Employer of record in Gabon
Gabon is a resource-rich country located on the west coast of Central Africa, bordered by Equatorial Guinea, Cameroon, and the Republic of Congo. It has a relatively small population but boasts vast rainforests, diverse wildlife, and significant oil and mineral reserves. The capital, Libreville, is a modern city with a growing economy driven by oil exports, timber, and mining. Gabon is known for its political stability, a high urbanization rate, and efforts toward sustainable development, including national parks that protect its rich biodiversity. The country follows a mixed legal system based on French civil law and traditional customs.
Employee Benefits
PAID TIME OFF
Annual Leave: Employees become eligible for two days of paid vacation per month after completing one year of service. For employees under the age of 18, the entitlement increases to two and a half days per month. This results in an annual leave allowance of 24 days.
Additional leave may be granted based on factors such as age, tenure with the company, and family circumstances.
Sick Leave: Employees in Gabon are entitled to up to six months of paid sick leave, initially covered by the employer. Beyond six months, compensation for sick leave is provided through social security.
Maternity Leave: Female employees are entitled to 14 weeks of paid maternity leave, with six weeks required before childbirth. If complications arise during pregnancy, an additional three weeks may be granted. In cases of multiple births, maternity leave may be extended by two weeks.
Paternity Leave: Fathers are granted three consecutive days of paternity leave upon submission of a birth certificate.
Parental Leave: There are currently no legal provisions governing parental leave.
Public Holidays: Gabon recognizes 11 paid national holidays.
STATUTORY EMPLOYEE BENEFITS
Unemployment Benefits: The 2017 Social Protection Code outlines provisions for unemployment insurance, savings accounts, and a solidarity fund; however, these measures have not yet been implemented. If an employee is dismissed without just cause or due to financial reasons, the employer is required to provide severance pay. This is calculated as 20% of the employee’s average monthly salary over the past 12 months for each year of continuous service.
Workers’ Compensation: Work-related injuries and illnesses are covered by social security contributions. Employees must undergo medical assessments for work-related conditions. Occupational diseases are recognized under a specified legal framework, and incidents occurring during commutes to and from work are also covered.
Social Security Contributions
Employee Contributions:
- 2.5% for CNSS retirement insurance
- 1% for CNAMGS health insurance
Employer Contributions (20.1% of taxable salary):
- Family allowances: 8%
- Retirement insurance: 5%
- Work injury: 3%
- Health-related expenses: 4.1% (including hospitalizations, medications, and evacuations)
The taxable salary includes gross wages and select benefits, capped at XAF 18 million annually (XAF 1.5 million/month). Allowances for professional expenses are exempt if used appropriately.
Retirement Benefits: Retirement benefits in Gabon are funded through social security contributions.
Healthcare: Gabon operates a national healthcare system under the Caisse Nationale d’Assurance Maladie et de Garantie Sociale (CNAMGS).
PRIVATE EMPLOYEE BENEFITS
Workers’ Compensation: Employees may access private workers’ compensation plans through private insurers.
Retirement Plans: Private pension and retirement schemes are available in addition to statutory contributions.
Healthcare Coverage: Private healthcare options are accessible for those seeking alternatives to the national system.
Insurance: Private life insurance policies are available for employees in Gabon.
PERSONAL INCOME TAX
Tax Year: The tax year follows the calendar year, from January 1st to December 31st.
Tax Structure: Gabon applies a progressive tax system based on the taxpayer’s income and family size (up to six dependents allowed). The calculation formula is:
Q = [(S x 12) – A] / P
- Q: Annual taxable income per share
- S: Monthly taxable gross salary
- A: 20% standard deduction
- P: Family quotient (number of shares)
Additionally, a 5% Complementary Tax on Salaries (TCTS) is levied on wages, benefits, and allowances, but earnings up to XAF 150,000 per month are exempt.
Income Tax Brackets
| Annual Taxable Income per Share (Q) | Tax Rate |
|---|---|
| 0 – 1,500,000 XAF | 0% |
| 1,500,001 – 1,920,000 XAF | 5% of Q – 75,000 |
| 1,920,001 – 2,700,000 XAF | 10% of Q – 171,000 |
| 2,700,001 – 3,600,000 XAF | 15% of Q – 306,000 |
| 3,600,001 – 5,160,000 XAF | 20% of Q – 486,000 |
| 5,160,001 – 7,500,000 XAF | 25% of Q – 744,000 |
| 7,500,001 – 11,000,000 XAF | 30% of Q – 1,119,000 |
| 11,000,001+ XAF | 35% of Q – 1,669,000 |
Taxation Method:
Gabon imposes a personal income tax (IRPP) on wages, salaries, allowances, and similar earnings. The tax is collected progressively.
Double Taxation Agreements: Gabon has signed multiple tax treaties to prevent double taxation.
Residence Criteria: An individual is deemed a resident of Gabon if they:
- Own, rent, or beneficially possess a home in Gabon
- Consider Gabon their principal residence
Payroll System: Payroll is processed on a monthly cycle.
Tax Deductions & Credits: There are no foreign tax credits. Non-residents’ tax liabilities may be influenced by tax agreements between Gabon and their home country.
Retirement & Pensions: For employees contributing beyond 240 months, retirement benefits are calculated at 1% of wages per 12 months, with a cap of 40% of average monthly earnings over the past three to five years. The legal minimum pension is 80% of the minimum wage (currently XAF 150,000/month), with payments made quarterly.
Taxable Benefits & Allowances: Allowances for professional expenses are tax-exempt if used correctly. Housing, utilities, and food allowances are taxed based on predefined thresholds. Bonuses, including 13th-month payments, are common but not legally required.
Investment Tax: Capital gains are taxed at 20% and must be reported by April 30 of the following year.
Payroll Contributions: Employers withhold PIT and TCTS monthly and remit payments by the 15th of the following month.
EMPLOYEE RIGHTS & BENEFITS
Statutory Benefits: Gabon’s public healthcare system ensures coverage for essential medical services. Employers may provide supplemental health benefits or stipends to employees.
Annual & Holiday Leave: Employees receive 24 days of paid vacation per year and are entitled to paid leave on 11 public holidays.
Maternity & Paternity Leave: Female employees are entitled to 14 weeks of paid maternity leave. Paternity leave is limited to three days and requires proof of birth.
Workplace Insurance & Compensation: Work-related illnesses and injuries are covered under social security. Private insurance options are also available.
