Employer of Record in Gabon

Guide to Hiring Employees in Gabon

Your guide to hiring employees in Gabon, covering the employment landscape, employer of record responsibilities, working customs, and local labor laws.

Hiring Employees In Gabon
Employer Of Record In Gabon

Capital City

Libreville

Currency

Central African CFA franc

 (

CFA

)

Timezone

GMT +1

Payroll Frequency

monthly

Tax Year

1 January - 31 December

Employer Tax

20.10%

Languages

French

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How to Hire Employees In Gabon

Hiring in Gabon for the first time can be overwhelming, especially when navigating unfamiliar employment laws.  Whether you hire independent contractors, set up a legal entity, or use an EOR service, understanding the local employment landscape is crucial for success.  Playroll’s comprehensive guide can help you get started if you're hiring locally or relocating a team member.

Companies can hire employees in Gabon in the following three ways:

  • Setting up a local entity. Entity establishment reduces risk exposure and enables direct hiring, but can be costly and time-consuming – making it less practical for companies seeking quick and flexible solutions for hiring in Gabon.
  • Partnering with an Employer Of Record. An EOR, like Playroll, is a third-party entity that serves as the legal employer of your international workforce which hires, pays, and manages compliance with Gabon’s labor laws and tax regulations.
  • Hiring independent contractors. Hiring contractors gives companies a flexible, affordable alternative to hiring local employees, though it involves unique misclassification risks.

Good To Know

Gabon, located in Central Africa and with a coastline along the Atlantic Ocean, is highly urbanized, with 80% of its population residing in urban areas.

Recognized for its environmental stewardship, Gabon preserves its tropical rainforests and champions carbon neutrality initiatives.

The economy experienced growth in 2022, driven by elevated oil prices and robust commodity production, resulting in a significant GDP surplus.

Advancements in digitalization and broadband connectivity under the "Digital Gabon" initiative aim to enhance public services and promote widespread adoption of digital technology.

Employment and Labor Laws in Gabon

Businesses can only operate smoothly in Gabon if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Gabon below, to avoid any compliance issues.

Employment Contract Requirements

In Gabon, employment compliance laws require employers to provide verbal or written contracts, either fixed-term (up to 2 years, renewable once) or indefinite. Contracts must detail compensation, benefits, termination terms, etc., and must use Central African CFA francs for salary and compensation amounts

Onboarding Process

We can help you get a new employee started in Gabon quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Gabon

In Gabon, the standard workday consists of 8 hours, and the workweek spans 5 days.

Overtime in Gabon

In Gabon, overtime is capped at a maximum of 20 hours per week and is permissible only in cases of exceptional, urgent, or seasonal work due to extraordinary workload, the necessity of maintaining or increasing production, or a shortage of staff.

Probation Period in Gabon

There are no laws in Gabon specifying probationary periods, but are commonly limited to a maximum duration of 6 months.

Employer of Record in Gabon

An Employer of Record (EOR) acts as the legal employer for workers in Gabon, taking on key responsibilities to ensure compliance with local labor laws and regulations. The EOR facilitates the hiring process for businesses that want to employ workers without establishing a legal entity in the country.

The employer of record in Gabon is responsible for:

  • Employment Compliance: Ensure all employment contracts comply with Gabon's labor laws and regulations, including proper classification of employees.
  • Payroll Management: Calculate, process, and distribute employee salaries in accordance with Gabon's payroll laws, including deductions for taxes and social security contributions.
  • Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
  • Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with Gabon's legal requirements.
  • Benefits Administration: Provide mandatory employee benefits as required by Gabon's labor laws, such as health insurance, pension contributions, and statutory leave.
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Payroll Management in Gabon

Fiscal Year in Gabon

1 January - 31 December is the 12-month accounting period that businesses in Gabon use for financial and tax reporting purposes.

Payroll Cycle in Gabon

The payroll cycle in Gabon is usually monthly, with employees being paid as stipulated in the employment contract.

Minimum Wage in Gabon

The minimum wage for employees in Gabon is typically 937.5 XAF per hour, amounting to ~150,000 XAF per month for a typical 40 hour work week.

Bonus Payments in Gabon

There is no legal obligation in Gabon to provide a 13th or 14th-month salary.

Employment Taxes in Gabon

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 20.1% on top of the employee salary in Gabon.

Tax TypeTax Rate
Social Security20.10%

Employee Payroll Tax Contributions

In Gabon , the typical estimation for employee payroll contributions cost is around 2.5%.

Tax TypeTax Rate
Social Security2.5%

Individual Income Tax Contributions

Individual tax rates in Gabon follow a progressive structure, applying to both residents and non-residents. These rates range from 0% to 35%.

Income BracketTax Rate
0 - 1,500,000 XAF0%
1,500,001 XAF - 1,920,000 XAF5%
1,920,001 XAF - 2,700,000 XAF10%
2,700,001 XAF - 3,600,000 XAF15%
3,600,001 XAF - 5,160,000 XAF20%
5,160,001 XAF - 7,500,000 XAF25%
7,500,001 XAF - 11,000,000 XAF30%
11,000,001 XAF And above35%

Pension in Gabon

To qualify for the Old-age pension (Pension de vieillesse) in Gabon, individuals must reach the age of 55 (or 50 if prematurely aged) with at least 20 years of coverage, including 120 months of contributions in the last 20 years. Contributions, set at 2.5% of monthly covered earnings, are based on the legal minimum wage.

