Gabon Payroll Outsourcing, Payroll Software and Employer Of Record (EOR) services.
Contact us for a payroll simulation, ask a practical question or download our free country guide for Gabon.
GABON
Deploy one employee or payroll thousands. Why not just contact us to find out how?
Save time! Don't spend hours researching!
Contact us for a payroll simulation, ask a practical question or find out how things work in the country.
Gabon Payroll and Employer of Record: Employment Contracts
A work permit and a residence permit are the two types of work authorization that are most frequently used in Gabon. Work Permits are only available to qualified and highly skilled foreign nationals, and they must be sponsored by a local organization.
Business Visa – Travelers from outside who are going to Gabon for business must have a business visa. A 90-day business visa is provided to travelers on business, allowing for one allowed entrance into the nation.
Work Visa – To work in Gabon, foreign people need both a work permit and a resident card. Foreign nationals must get an entrance authorization visa after their work permits are issued in order to enter Gabon just once and choose employment there.
Permanent Visa – A foreign worker who has been present continuously for three months following their last date of admission may be granted a permanent visa. This visa permits multiple entrances and departures from Gabon for up to six months.
PAID TIME OFF
Annual Vacation
Employees are entitled to two days of paid annual leave each month after one year of service. People under the age of 18 are provided two and a half days off per month. The yearly leave that employees are entitled to is 24 days.
Depending on an employee’s age, length of employment with a company, and family situation, annual leave may increase.
Sick
Employees in Gabon are entitled to up to six months of paid sick leave, which is covered by the employer. After six months of sickness, social security begins to reimburse sick leave compensation.
Maternity
A female employee’s right to 14 weeks of paid maternity leave is 14 weeks total, six of which must be spent before childbirth. This can be prolonged by three weeks if a pregnancy-related sickness develops, and by two weeks if there are multiple deliveries.
Paternity
3 consecutive days’ paternity leave if the birth certificate can be provided.
Family
Parental leave is not governed by any laws.
National Holidays
Gabon has a total of 11 public holidays which are paid.
Other Paid Time Off
N/A
STATUTORY EMPLOYEE BENEFITS
Unemployment
Unemployment insurance, an unemployment savings account, and a solidarity fund will all be introduced by the 2017 Social Protection Code, which has not yet been put into effect. When a work contract is terminated without the employer’s reasonable justification or for financial reasons, the employer must provide the terminated employee with severance pay. For each year of continuous employment, a lump sum equal to 20% of the employee’s average monthly earnings over the previous 12 months is given.
Workers Compensation
Covered by Social Security Contributions. The employee must be examined for a work-related illness or injury.
Occupational illnesses are covered in accordance with a legal schedule. There is no set time frame for eligibility. Accidents that happen on the way to and from work are protected.
Social Security
- Employee Contributions:
- 2.5% for CNSS retirement insurance.
- 1% for CNAMGS health insurance.
- Employer Contributions: 20.1% of the taxable salary, covering:
- Family allowances: 8%
- Retirement insurance: 5%
- Work injury: 3%
- Health sanitary evacuations: 0.6%
- Medicines distribution: 2%
- Hospitalizations: 1.5%
Taxable Basis: Gross salaries, including certain indemnities and benefits, with a ceiling of XAF 18 million annually (XAF 1.5 million/month). Professional expense allowances are excluded if properly used.
Retirement
Retirement in Gabon is covered by Social Security Contributions.
Health
Gabon has a national health care system – Caisse Nationale d’Assurance Maladie et de Garantie Sociale (CNAMGS).
PRIVATE EMPLOYEE BENEFITS
Workers Compensation
Private workers compensation schemes are available via private insurance companies.
Retirement
Private retirement/pension fund schemes are available in Gabon in addition to the statutory contributions.
Health
Private healthcare is available in Gabon.
Insurance
Private life insurance is available in Gabon.
PERSONAL INCOME TAX
Tax Year
Tax year runs from January 1st to December 31st.
Tax Tables
| Individual income tax (IRPP).
The IRPP is determined based on the taxpayer’s family size (up to six dependent children are permitted) and income levels using a progressive rates system. The number of shares makes it possible to calculate a ratio called “Q,” which in turn makes it possible to determine the employee’s salary range as shown below: Q = [(S x 12) – A] / P (as Q is annual) Family quotient = P (number of shares). S = Taxable monthly gross income. A stands for a 20% allowance. The Complementary Tax on Salaries (TCTS) is set at 5% of the salary, indemnities, and emoluments paid to the taxpayer. However, any portion of the income up to XAF 150,000 per month is exempt from this tax. |
||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||
Taxation Method
Impôts sur le revenu des personnes physiques, or IRPP, is a personal income tax that is levied in Gabon on all wages, salaries, annuities, fees, and allowances that people receive in exchange for performing any type of work there. Gabon levies taxes at a progressive rate.
