Employer of Record in Sierra Leone

Businesses can only operate smoothly in Sierra Leone 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 Sierra Leone below, to avoid any compliance issues.

Employment Contract Requirements

When hiring in Sierra Leone, employers need to blend legal compliance, cultural awareness, and adaptability to foster a conducive and compliant work environment. It's essential to provide a signed employment contract detailing:

• Identification of both parties
• Commencement date
• Job duties and description
• The employee's wage and overtime rate

Onboarding Process

We can help you get a new employee started in Sierra Leone 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 Sierra Leone

The standard workweek in Sierra Leone typically consists of 40 hours, with employees working 8 hours per day for 5 days.

Overtime in Sierra Leone

Any work exceeding the standard 8-hour daily limit in Sierra Leone is considered overtime and is compensated at an extra rate of 50%. Moreover, work conducted on designated rest days incurs additional compensation of 100%.

Probation Period in Sierra Leone

Probation periods in Sierra Leone typically last 3 months, though they can extend up to 6 months based on employment contracts or collective agreements.

Fiscal Year in Sierra Leone

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

Payroll Cycle in Sierra Leone

The payroll cycle in Sierra Leone is usually monthly, with employees being paid by the end of the month.

Minimum Wage in Sierra Leone

The minimum wage for employees in Sierra Leone is typically 5 SLL per hour, amounting to ~800 SLL per month for a typical 40 hour work week.

Bonus Payments in Sierra Leone

There is no legal provision for a 13th-month salary in Sierra Leone

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 10% on top of the employee salary in Sierra Leone.

Employee Payroll Tax Contributions

In Sierra Leone , the typical estimation for employee payroll contributions cost is around 5%.

Individual Income Tax Contributions

In Sierra Leone, income tax is progressive, ranging from 0% to 30%. It is calculated based on progressive rates corresponding to varying income levels per annum.

Pension in Sierra Leone

Sierra Leone's pension system encompasses mandatory contributions managed by entities such as NASSIT, offering retirement benefits based on individuals' contributions and eligibility upon reaching retirement age. Additionally, there are voluntary pension schemes available for those seeking to supplement their retirement savings.

Mandatory Leave Entitlement in Sierra Leone

The annual leave entitlement in Sierra Leone is 19 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 Sierra Leone

Public holidays in Sierra Leone typically include:

Paid Time Off in Sierra Leone

Employees in Sierra Leone are entitled to paid annual leave based on their length of employment:

• 19 days for 1 to 5 years of employment.
• 22 days for 5 to 10 years of employment.
• 28 days for 10 or more years of employment.

Maternity Leave In Sierra Leone

Female employees are entitled to 14 weeks of paid maternity leave. Employees need to present a medical certificate confirming childbirth.

Paternity Leave In Sierra Leone

Male employees receive two weeks of fully paid paternity leave upon the birth of their child. Employees are required to provide their employer with one week's written notice prior to the intended start date.

Sick Leave In Sierra Leone

Employees are entitled to at least five days of paid sick leave per year.

Parental Leave In Sierra Leone

Sierra Leone's Employment Act of 2023 provides distinct leave entitlements for mothers and fathers but does not include a shared parental leave policy.

Termination Process in Sierra Leone

In Sierra Leone, employees may be terminated for valid reasons, with dismissal possible after two written warnings, often without compensation. Grounds for termination may include:

• Misconduct or inappropriate behaviour
• Inadequate suitability for the job position.
• Redundancy

Notice Period in Sierra Leone

In Sierra Leone, notice periods for employment termination vary based on the length of service and terms in the contract, usually ranging from one to three months.

Severance in Sierra Leone

Severance payments are not required by law in Sierra Leone, unless the termination is due to redundancy. Severance pay for redundancy is determined by the employee's tenure:

• Workers with 1 year of tenure receive 8.4 weeks' salary.
• Workers with 5 years of tenure receive 47 weeks' salary.
• Workers with 10 years of tenure receive 132 weeks' salary.