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The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Gabon tailored to your needs.

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Work Permits & Visas in Gabon

Annual Leave & Company Policies In Gabon

Mandatory Leave Entitlement in Gabon

The annual leave entitlement in Gabon is 24 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Gabon

There are 12 public holidays observed in Gabon:

HolidayDate
New Years Day1 January
Easter Monday13 April
Womens Day17 April
Labour Day1 May
Ascension Day21 May
Eid al-Fitr22 April
Whit Monday1 June
Eid al-Adha29 June
Assumption of Mary15 August
National Day16-17 August
All Saints Day1 November
Christmas Day25 December

Paid Time Off in Gabon

In general, employees in Gabon are entitled to 24 days of paid annual leave. This corresponds to 6.57% of annual income, calculated as 24 days out of 365 days.

Maternity Leave In Gabon

Pregnant employees in Gabon are entitled to 14 weeks of paid maternity leave; 6 weeks of leave taken before the birth and an additional 8 weeks after.

Paternity Leave In Gabon

Paternity leave in Gabon falls under family allowance leave, amounting to 3 days. Additionally, employees are eligible for 10 days of paid leave for family events.

Sick Leave In Gabon

Employees in Gabon are entitled to a maximum of 6 months of paid sick leave, amounting to 50% of their annual income. The pay for sick leave depends on the length of the workers employment:

  • Less than 1 year of service: 15 days sick pay benefit
  • 1-3 years of service: 1 month sick pay benefit
  • 3-5 years of service: 2 months sick pay benefit
  • 5-10 years of service: 3 months sick pay benefit
  • 10-15 years of service: 4 months sick pay benefit
  • 15-20 years of service: 5 months sick pay benefit
  • 20-30 years of service: 6 months sick pay benefit
  • More than 30 years of service: additional 10 days sick pay benefit

Parental Leave In Gabon

Currently, Gabon does not offer additional shared parental leave beyond the provisions for maternity and paternity leave.

Employment Termination and Severance Policies in Gabon

Termination Process in Gabon

In Gabon, employment contracts are subject to termination due to poor performance or misconduct. The termination process involves employers writing to the employee, scheduling an interview to discuss the cause of dismissal. In the event of termination, a formal letter must be provided, clearly indicating the reason for dismissal.

Notice Period in Gabon

In Gabon, notice periods preceding termination are determined based on the length of an employee's service:

  • Less than 1 year of service: 15 days notice
  • 1-3 years of service: 1 month notice
  • 3-5 years of service: 3 months notice
  • 5-10 years of service: 3 months notice
  • 10-15 years of service: 4 months notice
  • 15-20 years of service: 5 months notice
  • 20-30 years of service: 6 months notice

Severance in Gabon

Upon completing 2 years of service in Gabon, employees are entitled to severance pay, the amount of which is contingent on their length of service.

  • After 2 years of service: 0.4 months pay
  • 4 years of service: 0.8 months pay
  • 5 years of service: 1 month pay
  • 10 years of service: 2 months pay
  • 20 years of service: 4 months pay

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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ABOUT THE AUTHOR

Jesse Weisz

Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).

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FAQS

FAQs About Hiring In Gabon

Questions and Answers

What Is an EOR in Gabon?

An Employer of Record (EOR) in Gabon is a third-party organization that legally employs workers on behalf of your company. The EOR handles all local employment tasks, including compliance with labor laws, payroll, taxes, benefits, and employment contracts. This allows businesses to easily hire talent in Gabon without the need to set up a legal entity there, saving time and ensuring compliance with local regulations.

Can I Hire in Gabon Without an Employer of Record?

Yes, you can hire in Gabon without an Employer of Record, but this typically requires setting up a legal entity in the country. Establishing a local entity involves navigating registration processes, tax systems, and employment regulations. This can be costly and time-consuming, often taking between 4-6 months to enter a new market. An EOR provides an alternative by allowing you to hire talent quickly and compliantly without the need to establish a legal presence in Gabon.

How Much Does It Cost To Employ Someone In Gabon?

The cost of employing someone in Gabon includes more than just their salary. You also need to consider mandatory contributions such as taxes, social security, insurance, and benefits. These additional costs can vary based on the role, location, and specific employment laws in Gabon. When using an Employer of Record, there are additional service fees, usually charged as a percentage of the employee's salary or as a monthly or annual fee. This ensures compliance and covers administrative tasks.

What Is the Minimum Wage In Gabon?

As of January 1, 2024, Gabon's minimum wage rates are:

  • 937.5 XAF p/h XAF per month.
  • Applies nationwide across all sectors.
  • Adjustments typically occur annually.

How Does an EOR Help You Run Payroll In Gabon?

An EOR simplifies payroll management in Gabon by handling all aspects of salary payments, tax deductions, and compliance with local labor laws for your international employees. The EOR calculates gross pay, deducts necessary taxes and contributions, and ensures employees are paid accurately and on time. They also manage year-end tax reporting and compliance filings, reducing the administrative burden on your team and minimizing the risk of errors or penalties.

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