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IVORY COAST
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Ivory Coast Payroll and Employer of Record: Employment Contracts
Foreign nationals must have the appropriate work authorizations and visas in order to begin employment in Ivory Coast.
Work contract visa: The length of an employment contract determines the visa’s validity. They are given to foreign workers who come for certain projects. The primary requirement for obtaining a work contract visa in Ivory Coast is that the applicant must be a foreign national working for a reputable firm there.
Short-term visa: A short-term visa is valid for a maximum of three months. They are provided by the Ivory Coast Embassy for a variety of reasons, including travel for work, pleasure, or study.
Long-stay visa: The duration of validity is up to one year ( six months to one year) The prerequisites for acquiring a long-stay visa are that the applicant must already have a short-term visa and DST (Directorate of Territorial Surveillance) clearance by obtaining a pre-visa, which may be acquired online.
Probation Periods
The probationary term under the employment contract may be agreed upon by the employer and employee. In the Ivory Coast, the probationary term for various categories is as follows if not specified in the employment contract:
- Employees paid monthly – 1 month
- 8 days for hourly or daily paid employees
- Technicians, managers, and similar professions for two months
- 3 months for senior management, engineers, technicians, and other employees
A written contract amendment is required to extend the probationary term.
Notice Periods
The notice period is as follows: 8 days for those with up to 6 months of employment; 15 days for those with between 6 months and 1 year of employment; 1 month for those with between 1 and 6 years of employment; 2 months for those with between 6 and 11 years of employment; 3 months for those with between 11 and 16 years of employment; and 4 months for those with more than 16 years of employment.
Minimum Wage
In 2023, the Ivory Coast’s minimum salary will be F CFA75,000 per month.
Working Hours
40 hours a week.
From 9:00 p.m. until 5:00 a.m., nighttime employment is authorized. Each employee should have a 30-minute food break and a rest break comprising two 15-minute breaks. 15 minutes are allotted for breaks throughout the night shift.
Overtime
Overtime pay is hourly salary multiplied at rates as follows:
- Day work – 15% for the first 8 hours, thereafter 50%.
- Night hours – 75%
- Weekdays/public holidays – 75% during day and 100% during night.
Non Compete
Non-compete clauses that are too broad or restrictive will not be enforceable.
Severance
The following employees are often eligible for severance pay:
- 5 years of service maximum: a monthly pay of 30%
- 6–10 years of experience a monthly pay of 35%
- 10+ years of experience a monthly pay of 40%
Termination
Employers must have good cause to terminate the employment of workers who were hired under unlimited contracts. The employer is not required to provide compensation or give notice prior to terminating an employee’s employment under fixed-term agreements. A mutually agreed-upon resignation by the employee or other amicable method of termination is also an option.
Collective Bargaining
Is recognized in Ivory Coast.
Enforcement
The Ministry of Employment and Social Protection of Ivory Coast is in charge of enforcing labor laws. The Ministry is in charge of upholding labor law compliance, particularly the Labor Code, and worker rights protection.
The Labor Law also enables the creation of labor courts, which are in charge of resolving conflicts between companies and employees.
PAID TIME OFF
Annual Vacation
Depending on how long they have worked there, employees are entitled to many days off. In particular:
- 26.4 days off a year during a year of employment
- 27.4 days of vacation every year during a 5-year term
- 28.4 days of vacation every year over a ten-year term
Sick
Each employee is entitled to 5 days of paid sick time per year.
Maternity
Female employees are entitled to 14 weeks of paid maternity leave.
Paternity
N/A
Family
- Wedding – 4 days
- Relocation- 1 day
- Childbirth- 2 days
- Child’s first communion- 1 day
- Baptism of a child- 1 day
- Wedding of child or sibling- 2 days
- Death of wife or near/direct descendent – 5 days
- Death of children or parent- 5 days
- Death parent-in-law- 2 days
National Holidays
Ivory Coast has 14 paid public holidays.
Other Paid Time Off
N/A
STATUTORY EMPLOYEE BENEFITS
Unemployment
According to the 2015 labor law, businesses must give severance compensation to an employee who is let go but has not engaged in substantial misbehavior.
