DJIBOUTI
Payroll Outsourcing
Pay Your Talents in Djibouti Compliantly
How Can We Help You?
Pay Your Team in Djibouti. On Time. Everytime.
Ensure your team in Djibouti is paid accurately and on time with our Payroll Outsourcing services. Gain expert support to keep your operations fully compliant with Djibouti's Labour Code and tax regulations.
- Pay anyone in Djibouti - no matter the currency.
- Manage employee benefits easily. Get the support you need to navigate employee contributions in Djibouti.
Flexible Payroll Solutions in Djibouti.
Payroll solutions that adapt to your needs whether you are established or growing in Djibouti.
Djibouti Payroll expertise at your fingertips
Over more than a decade, Africa HR Solutions has become a leading payroll service provider in Djibouti and across Africa with a proven track record of success with over 400 clients across many industries.
A single point of contact
Avoid unnecessary headaches and mistakes – manage everything from a single point of contact. Your dedicated account manager is always available to assist with any queries you may have.
Self service portal for your talents in Djibouti
Give your team the tools they need to easily manage their payslips, leave allowances, and other claims. Powered by SAGE, the employee self-service portal will make their lives easier.
100% Compliant payroll operations
Ensuring your operations are carried out compliantly is a must. From country-specific employee contribution to tax policies, we make sure your company is up to code with Djibouti’s legislation at all times.
Djibouti Country Overview
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.
- Proximity to shipping lines: For instance, access Red Sea and Indian Ocean in the Horn of Africa is partially controlled by Djibouti. The close proximity to the busiest shipping lines in the world means it plays a role as a crucial hub for refueling and trans-shipment.
- Imports: Djibouti is the main maritime port for imports from and exports to the neighboring country of Ethiopia.
- Trans-country connection: Djibouti serves as a bridge between Africa and the Middle East. The country, a developing commercial center, is also home to numerous international military installations.
Payroll in Djibouti - What You Should Know
- Population: 1,002,197
- Gross Domestic Product (GDP): $3.37 B
- GDP Growth (April 2021): 4.3%
- Inflation, consumer prices:1.8%
- Foreign Direct Investment (% of GDP): 5.0%
- Unemployment Rate:28.4%
- Capital: Djibouti City
- Currency: Djiboutian franc (DJF)
- Languages: French, Arabic
Employer Contribution
- 7% of the employer’s payroll must be contributed to social security.
Employee Contribution
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.
Paid Time-Off
Employees are generally entitled to 30 days of paid annual leave in Djibouti.
Sick Leave
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%.
Maternity Leave
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.
Paternity Leave
In Djibouti, men are entitled to 3 days of paid paternity leave.
An employer can terminate a worker’s contract for:
- Personal reasons (if the employee’s health is compromised, for example).
- Grave misconduct – as defined by any of the nine cases clearly stated in article 59 of the Labor Code or by the company’s regulations.
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 labour inspectorate.
However, if the ground of termination invoked constitutes a real and serious reason, even without observance of the usual forms of notice, a labour tribunal may require the employer to pay compensation which will not exceed one month’s salary.
- New Year’s Day (1st January)
- Prophet’s Ascension
- Labor Day (1st May)
- Eid al-Fitr
- Independence Day (28th June)
- Day of Arafat
- Eid al-Adha
- Islamic New Year
- Prophet’s Birthday
- Christmas Day (25th December)
While the content presented on this webpage is accurate as of the time of publication, it is imperative to recognise that the content is provided solely for informational purposes and does not constitute legal and/or tax advice. To obtain the most current and precise guidance, it is essential to verify specific details related to employment or compliance with our experts or consult your own legal and/or tax advisor(s). Africa HR Solutions Ltd. explicitly does not offer legal or tax advice. The information provided is general in nature, not tailored to a specific company or workforce, and does not reflect the service delivery of Africa HR Solutions in any given jurisdiction. Africa HR Solutions makes no representations or warranties regarding the accuracy, completeness, or timeliness of this information and disclaims any liability arising out of or in connection with it, including any loss resulting from the use of or reliance on the information.
Seeking a Reliable Payroll Partner in Djibouti?
Pay your talents are paid on time and without error! Our team at Africa HR Solutions also provides your company the guidance you need to ensure that your operations comply with Djibouti’s labour 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.
Trusted by Inspiring Changemakers.
Simplify and manage your team's payroll in Djibouti
From the port city of Djibouti to inland projects, hire and pay your team with ease. Payroll compliance and timely salary delivery are ensured so you can focus on strategic growth.
Frequently Asked Questions
What is payroll outsourcing?
Payroll outsourcing is when a specialist partner manages salary calculations, tax deductions, and statutory filings on your behalf. This ensures employees are paid correctly and on time while keeping your business compliant with local laws.
How does tax outsourcing work?
Tax outsourcing covers the preparation, filing, and payment of employee and employer-related taxes. It reduces the risk of errors, missed deadlines, or penalties by ensuring all contributions are handled according to local regulations.
Why should I outsource payroll and tax in Africa?
Africa’s employment laws and tax frameworks differ from country to country. Outsourcing ensures compliance, saves administrative time, and avoids costly mistakes while giving you access to local expertise in multiple jurisdictions.
Can you manage payroll for both local and expatriate employees?
Yes. We manage payroll for both local hires and expatriates, including handling multi-currency payments, cross-border compliance, and special tax considerations.
How do you ensure compliance with local laws?
Our experts stay updated with labour codes, tax rates, and social contribution requirements in each country. We file directly with authorities, ensuring your business remains compliant at all times.
