Gambia 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 Gambia.
GAMBIA
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.
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, including foreign workers, 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) and other foreign nationals who are employed in skilled occupations.
- 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.
Probation Periods
The probationary period for skilled workers cannot exceed 12 months.
Notice Periods
An agreement with a defined duration has a 14-day notice requirement. In the case of an agreement with an indefinite duration, it depends on the length of service and the frequency of wage payments.
At the conclusion of the contract term, either the employer or the employee may terminate the employment relationship (if it is for a fixed term). Either party may end the employment contract without cause during the probationary period.
Minimum Wage
The minimum wage in Gambia is 50 dalasi per day.
Working Hours
The average working week in Gambia is 36.5 hours.
Monday through Thursday, from 8:00 a.m. to 16:00 p.m. and Friday from 8:00 a.m. to 12:30 p.m.
Overtime
Gambia’s labor law does not specify rest periods, overtime eligibility, or work schedules in general. This must be agreed upon by both the employer and the employee in the employment contract.
Overtime work must be compensated at a rate of no less than 1.5 times the regular hourly rate, or time off (equivalent to 1.5 times), or partially paid and partially paid time off.
Non Compete
Non-compete agreements are only enforceable in accordance with Gambian law if they are reasonable in terms of their scope and length and if they are required to safeguard the employer’s legitimate interests.
Severance
Employees with unlimited term contracts who are terminated for organizational, climatic, or technical reasons, such as mechanization or automation, or if the place of employment moves more than 40 kilometers and the employees reject job offers, are entitled to severance pay under the Labor Act of 2007. The amount is equivalent to six months’ worth of the employee’s normal salary.
Termination
Fixed-term employment ends when the contract period expires.
In the case of indefinite contracts, either the employee or the employer can terminate the employment on mutual agreement from service.
Without a notice period, an employee can be fired for serious misconduct before the contract expires.
Collective Bargaining
Collective bargaining is a recognized fundamental right for workers in Gambia and is controlled by the nation’s labor laws.
Enforcement
District tribunals act as appeals courts in tribal law and custom cases. Administrative officers who serve as magistrates in courts located in each of the five administrative regions and in Banjul handle cases of first instance in criminal and civil matters.
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
Employees with unlimited term contracts who are terminated for organizational, climatic, or technical reasons, such as mechanization or automation, or if the place of employment moves more than 40 kilometers and the employees reject job offers, are entitled to severance pay under the Labor Act of 2007. The amount is equivalent to six months’ worth of the employee’s normal salary.
Workers Compensation
The 1940 Workers’ Compensation Act –
Employees in the public and private sectors, including those working for local governments, apprentices, and students enrolled in vocational schools
Exclusions: Family members residing in the employer’s residence as well as independent contractors, military personnel, casual and household employees are all eligible. Employer: 1% of all insured payroll for the month.
No minimum earnings are used in the calculation of contributions.
The maximum monthly income is 1,500 dalasi for contribution purposes.
Must have a work-related illness or injury that prevents them from working for at least five days straight. On the route to and from work, accidents are covered. To qualify for an occupational disease, the individual had to have shown a recognized illness within 12 months after terminating employment.
Social Security
Employer
Social insurance: 15% of gross payroll; none for people over the age of 60.
Contributions are calculated using no minimum or maximum earnings.
Provident fund: 10% of monthly basic salary.
Contributions are calculated using no minimum or maximum earnings.
Employee
No social insurance.
Provident fund: 5% of monthly basic salary; none for people over the age of 60.
Contributions are calculated using no minimum or maximum earnings.
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 (NSST). The NSST, which is supported by donations from both employers and employees, is in charge of managing the health insurance benefits for employees.
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 – 7 500.00 : 0
7 500.01 – 17 500.00 : 10
17 500.01 – 27 500.00 : 15
27 500.01 – 37 500.00 : 20
37 500.01 – 47 500.00 : 25
47 500.01 and above : 30
Taxation Method
In 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 people’s gross employment incomes. We measure our performance using the Individual Top Marginal Tax Rate.
Double Taxation
Gambia has multiple 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.
A non-resident individual is subject to taxation at progressive rates ranging from 0% to 35%, just like a resident individual.
Non-residents, on the other hand, are only taxed on Gambian-sourced income, not foreign-sourced income.
Payroll Calendars
Employees are not required to be paid on a set schedule.
Payrolls are typically paid monthly.
Rebates & Tax Credits
N/A
Health Insurance
The National Social Security and Insurance Trust of The Gambia administers the nation’s statutory health insurance program (NSST). The NSST, which is supported by donations from both employers and employees, is in charge of managing the health insurance benefits for employees.
Unemployment
Employees with unlimited term contracts who are terminated for organizational, climatic, or technical reasons, such as mechanization or automation, or if the place of employment moves more than 40 kilometers and the employees reject job offers, are entitled to severance pay under the Labor Act of 2007. The amount is equivalent to six months’ worth of the employee’s normal salary.
Social Security
Employer
Social insurance: 15% of gross payroll; none for people over the age of 60.
Contributions are calculated using no minimum or maximum earnings.
Provident fund: 10% of monthly basic salary.
Contributions are calculated using no minimum or maximum earnings.
Employee
No social insurance.
Provident fund: 5% of monthly basic salary; none for people over the age of 60.
Contributions are calculated using no minimum or maximum earnings.
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 added to an individual’s monthly income on a volunteer basis. Gratuities paid as a result of a termination, severance, settlement, or mutual agreement must be taxed at a rate determined by the authority in accordance with a tax directive.
Allowances
Will depend on contract signed between employer and employee.
