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SUDAN
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Sudan Payroll and Employer of Record: Employment Contracts
There are 3 types of visas in Sudan:
- Employment Visa – valid for 3 months. Individuals who wish to work in Sudan must obtain an employment visa.
- Business Visa – valid for 3 months. Individuals who wish to visit Sudan for business purposes must obtain a business visa
- Tourist Visa – valid for 3 months. Individuals who wish to visit Sudan for recreational purposes must obtain a tourist visa
PAID TIME OFF
Annual Vacation
All employees are entitled to paid annual leave for every year of employment.
The paid annual leave is calculated as follows:
- 21 days for one to three years of continuous service;
- 25 days for three to fifteen years of continuous service; and
- 30 days for 15 or more years of service with the employer.
An employee is eligible to take encashment when they have two years’ worth of accrued vacation time.
Employees are entitled to compensation for any unused or unpaid annual leave days if their employment is terminated for any reason.
Sick
Each year of continuous employment entitles an employee to 12 days of paid sick time.
Maternity
Employees who are female have a right to 8 weeks of paid maternity leave. 100% of the wage is paid by the employer throughout this time.
if a female employee’s medically verified sickness prevents her from returning to work. If it’s related to her pregnancy or birth following her maternity leave, it will be counted as sick leave.
Women are permitted to file for sick leave for the whole nine-month period that their medically verified condition lasts. Beyond this, the employee may use any earned vacation time. The employee will thereafter be placed on unpaid sick leave.
A maternity leave extension is not allowed unless the sickness is related to childbirth.
Paternity
Not mandatory.
Family
N/A
National Holidays
Sudan has 6 paid public holidays.
Other Paid Time Off
N/A
STATUTORY EMPLOYEE BENEFITS
Unemployment
There is no government-run program for unemployment insurance in Sudan.
According to the Labor Code of 1997, businesses must offer severance compensation to workers who have worked for the same company for at least three years straight. Depending on the number of years of service, a different sum is paid:
- one month’s basic salary for each year of service from three to nine years,
- 1.5 times basic salary for each year of service from ten to fourteen years,
- 1.75 times basic salary for each year of service above fifteen years.
36 months’ worth of the employee’s base monthly salary is the maximum payout amount.
Workers Compensation
Employers are required under Sudanese labor law to make a contribution to a workers’ compensation fund in order to give benefits to employees who become ill or injured at work. The General Organization for Social Insurance (GOSI), a federal organization in charge of managing social insurance programs, oversees the fund.
The sickness or injury must have developed as a result of and during the course of the worker’s job in order for them to be eligible for workers’ compensation payments. The employee must notify their employer of the occurrence within a certain amount of time and provide medical documentation of the illness or injury.
The Workers’ Compensation and Rehabilitation Act governs Sudan’s system of workers’ compensation.
Social Security
Contributions as follows:
- Insured person: 8% of gross monthly earnings; 23% for the voluntarily insured.
- Self-employed person: 25% of monthly declared earnings.
- Employer: 17% of gross monthly payroll.
The base salary for calculating contributions is 1,500 SDG per month.
The highest monthly income that may be utilized to determine contributions is 20,000 SDG.
Retirement
Old-age pension: For every 12 months of payments, 2% of the insured’s average monthly wages during the three years before retirement is paid.
40% of the insured’s average monthly wages for the three years prior to retirement is the minimum amount of the old-age pension that must be paid.
The maximum old age pension is equal to 83.33% of the insured’s average monthly wages for the three years prior to retirement.
A lump sum payment of the old-age pension may be made in part.
Early pension: If the insured is between the ages of 50 and 54 or 55 and 59, the old-age pension is lowered by 15% or 10%, respectively.
Health
Sudan has two kinds of health insurance – the Social Health Insurance and the Private Health Insurance. Organizations in the formal sector contribute to the National Health Insurance Fund. In the informal sector, employees voluntarily contribute to the same.
Contributions as follows:
- Insured person- Social insurance (medical benefits): 4% of gross earnings.
- Self-employed person- Social insurance (medical benefits): Pays a contribution.
- Employer- Social insurance (medical benefits): 6% of gross payroll.
PRIVATE EMPLOYEE BENEFITS
Workers Compensation
Sudan has no private workers’ compensation schemes.
Retirement
Sudan has private retirement schemes available.
Health
Private healthcare is available in Sudan.
Insurance
Private life insurance is available in Sudan.
PERSONAL INCOME TAX
Tax Year
The tax year is the calendar year.
