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Togo Payroll and Employer of Record: Employment Contracts
Visas are not required for nationals of certain countries, including Benin, Ghana, Guinea, Mali, Niger, and Senegal. Individuals with diplomatic or service passports from China or Morocco do not need a visa to enter the country.
Foreigners entering the country on business should obtain a single-entry or multiple-entry business visa valid for up to 90 days.
PAID TIME OFF
Annual Vacation
All workers are entitled to annual leave after one year of service under the Labor Law. Workers are entitled to 30 days of annual leave per year, divided into two and a half days per month. Collective or individual agreements may contain more advantageous provisions than labor law.
Sick
A worker is entitled to up to 5 days of sick leave per year under the Labor Code. The Labor Code also provides for long sick leave, but the provisions of the Inter-professional Collective Agreement are more favorable because they provide for income for a sick worker who is absent from work due to illness for the first 6 months of his illness. The length of leave and amount of benefit during sick leave are determined by the length of service. The payment schedule is as follows:
– 1 month of fully paid sick leave if you have less than 12 months of service;
– 1 month of fully paid sick leave and 3 months of half-paid sick leave if you have more than 12 months but less than 5 years of service.
– 2 months fully paid and 4 months half paid sick leave for service of more than 5 years but less than 10 years; and
– 4 months fully paid and 2 months half paid sick leave for service of 10 years or more.
Maternity
During pregnancy and maternity leave, a worker should be entitled to free medical and midwifery care. During pregnancy and breastfeeding, a worker should be excused from any work that could endanger you or your child. The total length of maternity leave should be at least 14 weeks. During maternity leave, a worker’s income should be at least two-thirds of his or her previous salary. A worker should be protected from dismissal or other discriminatory treatment during pregnancy and maternity leave. After taking maternity leave, employees have the right to return to the same or a similar position. A worker must be allowed paid nursing breaks after childbirth and when resuming work to breast-feed the child.
Paternity
The Labor Law makes no mention of specific paternity leave entitlements. The Interprofessional Collective Agreement, on the other hand, provides for two days of paid paternity leave following the birth of a child.
Family
The law makes no mention of paid or unpaid parental leave.
National Holidays
Togo has a total of 12 public holidays which are paid.
Other Paid Time Off
N/A
STATUTORY EMPLOYEE BENEFITS
Unemployment
There is no provision in the law for unemployment insurance or benefits.
Workers Compensation
Work injuries are classified into four types: (i) permanent total incapacity, (ii) permanent partial incapacity, (iii) temporary incapacity, and (iv) fatal injury resulting in worker death. The amount of compensation in the event of permanent total incapacity/disability is 85% of an insured worker’s average earnings in the three months preceding disability.
The amount of compensation in the case of permanent partial disability is determined by the assessed degree of disability. If the assessed disability is less than 15%, a three-year lump sum pension is paid. The amount of compensation in the case of temporary disability is 66.7% of an insured worker’s average earnings in the three months preceding disability. The benefit is paid until full recovery or permanent disability is certified. Dependents (widow/widower/minor children, parents) receive a survivors’ pension in the event of a fatal injury.
Social Security
Employee: 4% of total covered monthly income. The calculation of contributions is based on the legally required monthly minimum salary. The statutory minimum pay each month is 35,000 CFA francs. No maximum earnings are used in the calculation of contributions.
Self-employed: 16.5% of monthly disclosed covered earnings. The informal sector’s self-employed workers make a contribution. The calculation of contributions is based on the legally required monthly minimum salary. m The statutory minimum pay each month is 35,000 CFA francs. No maximum earnings are used in the calculation of contributions.
Employer: 12.5% of monthly covered gross payroll. The calculation of contributions is based on the legally required monthly minimum salary. The statutory minimum pay each month is 35,000 CFA francs. No maximum earnings are used in the calculation of contributions.
Retirement
Age 60 (55 if physically or mentally prematurely aged) and have had at least 15 years of coverage.
Pension de vieillesse anticipée volontaire (Pension de vieillesse anticipée): 55 years old with at least 15 years of coverage
Employment must cease.
Under a reciprocal agreement, the old-age pension is payable abroad. It is paid 20% of the insured’s average monthly earnings over the last five years, plus 1.33 percent of average monthly earnings for every 12 months of coverage in excess of 180 months.
The monthly minimum old-age pension is 60% of the legal monthly minimum wage.
