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GAMBIA
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Gambia Payroll and Employer of Record: Employment Contracts
There are several types of visas available for foreign people who want to visit the Republic of Gambia.
All foreigners intending to dwell in Gambia must apply for a residency permit. Resident permits are provided by the Gambian government:
Type B: This kind of residence permit is open to residents of the Economic Community of West African States (ECOWAS).
Type C: Small company owners and skilled employees are qualified for a Type C residence permit.
Most likely, employees will need a Type B or Type C residence permit. These permits also function as work permits for foreign nationals because they are given out in accordance with employment.
PAID TIME OFF
Annual Vacation
What is agreed between parties in their employment contract determines an employee’s annual leave.
Annual leave is typically paid at 100% of the employee’s regular wage. If a public holiday falls during an employee’s annual leave, the employee is entitled to an extra day’s pay to compensate.
Sick
Sick leave is not statutory in Gambia, and is usually determined by a contract or a collective bargaining agreement. The employment contract also governs the rate at which sick leave is paid.
Maternity
Employees in Gambia have the right to 14 weeks of paid maternity leave. The employee has two choices for maternity leave:
- The employee may begin her maternity leave as soon as the expected date of delivery, but she must leave at least six weeks to be taken after delivery.
- The employee may begin the fourteen-week leave period following the delivery.
To be eligible for maternity leave pay, an employee must have worked for the company for at least two years. Those who do not meet this requirement may instead take unpaid maternity leave.
Paternity
Employees in Gambia are entitled to five consecutive working days of paternity leave if they have worked for the employer for at least one year.
Family
N/A
National Holidays
Gambia has a total of 13 public holidays which are paid.
Other Paid Time Off
N/A
STATUTORY EMPLOYEE BENEFITS
Unemployment
Employers are required to provide severance pay to an employee if their contract is terminated due to redundancy or business closure. The benefit is typically 1 month’s basic salary for every year of service.
Workers Compensation
Worker’s compensation is covered by Social Security.
Must be unable to work for at least five consecutive days due to a work-related injury or occupational disease. Accidents that occur on the way to and from work are covered. The employee must have developed a recognized disease within 12 months of leaving employment to qualify for an occupational disease.
Social Security
- Federated Pension Scheme (FPS)
- Mandatory national occupational pension system.
- Provides a regular monthly income upon retirement until death, with payments calculated based on age, final salary, and years of service.
- Eligibility: Full-time employees of registered member organizations, aged 18-60.
- Contributions: Employers pay 15% of the employee’s gross salary.
- Administration: Managed solely by SSHFC.
- National Provident Fund (NPF)
- Defined contribution fund for retirement.
- Both employers and employees contribute to individual accounts, with benefits based on contributions and accrued interest.
- Eligibility: Applies to all employers and employees registered under the Business Registration Act 1973, with some exceptions.
- Contributions: 15% of basic salary (5% from the employee, 10% from the employer).
- Benefits:
- Normal Retirement Benefit: Lump sum payment at age 60.
- Withdrawal Benefits: Available at age 45 with cooling-off periods.
- Redundancy Benefit: For those made redundant after 5 years of membership.
- Invalidity Benefit: For members unable to work due to permanent disability.
- Survivor’s Benefit: Paid to nominees of deceased members.
- Marriage Withdrawal: For female members retiring due to marriage, with specific conditions.
- Industrial Injuries Compensation Fund (IICF)
- Compensation for workplace injuries.
- Eligibility: Applies to all employees in government, public enterprises, private sector, and local authorities.
- Contributions: 1% of total earnings, with a maximum contribution ceiling.
- Administration: Jointly managed by SSHFC and the Labour Department, with support from the Social Welfare and Health Departments.
Retirement
Pension (Federated Pension Scheme [FPS], social insurance): 75% of total employer contributions are paid as an annuity, with the remaining 25% paid as a lump sum.
Early retirement pension: The pension is reduced based on the age at which you retire.
Old-age settlement (FPS, social insurance): A lump sum equal to 25% of total employer contributions or 100% of the insured’s annual earnings, whichever is greater, is paid.
A lump sum is paid for early settlement.
Deferred settlement: Calculated similarly to old-age settlement.
A lump sum of total employee and employer contributions plus accrued interest is paid as an old-age benefit (National Provident Fund [NPF], provident fund). A fund member may elect to receive a portion of his or her old-age benefit in the form of an annuity.
If the fund member retires voluntarily at age 55 or older with at least five years of contributions and after three months of unemployment, 85 percent of the benefit is paid; 70 percent if the fund member retires voluntarily at age 45 to 54 after six months of unemployment.
Health
The National Social Security and Insurance Trust of The Gambia administers the nation’s statutory health insurance program.
Insurance
Life insurance is a private option and is based on an employee voluntary basis to sign up or for the employer to offer it. There is a workers compensation act.
PRIVATE EMPLOYEE BENEFITS
Workers Compensation
N/A
Retirement
N/A
Health
Private healthcare is available in Gambia.
Insurance
Private life insurance is available in Gambia.
