Employer of record in Sierra Leone

PAID TIME OFF

• Annual Leave: Employees are generally entitled to paid annual leave based on their years of service: 19 days for 1 to 5 years, 22 days for 5 to 10 years, and 28 days after 10 years of employment.
• Sick Leave: Employees are usually entitled to a minimum of five paid sick days annually.
• Maternity Leave: Female employees are entitled to 12 weeks of paid maternity leave.
• Paternity Leave: N/A
• Family Leave: N/A

Public Holidays
Sierra Leone observes 11 public holidays each year, which are paid.

• Other Paid Time Off: N/A

STATUTORY EMPLOYEE BENEFITS

• Unemployment Benefits: There is no government-provided unemployment insurance program, and employers are not obligated to contribute to any unemployment insurance fund.
• Workers’ Compensation: In the case of injury, disability, or death resulting from employment, compensation is provided under the Workers’ Compensation Act of 1965. The compensation amount depends on the severity of the injury or impairment and the worker’s earnings at the time of the incident

Social Security

• Employee: 5% of monthly earnings, or 15% for voluntarily insured individuals. There are no minimum or maximum earnings for contribution calculations.
• Employer: 10% of monthly payroll, with no minimum or maximum earnings for contributions.

Retirement Benefits

• The retirement age is 60, with a minimum of 180 months of paid or credited contributions.
• Early retirement is possible at age 55, with the same minimum contribution requirement.
• The pension system includes an age gratuity and is not accessible abroad.
• Pension is calculated as 30% of the insured’s average earnings, plus 2% for each additional year of contributions beyond 180 months. The minimum monthly pension is 50% of the national minimum wage.

Health Care

• Medical aid is a private, voluntary option for employees to sign up for, or for employers to provide.
• A mandatory national health insurance program is in place for fully employed residents.

PRIVATE EMPLOYEE BENEFITS

• Workers’ Compensation
  Currently, there is no private workers’ compensation available in Sierra Leone.
• Retirement
  There are no private pension options in Sierra Leone.
• Health Insurance
  Private health insurance is available in Sierra Leone.
• Insurance
  Private life insurance is also available in Sierra Leone.

PERSONAL INCOME TAX

• Tax Year
  The tax year runs from January 1st to December 31st.
• Tax Rates
  Both resident and non-resident individuals are taxed at a rate of 15% on taxable income.
• Taxation System
  Income tax is levied on earnings during the calendar year, and Sierra Leone employs a proportional tax system.
• Double Taxation Agreements
  Sierra Leone has some agreements in place to avoid double taxation.
• Residence Criteria
  An individual is considered a resident if they reside in Sierra Leone for more than 182 days in a 12-month period.
• Payroll Schedule
  Employees are typically paid on a monthly basis.
• Rebates & Tax Credits
  Sierra Leone offers rebates and tax credits to individuals and businesses in specific situations to encourage investment, promote economic growth, and support various industries.

HEALTHCARE

Sierra Leone’s healthcare system is not free and is divided into two main tiers: peripheral healthcare units with community health programs and secondary care, which includes district and referral hospitals. Additionally, there are private clinics and hospitals, mostly in the Freetown area.

UNEMPLOYMENT

There is no government-provided unemployment insurance program, and the labor law does not require employers to contribute to an unemployment fund.

SOCIAL SECURITY

• Employee: 5% of monthly earnings, or 15% for those voluntarily insured.
• Employer: 10% of monthly payroll.

PAYROLL ELEMENTS

• Income
  Remuneration includes salary, bonuses, overtime, taxable benefits, allowances, and certain lump-sum perks.
• Bonuses
  Employers are not legally required to pay bonuses.
• Allowances
  Certain allowances, such as housing or transportation, are not mandated by law and may depend on individual contracts.
• Benefits in Kind
  There is no legal requirement to provide benefits in kind; the provision of such benefits is subject to individual contracts or collective bargaining agreements.
• Investment Income
  Investment income may be subject to taxation.
• Retirement Contributions
  Retirement benefits are available from age 60, with a minimum of 180 months of paid or credited contributions.
• Health Insurance
  Healthcare is not free, with a dual-tier system for both public and private healthcare.
• Risk Insurance
  Sierra Leone’s labor law does not address risk insurance specifically for employees.
• Taxable Income
  Both resident and non-resident individuals are taxed at 15% on their taxable income.
• Allowable Deductions
  Deductions may include taxes, social security contributions, pension, health insurance, and loan repayments.

PAYROLL TAXES AND EMPLOYER CONTRIBUTIONS

• Payroll Taxes
  Both resident and non-resident individuals are taxed at a 15% rate on taxable income.
• Unemployment
  There is no unemployment insurance program, and no contributions are required from employers.
• Social Security
  Employee: 5% of earnings, or 15% if voluntarily insured.
  Employer: 10% of monthly payroll.
• Workers’ Compensation
  Compensation for injuries, disabilities, or death resulting from employment is governed by the Workers’ Compensation Act of 1965.

ADMINISTRATION

• Income Tax
  Sierra Leone’s personal income tax rate is expected to be around 15% for 2022.
• Payroll Taxes
  The tax rate remains 15% for both resident and non-resident individuals.
• Workers’ Compensation
  Compensation is provided for injuries or death resulting from work, determined by the severity of the incident and the worker’s earnings.