Employment Cost Calculator for Djibouti
Calculate the total cost of employing someone in Djibouti, including taxes, benefits, and our management fee.
Employer Tax Contributions
| Tax Type | Rate | Base |
|---|---|---|
| Social Security (CNSS) - Employer | 15.7% (total) | Gross Salary (capped at DJF 400,000 for pension contributions) |
| Income Tax on Salaries and Wages (ITS) | Progressive (2%-30%) | Gross Salary less employee social security contributions |
| Family Allowances | 5.5% | Gross Salary |
| Health and Professional Injuries | 6.2% | Gross Salary |
Filing & Compliance
- Monthly declarations and remittances for Income Tax on Salaries and Social Security contributions are due by the 15th day of the following month.
- An annual declaration summarizing total salaries and contributions is required by March 31st of the following year.
- Employers are responsible for calculating and withholding employee income tax and social security contributions.
In Djibouti, employee tax deductions encompass income tax, social security contributions, and other statutory deductions.
Income Tax
- Progressive Rates: Djibouti employs a progressive income tax system, meaning higher earners pay a larger percentage of their income in taxes. The rates range from 2% to 30%.
- Tax Brackets (2025): While the sources do not provide the exact current brackets, they mention rates between 2% and 30%. A previous bracket structure was:
- 2% for up to 30,000 DJF
- 15% for 30,001 to 50,000 DJF
- 18% for 50,001 to 150,000 DJF
- 20% for 150,001 to 600,000 DJF
- 30% for above 600,000 DJF.
- Exemption Threshold: Incomes below 50,000 DJF (approximately $280 USD as of January 2025) are generally exempt from income tax.
Social Security Contributions
- Employee Contribution: Employees contribute 4% of their monthly wages to social security.
- Employer Contribution: Employers also contribute 4% of the employee's monthly wages to social security.
Other Deductions and Employer Contributions
- Disability Insurance: Employers contribute 6.2% of the employee's monthly wages towards disability insurance.
- Family Allowance: Employers contribute 5.5% of the employee's monthly wages towards a family allowance.
- Health and Professional Injuries: The combined contribution for health and professional injuries by employers is reportedly 6.2%.
- Obligatory Health Insurance: Some sources mention employers paying an additional 2% for obligatory health insurance, resulting in a total employer contribution of approximately 17.7%.
Additional Information
- PAYE System: Many employers in Djibouti utilize the Pay-As-You-Earn (PAYE) system, automatically deducting taxes from employee salaries. This simplifies tax compliance for employees.
- Non-Resident Withholding Tax: Non-residents earning income in Djibouti are subject to a 10% withholding tax.
- Currency: The official currency is the Djiboutian Franc (DJF).
- Important Note: Tax laws and regulations are subject to change. The information provided is believed to be accurate as of February 5, 2025 but should be confirmed with official sources for the latest updates.
