Capital City
Mogadishu
Currency
Somali Shilling
(
Sh.So.
)
Timezone
GMT+3
Payroll Frequency
Tax Year
Employer Tax
Languages
Arabic
Capital City
Mogadishu
Currency
Somali Shilling
(
Sh.So.
)
Timezone
GMT+3
Payroll Frequency
Tax Year
Employer Tax
Languages
Arabic
Somalia is a developing country whose main economic sector is agriculture.
Livestock, for one, accounts for 40% of the country’s GDP and has employed most of the Nomads and the semi-pastoralists population.
The country’s economic source includes telecommunication, foreign remittances, and manufacturing.
Somalis have a rich cultural heritage and are known for their artistic talents in areas like music, poetry, and dance.
Businesses can only operate smoothly in Somalia 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 Somalia below, to avoid any compliance issues.
We can help you get a new employee started in Somalia 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.
The payroll cycle in Somalia is usually Monthly and Bi-Monthly, with employees being paid as stipulated in employment contract.
In Somalia, work permits and visas are crucial for employers hiring foreign workers. The key visa types available are the Temporary Work Visa, which is valid for short-term contracts up to 6 months, the Long-Term Work Visa for contracts exceeding six months, and the Humanitarian Work Visa for those working on humanitarian projects. Employers are required to sponsor their employees' applications, provide necessary documentation, and ensure compliance with local labor and immigration laws. Work permits are typically valid for one year and must be renewed annually. Employers should plan ahead to avoid delays and ensure smooth processing of applications.
The annual leave entitlement in Somalia is 21 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.
An Employer of Record (EOR) helps businesses manage annual leave, paid time off (PTO), and local holidays across the globe, including in Somalia. By partnering with an EOR, companies ensure full compliance with local labor laws in Somalia when it comes to annual leave and time-off management. EOR providers like Playroll offer platforms that simplify tracking and managing employee time off in Somalia. By outsourcing this responsibility to Playroll, you can streamline leave management, ensure compliance, and free up time to focus on other business priorities.
Somalia observes 11 national public holidays, with several dates, such as Eid al-Fitr and Islamic New Year, varying each year according to the Islamic lunar calendar.
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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