DRC Payroll Outsourcing, Payroll Software and Employer Of Record (EOR) services.
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DRC
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DRC Payroll and EOR Employment Contracts
There are two primary categories of work visas in the DRC:
- Standard work permit: This kind of permit is for foreign workers who have contracts with local businesses. A standard permit will be good for one to two years, depending on the contract.
- Work-specific visa: This one-year visa is available to non-national employees who intend to enter the country temporarily to perform specific work. This option cannot be renewed.
Probation Periods
- A probationary period of one month for unskilled work and up to six months for specialized work may be established in accordance with national labour laws. You have the right to terminate workers during this probationary period with no warning.
Notice Periods
- The notice period for foremen is one month, plus nine working days for each full year of continuous service, measured from one date to the next. For managers, the notice period is three months, plus an additional 16 working days for each full year of employment, measured from date to date.
Minimum Wage
- According to DRC law, the minimum wage is set at 7,075 Congolese Francs per worker per day, or 72 euros per worker per month, based on 24.4 working days.
Working Hours
- The average workday should not last longer than nine hours, or 45 hours per week.
Overtime
Every hour that is deemed overtime under the terms of the preceding articles entitles the employee to the following pay increases:
- 30% for the first 6 hours after the legal working time limit;
- 60% for additional hours; and
- 100% for overtime work done on the worker’s scheduled day of rest each week.
Non Compete
In the employment agreement, employers may include a non-competition provision. Employees must refrain from engaging in any business that competes with the employer’s or former employer’s company, whether directly or indirectly. The limitation is more pertinent and appropriate at the managerial level.
Severance
- Severance pay will be available to all employees with open-ended or fixed-term contracts that are six months or longer in length. This will be determined using a formula based on length of service and salary at the time of severance.
Termination
- During the probationary period, the employment relationship may be ended with good cause and three days’ notice. An employer may lawfully terminate an open-ended contract following a probationary period with good cause and at least 14 working days’ notice. This might not be the case, though, if an employee must be summarily fired due to serious misconduct. Fixed-term agreements naturally expire on their respective dates. If an employee chooses to end a fixed-term contract before the end date, the employer must provide compensation.
- An employee must give the employer a prior notice that is proportional to half the amount of time the employer would have given if he had been the one terminating the contract if the employee intended to end the employment relationship with or without justification. If an employee is fired unlawfully, they are entitled to reinstatement or a payment up to 36 times their most recent salary.
Collective Bargaining
The principle of free and voluntary collective bargaining in the public sector is subject to some limitations under Congolese law. The law prohibits collective bargaining in some occupations, including that of public employees and civil servants, and it offers insufficient protection against anti-union prejudice.
Enforcement
The highest court in the DRC is the Supreme Court (Cour Supreme de Justice). The Administrative, Legislative, and Judicial branches comprise the Supreme Court.
PAID TIME OFF
Annual Vacation
- A worker is entitled to at least 21 days of paid annual leave in a row. Religious and national holidays are not incorporated. For every 17 days an employee worked or had a right to be paid, collective agreements must stipulate at least one day of annual leave with full pay.
Sick
- Paid sick leave is provided for by the Labour Code. When an illness or accident prevents the worker from performing his duties, he is still entitled to two-thirds of the cash compensation and the full amount of the family allowances for the duration of the contract’s suspension. Sick leave may last for up to six months.
Maternity
- According to the Labour Code, every woman has the right to take fourteen consecutive weeks off from work, including up to eight weeks following the conclusion of her delivery and six weeks prior to giving birth. The female employee is entitled to two-thirds of her salary during this time, regardless of whether the child survives, and to the continuation of any contractual benefits in kind.
- Employees who take maternity leave are entitled to two thirds of their regular pay after keeping their contractually guaranteed benefits in kind. Any insured woman who gives birth to a child, or the spouse of an insured worker, is eligible for maternity benefits. Each birth in a multiple pregnancy is treated as a separate maternity. However, the production of a certificate certifying that the birth occurred under medical supervision is required before the maternity allowance can be paid.
Paternity
- There are no legal provisions for paternity leave.
Family
N / A
National Holidays
DRC has a total of 8 public holidays which are paid.
Other Paid Time Off
N / A
STATUTORY EMPLOYEE BENEFITS
Unemployment
- There are no unemployment statutory benefits offered.
Workers Compensation
- The victim is entitled to a daily indemnity for each day of temporary incapacity for work, whether working or not, following the day of the stoppage of work as a result of the accident, as long as the incapacity is duly certified by the doctor appointed or approved by the public establishment.
