Run your business seamlessly with Neeyamo as we help you go beyond borders to manage your international payroll and hire new talent in Somalia.
Overview
Boasting the largest global camel population, exceeding 7 million, Somalia surpasses countries like the UAE and Saudi Arabia in this unique regard. These camels' cultural and ecological importance in Somalia cannot be understated. But beyond camels, Somalia possesses another vast untapped resource: its people. With a talented, determined, and industrious workforce ready to be mobilized, Somalia presents immense potential. Investigating employment prospects within the country unveils considerable reserves of skill and ingenuity. By leveraging the nation's burgeoning labor force, the possibilities for innovation and growth in Somalia are immense.
Do your organization's expansion plans require hiring employees in Somalia? 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 Somalia- processing payroll, managing local compliance requirements, benefits, and more.
Facts And Stats
Capital
Mogadishu
Currency
Somali Shiling
Official Language
Somali
Fiscal Year
1 January - 31 December
Date Format
DD/MM/YYYY
Country Calling Code
+252
Time Zone
GMT - 5
Global Payroll
Overview
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
Income Tax Rates in Somalia for Employees:
Tax Rate - 0% to 18%
Social Security Contribution:
A social security contribution is not mandatory as per the law.
Employer Taxes
PAYE is a tax on employment income. PAYE is an efficient way of collecting taxes on income earned by employees. PAYE is required to be withheld by employers on behalf of their employees. This is to save employees from having to declare their own income. Instead, the employers must declare and pay PAYE on behalf of their employees.
In Somalia, CHAPTER VII- Law No. 5 of 1966 governs the taxation of Income from Employment. Employment tax, known as Pay as You Earn (PAYE) is withheld by the Government as an employer as well as private companies on remuneration to their employees.
Social Security Contribution
A social security contribution is not mandatory as per the law.
Payroll Cycle
Overview
Undoubtedly, payroll is a critical process for 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.
Frequency
The payroll cycle is monthly or fortnightly in Somalia.
13th Month Cycle
No, There is no statutory requirement to pay the 13th or the 14th month salary. Employees are entitled to 30 days of annual leave.There is no evidence that it is customary to give bonuses.
Global Work
Overview
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
Somalia does not have a minimum wage, there is no mandatory minimum rate of pay for workers in Somalia.
Overtime
The standard work week is 8 hours per day for six days a week.Overtime work cannot exceed 2 hours per day or 12 hours per week. The overtime pay in Somalia is 150% of the normal wage.
Data Retention Policy
There is no general data protection law in Somalia.
Hiring and Onboarding Requirements
Hiring
Somalia is primarily governed by the Labor Code of Somalia, enacted in 1972. The Labor Code establishes basic labor rights for workers in Somalia, including:
- The right to freedom of association and collective bargaining
- The right to a safe and healthy work environment
- The right to a fair wage
- The right to paid leave
- The right to social security
Onboarding
The specific onboarding documents required for employees in Somalia 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
Probation
The probationary period in Somalia is generally six months and may be extended for an additional six months.
Leave
Public Holidays
- 1 January - New Year
- 18 February - Miraag Nabi
- 21 April - Eid al-Fitr
- 22 April - Eid al-Fitr Holiday (Common local holiday)
- 1 May - May Day
- 26 June - Independence Day
- 28 June - Eid al-Adha
- 29 June - Eid al-Adha Holiday (Common local holiday)
- 28 July - Ashura
- 27 September - The Prophet's Birthday
Annual Leave
The Labor Code of Somalia mandates that all workers in Somalia are entitled to 21 days of paid annual leave for every year of continuous service.
Maternity Leave
Pregnant employees in Somalia are entitled to 3 months of paid maternity leave. This leave can be taken before or after the birth of the child. The employee must provide a medical certificate to their employer to confirm their pregnancy and the expected date of birth.
Paternity Leave
Fathers in Somalia are entitled to 2 weeks of paid paternity leave. This leave can be taken immediately following the birth of the child. The father must provide a medical certificate to their employer to confirm the birth of the child.
Sick Leave
Employees in Somalia are entitled to seven days of paid sick leave per year. After this period, employees may be eligible for an additional seven days of sick leave with half pay. The employee must provide a medical certificate to their employer to justify their sick leave.
Voting Leave
It is not specified by the law.
Bereavement Leave
Employers may offer bereavement leave to employees who have lost a close family member, such as a spouse, child, parent, or sibling. The amount of bereavement leave typically ranges from 3 to 5 days.
Military Leave
It is not specified by the law.
Termination
Notice Period
Either of the contracting parties may terminate a contract of employment by giving written notice as follows:
- Not less than ten days in the case of manual workers;
- Not less than 30 days in the case of non-manual workers.
Severance Pay
Severance pay for redundancy dismissal for a worker with one year of tenure (weeks of salary) is equivalent to 4.3 weeks of pay. Severance pay for redundancy dismissal for a worker with five years of tenure (weeks of salary) is equivalent to 21.7 weeks of pay. Severance pay for redundancy dismissal for a worker with ten years of tenure (weeks of salary) is equivalent to 43.3 weeks of pay.
Visa
Overview
People intending to travel to Somalia may inquire with the Directorate of Immigration & Naturalization whether they need to obtain a visa prior to arrival.
The processing time of Somali visas can take several working days, so be sure to file an application in good time.
The type of visa that you require for entry into Somalia depends on several different factors, such as your nationality, the purpose of your planned visit, and duration.
It is a requirement for travelers to have at least six months’ validity remaining on their passports.
Persons wishing to enter Somalia for a temporary visit require an entry Visa, for instance:
- on business or to take part in a conference
- to visit relatives and friends
- as a tourist
Employee Background Checks
Legal and Background Checks
The most common types of legal and background checks conducted in Somalia are as follows:
- Employment Verification
- Identity Verification
- Education Verification
- Medical Examinations
Last updated on December 21, 2023
If you have any queries or suggestions, reach out to us at irene.jones@neeyamo.com