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Gabon Payroll and Employer of Record: Employment Contracts
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.
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.
Probation Periods
In Gabon, the probationary period is six months long. However, the probationary period for fixed-term contracts may last up to 24 months and may be extended once.
Notice Periods
In Gabon, notice periods are based on an employee’s title/occupation:
- 15 days with an employment period of under a year
- 1 month for every 3 years of employment
- 1 month for every 3 to 5 years of employment
- 3 months for five to ten years of employment
- 4 months for 10 to 15 years of employment
- 5 months after 15 to 20 years of employment
- 6 months after 20 to 30 years of employment
Minimum Wage
The monthly minimum wage in Gabon is 150,000 CFA francs.
Working Hours
The typical working week consists of 48 hours of 8 hour days.
Overtime
A maximum of two hours of overtime is permitted only with the employee’s written consent.
Every week, employees are required to take at least one day, or 24 hours, off. Usually a Sunday, but it might be another day.
Non Compete
Non-compete clauses are permitted under the Gabonese labor law. However, they must meet certain criteria in order to become enforceable and must be reasonable and proportional in their scope and duration.
Severance
According to the 2000 labor law, when a work contract is terminated without the employer’s reasonable rationale or for financial reasons, the company must give the fired employee severance compensation.
The legislation stipulates that workers who have been employed by an employer for more than a year are entitled to severance compensation when their employment ends. With a minimum of one month’s compensation for each year of service, the amount of severance pay is determined depending on the employee’s length of service.
However, in other situations, such as those involving grave misbehavior, resignation, or termination for good reason, an employee may not be entitled to severance compensation. In certain situations, the company is not required to give the employee severance compensation.
Termination
Poor performance or misconduct are grounds for terminating an employment contract.
The employee must receive written notice from the employer requesting an interview to go over the reasons for termination. If the employer chooses to terminate the agreement, they must do so in writing and state their reasons in the letter.
Collective Bargaining
Collective bargaining agreements are recognized under the Gabonese Labor Law.
Enforcement
Justice can be handed down by Supreme Courts, Courts of Appeals, and Lower Courts. The judicial branch has seen substantial transformation and expansion since the 1991 constitutional revision. Among the independent, specialized supreme courts that make up this organization are the Court of State Security, Administrative Supreme Court, Accounting Supreme Court, Constitutional Supreme Court, and Judicial Supreme Court.
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.
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 is entitled to 14 weeks of paid maternity leave, 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
Although emergency family leave is an option, male employees are not legally entitled to paternity leave.
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
The 2017 Social Protection Code, which has not yet taken effect, will incorporate unemployment insurance, an unemployed savings account, and a solidarity fund. According to the 2000 labor law, the employer is required to provide the sacked employee with severance compensation when a work contract is terminated without the employer’s legitimate rationale or for financial reasons. A lump sum payment equivalent to 20% of the employee’s average monthly wages for the previous 12 months is granted for each year of continuous work.
Workers Compensation
Accidents that occur while traveling to and from work are safeguarded.
3 percent of the monthly gross of the covered payroll.
The base amount used to calculate contributions is the statutory minimum wage.
The statutory minimum pay is 150,000 CFA francs each month.
The most that can be taken into account when calculating contributions is 1,500,000 CFA francs per month.
Social Security
Both employer and employee must contribute to the social security fund.
Employees pay 2% toward the CNSS retirement insurance and 1% toward the National Disease Insurance and Social Guarantee Fund (CNAMGS) health insurance.
The other social security contributions account for 20.1% of the taxable salary.
The following apportionment determines how much the employer pays them:
- Families get an allowance of 8%.
- Retirement protection at 5%.
- 3% of accidents at work.
- Evacuations for health and sanitation accounted for 0.6%.
- Medication distributions of 2%.
- 1.5% of admissions to hospitals.
Each month, the employer withholds from each employee’s pay the complete amount of social security payments, including the percentage payable by the employees, and is responsible for paying those contributions to the CNSS.
Retirement
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
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
| Part of the taxable revenue for 1 share (Q) | Rate of tax | |
| From | To | |
| 0 | 1,500,000 | 0 |
| 1,500,001 | 1,920,000 | 5% x Q – 75,000 |
| 1,920,001 | 2,700,000 | 10% x Q – 171,000 |
| 2,700,001 | 3,600,000 | 15% x Q – 306,000 |
| 3,600,001 | 5,160,000 | 20% x Q – 486,000 |
| 5,160,001 | 7,500,000 | 25% x Q – 744,000 |
| 7,500,001 | 11,000,000 | 30% x Q – 1,119,000 |
| 11,000,001 | and above | 35% x Q – 1,669,000 |
Taxation Method
IRPP, is the personal income tax 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.
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.
Double Taxation
Gabon has multiple double taxation agreements.