Double Taxation
Gabon has multiple double taxation agreements.
Residence Requirements
An individual is considered to have a habitual residence in Gabon if they:
- a home in Gabon that is owned, rented, or beneficially owned by someone,
- that person’s primary residence in Gabon.
Payroll Calendars
In Gabon, the standard payroll cycle is on a monthly basis.
Rebates & Tax Credits
Foreign tax credits are not offered. However, the tax liabilities of non-residents may be impacted by a tax agreement that is in place between Gabon and the country where the taxpayer resides. There are no other substantial tax advantages or incentives for individual persons in Gabon.
Health Insurance
Gabon has a national health care system Caisse Nationale d’Assurance Maladie et de Garantie Sociale (CNAMGS).
Unemployment
Unemployment insurance, an unemployment savings account, and a solidarity fund will all be introduced by the 2017 Social Protection Code, which has not yet been put into effect. When a work contract is terminated without the employer’s reasonable justification or for financial reasons, the employer must provide the terminated employee with severance pay. For each year of continuous employment, a lump sum equal to 20% of the employee’s average monthly earnings over the previous 12 months is given.
Social Security
- Employee Contributions:
- 2.5% for CNSS retirement insurance.
- 1% for CNAMGS health insurance.
- Employer Contributions: 20.1% of the taxable salary, covering:
- Family allowances: 8%
- Retirement insurance: 5%
- Work injury: 3%
- Health sanitary evacuations: 0.6%
- Medicines distribution: 2%
- Hospitalizations: 1.5%
- Taxable Basis: Gross salaries, including certain indemnities and benefits, with a ceiling of XAF 18 million annually (XAF 1.5 million/month). Professional expense allowances are excluded if properly used.
PAYROLL ELEMENTS
Income
Remuneration examples include salary, earnings, bonuses, overtime compensation, taxable benefits, allowances, and some lump sum incentives (revenue from employment). Gains or losses incurred by a business or trade. income or gains attributable to a person’s role as a trust beneficiary.
Bonuses
In Gabon, bonuses in the form of a 13th month payment are typical but not required.
Allowances
Professional expense allowances are exempt from taxation as long as they are used for their intended purpose and are not inflated. Following the promulgation of the Amended Financial Act for 2022, a new tax measure has been introduced: the portion of the housing allowance that exceeds 40% of the monthly gross salary or XAF 250,000 is now subject to taxation.
Benefits in Kind
Housing, electricity, water, domestic services, and food are examples of benefits in kind that are taxed in accordance with a schedule of deemed values as follows:
- Housing (free housing): 15% of the base net salary;
- housing reimbursement;
- 5 percent of the base net salary is allocated for electricity and water;
- household expenses: 5% of the base net salary;
- Food costs: up to XAF 120,000 per person and month, or 25% of the basic net salary.
Investment Income
A 20% capital gain tax is applied to all capital gains.
The taxpayer who made the aforementioned capital gain is required to pay this tax before 30 April of the year that follows the year during which the capital gain was made.
Retirement Funding
1% of wages is paid for every 12 months of paid or retrospectively acquired contributions exceeding 240 months, up to a maximum of 40% of the insured’s average monthly covered earnings for the preceding three or five years of employment, whichever is larger.
The minimal lawful monthly wage is 80% of the minimum monthly pension.
The statutory minimum pay is 150,000 CFA francs each month.
Quarterly pension payments are provided as per the schedule.
Benefits are changed by decree in accordance with increases in the cost of living and the legal minimum wage, depending on the system’s financial resources.
Health Insurance
Gabon has a national health care system Caisse Nationale d’Assurance Maladie et de Garantie Sociale (CNAMGS).
Risk Insurance
Provided through social security contributions.
Taxable Income
The personal income tax (IRPP), which is imposed in Gabon, is applied to all wages, salaries, annuities, fees, and allowances that persons receive in return for carrying out any kind of labor there.
All revenue coming from Gabonese citizens with principal residences outside of the nation must be collected by the IRPP.
It is completely forbidden for corporations to reimburse workers and managers for personal taxes like the IRPP and supplemental tax on salaries, regardless of the situation or tax’s name.
Allowable Deductions
Individuals are allowed a standard 20% deduction from their gross income (up to XAF 10 million) for business-related costs like travel, meeting fees, and supplies. After determining the CNSS, CNAMGS, and TCTS, the deduction is applied to the adjusted gross income.
PAYROLL TAXES AND EMPLOYER CONTRIBUTIONS
Payroll Taxes
Employers withhold PIT and complementary tax on salary (TCTS) each month, which they then send to the Treasury by the 15th of the following month.
