ERITREA
Payroll Outsourcing
Pay Your Talents in Eritrea Compliantly.
Pay Your Team in Eritrea. On Time. Everytime.
Ensure your team in Eritrea is paid accurately and on time with our Payroll Outsourcing services.
Gain expert support to keep your operations fully compliant with Eritrea's Labour Code and tax regulations.
- Pay anyone in Eritrea - no matter the currency.
- Manage employee benefits easily. Get the support you need to navigate employee contributions in Eritrea.
Flexible Payroll Solutions in Eritrea
Payroll solutions that adapt to your needs whether you are established or growing in Eritrea.
Eritrea Payroll expertise at your fingertips
Over more than a decade, Africa HR Solutions has become a leading payroll service provider in Eritrea 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 Eritrea
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 Eritrea legislation at all times.
Eritrea Country Overview
Geographic location: Located along the Red Sea, Eritrea is a small country divided into six administrative regions known as "zobas".
Population: Tigrinya is the official language in Eritrea and is spoken in Ethiopia as mother tongue by a part of the population. The Tigrinya language has its roots in the Afro-Asiatic language family.
Economy: Each zoba possesses its own population and socioeconomic conditions. As a whole, the country's economy is mainly driven by the agricultural sector alongside fisheries, services, and light industry.
Payroll in Eritrea - What You Should Know
Country Profile - Eritrea
Population: 3,700,000
Gross Domestic Product (GDP): $2.7 billion
GDP Growth: 2.8%
Inflation, consumer prices: 6.0%
Foreign Direct Investment (% of GDP): ~1.2%
Unemployment Rate: 7.6%
Capital: Asmara
Currency: Eritrean nakfa (ERN)
Languages: Tigrinya, Arabic, English (working languages), Tigre, Afar, Saho, Bilen, Kunama, Nara, and other indigenous languages
Social Security Contributions
Employer Contribution
- 11% of the employee’s gross salary must be contributed to the National Social Security scheme (where applicable in formal employment sectors).
- Employers are responsible for occupational safety and workplace injury obligations under labour regulations.
- Additional payroll obligations may apply depending on sector and state employment arrangements.
Employee Contribution
- 7% of the employee’s gross salary must be contributed to the national pension or social security scheme where applicable.
Consumption Taxes
- Value-added tax (VAT)
The standard VAT rate is 5%.
Working Hours and Employee Benefits
Paid Time-Off
Employees in Eritrea are generally entitled to 14 days for their first year of service and one day per additional year of service. An employee’s annual leave cannot exceed 35 days.
Sick Leave
Sick leave in Eritrea cannot exceed six months.
Maternity Leave
In Eritrea, women are entitled to a maximum of 60 days of paid maternity leave – beginning on the day after delivery. Women are allowed to split their maternity leave between pregnancy and the postpartum period.
Paternity Leave
There is no statutory paternity leave in Eritrea.
Termination in Eritrea
- If the contract lasted 1-2 years, 14 days’ notice must be provided to the employee.
- For employment contracts that lasted for less than a year, a 7 days’ notice must be provided to the employee.
- For contracts that lasted 2-5 years, 21 days’ notice must be provided to the employee.
- Beyond 5 years of service, 30 days’ notice must be provided to the employee.
Severance Pay in Eritrea
After a year of service, an employee is entitled to severance pay as follows:
- Two weeks’ wages for each of the first 5 years of employment;
- Three weeks’ wages for each year of employment after the 5th year up to and including the tenth year; and
- Four weeks’ wages for each year of service after the 10th
Public Holidays in Eritrea
- New Year’s Day
- Timkat
- International Women’s Day
- Labor Day
- Independence Day
- Martyrs’ Day
- Revolution Day
- Christmas Day
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 Eritrea?
Ensure 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 Eritrea'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.
Value of Payrolls Processed Annually
Payslips Issued Annually
Payrolls Process Annually
Trusted by Inspiring Changemakers
Africa HR Solutions is for us everything what we have hoped for. Customer- and people oriented, fast and always willing to think along and find the best possible solution. We get professional services and an exceptional single point of contact.
Africa HR Solutions has been a great partner to our organisation, allowing us to quickly expand and operate in new markets while they flag and support management of compliance and risk issues. We now use Africa HR for support in some capacity in 8 of our geographic locations.
We really valued how quickly Africa HR set up an operational platform for our programme in Tanzania. The team were responsive over Teams and email and provided clear guidance on local employment requirements, which helped us structure delivery quickly and with confidence.
Africa HR is responsive, proactive, and accommodating, even with the time difference. In fact, it works in my favour - they have time to handle tasks before I start my day. Our payroll, especially in Senegal, is complex, but their attention to detail and willingness to go the extra mile definitely stand out.
Africa HR has taken the stress out of compliance - we no longer have to worry about changing regulations. Their team is professional, knowledgeable, and always available. Payroll runs smoothly, which saves us valuable time and our staff appreciates being paid on time! Kudos to the team!
Simplify and manage your team's payroll in Eritrea
Experience stress-free payroll management for your employees across Eritrea and anywhere else on the continent.
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.
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