Employer of Record in Cote d'Ivoire

An Employer of Record, or EOR, is a company that legally employs workers on your behalf in another country. If you want to hire someone in Cote d'Ivoire, but you don't have a registered business there, an EOR is a straightforward solution. It handles all the local HR tasks like payroll, taxes, benefits, and compliance with Ivorian labor laws. This means you can build a team in Cote d'Ivoire without the time and expense of setting up a local entity. For EOR services, you can work with a provider like Rivermate.

How an Employer of Record (EOR) Works in Cote d'Ivoire

Using an EOR simplifies the process of hiring in Cote d'Ivoire. You find the talent, and the EOR handles the rest.

Here is how it works:

1. You choose your candidate. You recruit and select the person you want to hire in Cote d'Ivoire.
2. The EOR hires them legally. The EOR, which has a legal entity in Cote d'Ivoire, hires the employee on your behalf. They draft a compliant employment contract that follows all local labor laws.
3. Onboarding begins. The EOR manages the entire onboarding process, making sure all necessary paperwork is completed correctly.
4. Payroll and benefits are managed. The EOR takes care of paying your employee on time, withholding the correct taxes, and managing all mandatory social security contributions. In Cote d'Ivoire, employers contribute around 12.75% of an employee's gross salary to social security, while employees contribute 6.30%.
5. Ongoing compliance is ensured. The EOR stays up to date with any changes in Ivorian employment regulations to keep your business compliant. This frees you up to focus on managing your employee's day-to-day work and growing your business.

Why use an Employer of Record in Cote d'Ivoire

Using an EOR in Cote d'Ivoire offers a practical way to expand your team and enter a new market efficiently. It saves you from the complex and lengthy process of establishing a legal entity in the country, which can take several months. This allows you to onboard new talent quickly and focus on your core business objectives.

Key benefits include:

• Speed. You can hire employees and start operating in Cote d'Ivoire in a fraction of the time it would take to set up your own company.
• Cost savings. Avoid the high costs associated with legal fees, administrative setup, and maintaining a local HR department.
• Compliance. You gain local expertise that ensures you comply with all Ivorian labor laws, reducing the risk of fines or legal issues.
• Flexibility. An EOR allows you to test the Ivorian market or hire for specific projects without a long-term commitment. You can scale your team up or down as your business needs change.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Cote d'Ivoire includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Cote d'Ivoire.

Hiring in Cote d'Ivoire means navigating a system with a formal labor code and a large informal economy. If you're a foreign company, you need to follow the formal laws. The main law governing employment is the Labour Code, which outlines the rights and duties of employers and employees. All new hires must be declared to the national social security fund (CNPS) and the labor inspectorate.

Employment contracts & must-have clauses

You must formalize employment contracts in writing. They can be for a fixed term or an indefinite term. Indefinite-term contracts are standard for long-term employment. Fixed-term contracts can be used for up to 24 months for things like seasonal work or specific projects.

Your employment contracts must include:

• Date and place the contract is established
• Employer's name, job title, and address
• Employee's name, sex, date of birth, address, nationality, and job title
• Contract duration and whether it's fixed-term or indefinite
• Employee's salary and other payment details

Probation periods

You can include a probation period in the employment contract, but it's optional and must be in writing. During this time, either you or the employee can end the contract without notice or compensation.

The maximum length of a probation period depends on the employee's role:

Working hours & overtime

The standard workweek is 40 hours, typically 8 hours per day. For agricultural workers, the maximum is 48 hours per week.

Work beyond the standard 40-hour week is overtime. You must pay a premium for these hours.

• First 8 overtime hours per week: 115% of the regular hourly wage
• Beyond 8 overtime hours per week: 150% of the regular hourly wage
• Overtime on rest days: 150% of the regular hourly wage
• Night work overtime: 175% of the regular hourly wage

Public & regional holidays

Employees are entitled to paid time off for public holidays.