Residence Requirements
An individual is considered to have a habitual residence in Gabon if they:
- Own, rent or beneficially own a home from someone in Gabon,
- Primary residence is 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
The 2017 Social Protection Code, which has not yet taken effect, will incorporate unemployment insurance, an unemployed savings account, and a solidarity fund. According to the 2000 labor law, the employer is required to provide the sacked employee with severance compensation when a work contract is terminated without the employer’s legitimate rationale or for financial reasons. A lump sum payment equivalent to 20% of the employee’s average monthly wages for the previous 12 months is granted for each year of continuous work.
Social Security
Both employer and employee must contribute to the social security fund.
Employees pay 2% toward the CNSS retirement insurance and 1% toward the National Disease Insurance and Social Guarantee Fund (CNAMGS) health insurance.
The other social security contributions account for 20.1% of the taxable salary.
The following apportionment determines how much the employer pays them:
- Families get an allowance of 8%.
- Retirement protection at 5%.
- 3% of accidents at work.
- Evacuations for health and sanitation accounted for 0.6%.
- Medication distributions of 2%.
- 1.5% of admissions to hospitals.
Each month, the employer withholds from each employee’s pay the complete amount of social security payments, including the percentage payable by the employees, and is responsible for paying those contributions to the CNSS.
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
The allowances for professional expenses are exempt from taxation as long as they are used for what they were intended for and are not inflated.
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% 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
The 2017 Social Protection Code, which has not yet taken effect, will incorporate unemployment insurance, an unemployed savings account, and a solidarity fund. According to the 2000 labor law, the employer is required to provide the sacked employee with severance compensation when a work contract is terminated without the employer’s legitimate rationale or for financial reasons. A lump sum payment equivalent to 20% of the employee’s average monthly wages for the previous 12 months is granted for each year of continuous work.
Social Security
Both employer and employee must contribute to the social security fund.
Employees pay 2% toward the CNSS retirement insurance and 1% toward the National Disease Insurance and Social Guarantee Fund (CNAMGS) health insurance.
The other social security contributions account for 20.1% of the taxable salary.
The following apportionment determines how much the employer pays them:
- Families get an allowance of 8%.
- Retirement protection at 5%.
- 3% of accidents at work.
- Evacuations for health and sanitation accounted for 0.6%.
- Medication distributions of 2%.
- 1.5% of admissions to hospitals.
Each month, the employer withholds from each employee’s pay the complete amount of social security payments, including the percentage payable by the employees, and is responsible for paying those contributions to the CNSS.
Workers Compensation
Accidents that occur while traveling to and from work are safeguarded.
3 percent of the monthly gross of the covered payroll.
The base amount used to calculate contributions is the statutory minimum wage.
The statutory minimum pay is 150,000 CFA francs each month.
The most that can be taken into account when calculating contributions is 1,500,000 CFA francs per month.
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
The 2017 Social Protection Code, which has not yet taken effect, will incorporate unemployment insurance, an unemployed savings account, and a solidarity fund. According to the 2000 labor law, the employer is required to provide the sacked employee with severance compensation when a work contract is terminated without the employer’s legitimate rationale or for financial reasons. A lump sum payment equivalent to 20% of the employee’s average monthly wages for the previous 12 months is granted for each year of continuous work.
Social Security
Both employer and employee must contribute to the social security fund.
Employees pay 2% toward the CNSS retirement insurance and 1% toward the National Disease Insurance and Social Guarantee Fund (CNAMGS) health insurance.
The other social security contributions account for 20.1% of the taxable salary.
The following apportionment determines how much the employer pays them:
- Families get an allowance of 8%.
- Retirement protection at 5%.
- 3% of accidents at work.
- Evacuations for health and sanitation accounted for 0.6%.
- Medication distributions of 2%.
- 1.5% of admissions to hospitals.
Each month, the employer withholds from each employee’s pay the complete amount of social security payments, including the percentage payable by the employees, and is responsible for paying those contributions to the CNSS.
Workers Compensation
Accidents that occur while traveling to and from work are safeguarded.
3% of the monthly gross of the covered payroll.
The base amount used to calculate contributions is the statutory minimum wage.
The statutory minimum pay is 150,000 CFA francs each month.
The most that can be taken into account when calculating contributions is 1,500,000 CFA francs per month.
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 No. 001/2018 of January 12, 2018
- Constitution of the Gabonese Republic, 1991
- Gabonese Labor Code consolidated version 2019
- Law No. 3/94 of November 21, 1994 on the Labor Code, amended by Law No. 12/2000 of October 12, 2000
- Decree No. 855/PR/MTE of November 9, 2006
- Order No. 018/PR/2010 of February 25, 2010, ratified by Law No. 021/2010 of July 27, 2010
- Law No. 6/75 of November 25, 1975
- Decree No. 00051/PR promulgating Law No. 028/2016
- Law No. 10-216 of September 5, 2016
- Decree No. 0933/PR/MTEPS of December 30, 2009
- Decree No. 0023/PR/MEEDD of January 16, 2013
STATUTORY BODIES
- Ministry of Labor
- National Labor Council
- Labor Inspectorate
