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Employer of record in Ivory Coast

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Ivory Coast

Employer of record in Ivory Coast

Ivory Coast

Ivory Coast

Côte d’Ivoire is a country situated on the western coast of Africa. Abidjan serves as the de facto capital, while Yamoussoukro has been the designated administrative capital since 1983.

Capital: Yamoussoukro

Population: (2022 est.) 27,832,000

Currency: West African CFA Franc

Language(s):  French

Employee Benefits

Probation periods are permitted as follows:

  • Hourly employees: 8 days
  • Monthly paid workers: 1 month
  • Supervisors, technicians, and similar roles: 2 months
  • Engineers, managers, high-level technicians, and similar roles: 3 months

Employees are generally entitled to 26 days of paid annual leave after one year of employment. This entitlement increases to 27 days after five years of service.

Female employees are eligible for 14 weeks of paid maternity leave.

There is no provision for paternity leave.

Typically, employees are entitled to a minimum of 5 days of paid sick leave.

Employees are typically entitled to severance pay according to the following guidelines:

  • For up to 5 years of service: 30% of the monthly wage
  • For 6 to 10 years of service: 35% of the monthly wage
  • For over 10 years of service: 40% of the monthly wage

The Ivory Coast has specific procedures for foreign nationals seeking entry for various purposes. The primary visa types include:

  1. Short-term visa: valid for up to three months.
  2. Long-stay visa: valid for a maximum of one year.
  3. Work contract visa: validity depends on the duration of the work contract.

For foreign employees, the work contract visa is the suitable option. The initial step for foreign nationals is securing a job offer from a company in Côte d’Ivoire. Having employment with a recognized company is crucial as the employer will be involved in the visa application process. Apart from the application, several documents are necessary, including:

  • A passport with a minimum validity of six months and at least one blank page.
  • Four copies of the foreign worker’s employment contract.
  • A copy of the employee’s resume.
  • A police background check from the employee’s country of residence.
  • A medical certificate, including proof of yellow fever immunization.
  • Professional references, such as diplomas and relevant certifications.

In certain instances, documents of the employee may require translation into French. The nearest consulate or embassy of the employee’s country can provide details on specific requirements, including any additional documents that may be necessary.

As per the legislation, the following benefits are mandatory requirements: probationary period, annual leave, federal holidays, sick leave, maternity leave, overtime pay, notice period, severance compensation, and Social Security payouts.

A 23.8% premium is applied to overtime work.

In Cote D’Ivoire, VAT is a non-cumulative tax imposed on the sale of goods and services at a rate of 18%.

An employment contract can be terminated by the employee under certain circumstances, which include: the expiration of a fixed-term contract, mutual agreement, or significant intervening factors, giving the employee the right to initiate termination.

In cases where an employee is under an open-ended contract for a specified period and is temporarily replacing another worker, they can unilaterally terminate the contract after working for at least 6 months in the company.

The notice period for termination is as follows:

  • 8 days for those who have worked on the project for up to 6 months.
  • 15 days for a commitment of six to twelve months.
  • One month for between one and six years of service.
  • Two months for between six and eleven years.
  • Three months for between eleven and sixteen years.
  • Four months for more than sixteen years.

Severance pay typically applies to the following employees:

  • Up to 5 years of service: 30% of monthly wage.
  • 6 to 10 years of experience: 35% of monthly wage.
  • 10 or more years of experience: 40% of monthly wage.

The notice periods for employee terminations in Benin are as follows:

Hourly employees: 15 days’ notice.

Employees, workers, and laborers: One month of notice.

Supervisors and executives: Three months’ notice.

The Ivory Coast imposes income taxes on its citizens’ worldwide earnings. Residents of the Ivory Coast are subject to both general income tax and specific direct income tax, depending on the type of income generated (IGR).

Employer and employees are required to contribute to the social security system (Caisse Nationale de Prevoyance Sociale, CNPS). The company contributes 7.7% of the taxable salary, while employees each contribute 6.3% into the CNPS Retirement Fund, totaling 14.0% combined. The employer is responsible for paying the remaining contributions, including family allowances at 5.75% and work injury at 2%–5%. The CNPS Retirement Fund has a monthly cap of XOF 1,647,315, and other contributions are capped at XOF 70,000.

Employment Expenses: Individuals are eligible to subtract 15% of their gross income from IGR for expenses related to business activities such as travel expenses, representation fees, and office supplies.

Personal Deductions: Although tax regulations permit deductions for specific non-business expenditures, this practice is uncommon because the results usually prove less advantageous compared to opting for the standard deduction.

Standard Deduction: It’s advisable for resident aliens to choose the general or standard deduction option, allowing for a deduction of 20% of gross taxable income.

Impôt sur le revenu des valeurs mobilières (IRVM): 15% is imposed on dividends and directors’ fees.

Impôt sur le revenu des créances (IRC): 18% applies to interest payments, but it is reduced to 13.5% for individuals and 16.5% for businesses on bank deposit interest.

Revenue earned by individuals on Treasury Bonds is exempt from taxation.

Foreign banks face a 18% tax on loan interest or 9% on equipment loans with minimum three-year terms.

Impôt sur les bénéfices non commerciaux (BNC): A tax of 25% is levied on 80% of revenues from royalties, license fees, and management and service fees paid by Ivorian companies to foreign companies (effective rate: 20% of net amount paid).

Interest on certificates of deposit (bons de caisse) is taxed at 25%.

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