Burkina Faso Payroll Outsourcing, Payroll Software and Employer Of Record (EOR) services.
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BURKINA FASO
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Burkina Faso Payroll Employment Contacts
When applying for a Burkina Faso visa, it is essential to choose the appropriate type based on your travel purpose:
- Tourist Visa: Required for standard tourist activities.
- Business Visa: Necessary for individuals conducting business in Burkina Faso.
Burkina Faso visas can be issued as either single-entry, allowing one-time entry, or multiple-entry, permitting unlimited entries within the visa’s validity period.
Foreign nationals planning to stay in Burkina Faso for an extended period to work must obtain a long-stay visa and a work permit or worker card. For short-term business visits, a standard entry visa, valid for up to 90 days, is sufficient. Visas can be awarded for the period of the contract of employment, up to three years.
PAID TIME OFF
Annual Vacation
Once an employee has worked a year, they are entitled to 22 paid days of annual leave. The number of days of entitlement grows as follows after 20 years of service:
- 2 more days for every 20 years of service.
- 4 more days for every 25 years of service.
- 6 more days for each decade of service.
Sick
Sick pay is determined according to the length of employment:
- 1 year of service – two months’ salary (first month 100%, second month 50%).
- 1-5 years of service – four months’ salary (first month 100%, remaining months 50%).
- 6-10 years of service – five months’ salary (two months 100%, remaining months 50%).
- 11-15 years of service – six months’ salary (three months 100%, remaining months 50%).
- 15+ years of service – eight months’ salary (four months 100%, remaining months 50%).
Maternity
- After three months of employment, female employees are entitled to 14 weeks of paid maternity leave.
- The maternity pay is paid by the Burkina Faso social insurance program together with the employers.
Paternity
- Fathers are normally entitled to 3 days of paid paternity leave.
Family
- Parents with unwell children may take up to six months of unpaid parental leave after giving one month’s notice.
National Holidays
- There are 15 national holidays observed in Burkina Faso, in addition to extra holidays that differ by state.
Other Paid Time Off
N/A
STATUTORY EMPLOYEE BENEFITS
Unemployment
If an employee is terminated, they are entitled to severance compensation unless they engaged in serious misbehavior. Employees who have worked for more than a year are eligible for severance pay. Severance pay is determined by the duration of service and is calculated as a percentage of the monthly total compensation per year of service:
- 25% of monthly wage – first 5 years of service.
- 30% of monthly wage – next 5 years of service.
- 40% of monthly wage – 10+ years of service.
Workers Compensation
- Work injuries or occupational diseases must first be assessed. Accidents occurring on the way to and from work are covered. Employers contribute 3.5% of employees’ salaries to the Social Security Fund for occupational accidents.
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Social Security
Social security contributions are based on an employee’s salary.
- Employers contribute 16% (3.5% occupational accident, 7% family allowance, and 5.5% old-age pension).
- Employees contribute 5.5% (old-age pension).
Retirement
- Covered by Social Security.
Health
- In order to increase access to healthcare for mothers and children under the age of five, Burkina Faso established a free healthcare policy to help them.
PRIVATE EMPLOYEE BENEFITS
Workers Compensation
- Private workers compensation is not widely available.
Retirement
- Private retirement funds/schemes are available.
Health
- Private health insurance is available in Burkina Faso.
Insurance
- Private life insurance is available in Burkina Faso.
PERSONAL INCOME TAX
Tax Year
- The tax year runs from 1 January to 31 December.
Tax Tables
| Taxable Income (XOF) | Rate (%) |
| 0 – 30 000 | 0% |
| 30 001 – 50 000 | 12.1% |
| 50 001 – 80 000 | 13.9% |
| 80 001 – 120 000 | 15.7% |
| 120 001 – 170 000 | 18.4% |
| 170 001 – 250 000 | 21.7% |
| Over 250 000 | 25% |
Taxation Method
- Burkina Faso uses progressive taxation.
Double Taxation
- Burkina Faso has signed double taxation agreements (DTAs) with several countries.
Residence Requirements
- An individual present in Burkina Faso for a period of at least 183 days in a calendar year.
- Individuals with a permanent home or place in Burkina Faso.
- An individual employed by the government of Burkina Faso or by a company registered in Burkina Faso.
Payroll Calendars
- The payroll cycle is usually monthly.
