Below are the key points an employer must keep in mind while seeking employees in Benin.
Employee Contract
Public and Provincial Holidays
Leave Information
Basic
Employment contracts in Benin must be drafted in the local language and clearly state the compensation, benefits, and termination requirements. They can be for both fixed periods and indefinite periods. However, fixed-period contracts can be drafted for up to 48 months only.
Probation Period
The probationary period for employees in Benin can be from 15 days to 3 months based on type of employment.
13th Month Pay
Benin has no legal provision for 13th-month pay.
Employee Benefits
-
Maternity Leave
-
Paternity Leave
-
Social Security
-
Accommodation
-
Food Vouchers
-
Transportation
-
Bonuses
-
Insurance
Employees in Benin can be paid daily, weekly, bi-weekly or monthly.
The national minimum wage is XOF 52,000 (West African francs) per month for employees in the private sector.
Maximum overtime permitted in Benin, overtime must not exceed a total of 12 hours worked per day (or 60 hours per week), paid:
For additional daytime hours
Between 41 and 48 hours – 12% of the hourly rate
Beyond hour 48 – 35% of the hourly rate
Sundays and holidays – 50% of the hourly rate
For additional night hours
50% of the weekly hourly rate
100% of the hourly rate for Sundays and holidays
Employer Payroll Cost:
| Type of Contribution |
Contribution |
Maximum Monthly
Cap ofContribution (XOF)
|
| Social Security contributions |
15.40% |
- |
| Contribution for Pension |
6.40% |
- |
| Contribution for Family Allowance |
9.00% |
- |
|
Contribution for Industrial
Injury Assistance
|
4.00% |
Range of
Contribution is 1 % – 4 %
|
Employee Payroll Cost:
| Type of Tax |
Rate |
| Social Security |
3.6% |
Employee Income Tax
|
Annual Taxable Income
(West African CFA Franc, XOF)
|
Income Tax Rate |
| 0 to 60,000 |
0% |
| 60,001 to 150,000 |
10% |
| 150,001 to 250,000 |
15% |
| 250,001 to 500,000 |
20% |
| Above 500,000 |
30% |
VAT
VAT in Benin is charged at 18%.
Employment in Benin can be terminated both by the employee and the employer. The employer can terminate the employment on substantial grounds. If the employment is terminated without any grounds, the employer must pay a severance to the employee.
Benin’s notice period for permanent employees and employees on probation is a minimum of 15 days.
Severance pay
Severance pay in Benin depends on the years of service. Employees who have served for less than five years are entitled to 30% of their average monthly salary. Employees who have served 6 – 10 years are entitled to 35% of their average monthly salary. For employees who have served more than ten years, a severance amounting to 40% of their average monthly salary must be paid.
A visa and a work permit are mandatory requirements for foreign nationals seeking jobs in Benin. The employer must introduce the employee by name, date of birth, passport number, and employment status. The employer must take financial responsibility for the employee. The employee must obtain a visa before entering the country since a visa on arrival is not permitted.