PERSONAL INCOME TAX
Tax Year
Tax year runs from January 1st to December 31st.
Tax Tables
Taxable Income ( D ) : Tax Rate ( % )
0 – 24 000: 0%
24 001. – 34 000 : 5%
34 001 – 44 000 : 10%
44 001 – 54 000 : 15%
54 001 – 64 000 : 20%
64 000 and above : 25%
Taxation Method
The Personal Income Tax Rate in the Gambia is commonly known as PAYE (Pay As You Earn). The tax rate is progressive.
Double Taxation
Gambia has double taxation agreements.
Residence Requirements
A non-resident individual is one who does not reside in Gambia, is not present in Gambia for a period or periods totaling 183 days or more in the tax year, and is not an employee or official of Gambia’s government posted abroad at any time during the tax year.
Payroll Calendars
Employees are not required to be paid on a set schedule.
Payrolls are typically paid monthly.
Rebates & Tax Credits
An employee earning less than GMD 2,000 per month/GMD 24,000 per year, is exempt from PAYE tax.
Health Insurance
The National Social Security and Insurance Trust of The Gambia administers the nation’s statutory health insurance program.
Unemployment
Employers are required to provide severance pay to an employee if their contract is terminated due to redundancy or business closure. The benefit is typically 1 month’s basic salary for every year of service.
Social Security
- Federated Pension Scheme (FPS)
- Mandatory national occupational pension system.
- Provides a regular monthly income upon retirement until death, with payments calculated based on age, final salary, and years of service.
- Eligibility: Full-time employees of registered member organizations, aged 18-60.
- Contributions: Employers pay 15% of the employee’s gross salary.
- Administration: Managed solely by SSHFC.
- National Provident Fund (NPF)
- Defined contribution fund for retirement.
- Both employers and employees contribute to individual accounts, with benefits based on contributions and accrued interest.
- Eligibility: Applies to all employers and employees registered under the Business Registration Act 1973, with some exceptions.
- Contributions: 15% of basic salary (5% from the employee, 10% from the employer).
- Benefits:
- Normal Retirement Benefit: Lump sum payment at age 60.
- Withdrawal Benefits: Available at age 45 with cooling-off periods.
- Redundancy Benefit: For those made redundant after 5 years of membership.
- Invalidity Benefit: For members unable to work due to permanent disability.
- Survivor’s Benefit: Paid to nominees of deceased members.
- Marriage Withdrawal: For female members retiring due to marriage, with specific conditions.
- Industrial Injuries Compensation Fund (IICF)
- Compensation for workplace injuries.
- Eligibility: Applies to all employees in government, public enterprises, private sector, and local authorities.
- Contributions: 1% of total earnings, with a maximum contribution ceiling.
- Administration: Jointly managed by SSHFC and the Labour Department, with support from the Social Welfare and Health Departments.
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
Not mandatory but common.
Allowances
Will depend on contract signed between employer and employee.
Benefits in Kind
Payments in kind ( fringe benefits ) to employees such as housing, motor vehicle, entertainment, life insurance etc. can be provided. The fringe benefits tax, 27% as of 2021, is imposed on employers.
Investment Income
Anyone who sells a capital asset in The Gambia must pay the tax. Furthermore, any Gambian resident who sells a capital asset outside of The Gambia must pay capital gains tax. The rate charged is determined by whether the disposal is made by an individual or a corporation, partnership, trustee, or other entity.
Individuals pay capital gains tax at a rate of 15% of gains or 5% of consideration, whichever is greater. For corporations, partnerships, trustees, and so on, the rate is 25% of the gains or 10% of the consideration, whichever is greater.
Retirement Funding
Pension (Federated Pension Scheme [FPS], social insurance): 75% of total employer contributions are paid as an annuity, with the remaining 25% paid as a lump sum.
Early retirement pension: The pension is reduced based on the age at which you retire.
Old-age settlement (FPS, social insurance): A lump sum equal to 25% of total employer contributions or 100% of the insured’s annual earnings, whichever is greater, is paid.
A lump sum is paid for early settlement.
Deferred settlement: Calculated similarly to old-age settlement.
A lump sum of total employee and employer contributions plus accrued interest is paid as an old-age benefit (National Provident Fund [NPF], provident fund). A fund member may elect to receive a portion of his or her old-age benefit in the form of an annuity.
If the fund member retires voluntarily at age 55 or older with at least five years of contributions and after three months of unemployment, 85 percent of the benefit is paid; 70 percent if the fund member retires voluntarily at age 45 to 54 after six months of unemployment.
Health Insurance
The National Social Security and Insurance Trust of The Gambia administers the nation’s statutory health insurance program.
Risk Insurance
The National Social Security and Insurance Trust of Gambia offers employee risk insurance (NSST). Employee risk insurance is one of several social security benefits that are administered by the NSST on behalf of workers in Gambia.
Taxable Income
- Total monthly income
- Capital gains
- Fringe benefits
- Residential/commercial rent income
A non-resident individual is subject to taxation just like a resident individual.
Non-residents, on the other hand, are only taxed on Gambian-sourced income, not foreign-sourced income.