Rebates & Tax Credits
The tax code of Burkina Faso includes a number of tax credits and refunds, including:
- Rebates for families: Taxpayers with dependents may be eligible for a family rebate, which lowers their needed tax payment.
- Rebates for education and training: Taxpayers who spend money on their own or on the education or training of their dependents may be eligible for a reimbursement.
- Payments to the social security system: Taxpayers who make contributions to the system may be eligible for a tax credit.
- Investment tax credit: Depending on the type of investment and the industry, this credit may be available.
It’s important to keep in mind that the specifics of these tax credits and refunds might change based on the situation of the taxpayer and the sort of income received.
Health Insurance
- In order to increase access to healthcare for mothers and children under the age of five, Burkina Faso established a free healthcare policy to help them. Private health insurance is available in Burkina Faso.
Unemployment
If an employee is terminated, they are entitled to severance compensation unless they engaged in serious misbehavior. Employees who have worked for more than a year are eligible for severance pay. Severance pay is determined by the duration of service and is calculated as a percentage of the monthly total compensation per year of service:
- 25% of monthly wage – first 5 years of service
- 30% of monthly wage – next 5 years of service
- 40% of monthly wage – 10+ years of service
Social Security
Social security contributions are based on an employee’s salary.
- Employers contribute 16% (3.5% occupational accident, 7% family allowance, and 5.5% old-age pension).
- Employees contribute 5.5% (old-age pension).
PAYROLL ELEMENTS
Income
- This includes all wages, salaries, bonuses, and other benefits received by an employee from their employer.
Bonuses
- Employers in Burkina Faso commonly pay bonuses or a 13th salary to employees at the end of the year. However, this is not mandated by law.
Allowances
Allowances are based on employment contract agreements. Typical payroll allowances include:
- Transportation allowance to help with the expense of getting to and from work.
- Housing allowance to help with housing expenses.
- Employees who have dependents, such as children or elderly parents, are given a dependent stipend.
- Employees are given a lunch stipend to help with the expense of their meals.
- Health insurance allowances to help with the expense of their health insurance premiums.
Benefits in Kind
- Employers may provide benefits in kind to their employees, which can be in addition to the mandatory benefits required by law.
- These benefits in kind may include housing, education/training, company car or health insurance coverage.
Investment Income
- This includes income earned from investments, such as dividends, interest, and capital gains. Investment income is taxable in Burkina Faso.
Retirement Funding
- Covered by Social Security.
Health Insurance
- In order to increase access to healthcare for mothers and children under the age of five, Burkina Faso established a free healthcare policy to help them. Private health insurance is available in Burkina Faso.
Risk Insurance
- Risk insurance is often not required by labor legislation in Burkina Faso, however some businesses may provide it as a choice for their staff.
Taxable Income
- Personal income is taxable and includes all wages, salaries, bonuses, and other benefits received by an employee from their employer.
- Investment income is also taxable in Burkina Faso. Other forms of income that are taxable include : rental income, business income ( profits ) and royalties.
Allowable Deductions
- Social security/pension fund contributions, union dues (if applicable), health/life insurance premiums (if applicable), repayment of loans (if applicable) and income tax.
PAYROLL TAXES AND EMPLOYER CONTRIBUTIONS
Payroll Taxes
- Employers in Burkina Faso are required to pay payroll taxes on wages and salaries, including social security contributions, professional training taxes, apprenticeship taxes, occupational health and safety taxes, and national employment fund contributions.
Unemployment
If an employee is terminated, they are entitled to severance compensation unless they engaged in serious misbehavior. Employees who have worked for more than a year are eligible for severance pay. Severance pay is determined by the duration of service and is calculated as a percentage of the monthly total compensation per year of service:
- 25% of monthly wage – first 5 years of service
- 30% of monthly wage – next 5 years of service
- 40% of monthly wage – 10+ years of service
Social Security
Social security contributions are based on an employee’s salary.
- Employers contribute 16% (3.5% occupational accident, 7% family allowance, and 5.5% old-age pension).
- Employees contribute 5.5% (old-age pension).
Workers Compensation
- Work injuries or occupational diseases must first be assessed. Accidents occurring on the way to and from work are covered. Employers contribute 3.5% of employees’ salaries to the Social Security Fund for occupational accidents.
ADMINISTRATION
Income
- Employers in Burkina Faso are required to use a Pay-As-You-Earn (PAYE) system to withhold and remit taxes on behalf of their workers.
