Employment Cost Calculator for Eritrea
Calculate your complete hiring costs for Eritrea employees, including payroll taxes, social security contributions, employee benefits, and management fees. This salary calculator provides accurate employer cost estimates for informed hiring decisions.
Employer Tax Contributions
| Tax Type | Rate | Base |
|---|---|---|
| Social Security (Employer) | 6% | Employee's gross salary |
| Social Security (Employee) | 6% | Employee's gross salary |
| Income Tax (PAYE) | Progressive (e.g., 5% to 20%) | Employee's taxable income |
Filing & Compliance
- Monthly remittance and reporting for PAYE and social security: 15th day of the following month.
- Annual returns for total remuneration, tax, and social security contributions: March 31st of the following year.
- Employers must accurately calculate, withhold, and remit taxes and contributions.
Income Tax Brackets
| Income Range | Tax Rate |
|---|---|
| 0 - 10,000 ERN | 5% |
| 10,001 - 30,000 ERN | 10% |
| 30,001 - 60,000 ERN | 15% |
| 60,001+ ERN | 20% |
Employee Contributions
| Deduction Type | Rate | Cap |
|---|---|---|
| Social Security | 6% of gross salary | No cap specified |
Personal Allowances
- Personal allowance: ERN 2,000 per month.
- May include pension contributions.
- May include medical expenses.
