Capital: Mogadishu
Population: (2022 est.) 14,650,000
Monetary Unit: Somali shilling (Shilin Soomaali; So.Sh.)
Language(s): Somali; Arabic
Somalia, easternmost country of Africa, on the Horn of Africa. It extends from just south of the Equator northward to the Gulf of Aden and occupies an important geopolitical position between sub-Saharan Africa and the countries of Arabia and southwestern Asia. The capital, Mogadishu, is located just north of the Equator on the Indian Ocean.
The public holidays in Somalia are as follows;
Date Holiday
- 1 Jan New Year’s Day
- 18 Feb Miraaj Nabi
- 22 Apr Eid al-Fitr
- 23 Apr Eid al-Fitr Holiday
- 1 May Labour Day
- 18 May Somaliland Sovereignty Day
- 19 May Somaliland Sovereignty Day Holiday
- 26 Jun Independence Day
- 29 Jun Eid al-Adha
- 30 Jun Eid al-Adha Holiday
- 1 Jul Republic Day
- 19 Jul Islamic New Year
- 28 Jul Ashura
- 27 Sep Prophet Muhammad’s Birthday
The probationary period is generally of 3 months
Workers shall be entitled to 15 days leave with pay for every year of continuous service
A pregnant employee shall be entitled to a maternity leave 16 weeks in duration.
There is no paternity leave
There is no paid sick leave
: Severance pay is at the following rates. Severance pay for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) is equivalent to 4.3 weeks of pay. Severance pay for redundancy dismissal for a worker with 5 years of tenure (weeks of salary) is equivalent to 21.7 weeks of pay. Severance pay for redundancy dismissal for a worker with 10 years of tenure (weeks of salary) is equivalent to 43.3 weeks of pay
13th / 14th Month Pay: No. There is no statutory requirement to pay the 13th or the 14th month salary. Employees are entitled to 30 days annual leave. There is no evidence that it is customary to give bonuses.
People intending to travel to Somalia may inquire with the Directorate of Immigration & Naturalization whether they need to obtain a visa prior to arrival. The processing time of Somali visas can take several working days so be sure to file an application in good time. The type of visa that you require for entry into Somalia depends on several different factors such as your nationality, the purpose of your planned visit and duration. It’s requirement is for travellers to have at least six months’ validity remaining on their passports. Persons wishing to enter Somalia for a temporary visit, require entry Visa, for instance: on business or to take part in a conference, to visit relatives and friends, also as a tourist.
Type of Visa/Permit
Tourist Visa: Foreigners seeking to visit Somalia for tourism purposes must obtain a tourist visa. This is valid for 90days. The requirements to obtain a tourist visa in Somalia are;
- Completed Visa application Form
- A passport that is valid within 6 months
- Two (2) recent passport size photos
- Copy of Flight Reservation
- Non-Refundable Fee
Business Visa: Foreigners seeking to visit Somalia for business purposes such as meetings and conferences must obtain a Business Visa. This is valid for 90days. The requirements to obtain a business visa in Somalia are;
- Completed Visa application Form
- A passport that is valid within 6 months
- Two (2) recent passport size photos
- Copy of Flight Reservation
- Non-Refundable Fee
Value Added Tax
The standard rate of VAT is 5%
Withholding Tax
Dividends are subject to a withholding tax rate of 5%/15%/35%
Interest payment are subject to a withholding tax rate of 10%/35%
Royalties are subject to a withholding tax rate of 10%/35%
Either of the contracting parties may terminate a contract of employment by giving written notice as under:
- Not less than ten days in the case of manual workers;
- Not less than 30 days in the case of non-manual workers.
Severance pay is at the following rates;
- Severance pay for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) is equivalent to 4.3 weeks of pay
- Severance pay for redundancy dismissal for a worker with 5 years of tenure (weeks of salary) is equivalent to 21.7 weeks of pay
- Severance pay for redundancy dismissal for a worker with 10 years of tenure (weeks of salary) is equivalent to 43.3 weeks of pay
According to the legislation, these benefits are required. These consist of the probationary term, yearly leave, federal holidays, sick leave, maternity leave, overtime pay, notice period, and severance compensation. Social Security payouts are statutory benefits as well.
The standard work week is of 8 hours per day for 6 days a week
Overtime is paid at a premium of 30%
Either of the contracting parties may terminate a contract of employment by giving written notice as under:
- Not less than ten days in the case of manual workers;
- Not less than 30 days in the case of non-manual workers.
Income tax is due and payable on the taxable income of all citizens and foreign employees working in Somalia, at the rate or rates of tax fixed by the schedule below. The income tax is payable to the Federal Government of Somalia under authority of this Appropriation Law and Law No. 5, November 7, 1966. Income tax is payable by all employers, government and private, and including not-for-profit organizations operating in the Non-Government Sector (NGO’s), based on the payments, of wages, salaries, allowances, and commissions, made to their employees.
The amount of personal income tax payable is based on the total of monetary payments made in the calendar month to individuals in the public sector and private employees by way of wage and salary compensation and allowances paid in relation to employment, assessed in accordance with the schedule in the table below:
Monthly Income bracket (in US $) Tax Rate (%)
0 to 200 0
201 to 800 6
801 to 1,500 12
1,501 and over 18
Social security contributions are not mandatory in Somalia.
The standard rate of VAT is 5%
Dividends are subject to a withholding tax rate of 5%/15%/35%
Interest payment are subject to a withholding tax rate of 10%/35%
Royalties are subject to a withholding tax rate of 10%/35%