Eritrea HR Outsourcing

Eritrea is strategically located in the Red Sea. The country has extensive mineral resources (potash, copper, gold, silver, zinc). The country is forecasting a GDP growth of 5.7% in 2021 and is rapidly supporting several sectors of its economy to attract Foreign Direct Investment.

Africa HR Solutions offers a range of HR outsourcing services that can help you get a footprint in Eritrea in all compliance. Our experts assist and accompany your organization with a comprehensive offering that covers Professional Employer Organisation (PEO), Employer of Record, payroll outsourcing, and ancillary support services.

Country Profile - Eritrea

Population: 3.2 mn

Gross Domestic Product (GDP): $6.5 bn

GDP Growth: 0.6%

Inflation : 4.9%

Unemployment Rate: 6.5 %

Capital: Asmara

Currency: Eritrean nakfa

Languages: Tigrinya, Arabic, English


Eritrea's Economy

Eritrea’s growth performance has been affected by the Covid-19 pandemic, with a widening in public deficit and disruption in demand and supply chains. The National Pandemic Fund initiated by the government has contributed to critical health needs and help the poorest and vulnerable households. The country depends largely on the rain-fed agriculture sector that represents one-third of the economy. Distribution services represent around 20% of GDP, and the mining sector represents 20% of the economy. Despite a high level of debt and poverty in the country, the outlook is optimistic, with real GDP growth forecast to recover to 5.7% this year.

Public Holidays in Eritrea

New Year

Orthodox Christmas Day

Women’s Day

Good Friday

Easter Day

International Workers’ Day

Independence Day

Martyrs’ Day

Eid al-Fitr

Commencement Day of Eritrean Armed Struggle

John the Baptist Day

Geez New Year

Eid al-Adha


The Prophet’s Birthday

Christmas Day

Employment in Eritrea

In Eritrea, employment agreements can be verbal or written. All written agreements must have the key details of the employee, from the salary to the benefits, compensation, and termination details. Overtime hours should be agreed upon with employers as wages differ based on the time of the day. Employees are eligible for vacation, parental and sick leaves. In case of termination, employers can pay employees an equal amount to the notice period. All types of termination are entitled to severance pay representing an amount that is based on the length of employment. Encompassing a progressive tax system, income tax rates range from 2% to 38%.