Hiring contractors in Cote d'Ivoire

You can hire independent contractors in Cote d'Ivoire. This gives you flexibility, but you need to be careful about misclassification. If a court decides your contractor is actually an employee, you could face penalties.

An Employer of Record (EOR) can help you avoid this risk. An EOR hires employees on your behalf, taking on the legal responsibility of an employer. This means the EOR handles all the HR tasks like payroll, taxes, and benefits, ensuring you comply with local labor laws. Using an EOR allows you to work with talent in Cote d'Ivoire without setting up a legal entity in the country.

Navigating compensation and payroll in Cote d'Ivoire means understanding a system with specific rules. You'll find a government-set minimum wage and standard practices for paying your team. The system is designed to be straightforward, with clear guidelines on how and when to pay employees. This ensures everyone knows what to expect.

Payroll cycles & wage structure

In Cote d'Ivoire, the payroll cycle is typically monthly. You should pay your employees once a month, usually at the end of the month. Direct bank transfers are the most common and preferred payment method. Mobile money is also becoming a popular option, especially for workers who may not have a traditional bank account.

When you pay your employees, you must provide them with a payslip. This document should detail their gross salary, any deductions like taxes and social security, and their final net pay.

Overtime & minimums

The standard workweek is 40 hours, Monday through Friday. Any hours worked beyond this are considered overtime. Overtime pay is calculated at a higher rate.

• First 8 extra hours: 115% of the regular salary.
• Additional hours: 150% of the regular salary.
• Night hours: 175% of the regular salary.

Cote d'Ivoire has a national minimum wage, which is the lowest amount you can legally pay your employees. The government sets this rate, and it applies to all workers. As of early 2024, the minimum wage for the industrial sector is 60,000 CFA per month.

Employer taxes and contributions

As an employer, you are responsible for contributing to several social programs on behalf of your employees. These contributions fund family allowances, industrial accident insurance, and pensions.

Employee taxes and deductions

Employees also contribute to the tax system through deductions from their salaries. This is done through a Pay-As-You-Earn (PAYE) system.

In Cote d'Ivoire, employee benefits and leave are a mix of mandatory requirements and optional perks. The labor code sets the minimum standards you must follow. This includes things like paid time off, sick leave, and contributions to social security. Think of these as the foundation of your benefits package. On top of this, many companies offer extra benefits to attract and keep the best talent. Understanding both the required and the supplemental benefits is key to hiring in the country.

Statutory leave

Here are the legally required types of leave you must provide to your employees in Cote d'Ivoire:

• Annual Leave: After one year of service, employees get a minimum of 26 days of paid annual leave. This increases with their years of service.
• Sick Leave: Employees are entitled to at least five days of paid sick leave per year.
• Maternity Leave: Female employees receive 14 weeks of paid maternity leave. This is typically split into six weeks before and eight weeks after childbirth.
• Paternity Leave: Fathers are entitled to 10 days of paid leave after the birth of a child.
• Family Event Leave: You must provide up to 10 days of paid leave for significant family events.

Public holidays & regional holidays

Cote d'Ivoire has 14 public holidays. If a holiday falls on a weekend, it is generally not moved to a weekday.

Typical supplemental benefits

To build a competitive benefits package, you can offer more than the legal minimum. Here’s a look at both statutory and common non-statutory benefits.

While not required, things like a 13th-month bonus or private health insurance can make your company more attractive to potential employees. The national universal healthcare system, the CMU, provides basic coverage, but many employers offer supplemental private health insurance.

How an EOR can help with setting up benefits

Setting up a benefits plan in a new country can be complex. An Employer of Record (EOR) simplifies this process for you.

An EOR already has a legal entity in Cote d'Ivoire. This means you don't have to set one up yourself. They handle all the administrative and legal tasks related to employee benefits.

