How to Hire Remote Employees In 

Togo

The Basics

Currency
West African CFA franc
Employer Taxes
15%
Payroll Frequency
Monthly
Official Language
French

Employment in 

Togo

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 

Togo

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

To set up a subsidiary in Togo, 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 Togo.

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

Togo

 Specific Information

Working Hours

The standard workweek is 40 hours over six days a week, except for agricultural workers. The maximum hours of work each day is eight hours.

Overtime

Overtime can be performed in exceptional circumstances and must be authorized.

Individual employment contacts or collective agreements generally determine the rate and terms of overtime performed during the day or night, public holidays, and days of rest.

Payroll Tax

Employer

Employer

  • Social security
  • Statutory contributions


Minimum Wage

Togo's minimum wage rate is 35,000 CFA francs a month, applicable to all workers.

Payroll

Pay Cycle

The Labour Code regulates the payment of wages to all classes of workers.

Wages are all kind of remuneration, including the minimum wage and any other advantages directly or indirectly paid, in cash or in kind, by the employer to the employee on the basis of the work performed.

If a worker is hired on daily or weekly basis, he/she must be paid within 15 days. Similarly, if a worker performs work on fortnightly or monthly basis, his pay period cannot exceed 1 month. Monthly payment must be made within 8 days after the end of pay period.

13th Salary

No Info.

Leave

Paid Time Off (PTO)

Togo has 14 public holidays, and you should give employees those days off.

According to the country's Labor Code, all workers should receive 30 days of paid leave at the end of a year of work.

Public Holidays

Paid public holidays  in Togo are as follows:

  • New Year’s Day
  • Easter Monday
  • Independence Day
  • Labor Day
  • Eid al-Fitr
  • Ascension Day
  • Whit Monday
  • Martyr’s Day
  • Eid al-Adha
  • Feast of Assumption
  • All Saint’s Day
  • Christmas Day


All employees in Togo are entitled to a paid day off on the public holidays observed in Togo.

Sick Days

Employees receive six months of sick leave. Individual employment contracts and collective agreements may provide for more favorable sick leave benefits.

Maternity Leave

Pregnant employee should receive 14 weeks of maternity leave and another six weeks of post-natal leave. If there’s a complication or illness from the pregnancy or childbirth, or multiple pregnancies, your employee should get another three weeks of paid leave.

Paternity Leave

The Labor Code doesn’t require any paternity leave, but the Interprofessional Collective Agreement gives employees two days of paternity leave.

Parental Leave

Private sector employees are not entitled to receive parental leave.

Other Leave

No Info.

Marriage Leave

No Info.

Bereavement Leave

No Info.

Termination

Termination Process

The employment contract of indefinite duration may be terminated by the will of one of the parties, provided that the party initiating the termination gives notice.

The reasons for termination of employment must be indicated by the terminating party.

When an employee is serving the notice period, he/she is entitled as well as obligated to work as per the agreed-upon conditions. However, they can take one vacation day per week.

The Labor Code requires notice of termination or payment in lieu of notice before terminating the services of an employee (or even when an employee terminates the employment contract).

Notice Period

The notice period in Togo is:

  • one month for workers, employees and the like;
  • three months for supervisors, managers and others; and
  • five days for paid workers per hour.

Severance Pay

Severance is between 35% and 45% of the employee's monthly salary.

Probation Period

The standard probation period in Togo can be up to 6 months.