Tax Tables
0% for up to SDG 2,000
5% for SDG 2,001 to 5,000
10% for SDG 5,001 to 10,000
15% for SDG 10,0001 to 15,000
20% for SDG 15,0001 and more
Taxation Method
The personal income tax system in Sudan is based on a progressive tax rate.
Double Taxation
Sudan has multiple double taxation agreements.
Residence Requirements
An individual is regarded as a tax resident under Sudanese tax law if they satisfy any of the following requirements:
- They reside permanently in Sudan and stay there for at least 183 days each tax year.
- They do not have a permanent residence in Sudan, but at least 183 days of the tax year are spent there.
- They have 183 or more days of continuous employment in Sudan during the course of a tax year.
The income of those who are regarded to be tax residents of Sudan is subject to taxation on a global basis, whereas the income of non-residents is solely subject to taxation on a Sudanese source.
Payroll Calendars
Wages are typically paid monthly.
Rebates & Tax Credits
Under specific conditions, both individuals and businesses in Sudan are eligible for tax credits and refunds. These tax breaks are intended to promote particular behaviors or offer reimbursement for particular costs. These are a few instances of Sudanese tax credits and rebates:
- Investment tax credit: Businesses may be qualified for a tax credit that lowers their tax obligation if they invest in certain qualifying assets, such as machinery, buildings, or equipment.
- Tax holiday: Organizations that conduct business in particular specified zones, such as free trade zones, may be qualified for a tax holiday, which exempts them from paying income tax for a set period of time.
- Tax credit for withholding: Businesses that have tax withheld from their income may be qualified for a credit that lowers their tax obligation.
- Tax credit for donations: Those who give to certain approved organizations may be entitled to a tax credit that lowers their tax obligation.
- Tax credit for education and training: Organizations that offer education or training to their employees may be qualified for a tax credit that lowers their tax obligation.
Health Insurance
Sudan has two kinds of health insurance – the Social Health Insurance and the Private Health Insurance. Organizations in the formal sector contribute to the National Health Insurance Fund. In the informal sector, employees voluntarily contribute to the same.
Contributions as follows:
- Insured person- Social insurance (medical benefits): 4% of gross earnings.
- Self-employed person- Social insurance (medical benefits): Pays a contribution.
- Employer- Social insurance (medical benefits): 6% of gross payroll.
Unemployment
There is no government-run program for unemployment insurance in Sudan.
According to the Labor Code of 1997, businesses must offer severance compensation to workers who have worked for the same company for at least three years straight. Depending on the number of years of service, a different sum is paid:
- one month’s basic salary for each year of service from three to nine years,
- 1.5 times basic salary for each year of service from ten to fourteen years,
- 1.75 times basic salary for each year of service above fifteen years.
36 months’ worth of the employee’s base monthly salary is the maximum payout amount.
Social Security
Contributions as follows:
- Insured person: 8% of gross monthly earnings; 23% for the voluntarily insured.
- Self-employed person: 25% of monthly declared earnings.
- Employer: 17% of gross monthly payroll.
The base salary for calculating contributions is 1,500 SDG per month.
The highest monthly income that may be utilized to determine contributions is 20,000 SDG.
PAYROLL ELEMENTS
Income
Employment income, all business earnings, real estate leasing revenue, and personal income from all sources are all taxable to residents.
Only income with a Sudanese source is taxed for non-residents.
Bonuses
Bonuses are not mandatory in Sudan.
Allowances
Employers may provide their employees with allowances in Sudan. These allowances are intended to pay for certain costs or perks that are thought to be necessary for employees. These allowances, as examples:
- Transportation allowance
- Housing allowance
- Medical allowance
Benefits in Kind
Not mandatory but can be included in an employees remuneration package.
Investment Income
Depending on the type of income and the source of the money, Sudan taxes investment income at varied rates. These are a few instances of investment income that may be taxed in Sudan:
- Dividends
- Interest
- monetary gains
- Rental revenue
Retirement Funding
Old-age pension: For every 12 months of payments, 2% of the insured’s average monthly wages during the three years before retirement is paid.
40% of the insured’s average monthly wages for the three years prior to retirement is the minimum amount of the old-age pension that must be paid.
The maximum old age pension is equal to 83.33% of the insured’s average monthly wages for the three years prior to retirement.
A lump sum payment of the old-age pension may be made in part.
Early pension: If the insured is between the ages of 50 and 54 or 55 and 59, the old-age pension is lowered by 15% or 10%, respectively.
Health Insurance
Sudan has two kinds of health insurance – the Social Health Insurance and the Private Health Insurance. Organizations in the formal sector contribute to the National Health Insurance Fund. In the informal sector, employees voluntarily contribute to the same.