Workers Compensation
Must be examined for a work-related illness or injury. There is no set time frame for eligibility. Accidents that happen on the way to and from work are protected.
- Insured person: None.
- Self-employed person: Contributions vary depending on the assessed degree of risk.
- Employer: 2% to 5% of monthly covered payroll, depending on the assessed degree of risk.
There is no minimum income requirement when determining donations.
The highest monthly income that may be utilized to determine contributions is 70,000 CFA francs.
Businesses with 20 or more workers make monthly contributions; those with one to 19 employees make quarterly donations.
Social Security
- Insured person: 6.3% of monthly covered earnings.
- Self-employed: N/A
- Employer: 7.7% of gross monthly covered payroll.
The maximum monthly earnings that can be utilized to determine contributions is 45 times the monthly minimum wage that was once legally required.
The prior legal minimum pay per month is 36,607 CFA francs.
Businesses with 20 or more workers make monthly contributions; those with one to 19 employees make quarterly donations.
Retirement
- Old age pension: The monthly pension is equal to 1.7% of the insured’s average monthly earnings for each year of contributions after January 1, 2000, plus 1.33% of the insured’s average monthly earnings for the 15 years with the highest earnings multiplied by the number of years of contributions before that date.
50% of the monthly minimum pay is the required minimum old-age pension.
60,000 CFA francs per month is the minimum pay allowed by law.
50% of the insured’s average covered earnings during the 15 greatest earning years is the maximum monthly old-age pension.
- Early pension: With the exception of those who are already eligible for the maximum monthly pension or who are unable to work, the pension is decreased by 5% for each year it is claimed before the regular retirement age.
- Child supplement: Each qualified child receives 10% of the old age pension, up to a maximum of 30%.
Old-age benefits are paid out quarterly abroad.
- Old-age grant: In addition to interest, a lump payment is provided depending on the insured’s average yearly wages, the number of years of contributions, and their expected life expectancy at retirement.
- Old-age settlement: The complete contributions made by the insured are paid in one single amount.
Health
The CMU has two payment tiers: the contributory basic general system, which is 70% supported by the CNAM, gives a package for a monthly contribution of CFA1000 ($1.72) each covered person. For those who are financially vulnerable, a non-contributory medical aid scheme is provided.
PRIVATE EMPLOYEE BENEFITS
Workers Compensation
Private workers compensation is available in Ivory Coast.
Retirement
Private retirement schemes are available in Ivory Coast.
Health
Private healthcare is available in Ivory Coast.
Insurance
Private life insurance is available in Ivory Coast.
PERSONAL INCOME TAX
Tax Year
The taxable period in the Ivory Coast is the calendar year.
Tax Tables
Employee Income Tax:
- Salary Tax (IS)
Applies to 80% of gross income, withheld by employers
1.5%
- National contribution (CN)
Applies to 80% of gross income – rates from 0% to 10%
0% – Up to 600,000 XOF
1.50% – From 600,000 XOF to 1,560,000 XOF
5.00% – From 1,560,001 XOF to 2,400,000 XOF
10.00% – Above 2,400,000 XOF
- General Income Tax (IGR)
Progressive rate from 15% to 60% (calculated in relation to the national contribution and the number of dependent ratios or “parts” – includes a 15% deduction)
Taxable base T = (Gross Income x 80% – (IS + CN)) x 85%
0% – Up to 300,000 XOF
10.00% – 300,001 XOF to 547,000 XOF
15.00% – 547,001 XOF to 979,000 XOF
20.00% – 979,001 XOF to 1,519,000 XOF
25.00% – 1,519,001 XOF to 2,644,000 XOF
35.00% – 2,644,001 XOF to 4,669,000 XOF
45.00% – 4,669,001 XOF to 10,106,000 XOF
60.00% – Over 10,106,000 XOF
Taxation Method
The taxation approach is a progressive income tax.
Double Taxation
Ivory Coast does have DTA’s in place.