Here’s what an EOR can do:

• Ensure Compliance: An EOR understands local labor laws and makes sure your benefits package meets all legal requirements.
• Administer Benefits: They manage everything from enrolling employees in social security to tracking leave.
• Offer Competitive Packages: An EOR can advise you on what supplemental benefits are common in the local market to help you attract top talent.
• Simplify Payroll: They handle payroll and ensure all contributions and deductions are made correctly.

Using an EOR saves you time and reduces risk. You can be confident that your employees are taken care of and that you are fully compliant with local laws.

When an employment relationship ends in Cote d'Ivoire, you need to follow a specific process. The country's labor laws outline clear steps for both employers and employees to ensure a fair and compliant separation. This involves providing a valid reason for termination, observing notice periods, and paying severance when required. Failing to follow these rules can lead to legal issues.

Notice periods

When you decide to terminate an employment contract, you must provide the employee with a notice period. This period varies depending on the employee's length of service and their job category. The notice period can range from 8 days to 4 months. It is possible to pay in lieu of notice, meaning the employee receives their salary for the notice period without working. During the notice period, employees are entitled to two paid days off per week to look for a new job.

Here is a general idea of how notice periods are structured:

Severance pay

Employees with at least one year of service are typically entitled to severance pay. You do not have to pay severance if the termination is due to gross misconduct. The amount of severance pay is calculated based on the employee's average monthly salary and their length of service.

The calculation generally follows these guidelines:

• 1 to 5 years of service: A percentage of the average monthly salary for each year of service.
• More than 5 years of service: The percentage increases for the subsequent years.

How Rivermate handles compliant exits

Navigating the details of termination and offboarding in a different country can be complex. At Rivermate, we manage the entire process for you to ensure everything is compliant with Ivorian labor law.

Here’s how we help:

• Compliant contracts: We start by drafting employment contracts that are in full accordance with Cote d'Ivoire's labor code.
• Termination management: We handle all aspects of the termination process, including providing the correct notice period and calculating the proper severance pay.
• Documentation: We take care of all the necessary exit documentation to finalize the employment relationship correctly.
• Risk reduction: By managing these processes, we help you avoid the risks of non-compliance and potential legal disputes.

Navigating the visa and work permit system in Côte d'Ivoire is a key step to expanding your team in the country. The process involves both the employee and the employer. The government of Côte d'Ivoire issues work permits together with residency visas, which simplifies the application process. As the employer, you play a significant role in sponsoring your employee's application.

Employment visas & sponsorship realities

An Employer of Record (EOR) can help you employ workers in Côte d'Ivoire without setting up a local entity. This simplifies the process of hiring and onboarding employees. An EOR can sponsor work permits for foreign employees, managing the entire process for you.

Here is what an EOR can typically sponsor:

• Work Permits: An EOR can apply for and obtain the necessary work permits for your foreign employees.
• Residence Permits: The EOR can also handle the application for residence permits, which are required for anyone staying in the country for more than 90 days.
• Dependent Visas: Some EOR services may also assist with securing visas for the dependents of your employees.

To be eligible for a work visa in Côte d'Ivoire, there are several requirements you and your employee will need to meet.

The process generally involves these steps:

1. Labor Market Test: The employer must advertise the job locally for one month. If no suitable local candidate is found, the company can then hire a foreign national.
2. Work Permit Application: The employer initiates the work permit application with the Ministry of Employment.
3. Visa Application: Once the work permit is approved, the employee can apply for a long-stay visa at the nearest Côte d'Ivoire embassy.
4. Residence Permit: Upon arrival in Côte d'Ivoire, the employee must apply for a residence permit.

Business travel compliance

For short-term visits, a business visa is required. This visa is for individuals conducting business activities for up to 90 days. Those on a business visa are not required to obtain a work permit or a residence permit.

Keep in mind that all application forms are in French, so you may need a professional translator. Working with an EOR can help you navigate these complexities and ensure compliance with all local laws.