Allowable Deductions
The following benefits are exempted from taxation;
- A pension contribution that is exempted from taxation.
- Fringe benefits provided by the government of The Gambia.
- A fringe benefit provided to an employee if the income of that employee is exempted from income tax.
PAYROLL TAXES AND EMPLOYER CONTRIBUTIONS
Payroll Taxes
Payroll Tax, also known as Expatriate Quota Tax, is a tax levied on employers who hire non-Gambian citizens. Employers are responsible for paying this tax to the GRA and are prohibited from deducting it from employees’ wages. In The Gambia, non-Gambians can comprise up to 20% of a company’s workforce; exceeding this limit requires approval from the Minister of Finance and Economic Affairs.
Unemployment
Employers are required to provide severance pay to an employee if their contract is terminated due to redundancy or business closure. The benefit is typically 1 month’s basic salary for every year of service.
Social Security
- Federated Pension Scheme (FPS)
- Mandatory national occupational pension system.
- Provides a regular monthly income upon retirement until death, with payments calculated based on age, final salary, and years of service.
- Eligibility: Full-time employees of registered member organizations, aged 18-60.
- Contributions: Employers pay 15% of the employee’s gross salary.
- Administration: Managed solely by SSHFC.
- National Provident Fund (NPF)
- Defined contribution fund for retirement.
- Both employers and employees contribute to individual accounts, with benefits based on contributions and accrued interest.
- Eligibility: Applies to all employers and employees registered under the Business Registration Act 1973, with some exceptions.
- Contributions: 15% of basic salary (5% from the employee, 10% from the employer).
- Benefits:
- Normal Retirement Benefit: Lump sum payment at age 60.
- Withdrawal Benefits: Available at age 45 with cooling-off periods.
- Redundancy Benefit: For those made redundant after 5 years of membership.
- Invalidity Benefit: For members unable to work due to permanent disability.
- Survivor’s Benefit: Paid to nominees of deceased members.
- Marriage Withdrawal: For female members retiring due to marriage, with specific conditions.
- Industrial Injuries Compensation Fund (IICF)
- Compensation for workplace injuries.
- Eligibility: Applies to all employees in government, public enterprises, private sector, and local authorities.
- Contributions: 1% of total earnings, with a maximum contribution ceiling.
- Administration: Jointly managed by SSHFC and the Labour Department, with support from the Social Welfare and Health Departments.
Workers Compensation
Worker’s compensation is covered by Social Security.
ADMINISTRATION
Income
In the Gambia, the personal income tax rate is usually referred to as PAYE (Pay As You Earn) on employment income. This is the income tax imposed on an employee’s gross employment incomes.
Payroll Taxes
The employer of a non-Gambian employee is responsible for paying the Expatriate Quota Tax, which is managed under the Payroll Tax Act and cannot be recouped by the employee.
Unemployment
Employers are required to provide severance pay to an employee if their contract is terminated due to redundancy or business closure. The benefit is typically 1 month’s basic salary for every year of service.
Social Security
- Federated Pension Scheme (FPS)
- Mandatory national occupational pension system.
- Provides a regular monthly income upon retirement until death, with payments calculated based on age, final salary, and years of service.
- Eligibility: Full-time employees of registered member organizations, aged 18-60.
- Contributions: Employers pay 15% of the employee’s gross salary.
- Administration: Managed solely by SSHFC.
- National Provident Fund (NPF)
- Defined contribution fund for retirement.
- Both employers and employees contribute to individual accounts, with benefits based on contributions and accrued interest.
- Eligibility: Applies to all employers and employees registered under the Business Registration Act 1973, with some exceptions.
- Contributions: 15% of basic salary (5% from the employee, 10% from the employer).
- Benefits:
- Normal Retirement Benefit: Lump sum payment at age 60.
- Withdrawal Benefits: Available at age 45 with cooling-off periods.
- Redundancy Benefit: For those made redundant after 5 years of membership.
- Invalidity Benefit: For members unable to work due to permanent disability.
- Survivor’s Benefit: Paid to nominees of deceased members.
- Marriage Withdrawal: For female members retiring due to marriage, with specific conditions.
- Industrial Injuries Compensation Fund (IICF)
- Compensation for workplace injuries.
- Eligibility: Applies to all employees in government, public enterprises, private sector, and local authorities.
- Contributions: 1% of total earnings, with a maximum contribution ceiling.
- Administration: Jointly managed by SSHFC and the Labour Department, with support from the Social Welfare and Health Departments.
Workers Compensation
Covered by Social Security.
Statutory Benefits
Employees are entitled to the 13 paid public holidays annually, as well as 14 weeks of maternity leave. Paid time off is negotiated in the contract between the employee and employer.
Employee Benefits
Employees are entitled to the 13 paid public holidays annually, as well as 14 weeks of maternity leave. Paid time off is negotiated in the contract between the employee and employer.
LEGISLATION
- Labour act 2007
- The SSHFC Act 2015.
STATUTORY BODIES
- Gambia Revenue Authority
- Ministry of Labor
- Labor relations Tribunal
- Labor Inspectorate