- The amount of temporary disability benefits is therefore equal to 66.7 percent (33.3 percent if hospitalized and without dependents) of the insured’s average daily wage earned over the previous three months, paid from the first day after the work accident or the onset of the occupational disease until recovery or the establishment of the permanent incapacity.
Social Security
- Person insured: 5% of monthly earnings; 10% of the voluntary insured’s average yearly declared earnings. 10% of the average annual declared earnings of the voluntarily insured self-employed.
- Employer: 5% of gross monthly income.
- When subsidies are required, the government pays them; for public employees who aren’t covered by a special system, it makes contributions as an employer.
Retirement
- Payment is made in the amount of 40% of the insured’s average monthly earnings over the previous 60 months plus 2% of those earnings for each additional 12 months of coverage over 180 months. Early pension (voluntary early pension): Each year the pension is accessed prior to age 60 results in a 5% reduction. The legal monthly minimum wage is divided by 50 percent to determine the minimum monthly old-age pension.
- The daily minimum wage in Congolese francs is 7,075. The maximum monthly pension for seniors is equal to 60% of their average monthly earnings over the previous 60 months. Plan of payments: Each quarter, the old-age pension is paid. Benefit recalculation: A prime ministerial decree periodically modifies benefits.
Health
- Medical Aid is a private option and is based on an employee voluntary basis to sign up or for the employer to offer it.
PRIVATE EMPLOYEE BENEFITS
Workers Compensation
-
Currently no available online information about private workers compensation in the DRC.
Retirement
- Private retirement/pension funds are available as options in the DRC.
Health
- Private healthcare is available in the DRC.
Insurance
- There is private life insurance available in DRC.
PERSONAL INCOME TAX
Tax Year
- Tax year runs from January 1st to December 31st.
Tax Tables
- IPR is limited to 30 percent of taxable wages. The specific rate of 10 percent IPR is applied to the indemnities and allowances given to an employee in connection with the termination of their employment contract. Additionally, IPR is applicable to sums paid to casual employees (those hired on a day-to-day basis), but at a preferential rate of 15%. In practice, incomes other than salaries are not covered by IPR. Furthermore, the Democratic Republic of the Congo does not tax income derived from foreign sources (DRC).
- When a business hires foreign workers, it is required to pay the Impôt Exceptionnel sur la Rémunération des Expatriés (IERE).
Taxable Income | Rates of Taxes |
0 – 1 944 000 | 3% |
1 944 001 – 21 600 000 | 15% |
21 600 001 – 43 200 000 | 30% |
43 200 001 + | 40% |
Taxation Method
- The taxation approach is a progressive income tax.
Double Taxation
- The DRC has multiple double taxation agreements.
Residence Requirements
In the Democratic Republic of the Congo, the concept of personal tax residence is broadly understood. According to Article 62 of the Tax Code, a person is deemed to effectively reside in the Democratic Republic of the Congo if:
- They have access to a real, functional, and permanent residence, or their domus, family, focal point for important interests, or place of business, is in the Democratic Republic of the Congo.
- The tax authorities will investigate to see if the foreigner:
- spends more than 183 days a year in the DRC, is listed in the organizational chart, has business cards with the name and address of a local business, or has signed a lease agreement.
Payroll Calendars
- Other significant tax breaks or incentives are not available to people in the Democratic Republic of the Congo.
Rebates & Tax Credits
- Other significant tax breaks or incentives are not available to people in the Democratic Republic of the Congo.
Health Insurance
- The public healthcare system in the Democratic Republic of the Congo (DRC) is structured along a 4-level pyramid. Community health centers, where nurses provide primary care, make up the first level. The second level consists of reference medical facilities with generalist physicians.
- Provincial hospitals, which offer specialized care, make up the third level. University hospitals make up the fourth level. The public health care industry is under the control of the government and numerous NGOs. Due to the lengthy war the nation endured, access to care has been restricted in some areas.
Unemployment
- There are no unemployment statutory benefits offered.
Social Security
- Person insured: 5% of monthly earnings; 10% of the voluntary insured’s average yearly declared earnings. 10% of the average annual declared earnings of the voluntarily insured self-employed.
- Employer: 5% of gross monthly income.
- When subsidies are required, the government pays them; for public employees who aren’t covered by a special system, it makes contributions as an employer.
PAYROLL ELEMENTS
Income
- Salary, earnings, bonuses, overtime pay, taxable benefits, allowances, and certain lump sum perks are examples of remuneration (revenue from employment). Profits or losses made by a company or trade. Income or profits derived from an individual’s status as a trust beneficiary.
Bonuses
- Bonuses are not mandatory by law in the DRC but are voluntary by the company.
