Yemen: A Guideline to Payroll and Employer of Record

Run your business seamlessly with Neeyamo as we help you go beyond borders to manage your international payroll and hire new talent in Yemen.

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Yemen is a country located in the southern end of the Arabian Peninsula, bordered by Saudi Arabia to the north and Oman to the northeast.

Yemen has a growing industrial sector, which includes Oil and gas, crude oil production and petroleum refining, food processing, handicrafts, small-scale production of cotton textiles and leather goods, aluminium products, commercial ship repair, cement, and natural gas production.

Do your organization's expansion plans require hiring employees in Yemen? Do you lack a physical entity in the country – a key requisite to hire local talent? Neeyamo – one of the top Global payroll providers, assists organizations worldwide with onboarding and managing employees in Yemen - processing payroll, managing local compliance requirements, benefits, and more.

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Facts And Stats




Yemeni Rial

Official Language


Fiscal Year

1 January to 31 December

Date Format


Country Calling Code


Time Zone

GMT + 3

Global Payroll


Handling payroll for a widespread workforce can pose a significant challenge for any organization, and the added complication of compliance can make things worse. If companies spend more time processing payroll, it directly impacts day-to-day operations and their overall productivity. 

Over the years, Neeyamo has observed these complexities and strived to provide a global payroll solution through a single technology platform - Neeyamo Payroll.  Cloud-based payroll service providers, like Neeyamo, assess payroll industry trends and offer a consolidated solution in its Global Payroll Technology Stack, making outsourcing payroll cost per employee easier.

Payroll Taxes

Payroll tax is the percentage amount retained from an employee's salary and paid to the government to invest in the welfare of the general population.

Employee Taxes

Employee Contribution

Social Security Contributions - 6%

Employer Taxes

Employer Contribution:

Social Security Contributions - 9%

Payroll Cycle


Undoubtedly, payroll is a critical aspect of any organization. The Pay cycle is a notable feature that provides a sense of accountability for an employee to be paid consistently for their work.


The frequency cycle is monthly.

13th Month Cycle

There is no statutory requirement to pay the 13th or the 14th month salary. Employees receive a generous 30 days annual leave and are allowed to carry half of it to the following year.

Global Work


An Employer of Record service provider helps you get rid of the hassle of handling the complexities that come with setting up a new employee in remote locations. They act as legal employers, facilitate salary payments, and handle everything from health insurance, payroll taxes, and employee benefits to comply with local tax laws and regulations.

This ensures that the client company can focus on the employee’s everyday tasks safely in the knowledge that they have a cost-effective solution as they continue their global expansion.

HR Mandates and Practices

Minimum Wage

There is no established minimum wage for private sector workers in Yemen. Labour Code only stipulates that the minimum wage payable to a worker cannot be less than the minimum wage payable to public sector employees (state administration). The current minimum wage for public sector workers (civil servants) is 21,000 Rials per month.


Working hours in Yemen

Official working hours shall not exceed eight hours per day or 48 hours per week. Weekly hours of work shall be distributed over six working days, followed by one day of rest with full pay. Official working hours during the month of Ramadhan shall not exceed six hours per day or 36 hours per week.

Overtime in Yemen

Any worker employed over time shall, regardless of his occupation, be entitled to compensatory rest periods with pay calculated on the basis of the following rates:

  • One-and-a-half times for overtime on normal working days
  • Double time for overtime night work

Working hours, whether normal or overtime, shall not exceed 12 hours per day.

Data Retention Policy

Yemen currently does not have a comprehensive data retention law that specifically governs how long businesses and organizations must retain data.

Hiring and Onboarding Requirements


Employment Law

Labor Code of Yemen: This is the primary legal document outlining employee rights and employer obligations.


The specific onboarding documents required for employees in Yemen may vary depending on the employer and the industry. However, some of the most common onboarding documents include:

  • Name 
  • Address 
  • Contact information
  • Emergency contact information
  • Proof of Identity
  • Educational Documents


Upon signing a contract of employment, a worker may be subject to a probationary period not exceeding six months with the same employer, to be stipulated in the contract.


