How to Hire Remote Employees In 

Benin

The Basics

Currency
Cfa Franc Bceao
Employer Taxes
16.4%-19.4%
Payroll Frequency
Monthly
Official Language
French

Employment in 

Benin

Hire Independent Contractors

Independent contractors or freelancers are self-employed individuals who provide services to companies as a non-employee. This is one of the most common ways companies tend to hire non-local designers, engineers, support reps, etc.

For legal and tax purposes, independent contractors are not classified as employees. They may work for multiple clients, set their own work hours, negotiate their pay rate, and decide how a job gets done.

For example, the IRS says that if an independent contractor or freelancer does work that can be controlled (what will be done and how it will be done) by an employer then they are, in fact, classified as an employee.

As you can imagine, hiring someone as an independent contractor versus an employee is a fine line to tread.

While there are benefits when you choose the contractor route, there are quite a few drawbacks to consider and you’ll need to weigh them carefully to determine the best fit for your company.

Benefits of Hiring Independent Contractors
Reduced overhead: Lower cost in expenses, payroll, benefits, and more.
Greater flexibility: Contractors can be brought on as-needed. If not a good fit, you simply don’t have to move forward with the contract.
Reduced legal risk: Contractors aren’t usually protected by employment anti-discrimination and workplace safety laws.
Disadvantages of Hiring Independent Contractors
Risk of Misclassification: Not only does this deny workers their proper protections, it can also result in steep penalties and damage to your company. If the IRS determines that employee misclassification has occurred, you will be liable for a percentage of the employees wages, FICA contributions, penalty fines, unpaid taxes, up to a year in prison, and more.
Lack of Control: Contractors are drawn to being independent because it gives them greater control over the work they perform and who they work with. Because they’re not employees, you can’t tell them what to work on and how it should be done.
Lack of Loyalty: Contractors come and go as-needed. Many companies hire contractors for short-term work, which makes it difficult to cultivate loyalty.
Increased Scrutiny: Using Independent Contractors typically leads to an increased risk of being audited.

Set up a subsidiary in 

Benin

A foreign subsidiary is a company that operates overseas as part of a larger company who’s HQ is in another country.

Establishing a foreign entity is great for having an international presence and accessing new markets. Though, setting up a subsidiary in Benin can be expensive, stressful, and time-consuming. It's not for the faint of heart.

To set up a subsidiary in Benin, you have to:

  1. Register your business name and file articles of incorporation
  2. File for local bank accounts
  3. Learn and keep track of the local employment laws
  4. Set up local payroll
  5. Hire local accounting, legal, and HR people

If you're lucky, this process can take months. If you're not so lucky, it can take up to a year. And on average, it costs about $50k-$80k, all-in-all, to get setup. And that's just for Benin.

Use an Employer-of-Record (EOR)

An employer-of-record (EOR) is a company that hires and pays an employee on behalf of another company.

An EOR is typically used to overcome the financial and regulatory hurdles that often come with employing remote workers.

Each country has its own payroll, employment, and work permit requirements for non-resident companies doing business in their jurisdiction. Meeting those demands can be a huge obstacle when it comes to hiring remotely.

At Panther, we help companies employ and pay people in over 160 countries, without having to set up a foreign subsidiary. Payroll, benefits, taxes, compliance, and more are all handled by us, at a fraction of the cost.

Outside of saving you months and tens of thousands of dollars, other advantages of using Panther are:

  • Ability to attract talented and motivated employees from all over the world.
  • Full legal compliance: There is no risk of violating local employment laws.
  • Transparency: Employees are still your employees. All the work, processes, operations and day-to-day business belong to you, the company, just like with any other employee. Panther just takes on all of the responsibilities, obligations and admin work related to your team's employment.
  • No risk of misclassification

Because you no longer have to set up your own subsidiary, you’ll save a ton of time and tens of thousands of dollars using Panther.

Paying Remote Employees

Paying employees in Benin is not the same as paying workers in your own country. Employees have to be paid using Benin’s employment and payroll standards.

This means that you have to know, understand, and keep up with 1) fluctuating currency changes, and 2) local payroll and tax laws in the countries you’re looking to hire in.