Unemployment
Unemployment insurance, an unemployment savings account, and a solidarity fund will all be introduced by the 2017 Social Protection Code, which has not yet been put into effect. When a work contract is terminated without the employer’s reasonable justification or for financial reasons, the employer must provide the terminated employee with severance pay. For each year of continuous employment, a lump sum equal to 20% of the employee’s average monthly earnings over the previous 12 months is given.
Social Security
- Employee Contributions:
- 2.5% for CNSS retirement insurance.
- 1% for CNAMGS health insurance.
- Employer Contributions: 20.1% of the taxable salary, covering:
- Family allowances: 8%
- Retirement insurance: 5%
- Work injury: 3%
- Health sanitary evacuations: 0.6%
- Medicines distribution: 2%
- Hospitalizations: 1.5%
Taxable Basis: Gross salaries, including certain indemnities and benefits, with a ceiling of XAF 18 million annually (XAF 1.5 million/month). Professional expense allowances are excluded if properly used.
Workers Compensation
Covered by Social Security Contributions. The employee must be examined for a work-related illness or injury.
Occupational illnesses are covered in accordance with a legal schedule. There is no set time frame for eligibility. Accidents that happen on the way to and from work are protected.
ADMINISTRATION
Income
The personal income tax (IRPP), which is imposed in Gabon, is applied to all wages, salaries, annuities, fees, and allowances that persons receive in return for carrying out any kind of labor there.
All revenue coming from Gabonese citizens with principal residences outside of the nation must be collected by the IRPP.
It is completely forbidden for corporations to reimburse workers and managers for personal taxes like the IRPP and supplemental tax on salaries, regardless of the situation or tax’s name.
Payroll Taxes
Employers withhold PIT and complementary tax on salary (TCTS) each month, which they then send to the Treasury by the 15th of the following month.
Unemployment
Unemployment insurance, an unemployment savings account, and a solidarity fund will all be introduced by the 2017 Social Protection Code, which has not yet been put into effect. When a work contract is terminated without the employer’s reasonable justification or for financial reasons, the employer must provide the terminated employee with severance pay. For each year of continuous employment, a lump sum equal to 20% of the employee’s average monthly earnings over the previous 12 months is given.
Social Security
CNAMGS:
- Provide health coverage for all Gabonese and family benefits to low-income families, including family allowances, back-to-school bonuses, and birth bonuses.
CNSS:
- Family and Maternity Benefits:
- Prenatal Allowances / Birth Bonus: Requires medical exams, 4 months of work, and a viable birth. Benefits include XAF 6,000 to XAF 45,000.
- Family Allowances: Requires 4 months of work, proof of maintenance and education, and child residency in Gabon. Benefits are XAF 7,000 per month or XAF 21,000 per quarter.
- Old Age, Disability, and Death Pensions (PVID):
- Early Pension: For those 50+ with 20 years of registration and 120 months of insurance. Provides early retirement pension due to disability.
- Survivors’ Allowance/Pension: For beneficiaries of deceased insured persons, based on eligibility and pension status.
- Disability Pension: Monthly pension for those with non-occupational disabilities recognized by CNSS.
- Old Age Allowance: Single payment for those reaching 55 without full pension conditions.
- Old Age Pension: For those who meet retirement age and have ceased all professional activities.
- Work Accidents and Occupational Diseases (AT/MP):
- Permanent Disability Pension: For irreversible after-effects from work accidents or occupational illnesses, including temporary or life annuities based on disability rate.
- Survivors’ Pension: Paid to survivors if the insured dies from work-related incidents.
- Daily Allowances: For temporary incapacity due to work accidents or diseases.
- Health and Social Action:
- Health Action: Manages health based on illness duration (one-off, monthly, quarterly).
- Hospitalization: For insured individuals and beneficiaries, requiring specific documents.
- Medical Evacuations: Coverage for healthcare costs abroad.
Health Benefits: Covers hospitalization, external costs, and medical evacuations to improve health.
Workers Compensation
Covered by Social Security.
Statutory Benefits
Currently, Gabon’s public healthcare system provides for all of the country’s residents’ most basic medical requirements. To assist employees in paying for their own health care, employers could offer them additional health benefits or a monthly stipend.
Employee Benefits
There are 11 national holidays observed throughout the nation, and workers should be entitled to paid time off on those days. All workers typically have a right to 24 days of paid vacation every year.
Employees who are female have a right to 14 weeks of paid maternity leave in Gabon. Paternity leave is not currently needed.
LEGISLATION
- Law nr 001/2018 of January 12, 2018
- Constitution of the Gabonese Republic, 1991
- Gabonese Labour Code consolidated version 2019
- Law n° 6/75 of November 25, 1975, on the Social Security Code
STATUTORY BODIES
- Ministry of Labor:
- National Labor Council:
- Labor Inspectorate
