Gabon: 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 Gabon.

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Overview

Over 88% of Gabon's surface is covered by rainforests, and it is the second largest pair of lungs in the world, after the Amazon. The country is also known as the "Last Eden," given the country's greenery and approach towards sustainability, biodiversity, and conservation. The rainforests are also accountable for absorbing over 140 million tons of Carbon Dioxide every year. 

Gabon's rainforests arent the only unique aspect of the country; the country is also known for its dedicated and skilled workforce. If your organization's expansion plans require you to hire employees in Gabon and you lack a physical entity in the country – a key requisite to hire local talent, your solution is right here with Neeyamo – Payroll management services. Neeyamo's global payroll solutions provide assistance for the onboarding and management of employees in Gabon, along with the processing of a firm's payroll accounting and tax services, handling payroll risks and controls, compliance, benefits, and more.

Tools And Instances

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Global Payroll

Neeyamo’s global payroll solution covering 180+ countries

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Global Work

A tech-based EOR solution to manage your extended workforce

Facts And Stats

Capital

Libreville

Currency

Central African CFA franc

Official Language

French

Fiscal Year

1 January - 31 December

Date Format

DD/MM/YYYY

Country Calling Code

+241

Other Languages

Fang, Mbete, Myene, Nzebi and Portugese

Time Zone

GMT+1

Global Payroll

Overview

Handling payroll for a widespread workforce can pose as a major challenge for any firm. The added complication of compliance can make things worse and drastically effect the time and efforts that can be used in other equally important aspects of an organization's development. 

Over the years, Neeyamo has observed these complexities and strived to provide a global payroll solution through a single technology platform, Neeyamo Payroll.

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

  • CNSS retirement insurance:  2.5% 
  • National Disease Insurance and Social Guarantee Fund (CNAMGS) health insurance: 1% 

The individual tax rates on ordinary income are progressive and range from 0% to 35% for both residents and non-residents.            

Taxable Income (XAF)      

Rate (%)

0 – 1 500 000  

0%

1 500 001 – 1 920 000 

5%

1 920 001 – 2 700 000 

10%

2 700 001 – 3 600 000 

15%

3 600 001 – 5 160 000     

20%

5 160 001 – 7 500 000 

25%

7 500 001 – 11 000 000

30%

Over 11 000 001   

35%

Employer Taxes

  • Family allowances: 8%.
  • Retirement insurance: 5%.
  • Work injury: 3%.
  • Health sanitary evacuations: 0.6%.
  • Medicines’ distributions: 2%.
  • Hospitalisations: 1.5%. 

Payroll Cycle

Overview

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.

Frequency

There is no explicit legal requirement for the payroll frequency in Gabon. However, it is customary to process payroll on a monthly or bi-weekly basis.

13th Month Cycle

There is no statutory requirement to pay the 13th or 14th month salary.

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

The minimum wage in Gabon is currently 150,000 CFA francs per month ($225).

Overtime

Any hours worked beyond the standard 40 hours qualify as overtime and must be compensated by the employer. 

There's a maximum limit of 20 overtime hours per week. This applies in specific situations like urgent or seasonal work, high workload, or staffing shortages.

Data Retention Policy

There isn't a central law in Gabon specifically outlining data retention policies for private sector employees.

Hiring and Onboarding Requirements

Hiring

In Gabon, there are no specific hiring preferences laws. However, discrimination laws are governed by the Gabonese constitution and labor laws, which emphasize the right of all citizens to obtain employment without discrimination based on factors such as color, race, sex, political opinion, religion, natural ascendance, or social origins. 

Different employers may have different preferences when hiring employees. However, some common things they look for include:

  • Being good at English or other languages, especially if the company deals with international partners.
  • Having experience that relates to the job or the industry.
  • Having the right education and qualifications, like a degree from a good school.

Onboarding

When joining an organization in Gabon, employees commonly need to submit the following documents:

  • Employment Contract
  • Work Permit Application: For foreign nationals
  • Residence Card and Work Visa
  • Payment Slips
  • Passport
  • Photographs

Probation

In Gabon, the probation period for private sector employees is set to six months.