- Based on the employee’s gross pay and the appropriate tax rates for their income level, the amount of tax withheld is calculated.
Payroll Taxes
- Employers in Burkina Faso are required to pay payroll taxes on wages and salaries, including social security contributions, professional training taxes, apprenticeship taxes, occupational health and safety taxes, and national employment fund contributions.
Unemployment
If an employee is terminated, they are entitled to severance compensation unless they engaged in serious misbehavior. Employees who have worked for more than a year are eligible for severance pay. Severance pay is determined by the duration of service and is calculated as a percentage of the monthly total compensation per year of service:
- 25% of monthly wage – first 5 years of service
- 30% of monthly wage – next 5 years of service
- 40% of monthly wage – 10+ years of service
Social Security
- Old-Age Pension:
Eligibility for an old-age pension depends on the type of work and the age of the worker. Blue-collar workers and the voluntarily insured can start receiving their pension at age 56. White-collar workers become eligible at 58, supervisors, managers, and technicians at 60, and doctors and university teachers at 63.
To qualify, workers need at least 180 months of contributions. A month counts as a contribution if it includes at least 18 days of covered employment.
The pension amount is calculated as 2% of the average monthly earnings from the five highest-earning years. The minimum pension is 84% of the legal monthly minimum wage, while the maximum is 80% of the average monthly earnings from the five highest-earning years.
- Disability Pension:
To be eligible for a disability pension, a worker must be younger than the normal retirement age and have a permanent loss of earning capacity of at least 66.7%. Additionally, they must have at least five years of coverage, including six months of contributions in the year preceding the impairment.
The disability pension amount is also 2% of the average monthly earnings from the five highest-earning years. The minimum pension is 84% of the legal monthly minimum wage, and the maximum is 80% of the average monthly earnings from the five highest-earning years.
- Survivor Pension:
If a deceased worker received or was entitled to an old-age or disability pension, their dependents may be eligible for a survivor pension. The spouse receives 50% of the deceased’s old-age or disability pension, split equally if there are multiple spouses. Orphans share 50% of the deceased’s pension, and other dependents, such as parents or grandparents, receive 25% of the deceased’s pension.
Workers Compensation
- Temporary disability benefits
In cases of temporary disability, social insurance provides 66.7% of the insured’s average monthly earnings from the three months before the disability. Additionally, employers are liable to provide 33.3% of the employee’s average monthly earnings from the same three months. These benefits commence the day after the disability starts and continue until full recovery or certification of permanent disability.
- Permanent disability benefits
For total disability (100%), beneficiaries receive 85% of their average monthly earnings from the three months before the disability, paid monthly. In cases of partial disability (ranging from 15% to 99%), the pension amount is a percentage of the full disability pension, determined by the assessed degree of disability. Payments for partial disability are made quarterly or monthly if the disability is at least 75%.
- Workers’ medical benefits
Coverage includes medical, surgical, and dental care, medication, X-rays, laboratory services, etc.
- Survivor benefits
- Spouse’s Pension: Surviving spouses receive 50% of the deceased’s average monthly earnings from the last three months, distributed equally among multiple spouses if applicable.
- Orphan’s Pension: Orphans receive 40% of the deceased’s average monthly earnings, divided equally among eligible orphans.
- Other Dependents’ Pension: Dependent parents and grandparents receive 10% of the deceased’s average monthly earnings.
- Funeral Expenses: A lump sum equal to 50% of the maximum monthly earnings used to calculate contributions is provided for funeral expenses.
Benefits are subject to adjustment by decree, reflecting changes in wages and the legal minimum wage and taking into account the financial resources of the system.
Statutory Benefits
- The probationary term, yearly leave, public holidays, sick leave, maternity leave, paternity leave, overtime pay, notice period, and severance compensation are some of these. Social Security payouts are also considered to be statutory benefits.
Employee Benefits
- Yearly leave, sick leave, maternity leave and paternity leave. Employees are also entitled to have public holidays off.
LEGISLATION
- Constitution of Burkina Faso 1991, last amended in 2012.
- Labor Act, 2008.
- Social Security Law Act No. 015-2006.
STATUTORY BODIES
- Ministry of Labor, Employment and Social Security.
- National Social Security Fund.
- Labor Inspectorate.
- National Employment Agency.
- National Consultative Committee for Employment.