The monthly legal minimum wage is 35,000 CFA francs.
The maximum monthly old-age pension is equal to 80% of the insured’s average monthly earnings in the five years preceding retirement.
If the insured is eligible for more than one pension, the highest pension plus half of the other pension(s) is paid.
Early retirement pension: The old-age pension is lowered by 5% for each year claimed before the normal retirement age.
Health
The national assembly has adopted the legislation authorizing the formation of a universal healthcare system (l’assurance maladie universelle, or AMU). This comes after a new Labor Code was approved in June 2021 (to go into effect one year after being signed into law), which contains a general entitlement to health insurance for all employees. The system, which would have two tiers, would cover every citizen. Employees in both the public and commercial sectors would be covered by the fundamental required health insurance regime (RAMO). The destitute and others receiving public assistance (régime d’assistance médicale – RAM) would be subject to a different system.
Contributions from both the company and the employee would be used to cover the cost of the insurance. Direct government funds would be used to pay for the coverage offered through RAM.
For non-work-related diseases, accidents, and maternity, insured people would be covered for a certain range of covered services (including hospitalization, consultations, outpatient treatment, medicines, diagnostic tests, medical equipment, and transportation) up to a specified cost cap.
PRIVATE EMPLOYEE BENEFITS
Workers Compensation
There is no private workers compensation yet in Togo.
Retirement
There are private retirement options in Togo.
Health
Private health care is available in Togo.
Insurance
Private life insurance is available in Togo.
PERSONAL INCOME TAX
Tax Year
Tax year runs from January 1st to December 31st.
Tax Tables
| Personal income tax | Progressive rates from 0% to 35% |
| From XOF 0 to XOF 900,000 | 0.5% |
| From XOF 900,001 to XOF 4,000,000 | 7% |
| From XOF 4,000,001 to XOF 6,000,000 | 15% |
| From XOF 6,000,001 to XOF 10,000,000 | 25% |
| From XOF 10,000,001 to XOF 15,000,000 | 30% |
| Above XOF 15,000,000 | 35% |
Taxation Method
Togo uses a progressive tax method for their system.
Double Taxation
Togo has double taxation agreements with different countries.
Residence Requirements
Foreigners who have lived in Togo for at least six months and have a tax domicile in the country are taxed as residents.
Payroll Calendars
Employees are not required to be paid on a set schedule.
Payrolls can be done weekly, biweekly, fortnightly, or monthly.
Rebates & Tax Credits
Contributions for public health insurance, social security, and certain other deductions are allowed as a percentage of net wages.
In Togo, interest on loans for the purchase or repair of a building is deductible for the first ten years. Donations, gifts, and subsidies are all tax-deductible (capped at 1 percent of taxable income).
Dependent relatives (XOF 10,000 per month per dependent) and certain real estate expenses are deductible.
Individuals who make industrial and commercial profits, non-commercial profits, or agricultural profits can deduct expenses incurred in making those profits.
Health Insurance
The national assembly has adopted the legislation authorizing the formation of a universal healthcare system (l’assurance maladie universelle, or AMU). This comes after a new Labor Code was approved in June 2021 (to go into effect one year after being signed into law), which contains a general entitlement to health insurance for all employees. The system, which would have two tiers, would cover every citizen. Employees in both the public and commercial sectors would be covered by the fundamental required health insurance regime (RAMO). The destitute and others receiving public assistance (régime d’assistance médicale – RAM) would be subject to a different system.
Contributions from both the company and the employee would be used to cover the cost of the insurance. Direct government funds would be used to pay for the coverage offered through RAM.
For non-work-related diseases, accidents, and maternity, insured people would be covered for a certain range of covered services (including hospitalization, consultations, outpatient treatment, medicines, diagnostic tests, medical equipment, and transportation) up to a specified cost cap.
Unemployment
There is no provision in the law for unemployment insurance or benefits.
Social Security
Employee: 4% of total covered monthly income. The calculation of contributions is based on the legally required monthly minimum salary. The statutory minimum pay each month is 35,000 CFA francs. No maximum earnings are used in the calculation of contributions.
Self-employed: 16.5% of monthly disclosed covered earnings. The informal sector’s self-employed workers make a contribution. The calculation of contributions is based on the legally required monthly minimum salary. m The statutory minimum pay each month is 35,000 CFA francs. No maximum earnings are used in the calculation of contributions.