Outside of the laws and regulations around payroll, there may be different conditions surrounding leave, overtime, termination, and more. As you can imagine, maintaining this kind of regulatory knowledge can be challenging. But it is crucial and necessary to follow local legislation.

After, you’ll have to determine the best way to pay your international employees. This can be done in a number of ways, including but not limited to:

Pay through a local entity

One of the most challenging (and expensive) parts of paying international employees is setting up the infrastructure to do so.

Before you start to run payroll, you have to register your company as the local employer in the country the worker resides in. As you can see in the “Set up a subsidiary” section, this is a multi-step process that can take up to a year and put you on your way to bankruptcy.

Work with an EOR

Outside of EORs acting as the full admin employer, many also provide remote payroll.

For example, at Panther, in just 1-click, you’re able to pay your entire global team, anywhere in the world. We send you an invoice each month, charge you in US Dollars, and pay your employees the same amount in their local currency.

We factor in currency fluctuations and use the mid-market rate plus any applicable fee passed on by our provider at cost at the time of billing.

Benin

 Specific Information

Working Hours

The standard working hours in Benin is Monday to Friday from 8 a.m. - 12:30 p.m. and 3:30 p.m. - 7 p.m and Saturday from 9 a.m. to 1 p.m.

Overtime

In Benin, overtime is paid at specific percentages above the regular rate, depending upon the time worked.

Employees receive at least 24 hours of rest a week, typically on a Sunday.

Payroll Tax

Employer

Employer

  • Pension
  • Family allowance
  • Industrial Injury Insurance


Minimum Wage

The minimum wage in Benin is 40,000 CFA francs per month.

Payroll

Pay Cycle

In Benin, employees expect to be paid monthly.

13th Salary

In Benin, onuses often include the 13th or 14th month pay approach.

Leave

Paid Time Off (PTO)

Employees choose when to take their vacation, but they must take 14 consecutive days. Employees receive two working days of leave per month after a year of service.

After 20 years of service, employees receive an extra two days of vacation each year. After 25 years, they receive a further four days of vacation and after 30 years of employment, they receive an extra six days of vacation.

Public Holidays

There are 16 public holidays.

Sick Days

In Benin, Employees’ contracts are protected while they are unwell, but they can be dismissed if they are declared unfit for work after their sick leave ends.

Employees receive one month of sick leave with less than a year of service. Those with tuberculosis, mental illnesses, AIDS, cancer, central nervous system diseases and leprosy receive six months of fully paid leave after one year of service.

Sick leave is paid in Benin depending on the term of an employee’s service in a company.

  • More than 12 months of service: One month of paid leave
  • 1 - 5 years of service: Three months paid leave and three months of half paid leave
  • More than 5 years of service: Six months paid leave

Maternity Leave

Female employee would be entitled to:

  • 6 weeks before the expected delivery date;
  • 8 weeks after that. If a woman experiences any postpartum complication; and
  • maternity leave can be extended by 4 weeks.

The employee is eligible to receive free healthcare and required benefits in kind during this period.

The employer must pay her normal wage during maternity leave. Social Security Funds will work with the employer to manage this financial expense of the company.

Paternity Leave

In Benin, male employee has 3 days leave.

Parental Leave

There are no statutory provisions for parental leave.

Other Leave

No Info.

Marriage Leave

No Info.

Bereavement Leave

No Info.

Termination

Termination Process

Employment contracts must be terminated in writing, but employers must provide a reason.

Employees can defend themselves and if the dismissal is unfair, the labor court can award compensation to the employee, if they have a year of service.

Notice Period

The notice period in Benin is 30 days.  However for senior workers and executives the notice period is three months.

In the case of an employee serving their notice period, a break of two days per week is permitted to allow them to  search for a new job.

Severance Pay

The statutory severance pay in Benin is as follows:

  • For 1-5 years of service: 30% of average monthly salary
  • For 6-10 years: 35% of average monthly salary
  • For more than 10 years: 40% of average monthly salary

Probation Period

The probation period is 3 months.