Leave

Overview

The statutory public holidays in Gabon for the year 2024 are as follows:

  • 1 January - New Year's Day
  • 1 April -Easter Monday
  • 10 April -Eid al-Fitr
  • 17 April - Women's Day
  • 1 May - Labour Day
  • 9 May - Ascension Day
  • 20 May - Whit Monday
  • 16 June - Eid al-Adha
  • 15 August - Assumption Day
  • 16 August - National Day
  • 17 August - National Day
  • 1 November - All Saints' Day
  • 25 December - Christmas Day

Annual Leave

All employees in Gabon are entitled to a minimum of 24 days of paid annual leave per year. This leave accrues at a rate of 2 days per month worked. 

Sick Leave

Employees in Gabon are entitled to up to 6 months of paid sick leave. 

The duration of the benefit depends on the worker's length of service:

  • 15 days for less than one year
  • 1 month for 1 to 3 years
  • 2 months for 3 to 5 years
  • 3 months for 5 to 10 years
  • 4 months for 10 to 15 years
  • 5 months for 15 to 20 years
  • 6 months for 20 to 30 years
  • Plus 10 extra days for each additional year after 30 years of service.

Maternity Leave

Female employees are generally entitled to 14 weeks of paid maternity leave; 6 weeks of leave prior to the birth and 8 weeks after.

Family Leave

Employees in Gabon may be entitled to 10 days of paid leave for family events. This leave is typically used for events such as the birth or adoption of a child, the death of a family member, or the serious illness of a family member.

Termination

Overview

In Gabon, termination and offboarding requirements are governed by the Labor Code, which outlines the rights and obligations of both employers and employees. Here are the key points regarding termination and offboarding in Gabon:

Termination Procedure: The termination of employment in Gabon can occur for various reasons, including redundancy, disciplinary issues, mutual agreement, or expiration of a fixed-term contract. However, termination based on discriminatory grounds such as race, gender, or religion is strictly prohibited by law. Employers must follow legal procedures and provide valid reasons for termination to avoid potential disputes or legal action.

Severance Pay: In cases where termination is not due to gross misconduct, employees are entitled to severance pay. The amount of severance pay is typically determined by the length of service and may be specified in the employment contract or collective bargaining agreement.

Notice Period

The notice period for private sector employees in Gabon is determined by their length of service, according to the Labor Code:

  • Less than 1 year of service: 15 days notice
  • 1 to 3 years of service: 1 month notice
  • 3 to 5 years of service: 2 months notice
  • 5 to 10 years of service: 3 months notice
  • 10 to 15 years of service: 4 months notice
  • 15 to 20 years of service: 5 months notice
  • 20 to 30 years of service: 6 months notice
  • For employees with more than 30 years of service, the notice period increases by 10 days for each additional year.

Severance Pay

In Gabon, the severance pay for private sector employees is determined by the length of service and the reason for termination. According to the law, employees are entitled to severance pay after completing 2 years of service, with the amount varying based on the years of service:

  • 0.4 months of pay after 2 years of employment
  • 0.8 months of pay after 4 years of employment
  • 1 month of pay after 5 years of service
  • 2 months of pay after 10 years of service
  • 4 months of pay after 20 years of service

Visa

Overview

Preparation and Documentation: Before applying for a work permit, the employer must prepare all necessary documents. These include:

  • A valid passport for the employee.
  • Seven passport photos.
  • Two copies of the employment contract.
  • Two copies of the Tax ID card.
  • Two copies of academic qualifications (e.g., university degrees).
  • A copy of the commercial register from the employer.
  • Licenses are required for practicing the profession.
  • A letter from the employer detailing why it was necessary to hire a foreigner.
  • Approval from the relevant authority related to the profession.
  • A representative from the employer who will sponsor the work permit.
  • A negative HIV test.
  • Approval from the State Security organ in Gabon 1.

Employee Background Checks

Legal and Background Checks

The legal background checks for new hire employees in Gabon are not explicitly detailed in the provided sources. However, based on the general hiring process and legal requirements in Gabon, it can be inferred that employers are likely to conduct background checks as part of their recruitment process. These checks may include :

  • Verifying the candidate's identity
  • Employment history
  • Educational qualifications
  • Criminal records depend on the nature of the job and the company's policies.

Last updated on March 19, 2024

If you have any queries or suggestions, reach out to us at irene.jones@neeyamo.com

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