Employer: 12.5% of monthly covered gross payroll. The calculation of contributions is based on the legally required monthly minimum salary. The statutory minimum pay each month is 35,000 CFA francs. No maximum earnings are used in the calculation of contributions.
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
In addition to wages or salaries, businesses may offer bonuses or gratuities to their employees as part of an incentive package. It is not mandatory.
Allowances
N/A
Benefits in Kind
Particular benefits in kind offered by employers may change based on the type of employment, the sector, and other elements. Togo’s Labor Code lays forth minimal requirements for working conditions and benefits, although companies are free to offer more than what is mandated by law.
Investment Income
Togo has no specific capital gains tax because corporations’ capital gains from the sale of assets or real estate are considered taxable income (some exemptions and reliefs may apply). On direct or indirect transfers of real estate, gains from the transfer of shares, mining permits, and licenses issued by the government, both residents and non-residents are subject to capital gains tax. Gains from the transfer of property, property rights, or shares are subject to a 7% tax; mining permits or licenses are subject to a 15% tax.
Retirement Funding
Age 60 (55 if physically or mentally prematurely aged) and have had at least 15 years of coverage.
Pension de vieillesse anticipée volontaire (Pension de vieillesse anticipée): 55 years old with at least 15 years of coverage
Employment must cease.
Under a reciprocal agreement, the old-age pension is payable abroad. It is paid 20% of the insured’s average monthly earnings over the last five years, plus 1.33 percent of average monthly earnings for every 12 months of coverage in excess of 180 months.
The monthly minimum old-age pension is 60% of the legal monthly minimum wage.
The monthly legal minimum wage is 35,000 CFA francs.
The maximum monthly old-age pension is equal to 80% of the insured’s average monthly earnings in the five years preceding retirement.
If the insured is eligible for more than one pension, the highest pension plus half of the other pension(s) is paid.
Early retirement pension: The old-age pension is lowered by 5% for each year claimed before the normal retirement age.
Health Insurance
The national assembly has adopted the legislation authorizing the formation of a universal healthcare system (l’assurance maladie universelle, or AMU). This comes after a new Labor Code was approved in June 2021 (to go into effect one year after being signed into law), which contains a general entitlement to health insurance for all employees. The system, which would have two tiers, would cover every citizen. Employees in both the public and commercial sectors would be covered by the fundamental required health insurance regime (RAMO). The destitute and others receiving public assistance (régime d’assistance médicale – RAM) would be subject to a different system.
Contributions from both the company and the employee would be used to cover the cost of the insurance. Direct government funds would be used to pay for the coverage offered through RAM.
For non-work-related diseases, accidents, and maternity, insured people would be covered for a certain range of covered services (including hospitalization, consultations, outpatient treatment, medicines, diagnostic tests, medical equipment, and transportation) up to a specified cost cap.
Risk Insurance
The provision of risk insurance to employees by businesses is mandated under Togolese labor legislation. Risk insurance is a sort of insurance that offers protection in the case of work-related injuries, illnesses, or accidents.
The management and administration of risk insurance in Togo is the responsibility of the National Social Security Fund (Caisse Nationale de Sécurité Sociale, or CNSS).
Taxable Income
Togo uses a progressive tax method for personal income tax ranging from 0-30%. Togo has no specific capital gains tax because corporations’ capital gains from the sale of assets or real estate are considered taxable income (some exemptions and reliefs may apply). On direct or indirect transfers of real estate, gains from the transfer of shares, mining permits, and licenses issued by the government, both residents and non-residents are subject to capital gains tax. Gains from the transfer of property, property rights, or shares are subject to a 7% tax; mining permits or licenses are subject to a 15% tax.
Allowable Deductions
For contributions to social security, public health insurance, and some other deductions, a percentage of net wages may be deducted. For the first ten years of the loan, interest on loans for purchasing a building or making repairs to an existing building is deductible in Togo. Tax deductions apply to gifts, donations, and subsidies (capped at 1 percent of taxable income).
Deductions are permitted for dependent family members (XOF 10,000 per month per dependent) and for some costs associated with real estate. A person may deduct expenses incurred in order to earn industrial and commercial profits, non-commercial profits, or agricultural profits.
