Capital: Porto-Novo

Currency: West African CFA Franc

Population: (2022 est.) 13,024,000

Official languages: French

Benin, officially Republic of Benin, French République du Bénin, formerly (until 1975) Dahomey or (1975–90) People’s Republic of Benin, country of western Africa. It consists of a narrow wedge of territory extending northward for about 420 miles (675 kilometers) from the Gulf of Guinea in the Atlantic Ocean, on which it has a 75-mile seacoast, to the Niger River, which forms part of Benin’s northern border with Niger. Benin is bordered to the northwest by Burkina Faso, to the east by Nigeria, and to the west by Togo.

The public holidays in Benin are as follows;

Date & Holiday

  • 1 Jan – New Year’s Day
  • 10 Jan – Vaudoun Day
  • 10 Apr – Easter Monday
  • 21 Apr – Korité
  • 1 May – Labour Day
  • 18 May – Ascension Day
  • 29 May  – Whit Monday
  • 28 Jun – Tabaski
  • 1 Aug – Independence Day
  • 15 Aug – Assumption Day
  • 27 Sep – Maouloud
  • 1 Nov – All Saints’ Day
  • 25 Dec – Christmas Day

Probation period is up to 3 months

Female employees should get six weeks of paid leave before the birth and another eight weeks after the birth. Employers pay for half of this leave, and social insurance covers the other half.

Fathers typically get three days of paid paternity leave, but you can choose to offer more.

The due process for sick leave in Benin is as follows;

  • Employees with less than 2 years of service are generally entitled to 6 months’ sick leave.
  • Employees with 2+ years of service are generally entitled to 12 months’ sick leave.
  • Employees with 1-5 years’ service are generally entitled to three months at full pay and three months at half pay.
  • Employees with 5+ years of service are entitled to full pay for 6 months.

Employees are entitled to severance pay. The amount depends on length of service:

  • First 5 years of employment–30% of average monthly salary
  • 6-10 years of service–35% of average monthly salary
  • 10+ years of service–40% of average monthly salary

Accurately estimate your costs when employing in Benin in 2023. Includes base salary, dependents, benefits, taxes, social contributions, and payroll costs. Monthly or yearly calculation period.

13th / 14th Month Salary: There is no statutory requirement to pay the 13th or 14th month salary. Instead, the holiday will need to be taken within twelve months and it is set by the employer as opposed to the employee. Domestic workers are added to the labor code, and they are entailed to seniority bonus after a certain time. There seem to not be the same requirement for other industries.

 

Requirements to Obtain Benin Work Visas

The requirements to obtain a working visa in Benin depend on the type of visa employees need and whether they want a single- or multi-entry option. Some of the documents they must provide include:

  • A passport-style photo
  • A scanned copy of the passport
  • A copy of their flight itinerary
  • Proof of yellow fever vaccination
  • A business letter from your company
  • A completed visa application form

The letter from you, as the employer or sponsoring company, must be on your company’s letterhead. You’ll need to introduce the applicant and include their name, date of birth, passport number, employment status, and purpose for visiting Benin. It’s important for you to claim financial responsibility for the applicant and provide detailed contact information about how to reach you in Benin.

After submitting these documents to the embassy or consulate in the employee’s home country, you’ll need to wait about two to 15 days for the visa to process. However, you may be able to request rush or emergency service for an additional fee if you need the employee to come to Benin for work immediately.

Once your employees obtain work visas, they’ll need to also get work permits. As an employer, you will handle the application process on behalf of employees. Keep in mind that it can take up to 90 days to get a work permit, so it’s best to start the process early by applying for:

  • An expatriate quota approval
  • A Subject to Regularization (STR)
  • A Combined Expatriate Residence Permit and Alien Card (CERPAC)

For step two, you’ll need copies of your company’s expatriate quota grant, the employment offer, the employee’s letter of acceptance, and the applicant’s CV. When you apply for the CERPAC, you must have a letter of appointment, acceptance of the employment offer or appointment, a copy of the applicant’s passport, and a package containing the STR documentation from the Nigerian embassy.

