How to Hire Remote Employees In 

South Sudan

The Basics

Currency
South Sudanese Pound (SDG)
Employer Taxes
17%
Payroll Frequency
Monthly
Official Language
English

Employment in 

South Sudan

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 

South Sudan

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 South Sudan can be expensive, stressful, and time-consuming. It's not for the faint of heart.

To set up a subsidiary in South Sudan, 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 South Sudan.

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 South Sudan is not the same as paying workers in your own country. Employees have to be paid using South Sudan’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.

South Sudan

 Specific Information

Working Hours

The normal working hours for every employee are eight hours a day and 40 hours a week.

Overtime

The working hours of an employee engaged in shift work must not exceed 40 hours when averaged over 3 weeks. However, an employee may agree to work more than 3 hours of overtime per day or 10 hours of overtime per week.

A worker may work up to 3 hours overtime in a day and 10 hours in a week.

The employer is required to pay overtime at the rate of one and a half times the normal rate of pay (150% of normal wage rate) when overtime work is performed on working days.

If employees are required to work overtime on a weekly holiday, they are paid two times the rate of normal pay (200% of the normal wage rate).

Payroll Tax

Employer

Employer

  • National Social Insurance Fund (NSIF)


Minimum Wage

The minimum wage in Sudan is 425 Sudanese pounds(SDG) per month.

Payroll

Pay Cycle

Employees in South Sudan receives their salary in monthly basis.

13th Salary

No Info.

Leave

Paid Time Off (PTO)

Employees must receive at least 21 days of paid leave for their first three years of service.

After three years, they must earn 25 days, and after 15 years, 30 days. Workers also receive paid days off for public holidays.

Public Holidays

There are 16 public holidays.

Sick Days

Workers earn 12 days of paid sick leave.

Employees must notify employers about sickness absence as soon as possible, and employers may request a medical certificate for confirmation of sickness.

Maternity Leave

Female employees are entitled to at 90 days of fully paid maternity leave as well as 45 days for breastfeeding while working half days.

The employee has to take at least 90 days of the maternity leave immediately following childbirth.

The worker must give her employer at least a 14-day notice.

Paternity Leave

Paternity leave is for the new fathers around the time of childbirth and is usually of shorter duration.

An employee is entitled to two weeks of paternity leave on full pay, to be taken within three days after the birth of his child or immediately following miscarriage by his wife.

Parental Leave

In South Sudan, there is no provision in the law on paid or unpaid parental leave, but according to Recommendation (No. 165), provides for parental leave as an option available to either parent to take long leave of absence (paid or unpaid)without resigning from work.

Parental leave is usually taken once the maternity and paternity leave have been exhausted.

For working parents, laws may define the portion of parental leave that has to be compulsorily taken by fathers or mothers

Other Leave

No Info.

Marriage Leave

No Info.

Bereavement Leave

No Info.

Termination

Termination Process

Grounds for termination by the employer in South Sudan include:

  • Incapacity of an employee
  • Repeated unsatisfactory performance
  • Gross misconduct at work or gross misconduct that has a real and or substantial connection to the employee’s place of employment
  • Redundancy

Employers are required to provide a written statement to employees explaining the reason(s) for their termination.

Notice Period

The notice period in South Sudan is:

  • one month by either party for an employee in continuous service of the employer for one year or more
  • two weeks for an employee after continuous service of an employer for six months to one year
  • one week for an employee for a continuous service of less than 6 months.

Severance Pay

Severance pay is provided to employees with six months of service or more in a sum decided by the employer and employee in the employment contract.

Employers are not required to provide severance pay for employees who are summarily dismissed due to gross misconduct or leaving their jobs for seven days without justification or notice.

Probation Period

Probation period is not exceed 3 months.