With our Djibouti Payroll Outsourcing services, your talents are paid on time and without error! Our team at Africa HR Solutions also provides your company with much-needed guidance to ensure that your operations comply with Djibouti’s Labor Code and tax policies. Over the years, we have played a pivotal role in the expansion of over 400 clients across Africa by providing reliable HR and payroll and cross-border payment outsourcing solutions.
Geographic location: With a territory of 23,200 km2, Djibouti is one of the smallest countries in Africa and is bordered by Somalia, Eritrea, and Ethiopia.
Population: Despite its sparse population of about 990,000 people, Djibouti’s citizens offer great value, particularly as they speak both Arabic and French as official languages.
Economy: This small African nation should not be to underestimated. Indeed, Djibouti’s strategic geographical location offers it several advantages that many other countries do not possess.
4.00% of the employee’s payroll must be contributed to social security.
Value-added tax (VAT)
The standard VAT rate is 10% in Djibouti.
Employees are generally entitled to 30 days of paid annual leave in Djibouti.
For the first 29 days of illness/disability, a worker in Djibouti is entitled to receive half of their regular wage. After 29 days, they are then entitled to receive 75%.
In Djibouti, women are entitled to a maximum of 14 weeks of paid maternity – 8 of which must be taken before the birth and the remaining, postpartum.
In Djibouti, men are entitled to 3 days of paid paternity leave.
An employer can terminate a worker’s contract for:
Under Djibouti’s Labor Code, the employer is required to provide at least one month’s notice to their employees. The notice period is extended to not more than three months for supervisors or any similar positions of responsibility.
In Djibouti, the damages and interest payable in respect of a termination of the contract without just reason can vary between two and six months’ salary depending on the size of the company.
The employer must pay 12 months’ salary if staff representatives are dismissed without the authorization of the labor inspectorate.
However, if the ground of termination invoked constitutes a real and serious reason, even without observance of the usual forms of notice, a labor tribunal may require the employer to pay compensation which will not exceed one month’s salary.
In the last 10 years, the scenario surrounding compliance in African countries has changed dramatically. Africa HR Solutions understands this and has become a major player in the African payroll market.