It’s important to remember that you cannot obtain work permits for employees until you have a registered entity in Benin. This process can take weeks or even months, which delays the entire hiring process.

Other Important Considerations

Another option is for your employees to obtain an eVisa through Benin’s web-based visa issuance system. The eVisa proves that the government has given your employees electronic authorization to enter Benin even though there is no stamp or label in the individual’s passport. Eligible travelers must:

  • Have a passport that’s valid for at least six months after entry
  • Have one blank visa page in the passport
  • Have proof of sufficient funds
  • Show proof of return travel
  • Comply with all requirements on the application

A probationary period of up to 3 months is allowed. Employers may terminate a worker for a valid reason, including:

  • worker health
  • inability to hold employment
  • competence or conduct
  • changes in the organization or technology
  • economic hardship or closure of the company

If the employer dismisses the employee on personal grounds, the employer must notify the employee in writing and include the reasons for termination. The labour inspector must also be notified in writing. Notice periods are as follows:

  • Hourly employees are entitled to 15 days’ notice.
  • Employees, workers, and laborers are entitled to one month of notice.
  • Supervisors and executives are entitled to 3 months’ notice.
  • Employees on notice may spend 2 days per week looking for a new job.

Employees are entitled to severance pay. The amount depends on length of service:

  • First 5 years of employment–30% of average monthly salary
  • 6-10 years of service–35% of average monthly salary
  • 10+ years of service–40% of average monthly salary

An employee terminated for gross negligence is not generally entitled to severance pay.

These are obligatory benefits to employees. They include, public holidays, paid annual leaves, maternity leaves, paternity leaves, and other social security benefits.

Total working hours are generally 40 per week and should not exceed 56 per week.

Workers may not work more than 240 hours of overtime per year. Overtime is paid at: 112% of normal hourly rate for 41st to the 48th hour per week.

Employers may terminate a worker for a valid reason, including: worker health, inability to hold employment, competence or conduct, changes in the organization or technology, economic hardship or closure of the company. If the employer dismisses the employee on personal grounds, the employer must notify the employee in writing and include the reasons for termination. The labor inspector must also be notified in writing.

Notice periods are as follows:

  • Hourly employees are entitled to 15 days’ notice.
  • Employees, workers, and laborers are entitled to one month of notice.
  • Supervisors and executives are entitled to 3 months’ notice.

Less than XOF 50,000                                                       0%

Between XOF 50,001 and 130,000                                 10%

Between XOF 130,001 and 280,000 per year                 15%

Between XOF 280,001 and 530,000 per year                 20%

More than XOF 530,000 per year                                   30%

Allowable Deductions and Tax Credits, the first XOF 50,000 of employment income are exempt from taxation. Deductions are available for dependent children, with the tax due being reduced as follows:

  • 0% in case of one dependent child
  • 5% in case of two dependent children
  • 10% in case of three dependent children
  • 15% in case of four dependent children
  • 20% in case of five dependent children
  • 23% in case of six or more dependent children.

An individual who has is tax domicile in Benin is normally subject to taxation on worldwide income, while individuals not domiciled in the country are taxed only on Benin-source income. Domicile is based on habitual residence, which can be proved by a permanent home, principal place of residence or center of economic interests. Foreign-source income that already has been taxed may be exempt under an international tax treaty.

Employees contribute 3.6% of their gross salary to social security. Employers contribute 15.4% of gross salary to social security.

Employment expenses, NHF contributions, National Health Insurance Scheme contributions, life assurance premiums (not including deferred annuities), national pension scheme contributions, and gratuities are deductible.

Mortgage or other loan interest relating to owner-occupied accommodations is deductible from employment compensation.

The supply of goods and services carried out (or used) in Benin and imports into Benin are subject to VAT. The standard VAT rate is 18%. Exempt activities include imports of certain products, banking, and general insurance.

Employers contribute 6.4% for pension and 9% for family allowance, plus an additional 1%-4% for industrial injury assistance.

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