Residence Requirements
An individual is regarded as a tax resident in Ivory Coast if they maintain their habitual abode or permanent residence there, or if they stay there for more than 183 days in a single tax year.
Payroll Calendars
The payroll cycle in the Ivory Coast can be weekly or monthly.
Rebates & Tax Credits
In the Ivory Coast, there are no additional noteworthy tax breaks or incentives for people.
Health Insurance
The CMU has two payment tiers: the contributory basic general system, which is 70% supported by the CNAM, gives a package for a monthly contribution of CFA1000 ($1.72) each covered person. For those who are financially vulnerable, a non-contributory medical aid scheme is provided.
Unemployment
According to the 2015 labor law, businesses must give severance compensation to an employee who is let go but has not engaged in substantial misbehavior.
Social Security
- Insured person: 6.3% of monthly covered earnings.
- Self-employed: N/A
- Employer: 7.7% of gross monthly covered payroll.
The maximum monthly earnings that can be utilized to determine contributions is 45 times the monthly minimum wage that was once legally required.
The prior legal minimum pay per month is 36,607 CFA francs.
Businesses with 20 or more workers make monthly contributions; those with one to 19 employees make quarterly donations.
PAYROLL ELEMENTS
Income
This covers earnings from jobs, side hustles, businesses, investments, rental income, and other sources of income.
Bonuses
There is no statutory requirement to provide bonuses.
Allowances
Family allowance : Funded for kids from 1 to 14 years old (aged 18 if an apprentice; aged 21 if a student or disabled). The parent must be employed for at least three months in a row, clock at least 18 days or 120 hours each month, or be the widow or widower of an insured person.
Family allowance benefits:
- Family allowance: Each qualified child receives 5,000 CFA francs each month. Plan of payments: Each quarter, the allowance is paid.
- Prenatal allowance: 3,500 CFA francs, 6,500 CFA francs, and 4,500 CFA francs are paid in three installments following prenatal examinations at three months, six months, and seven and a half months, respectively. This total is 13,500 CFA francs.
- Birth grant: Each of the first three children receives a lump sum payment of 18,000 CFA francs.
- Maternity allowance: 3 payments totaling 18,000 CFA francs are made: 9,000 CFA francs at birth, 4,500 CFA francs at 6 months, and 4,500 CFA francs at 1 year.
Benefits in Kind
The Labor Code in Ivory Coast does not contain any explicit required benefits in kind for employees.
Investment Income
Investment income is subject to taxes in Ivory Coast as part of the nation’s income tax system. This includes earnings from dividends, interest, capital gains, and rental income, among other types of income.
Retirement Funding
- Old age pension: The monthly pension is equal to 1.7% of the insured’s average monthly earnings for each year of contributions after January 1, 2000, plus 1.33% of the insured’s average monthly earnings for the 15 years with the highest earnings multiplied by the number of years of contributions before that date.
50% of the monthly minimum pay is the required minimum old-age pension.
60,000 CFA francs per month is the minimum pay allowed by law.
50% of the insured’s average covered earnings during the 15 greatest earning years is the maximum monthly old-age pension.
- Early pension: With the exception of those who are already eligible for the maximum monthly pension or who are unable to work, the pension is decreased by 5% for each year it is claimed before the regular retirement age.
- Child supplement: Each qualified child receives 10% of the old age pension, up to a maximum of 30%.
Old-age benefits are paid out quarterly abroad.
- Old-age grant: In addition to interest, a lump payment is provided depending on the insured’s average yearly wages, the number of years of contributions, and their expected life expectancy at retirement.
- Old-age settlement: The complete contributions made by the insured are paid in one single amount.
Health Insurance
The CMU has two payment tiers: the contributory basic general system, which is 70% supported by the CNAM, gives a package for a monthly contribution of CFA1000 ($1.72) each covered person. For those who are financially vulnerable, a non-contributory medical aid scheme is provided.
Risk Insurance
According to the Labor Code of Ivory Coast, businesses are obligated to offer risk insurance to their workers. Also referred to as workers compensation.