Public Holidays for 2024

  • 8 April -Eid al-Fitr holiday (Tentative Date)
  • 9 April - Eid al-Fitr Eve (Tentative Date)
  • 10 April - Eid al-Fitr (Tentative Date)
  • 11 April - Eid al-Fitr holiday (Tentative Date)
  • 1 May - May Day
  • 22 May - Unity Day
  • 16 June - Eid al-Adha Eve (Tentative Date)
  • 17 June - Eid al-Adha (Tentative Date)
  • 18 June - Eid al-Adha holiday (Tentative Date)
  • 19 June - Eid al-Adha holiday (Tentative Date)
  • 20 June - Eid al-Adha holiday (Tentative Date) 
  • 8 July- Muharram (Tentative Date)
  • 26 September - Revolution Day
  • 14 October - Liberation Day
  • 30 November - Independence Day

Annual Leave

Workers shall be entitled to leave of not less than 30 days with full pay for each year of effective service, to be calculated on the basis of at least two-and-a-half days for each month.

Maternity Leave

A pregnant worker shall have the right to maternity leave with full pay for 70 days.A pregnant worker shall be granted a further 20 days' leave in addition to the days in the following cases:

  • if her labour was difficult, as established by a medical report,
  • if she gives birth to twins.

Pregnant Workers are paid their full wages (100%) during the term of maternity leave, i.e., 70 days to a maximum of 90 days. Maternity leave is paid by the employer.

Paternity Leave

There is no paternity leave.

Sick Leave

In case of sickness, workers shall be entitled to continuous or non-continuous sick leave on the following basis:

  • sick leave with full pay for the first and second months of sickness;
  • sick leave with 85% of wages for the third and fourth months of sickness;
  • sick leave with 75 % of wages for the fifth and sixth months of sickness;
  • sick leave with 50 %  of wages for the seventh and eighth months of sickness.



Either party to a contract of employment may terminate the contract, provided that the party wishing to do so shall notify the other in any of the following cases:

  • If one of the parties fails to observe the terms of the contract or labour legislation;
  • If work permanently ceases, either entirely or in part;
  • If there is a reduction in the number of workers for technical or economic reasons;
  • If the worker absents himself without a legitimate reason for more than 30 days within the same year or for 15 consecutive days, provided that termination of the contract is preceded by a written warning from the employer after 15 days of absence in the former case and seven days in the latter;
  • If the worker reaches statutory retirement age;
  • If the worker is declared unfit to work by decision of the competent medical committee.

Notice Period

If a contract is terminated by one of the parties thereto in accordance with Article 36, the party wishing to terminate the contract shall give the other party prior notice of termination equivalent to the period prescribed for the payment of wages or pay the wage for such period in full in lieu of notice.

If either party refuses to receive notice of termination of the contract, the notice may be deposited with the Ministry or one of its offices.

The period of notice provided is calculated as follows:

  • 30 days for workers with monthly wages;
  • 15 days for workers with half-monthly wages,
  • one week for workers working on the basis of production or piece work, or hourly, daily or weekly rates.

Severance Pay

Severance pay is as follows:

  • One month's pay for each year of completed service where employees are not entitled to a monthly pension or a lump-sum payment
  • 6 months wages in case of termination due to misconduct of the employer



Foreigners must obtain appropriate visas to enter the country

The main Yemen visas are:

  1. Student visa
  2. Business visa
  3. Tourist Visa
  4. Transit Visa
  5. Diplomatic/Official visa

Employee Background Checks

Legal and Background Checks

Below are the types of background checks for Yemen:

  • Employment Verification
  • Identity Verification
  • Education Verification
  • Medical Examinations
  • Criminal Record Checks
  • Education and Employment Verification
  • Professional License Verification
  • Financial Checks

Last updated on December 26, 2023

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