Benin Payroll Outsourcing, Payroll Software and Employer Of Record (EOR) services.
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Benin has three general types of visas:
The requirements vary depending on the type, but most employees will need to acquire a business visa and work permit to remain compliant. Most visas are only valid for 30 or 90 days. Expatriates must apply before entering Benin.
A foreigner must have a work permit that is supported by a fixed-term job contract. The Ministry of Labor in Benin issues work permits with a 12-month validity.
Employees are generally entitled to 24 paid days of annual leave per year after one year of employment, with increases at the following rate:
In adherence to Benin’s employment regulations, sick leave entitlements are determined by an employee’s tenure within a company.
N/A
N/A
Individual income tax | Progressive annual rates range from 0% to 30% |
Less than XOF 60,000 | 0% |
Between XOF 60,001 and 150,000 | 10% |
Between XOF 150,001 and 250,000 per year | 15% |
Between XOF 250,001 and 500,000 per year | 20% |
More than XOF 500,000 per year | 30% |
An individual is regarded as a tax resident in Benin if they satisfy any of the following criteria:
If a person satisfies any of the aforementioned requirements, they are regarded as tax residents and must pay the Benin tax authorities taxes on their global income.
Moreover, depending on the kind of income and the relevant tax treaty rules, if any, between Benin and their place of residency, non-residents who receive income from Benin may also be liable to Benin taxation on such income.
Capital Gains Tax
N/A
The pension is 30% of the insured’s average monthly earnings for the first 15 years, plus 2% for each additional year beyond 180 months. Early pensions are reduced by 5% for each year claimed before the normal retirement age.
Permanent disability benefits are similar to old-age pensions, with a constant-attendance allowance of 40% of the disability pension.
Survivor benefits include a spouse’s pension at 40% of the deceased’s pension, an orphan’s pension ranging from 20% to 40%, and a remarriage settlement of six months’ pension. A survivor settlement is paid as a lump sum based on the deceased’s pension with 180 months of coverage.
Benefits include the family allowance, which is granted to children under 22 who do not get an orphan’s pension, and the prenatal allowance.
An insured worker receives 66.7% of their average daily earnings from the month before the disability began, starting from the day after the disability and lasting up to 12 months. After 12 months, the benefit is calculated based on the insured’s annual earnings in the year before the disability. The benefit is paid until the worker fully recovers or is certified with a permanent disability. An approved doctor needs to assess the degree of disability.
Permanent disability benefits provide a pension based on the insured’s degree of disability. For disabilities assessed at 20% or higher, the pension is 0.5% of the insured’s annual earnings per percentage point of disability up to 50%, and 1.5% per percentage point beyond that. Benefits are adjusted for cost of living changes, and an approved doctor assesses the disability.
Survivor benefits include pensions for spouses, orphans, and dependent parents, calculated as a percentage of the deceased’s earnings. Funeral grants are also provided. Benefits are adjusted for cost of living changes, with a maximum combined survivor pension of 85% of the deceased’s disability pension.
These include medical and surgical care, hospitalization, medications, prosthetics, rehabilitation, and transportation costs.
This information is provided solely for informational purposes and should not be used as a substitute for professional advice in any jurisdiction. You should hire your own legal, tax, and accounting professionals as part of your worldwide payroll needs.
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