Contributions as follows:
- Insured person- Social insurance (medical benefits): 4% of gross earnings.
- Self-employed person- Social insurance (medical benefits): Pays a contribution.
- Employer- Social insurance (medical benefits): 6% of gross payroll.
Risk Insurance
Not mandatory however employers may provide it as an optional benefit.
Taxable Income
Employment income, all business earnings, real estate leasing revenue, and personal income from all sources are all taxable to residents.
Only income with a Sudanese source is taxed for non-residents.
Allowable Deductions
Social security contributions, pension contributions, income tax.
PAYROLL TAXES AND EMPLOYER CONTRIBUTIONS
Payroll Taxes
Employment income, all business earnings, real estate leasing revenue, and personal income from all sources are all taxable to residents.
Only income with a Sudanese source is taxed for non-residents.
The personal income tax system in Sudan is based on a progressive tax rate.
Unemployment
There is no government-run program for unemployment insurance in Sudan.
According to the Labor Code of 1997, businesses must offer severance compensation to workers who have worked for the same company for at least three years straight. Depending on the number of years of service, a different sum is paid:
- one month’s basic salary for each year of service from three to nine years,
- 1.5 times basic salary for each year of service from ten to fourteen years,
- 1.75 times basic salary for each year of service above fifteen years.
36 months’ worth of the employee’s base monthly salary is the maximum payout amount.
Social Security
Contributions as follows:
- Insured person: 8% of gross monthly earnings; 23% for the voluntarily insured.
- Self-employed person: 25% of monthly declared earnings.
- Employer: 17% of gross monthly payroll.
The base salary for calculating contributions is 1,500 SDG per month.
The highest monthly income that may be utilized to determine contributions is 20,000 SDG.
Workers Compensation
Employers are required under Sudanese labor law to make a contribution to a workers’ compensation fund in order to give benefits to employees who become ill or injured at work. The General Organization for Social Insurance (GOSI), a federal organization in charge of managing social insurance programs, oversees the fund.
The sickness or injury must have developed as a result of and during the course of the worker’s job in order for them to be eligible for workers’ compensation payments. The employee must notify their employer of the occurrence within a certain amount of time and provide medical documentation of the illness or injury.
The Workers’ Compensation and Rehabilitation Act governs Sudan’s system of workers’ compensation.
ADMINISTRATION
Income
Employment income, all business earnings, real estate leasing revenue, and personal income from all sources are all taxable to residents.
Only income with a Sudanese source is taxed for non-residents.
The personal income tax system in Sudan is based on a progressive tax rate.
Payroll Taxes
Employment income, all business earnings, real estate leasing revenue, and personal income from all sources are all taxable to residents.
Only income with a Sudanese source is taxed for non-residents.
The personal income tax system in Sudan is based on a progressive tax rate.
Unemployment
There is no government-run program for unemployment insurance in Sudan.
According to the Labor Code of 1997, businesses must offer severance compensation to workers who have worked for the same company for at least three years straight. Depending on the number of years of service, a different sum is paid:
- one month’s basic salary for each year of service from three to nine years,
- 1.5 times basic salary for each year of service from ten to fourteen years,
- 1.75 times basic salary for each year of service above fifteen years.
36 months’ worth of the employee’s base monthly salary is the maximum payout amount.
Social Security
Contributions as follows:
- Insured person: 8% of gross monthly earnings; 23% for the voluntarily insured.
- Self-employed person: 25% of monthly declared earnings.
- Employer: 17% of gross monthly payroll.
The base salary for calculating contributions is 1,500 SDG per month.
The highest monthly income that may be utilized to determine contributions is 20,000 SDG.
Workers Compensation
Employers are required under Sudanese labor law to make a contribution to a workers’ compensation fund in order to give benefits to employees who become ill or injured at work. The General Organization for Social Insurance (GOSI), a federal organization in charge of managing social insurance programs, oversees the fund.
The sickness or injury must have developed as a result of and during the course of the worker’s job in order for them to be eligible for workers’ compensation payments. The employee must notify their employer of the occurrence within a certain amount of time and provide medical documentation of the illness or injury.
The Workers’ Compensation and Rehabilitation Act governs Sudan’s system of workers’ compensation.
Statutory Benefits
These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, notice period, and severance pay. Statutory benefits also include social security benefits.
Employee Benefits
These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, notice period, and severance pay. Statutory benefits also include social security benefits.
LEGISLATION
Sudan is the Labor Law of 1997.
STATUTORY BODIES
- Ministry of Labor and Social Development
- National Social Insurance Fund
- Labor Court
- National Wages Council
- Sudan Workers’ Trade Union Federation
