Market competitive salaries
In Guinea-Bissau, understanding what constitutes a competitive salary requires considering several factors unique to the country's economic landscape.
Cost of Living
Guinea-Bissau has a relatively low cost of living compared to Western nations. Average expenses for housing, groceries, transportation, and utilities are some of the factors that influence the cost of living.
Industry Standards
Salaries can vary significantly depending on the specific industry. Sectors like finance, mining, or international NGOs might offer higher wages compared to agriculture or local retail.
Experience and Qualifications
Experienced professionals with specialized skills typically command higher salaries. This is particularly true for roles requiring advanced degrees, technical certifications, or extensive industry knowledge.
Scarcity of Skills
Certain skillsets may be in high demand but have a limited pool of qualified candidates in Guinea-Bissau. This scarcity can drive salaries upwards for those possessing the necessary expertise.
Foreign vs. Local Companies
Multinational corporations or foreign-owned businesses may offer compensation packages closer to international standards. This can be due to factors like attracting foreign talent or adhering to global pay scales within the organization.
Minimum wage
In Guinea-Bissau, a government-mandated minimum wage is established through the Labour Code, serving as the baseline income that employers must pay their workers.
Minimum Wage Level
The current minimum wage in Guinea-Bissau is CFA 59,000 per month (approximately USD 108). This figure applies nationwide and has been in effect since January 1, 2015.
Supplementation
The legislation suggests that the minimum wage should be supplemented with a bag of rice per month. However, the specific details and enforceability of this provision are unclear.
Scope
The minimum wage applies to all employees in the formal sector, regardless of their profession.
Enforcement
Employers who fail to comply with the minimum wage regulations may face penalties from the government.
Please note that the Labour Code itself may not be readily available online and minimum wage revisions might not be officially published but rather established through memorandums of understanding, as seen in the case of Guinea.
Bonuses and allowances
In Guinea-Bissau, while there's no legal requirement for a 13th or 14th-month salary, a culture of bonuses does exist for employees.
Mandatory Benefits
Guinea-Bissau provides a set of mandatory benefits in addition to bonuses. These include a probationary period for new hires, paid annual leave, paid leave for national holidays, paid sick leave, mandated maternity leave, paternity leave, overtime pay for work exceeding regular hours, a notice period before termination, severance pay under certain circumstances, and mandatory social security contributions.
Bonuses
The bonus system in Guinea-Bissau is more complex than a single annual payment. Here's what you can expect:
- Customary Bonuses: Regular bonuses are customary for employees, often on a monthly basis, rather than being tied to specific holidays or quarters.
- National Independence Bonus: Employees with a year of service typically receive a bonus equivalent to 15 days of salary before National Independence Day (usually around September 12th).
- Christmas Bonus: Similarly, a 15-day salary bonus is often provided before Christmas.
Please note that while these bonuses are common, they are not mandated by law. Their frequency and amount can vary depending on the company and negotiation during employment.
Payroll cycle
In Guinea-Bissau, most employees are paid on a monthly payroll cycle. This means that salaries are received once a month, on a predetermined date.
Frequency of Payment
The standard practice in Guinea-Bissau is for employers to pay their workers on a monthly basis. There is no legal requirement for a specific pay frequency, but monthly cycles are the norm.
Taxes and Withholdings
Guinea-Bissau operates a progressive income tax system. The tax rate an employee pays depends on their annual income. Employers in Guinea-Bissau are required to withhold taxes from their employees' salaries and remit them to the government.