PAYROLL TAXES AND EMPLOYER CONTRIBUTIONS
Payroll Taxes
The standard tax rate for businesses in Togo is 27%. Additionally, employers are required to pay 17.5% of each employee’s monthly gross pay into social security.
Unemployment
There is no provision in the law for unemployment insurance or benefits.
Social Security
Employee: 4% of total covered monthly income. The calculation of contributions is based on the legally required monthly minimum salary. The statutory minimum pay each month is 35,000 CFA francs. No maximum earnings are used in the calculation of contributions.
Self-employed: 16.5% of monthly disclosed covered earnings. The informal sector’s self-employed workers make a contribution. The calculation of contributions is based on the legally required monthly minimum salary. m The statutory minimum pay each month is 35,000 CFA francs. No maximum earnings are used in the calculation of contributions.
Employer: 12.5% of monthly covered gross payroll. The calculation of contributions is based on the legally required monthly minimum salary. The statutory minimum pay each month is 35,000 CFA francs. No maximum earnings are used in the calculation of contributions.
Workers Compensation
Work injuries are classified into four types: (i) permanent total incapacity, (ii) permanent partial incapacity, (iii) temporary incapacity, and (iv) fatal injury resulting in worker death. The amount of compensation in the event of permanent total incapacity/disability is 85 percent of an insured worker’s average earnings in the three months preceding disability.
The amount of compensation in the case of permanent partial disability is determined by the assessed degree of disability. If the assessed disability is less than 15%, a three-year lump sum pension is paid. The amount of compensation in the case of temporary disability is 66.7% of an insured worker’s average earnings in the three months preceding disability. The benefit is paid until full recovery or permanent disability is certified. Dependents (widow/widower/minor children, parents) receive a survivors’ pension in the event of a fatal injury.
ADMINISTRATION
Income
Progressive rates ranging from 0% to 35%.
Payroll Taxes
The standard tax rate for businesses in Togo is 27 percent. Additionally, employers are required to pay 17.5 percent of each employee’s monthly gross pay into social security.
Unemployment
There is no provision in the law for unemployment insurance or benefits.
Social Security
Employee: 4% of total covered monthly income. The calculation of contributions is based on the legally required monthly minimum salary. The statutory minimum pay each month is 35,000 CFA francs. No maximum earnings are used in the calculation of contributions.
Self-employed: 16.5% of monthly disclosed covered earnings. The informal sector’s self-employed workers make a contribution. The calculation of contributions is based on the legally required monthly minimum salary. m The statutory minimum pay each month is 35,000 CFA francs. No maximum earnings are used in the calculation of contributions.
Employer: 12.5% of monthly covered gross payroll. The calculation of contributions is based on the legally required monthly minimum salary. The statutory minimum pay each month is 35,000 CFA francs. No maximum earnings are used in the calculation of contributions.
Workers Compensation
Work injuries are classified into four types: (i) permanent total incapacity, (ii) permanent partial incapacity, (iii) temporary incapacity, and (iv) fatal injury resulting in worker death. The amount of compensation in the event of permanent total incapacity/disability is 85% of an insured worker’s average earnings in the three months preceding disability.
The amount of compensation in the case of permanent partial disability is determined by the assessed degree of disability. If the assessed disability is less than 15%, a three-year lump sum pension is paid. The amount of compensation in the case of temporary disability is 66.7% of an insured worker’s average earnings in the three months preceding disability. The benefit is paid until full recovery or permanent disability is certified. Dependents (widow/widower/minor children, parents) receive a survivors’ pension in the event of a fatal injury.
Statutory Benefits
In Togo the statutory benefits are: 12 public holidays, Maternity leave and paid leave.
Employee Benefits
The employee benefits in Togo are: 12 public holidays,30 days of paid leave, sick leave and 14 weeks of maternity leave.
LEGISLATION
- Constitution of Togo, 1992 (revised in 2007)
- Labour Code, 2006
- Order No. 1464, 2007
- Child Code 2007
- Social Security Code, 2011
- Law N°2011-006 of 21 February
- Inter-professional Collective Agreement, 2011
- Décret no 70-164 du 2 octobre 1970
- Public Holidays Ordinance 1979
- Interministerial decree n° 2002/2012 / MTESS / MS of 13 February 2012
- Arrêté n° 1556/MPFTRAPS du 22 mai 2020 déterminant les travaux dangereux interdits aux enfants du Togo
STATUTORY BODIES
Togo Revenue Authority
