Employment in Chad is overseen by several legal instruments, from the Constitution to laws on social security schemes. While onboarding an individual, the employer must know about it. This section mentions all the necessary information.
Employee Contract
Public and Provincial Holidays
Leave Information
Basic
The language of the contract should be in the local language, Arabic and French. But to obtain a work permit for foreign employees, the employment contract must be translated into English.
Probation Period
The probation period in Chad is 30 days.
13th Month Pay
There is no statutory law in Chad for 13th month pay salary.
Employee Benefits
Employers in Chad may provide the following benefits to their employees:
- Family Allowance.
- Injury Insurance.
- Old-age Pension.
The payroll cycle in Chad is Hourly and Monthly.
The minimum wage in Chad is 303 XAF per hour.
The overtime pay varies based on the work done on the weekly rest day and public holidays. For overtime pay, on a weekly rest day, an additional 50% of the regular day salary is granted, and on public holidays or overnight shifts, an additional 100% of the regular day salary is provided.
Employer Payroll Cost:
| Funds |
Employer Contributions |
Limited to |
| Family Allowance |
7.5% |
Up to 500,000XAF per month |
| Work-Related Accident |
4% |
Up to 500,000XAF per month |
| Pension |
5% |
Up to 500,000XAF per month |
Employee Payroll Cost:
| Funds |
Employer Contributions |
Limited to |
| Pension |
3.5% |
Up to 500,000XAF
per month
|
Employee Income Tax
| Annual Taxable Income |
Tax Rates |
| Ranging from 0 to 800,000 XAF |
0% |
| Ranging from 800,001 to 2,500,000 XAF |
10% |
| Ranging from 2,500,001 to 7,500,000 XAF |
20% |
| Above 7,500,000 XAF |
30% |
VAT
The standard rate of VAT in Chad is 18%.
Both parties, employee and employer, can terminate the employment contract with a notice period. Moreover, if the contract specifies a limited time period of employment, it will terminate automatically after the completion. However, the employer can terminate the contract if there is any misconduct on the employee’s part.
The notice period in Chad is 60 days.
Severance pay
In Chad, severance pay varies based on years of service and the reason for dismissal. If employment is terminated without misconduct, employees are entitled to severance pay, with rates ranging from 25% to 35% of the gross salary per year, depending on years of service. In cases of dismissal due to a work injury or accident, the severance pay rates increase, ranging from 30% to 40% of the gross salary per year.
The individuals can apply for a single entry visa or a multiple entry visa, with 30 days and 90 days of validity respectively. Further, the visa can be extended to a work permit by the individual based on the stay for work purposes. However, the individual must provide all the personal details with documents and the employment contract.