CNAC): 1% of gross salary is allocated to cover job loss scenarios
• Occupational Hazards: An additional 1.25% is paid to cover workplace-related risks

Angola

·       Employers must contribute 8% of employees’ base salaries and remit it to the Social Security National Institute by the 10th day of the following month

Benin

·       The employer’s social security contribution is 15.4% of gross salary.

·       Of this, 6.4% consists of a pension contribution and a 9% family allowance

·       An additional 1% to 4% serves as industrial injury insurance, depending on the degree of risk in the employment

Botswana

There are no social taxes in Botswana

Burkina Faso

The employer covers a 16% contribution, which includes 3.5% for occupational accident insurance,

7% for family allowances, and 5.5% for old-age pensions.

Burundi

Employers contribute 6% of employees’ salary, capped at BIF 450,000 per month (about $150)

Cabo Verde

The employer contributes 16% of their employees’ base salaries. These contributions cover family, pension, and unemployment benefits.

Cameroon

·       Social security contributions payable by the employer amount to 11.2% of the salary.

·       The contribution base is capped at XAF 750,000 per month

·       Employers are also required to pay a 1.75%, 2% or 5% salary contribution to the National Social Insurance Fund

Central African Republic

·       The employer contributes 12% to family allowances

·       The employer contributes 3% to professional risks

·       The employer contributes 4% old age pension, invalidity & death

Chad

Employer contributions amount to 16.5% of the gross salary, capped at XAF 500,000 per month (about 875 USD)

Comoros

Employers do not contribute to social security in Comoros

Democratic Republic of the Congo

1.5% borne by the employer (branch of occupational risks)

5% borne by the employer (pension branch)

5% borne by the worker (pension branch)

6.5% exclusively borne by the employer (family benefits branch)

Republic of the Congo

The employer must make the following contributions:

·       Family allowance fixed at the rate of 10.035% of gross salary, capped at XAF 7.2 million annually.

·       Work accident contribution fixed at the rate of 2.25% on gross salary, capped at XAF 7.2 million annually.

·       Old age, invalidity, and death insurance fixed at the rate of 8% of gross salary, capped at XAF 14.4 million annually

Côte d’Ivoire

·       The employer pays 7.7% of the taxable salary to the CNPS Retirement Fund

·       The other contributions are paid by the employer (i.e. family allowances 5.75%, work injury from 2% to 5%)

·       The monthly ceiling for the CNPS Retirement Fund is XOF 3,375,000, and the monthly ceiling for the other contributions is XOF 70,000

·       A training tax collected in addition to the employer’s contribution (collected and allocated to the FDFP) at

a rate of 0.5% for both local and expatriate employees

·       An Additional Professional Training Tax is collected in addition to the employer’s contribution (collected and allocated to the FDFP) at a rate of 1.5% for both local and expatriate employees

Djibouti

·       The employer must pay social security contributions totalling 15.7% of an employee’s total salary.

·       This includes allocations for family allowances (5.5%), health and professional injuries (6.2%),retirement pensions (4%), and mandatory health insurance (2%).

·       Contributions are calculated based on the total salary, including fringe benefits, and capped at DJF400,000 per month.

Egypt

Employers are responsible for a 18.75% Social Insurance contribution

Equatorial Guinea

·       Employers contribute 21.5% of their employees’ salary to the National Institute of Social Security (INSESO for its Spanish acronym)

·       Employers contribute 1% of the employee’s salary to the Work Protection Fund (WPF)

Eritrea

Eswatini

The employer contributes 10% of the employee’s salary to

the social security fund

Ethiopia

The employer contributes 11% of their gross salary to social security.

Gabon

The employer contributes 16% to social security, and 4.1% to the National Fund for Health (CNAMGS)

Gambia

·       Employers in the National Provident Fund scheme contribute 10% of employee’s basic salary to SSHFC.

·       Employers pay 1% of employee’s gross monthly earnings to IICF, capped at GMD 15 per employee.

Ghana

The social security contribution scheme is structured into three tiers. The first two require mandatory contributions.

Tier 1 and 2

The employer contributes 13% to social security and employees contribute 5.5%. Of the total contribution of 18.5%, 13.5% is contributed to the first tier and 5% to the second tier schemes.

Tier 3

No restrictions on the contributions made to the fund. However, contributions made by an employer and employee of up to 16.5% are exempt from tax on both the employer and the

employee to the extent of their respective contributions to an approved fund manager.

Guinea

Employer social security contributions in Guinea are as follow:

• 6.00% of payroll for family allowances
• 4.00% of payroll for industrial accidents
• 4.00% of payroll for medical expenses
• 4.00% of payroll for old age pension & death benefits

Guinea-Bissau

14.00% of the employer’s payroll must be contributed to the National Institute of Social Providence (INSS)

Kenya

·       Employers contribute 6% of the gross salary (upper limit of KES 4,320).

·       This applies to salaries within the expanded range of KES 8,000 to KES 72,000. For employees earning above KES 72,000, contributions are capped at the maximum rate.

·       Employers contribute 1.5% of the gross salary excluding any one-off payment to the Affordable Housing Levy (AHL)

Lesotho

Lesotho does not have a social security system for employed persons.

Liberia

Employers must contribute 3% of an employee’s monthly gross remuneration to social insurance and 1.75% to workmen’s compensation.