Benefits in Kind
Housing fringe benefits, motor vehicle fringe benefits, household personnel fringe benefits, loan fringe benefits, debt waiver fringe benefits, property fringe benefits, medical fringe benefits, life insurance fringe benefits, entertainment fringe benefits, and residual fringe benefits are examples of fringe benefits.
Fringe benefits are not counted as part of an employee’s income. As a result, when an employer provides fringe benefits to their employees, the employees would not be taxed on those benefits. Employers who provide those benefits, on the other hand, will be required to pay a tax known as Fringe Benefit Tax (“FBT”).
Investment Income
Anyone who sells a capital asset in Gambia must pay the tax. Furthermore, any Gambian resident who sells a capital asset outside of 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 (NSST). The NSST, which is supported by donations from both employers and employees, is in charge of managing the health insurance benefits for employees.
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
Allowable Deductions
Personal income tax, social security contributions, pension and health insurance contributions.
PAYROLL TAXES AND EMPLOYER CONTRIBUTIONS
Payroll Taxes
Every non-citizen employed in Gambia is subject to a payroll tax, with the exception of those granted an exemption (for example, free zone operators, religious or charitable institutions of a public character, Diplomatic and Consular Missions) and those in the public sector. This tax is payable by the non-employer citizen’s no later than the 31st of January each year, with returns due by the 1st of January.
If an employee is hired after January 1st, the payroll tax must be paid within 14 days of the employee’s start date.
A resident person is taxed on all income derived from all geographical sources. Gambian sourced portion of employment income includes income received from employment performed in Gambia, regardless of location, or income paid by or on behalf of the Government of Gambia, regardless of location. The portion of foreign-sourced employment income that has not been taxed in the foreign jurisdiction is referred to as the foreign-sourced portion of employment income. A Gambian citizen or expatriate who is paid in both Gambian Dalasi’s and foreign currency must pay tax on both streams of income in Gambia.
The foreign currency amount shall be converted to Gambian Dalasi at the mid-exchange rate applicable between the foreign currency and the Gambian Dalasi on the date the amount is taken into account for tax purposes by the Central Bank of Gambia.
Unemployment
Employees with unlimited term contracts who are terminated for organizational, climatic, or technical reasons, such as mechanization or automation, or if the place of employment moves more than 40 kilometers and the employees reject job offers, are entitled to severance pay under the Labor Act of 2007. The amount is equivalent to six months’ worth of the employee’s normal salary.
Social Security
Employer
Social insurance: 15% of gross payroll; none for people over the age of 60.
Contributions are calculated using no minimum or maximum earnings.
Provident fund: 10% of monthly basic salary.
Contributions are calculated using no minimum or maximum earnings.
Employee
No social insurance.
Provident fund: 5% of monthly basic salary; none for people over the age of 60.
Contributions are calculated using no minimum or maximum earnings.
Workers Compensation
The 1940 Workers’ Compensation Act –
Employees in the public and private sectors, including those working for local governments, apprentices, and students enrolled in vocational schools
Exclusions: Family members residing in the employer’s residence as well as independent contractors, military personnel, casual and household employees are all eligible. Employer: 1% of all insured payroll for the month.
No minimum earnings are used in the calculation of contributions.
The maximum monthly income is 1,500 dalasi for contribution purposes.
Must have a work-related illness or injury that prevents them from working for at least five days straight. On the route to and from work, accidents are covered. To qualify for an occupational disease, the individual had to have shown a recognized illness within 12 months after terminating employment.
ADMINISTRATION
Income
In 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 people’s gross employment incomes. We measure our performance using the Individual Top Marginal Tax Rate.
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. Each employee receives a payout once a year in the amount of D10,000 for ECOWAS citizens and D40,000 for non-ECOWAS citizens. Self-employed non-Gambians are not required to pay the tax.
Unemployment
Employees with unlimited term contracts who are terminated for organizational, climatic, or technical reasons, such as mechanization or automation, or if the place of employment moves more than 40 kilometers and the employees reject job offers, are entitled to severance pay under the Labor Act of 2007. The amount is equivalent to six months’ worth of the employee’s normal salary.
Social Security
Employer
Social insurance: 15% of gross payroll; none for people over the age of 60.
Contributions are calculated using no minimum or maximum earnings.
Provident fund: 10% of monthly basic salary.
Contributions are calculated using no minimum or maximum earnings.
Employee
No social insurance.
Provident fund: 5% of monthly basic salary; none for people over the age of 60.
Contributions are calculated using no minimum or maximum earnings.
Workers Compensation
The 1940 Workers’ Compensation Act –
Employees in the public and private sectors, including those working for local governments, apprentices, and students enrolled in vocational schools.
Exclusions: Family members residing in the employer’s residence as well as independent contractors, military personnel, casual and household employees are all eligible. Employer: 1% of all insured payroll for the month.
No minimum earnings are used in the calculation of contributions.
The maximum monthly income is 1,500 dalasi for contribution purposes.
Must have a work-related illness or injury that prevents them from working for at least five days straight. On the route to and from work, accidents are covered. To qualify for an occupational disease, the individual had to have shown a recognized illness within 12 months after terminating employment.
Statutory Benefits
Employees are entitled to the 13 paid public holidays annually, aswell as 14 weeks of maternity leave. Paternity leave is not mandatory. 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. Paternity leave is not mandatory. Paid time off is negotiated in the contract between the employee and employer.
LEGISLATION
Labor act 2007.
STATUTORY BODIES
Gambia Revenue Authority
Ministry of Labor
Labor relations Tribunal
Labor Inspectorate