Allowances
N / A
Benefits in Kind
Benefits in kind at actual cost, excluding:
- Legal family allowances (only extra-legal amount is taxable).
- Housing, which is exempt from taxes as long as the amount is no more than 30% of the gross salary.
- Transport that is exempt from taxation as long as the expenditure is capped at four taxi rides (for executives) or four bus tickets (for other employees) per day.
- Medical protection.
Investment Income
- The DRC Tax Law does not contain a specific tax regime that applies to capital gains.
- The local entity receiving the capital gain must pay the 30% CIT because capital gains are included in the corporate taxable basis of the entity.
- The revised Mining Code has, however, introduced new regulations regarding capital gains realized by non-resident entities when selling shares. In fact, if the assets of the legal person whose shares were sold are situated in the Democratic Republic of the Congo, then the capital gain recognized at the level of the legal entity that sold shares is deemed to be of Congolese origin. The assignee legal entity pays the tax by withholding it at the source in accordance with the rules for paying taxes owed to the Treasury.
Retirement Funding
- Payment is made in the amount of 40% of the insured’s average monthly earnings over the previous 60 months plus 2% of those earnings for each additional 12 months of coverage over 180 months. Early pension (voluntary early pension): Each year the pension is accessed prior to age 60 results in a 5% reduction.
- The legal monthly minimum wage is divided by 50 percent to determine the minimum monthly old-age pension. The daily minimum wage in Congolese francs is 7,075. The maximum monthly pension for seniors is equal to 60% of their average monthly earnings over the previous 60 months. Plan of payments: Each quarter, the old-age pension is paid. Benefit recalculation: A prime ministerial decree periodically modifies benefits.
Health Insurance
- The public healthcare system in the Democratic Republic of the Congo (DRC) is structured along a 4-level pyramid. Community health centres, where nurses provide primary care, make up the first level. The second level consists of reference medical facilities with generalist physicians. Provincial hospitals, which offer specialized care, make up the third level. University hospitals make up the fourth level. The public health care industry is under the control of the government and numerous NGOs. Due to the lengthy war the nation endured, access to care has been restricted in some areas.
Risk Insurance
N / A
Taxable Income
- IPR is limited to 30 percent of taxable wages. The specific rate of 10 percent IPR is applied to the indemnities and allowances given to an employee in connection with the termination of their employment contract. Additionally, IPR is applicable to sums paid to casual employees (those hired on a day-to-day basis), but at a preferential rate of 15%. In practice, incomes other than salaries are not covered by IPR. Furthermore, the Democratic Republic of the Congo does not tax income derived from foreign sources (DRC).
- When a business hires foreign workers, it is required to pay the Impôt Exceptionnel sur la Rémunération des Expatriés (IERE).
Allowable Deductions
- The employee’s portion of the INSS contribution is deducted from the IPR taxable basis.
- IPR may be reduced by two percent for each dependent (up to a maximum of nine dependents).
PAYROLL TAXES AND EMPLOYER CONTRIBUTIONS
Payroll Taxes
- Payroll taxes and social contributions are due on any compensation given by a third party, whether it be public or private, so long as it isn’t in exchange for a service, as well as compensation given to executive shareholders who aren’t part of joint stock companies.
- Salaries, wages, fees, benefits that don’t cover professional expenses, gratuities, bonuses, and all other fixed or variable payments, regardless of their qualification, are included in these remunerations.
- All perks, to the extent that they are legal or reasonable, are added to compensations, with the exception of housing, transportation, family allowances, and medical costs.
- For foreign workers, the equivalent minimum wage in their home country cannot be less than the taxable basis of the IPR.
- A progressive tax scale is used to calculate the IPR. In any case, the total tax cannot be greater than 30% of the taxable income.
It should be noted that there are additional rates that may be applicable depending on the activity or the type of compensation received in payment of remuneration:
- Ten percent proportional: Applied to severance pay.
- Applying to the income of temporary or casual workers, at a rate of 15%.
- Depending on the number of dependents, a 2 percent tax rebate is applied to the tax amount.
Unemployment
- There are no unemployment statutory benefits offered.
Social Security
- Person insured: 5% of monthly earnings; 10% of the voluntary insured’s average yearly declared earnings. 10% of the average annual declared earnings of the voluntarily insured self-employed.
- Employer: 5% of gross monthly income.
- When subsidies are required, the government pays them; for public employees who aren’t covered by a special system, it makes contributions as an employer.
Workers Compensation
- The victim is entitled to a daily indemnity for each day of temporary incapacity for work, whether working or not, following the day of the stoppage of work as a result of the accident, as long as the incapacity is duly certified by the doctor appointed or approved by the public establishment.