Taxable Income
All types of income, whether derived domestically or abroad, are considered to be taxable income in Ivory Coast. This covers earnings from jobs, side hustles, businesses, investments, rental income, and other sources of income.
Allowable Deductions
Employers in Ivory Coast are permitted to take specific costs from their workers’ paychecks, including social security payments, income tax withholdings, and other permitted deductions like union dues or voluntarily made pension plan contributions.
PAYROLL TAXES AND EMPLOYER CONTRIBUTIONS
Payroll Taxes
The entire taxable pay, which includes salary, benefits, and benefits in kind, is taxed at rates of 2.8% for local employees and 12% for expatriate personnel.
Unemployment
According to the 2015 labor law, businesses must give severance compensation to an employee who is let go but has not engaged in substantial misbehavior.
Social Security
- Insured person: 6.3% of monthly covered earnings.
- Self-employed: N/A
- Employer: 7.7% of gross monthly covered payroll.
The maximum monthly earnings that can be utilized to determine contributions is 45 times the monthly minimum wage that was once legally required.
The prior legal minimum pay per month is 36,607 CFA francs.
Businesses with 20 or more workers make monthly contributions; those with one to 19 employees make quarterly donations.
Workers Compensation
Must be examined for a work-related illness or injury. There is no set time frame for eligibility. Accidents that happen on the way to and from work are protected.
- Insured person: None.
- Self-employed person: Contributions vary depending on the assessed degree of risk.
- Employer: 2% to 5% of monthly covered payroll, depending on the assessed degree of risk.
There is no minimum income requirement when determining donations.
The highest monthly income that may be utilized to determine contributions is 70,000 CFA francs.
Businesses with 20 or more workers make monthly contributions; those with one to 19 employees make quarterly donations.
ADMINISTRATION
Income
All types of income, whether derived domestically or abroad, are considered to be taxable income in Ivory Coast. This covers earnings from jobs, side hustles, businesses, investments, rental income, and other sources of income.
The taxation approach is a progressive income tax.
Payroll Taxes
The taxation approach is a progressive income tax.
Unemployment
According to the 2015 labor law, businesses must give severance compensation to an employee who is let go but has not engaged in substantial misbehavior.
Social Security
- Insured person: 6.3% of monthly covered earnings.
- Self-employed: N/A
- Employer: 7.7% of gross monthly covered payroll.
The maximum monthly earnings that can be utilized to determine contributions is 45 times the monthly minimum wage that was once legally required.
The prior legal minimum pay per month is 36,607 CFA francs.
Businesses with 20 or more workers make monthly contributions; those with one to 19 employees make quarterly donations.
Workers Compensation
Must be examined for a work-related illness or injury. There is no set time frame for eligibility. Accidents that happen on the way to and from work are protected.
- Insured person: None.
- Self-employed person: Contributions vary depending on the assessed degree of risk.
- Employer: 2% to 5% of monthly covered payroll, depending on the assessed degree of risk.
There is no minimum income requirement when determining donations.
The highest monthly income that may be utilized to determine contributions is 70,000 CFA francs.
Businesses with 20 or more workers make monthly contributions; those with one to 19 employees make quarterly donations.
Statutory Benefits
The probationary period, yearly leave, public holidays, sick leave, maternity leave, overtime pay, notice period, and severance compensation are some of these. Social Security payouts are also included in statutory benefits.
Employee Benefits
The probationary period, yearly leave, public holidays, sick leave, maternity leave, overtime pay, notice period, and severance compensation are some of these. Social Security payouts are also included in statutory benefits.
LEGISLATION
Ivory Coast Labor Code (Code du Travail).
STATUTORY BODIES
- Ministry of Employment, Social Affairs and Vocational Training (Ministère de l’Emploi, des Affaires Sociales et de la Formation Professionnelle)
- National Institute for Social Insurance (Institut National de la Prévoyance Sociale, INPS)
- National Institute for Social Welfare (Institut National d’Assurance Maladie, INAM)
- Labor Inspectorate (Inspection du Travail)
- National Commission for Social Dialogue (Commission Nationale de Dialogue Social)