Libya

Employer’s Contribution to Social Security is as follows:

• Foreign branch: 15.375%
• Libyan entity: 14.350%

Madagascar

• 13.00% of the employer’s payroll must be contributed to the National Pensions Fund
• 5.00% of the employer’s payroll must be contributed to the Statutory Health Organisation
• 1.00% of the employer’s payroll must be contributed to the Fonds National sur la Formation Professionnelle (FNFP)

Malawi

In Malawi, employer contributions are as follow:

·       Employers contribute 1% to the TEVET Levy

·       Employers contribute 10% to Pension

·       Employers contribute 2.24% to Life Insurance

·       Employers contribute 0.8% plus VAT (16.5%) to Pension and Life Insurance Administration Fees and Taxes (VAT)

Mali

The employer is obligated to make contributions to the social security system at a rate of 35%.

Mauritania

• 15.00% of the employee’s gross salary must be contributed to social security by the employer.

Mauritius

Employers make the following contributions:

·       Pay-Related Social Security Contributions

NSF Contribution: 2.5% of the monthly basic salary (capped) for the National Solidarity Fund (NSF).

HRDC Levy Contribution: 1.5% of the monthly basic salary for the Human Resource Development Council (HRDC) levy.

·       CSG Contributions by Employers

Based on specific remuneration brackets.

Not capped.

Morocco

Employers must contribute to the Social Security Contribution – Caisse Nationale de Sécurité Sociale (CNSS) at the following rates:

·       Family Allowances – 6.4%

·       Social Allocation – 8.98%

·       Professional Training Levy – 1.6%

·       Mandatory Medical Care – 4.11%

Mozambique

Employers contribute 4% of employees’ gross income.

Namibia

Social security is payable on a 50:50 contributions from employers and employees.

The contributions are calculated at 0.9% of earnings, with a minimum monthly contribution of

N$2.70 and a maximum monthly contribution of N$81.00 by each.

Niger

The social security contribution paid by the employer amounts to 16.9% of the gross salary (calculated based on a maximum monthly salary of XOF 500,000).

It includes the following elements:

·       Social Security (CNSS) family allowance

·       Social Security (CNSS) work injury

·       Social Security (CNSS) old age, disability, and survivors

·       Social contribution for unemployment public insurance to the National Agency for the Promotion of Employment (Agence National pour la Promotion de l’Emploi, ANPE)S

Nigeria

A minimum contribution of 18% of monthly emoluments for employers is broken down into:

·       Minimum of 10 % by the employer

·       A 1% contribution to the Employee Compensation Scheme (ECS), which is an employer-only scheme

·       For public (Federal) sector programme, the employer pays a 3.25% contribution to the National Health Insurance Scheme

·       For the private sector programme and other tiers of Government, the employer pays 10%

Rwanda

The employer is required to contribute 6% of the employee’s gross salary to the scheme.

Sao Tome and Principe

8.00% of the employee’s emoluments must be contributed to social security.

Senegal

Employers are responsible for social security contributions, capped annually at XOF 756,000,representing the annual salary subject to contributions. The breakdown of rates is as follows:

·       Family Benefits – Rate: 7%

·       Industrial Accidents – Range: 1% to 5%, contingent on the business type.

·       National Retirement Fund Contributions – Employer’s Share: 60% with an annual ceiling of XOF4,320,000

·       General Scheme – Contribution Rate: 14%

·       Executives’ Scheme – Contribution Rate: 6% with an annual ceiling of XOF12,960,000

Seychelles

Employers must contribute 5% of their employees’ salary

Sierra Leone

The employer contributes 10% of the employee’s salary to

the social security fund.

Somalia

Social security contributions are not mandated by law.

South Africa

·       Employers contribute 1% of the employee’s gross salary to the Unemployment Insurance Fund (UIF).

·       Employers are required to pay a levy that funds skills development and training initiatives in the

workplace. The levy rate is currently 1% of the total payroll.

South Sudan

Employers are required to contribute 17% of an employee’s gross salary to the National Social Security Fund (NSSF)

Sudan

Employers must contribute 17.00% of the employee’s emoluments to social security.

Tanzania

Employers must make the following contributions:

·       3.5% of salary to the Skills Development Levy (SDL)

·       0.5% of salary to the Workers Compensation Fund (WCF)

·       10% of salary to the National Social Security Fund (NSSF)

·       3% of salary to the National Hospital insurance fund

Togo

Employers are obligated to contribute 17.5% of their employees’ monthly gross salary to social security monthly.

Tunisia

Employers must contribute 17.07% of their employees’ salaries to the Tunisian National Security Fund, with a reduced rate of 0.5% for wholly industrial exporting companies, calculated on their salaries

Uganda

The employer contributes 10% of the employee’s salary.

Zambia

·       Employers are required to match the contributions made by employees to the National Pension Scheme Authority (NAPSA). These contributions are applicable to both local and foreign employees, with a maximum limit of ZMW 1,490.80 per month.

·       According to the National Health Insurance (NHI) Act, both employers and employees are mandated to contribute 1% of the employee’s basic salary to the NHI Management Authority,

Zimbabwe

Employers must make the following contributions:

·       NSSS contributions are payable at the same rate of 4.5% of basic salary by the employer and employee, with a maximum amount of monthly insurable earnings – 75% of the previous month’s Total Consumption Poverty Line (TCPL) for an average of five persons per household.

·       Subject to some exceptions, employers are required to pay a 1% monthly training levy (on the gross wage bill) to the Zimbabwe Manpower Development Authority.

·       Employers are required to contribute to a fund that provides cash benefits for industrial injury, disability, and death. Contribution rates vary according to the inherent occupational risk, from less than 2% in most low-risk commercial/administrative occupations to 11% for high-risk sectors.

·       With a few exceptions, employers are required to pay 0.5% of their quarterly gross wage bill to the Standards Development Fund. The amount is payable on all payments made by the employer on behalf of the employee, including medical aid and pension contributions.