- The amount of temporary disability benefits is therefore equal to 66.7 percent (33.3 percent if hospitalized and without dependents) of the insured’s average daily wage earned over the previous three months, paid from the first day after the work accident or the onset of the occupational disease until recovery or the establishment of the permanent incapacity.
ADMINISTRATION
Income
- IPR is limited to 30 percent of taxable wages. The specific rate of 10 percent IPR is applied to the indemnities and allowances given to an employee in connection with the termination of their employment contract. Additionally, IPR is applicable to sums paid to casual employees (those hired on a day-to-day basis), but at a preferential rate of 15%. In practice, incomes other than salaries are not covered by IPR. Furthermore, the Democratic Republic of the Congo does not tax income derived from foreign sources (DRC).
- When a business hires foreign workers, it is required to pay the Impôt Exceptionnel sur la Rémunération des Expatriés (IERE).
Payroll Taxes
- Payroll taxes and social contributions are due on any compensation given by a third party, whether it be public or private, so long as it isn’t in exchange for a service, as well as compensation given to executive shareholders who aren’t part of joint stock companies.
- Salaries, wages, fees, benefits that don’t cover professional expenses, gratuities, bonuses, and all other fixed or variable payments, regardless of their qualification, are included in these remunerations.
- All perks, to the extent that they are legal or reasonable, are added to compensations, with the exception of housing, transportation, family allowances, and medical costs.
- For foreign workers, the equivalent minimum wage in their home country cannot be less than the taxable basis of the IPR.
- A progressive tax scale is used to calculate the IPR. In any case, the total tax cannot be greater than 30% of the taxable income.
It should be noted that there are additional rates that may be applicable depending on the activity or the type of compensation received in payment of remuneration:
- Ten percent proportional: Applied to severance pay.
- Applying to the income of temporary or casual workers, at a rate of 15%.
- Depending on the number of dependents, a 2 percent tax rebate is applied to the tax amount.
Unemployment
- There are no unemployment statutory benefits offered.
Social Security
- Person insured: 5% of monthly earnings; 10% of the voluntary insured’s average yearly declared earnings. 10% of the average annual declared earnings of the voluntarily insured self-employed. Employer: 5% of gross monthly income. When subsidies are required, the government pays them; for public employees who aren’t covered by a special system, it makes contributions as an employer.
Workers Compensation
- The victim is entitled to a daily indemnity for each day of temporary incapacity for work, whether working or not, following the day of the stoppage of work as a result of the accident, as long as the incapacity is duly certified by the doctor appointed or approved by the public establishment.
- The amount of temporary disability benefits is therefore equal to 66.7 percent (33.3 percent if hospitalized and without dependents) of the insured’s average daily wage earned over the previous three months, paid from the first day after the work accident or the onset of the occupational disease until recovery or the establishment of the permanent incapacity.
Statutory Benefits
- Paid sick leave: Employees are entitled to up to six months of paid sick leave.
- Maternity leave: Female workers are entitled to 14 weeks of maternity leave.
Employee Benefits
- In the DRC the employees benefits are as follows: 8 public holidays, 21 days of annual leave and 14 weeks of maternity leave.
LEGISLATION
- Constitution of the Democratic Republic of the Congo as revised by Law No. 11/002 of January 20, 2011 revising the Constitution of the Democratic Republic of the Congo of February 18, 2006
- Labour Code, 2002
- Law No. 15/013 of 1stAugust 2015 on the implementation of women’s rights and parity.
- Order No. 14-010 of May 14, 2014 establishing the list of legal holidays in the Democratic Republic of Congo
- Ministerial Order No. 12/CAB-MIN/ETPS/038/08 of August 8, 2008 on the provisional prohibition of mass dismissal of workers by labour inspectors.
- Ministerial Order No. 12/CAB-MIN/ETPS/116/2005 of October 26, 2005 setting the terms and conditions for the dismissal of workers.
- Ministerial Order No. 12/CAB.MIN/TPS/117/2005 of October 26, 2005 setting the duration and conditions for notice.
- Ministerial Order No. 12/CAB.MIN/TPSI/045 /08 of 08 August 2008 setting the working conditions of children.
- Decree No. 18/017 of May 22, 2018 setting the guaranteed interprofessional minimum wage, the minimum family allowances and the equivalent value of housing.
- Decree no. 18/017 of May 22, 2018 setting the guaranteed interprofessional minimum wage, the minimum family allowances and the equivalent value of housing.
- Ministerial Order No. 12/CAB.MIN/TPS/114/2005 of October 26, 2005 prohibiting sexual or moral harassment in the performance of an employment contract.
STATUTORY BODIES
N / A
