Employer of Record in South Sudan

An Employer of Record (EOR) in South Sudan is a company that legally hires employees on your behalf. This lets you build a team in South Sudan without setting up a local company. The EOR handles all the HR tasks like payroll, taxes, benefits, and compliance with South Sudanese labor laws. You manage your team's daily work, while the EOR takes care of the employment paperwork and legal duties. For companies looking to hire in South Sudan, an EOR like Rivermate simplifies the process.

How an Employer of Record (EOR) Works in South Sudan

Using an EOR in South Sudan simplifies hiring and employment. Here is how it generally works:

• You Find the Talent: You identify the candidate you want to hire in South Sudan.
• The EOR Hires Them: The EOR legally hires the employee on your behalf through a local, compliant employment contract.
• Onboarding: The EOR manages the entire onboarding process, including all necessary paperwork.
• Payroll and Benefits: The EOR handles all payroll, tax, and benefits administration according to South Sudan's laws.
• You Manage Your Team: You direct your employee's day-to-day tasks and responsibilities.
• Ongoing Compliance: The EOR stays up-to-date with South Sudan's labor laws to ensure you remain compliant.

Why use an Employer of Record in South Sudan

Using an EOR in South Sudan helps you enter the market and hire talent quickly and legally. It removes the need to establish a legal entity in the country, which can be a complex and time-consuming process.

Here are some key benefits:

• Fast Market Entry: Hire employees and start operations in days, not months.
• Compliance with Local Laws: EORs are experts in South Sudanese labor law, reducing your risk of non-compliance.
• Reduced Admin: The EOR handles all HR and administrative tasks, letting you focus on your business.
• Cost Savings: Avoid the high costs associated with setting up and maintaining a legal entity in South Sudan.
• Expert Support: Get access to local HR and legal expertise.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in South Sudan 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 South Sudan.

Hiring in South Sudan requires understanding the local labor laws to ensure you are compliant. The primary legislation governing employment is the Labour Act of 2017. This guide will walk you through the key aspects of hiring in the country.

Employment contracts & must-have clauses

It is best practice to have a written employment contract in South Sudan. For permanent employees, a written contract is required. While oral contracts are permissible in some cases, a written agreement provides clarity and legal protection for both you and your employee.

There are different types of employment contracts to consider:

• Indefinite-term contracts: These are for permanent positions with no set end date.
• Fixed-term contracts: These have a specific end date or are for the completion of a particular project. If an employee on a fixed-term contract continues to work for two years after the contract's expiration, it is considered an indefinite contract.
• Casual contracts: These are for short-term work that does not exceed 90 days in a year.

Your employment contracts should include the following essential clauses:

• Names and addresses of both the employer and employee
• Job title and a description of the work
• Place of work
• Start date of employment
• Contract duration (for fixed-term contracts)
• Salary, allowances, and how often the employee will be paid
• Working hours and rest periods
• Leave entitlements, such as annual, sick, and maternity leave
• Notice period for termination
• Conditions for repatriation, if applicable
• Details of any collective agreements that apply

Probation periods

You can include a probationary period in an employment contract to assess a new employee's suitability for the role. The maximum duration for a probation period is typically three months. During this time, the notice period for termination is often shorter than for a permanent employee.

Working hours & overtime

The standard workweek in South Sudan is 48 hours, which is usually eight hours a day for six days. Any work done beyond these hours is considered overtime.

Public & regional holidays

Employees are entitled to paid leave on public holidays. The official public holidays in South Sudan for 2024 include:

• New Year's Day
• Good Friday
• Easter Monday
• Eid al-Fitr
• Labour Day
• SPLA Day
• Eid al-Adha
• Independence Day
• Martyrs' Day
• Christmas Day

Hiring contractors in South Sudan

You can hire independent contractors for specific projects or specialized skills. This offers flexibility and can reduce the costs associated with hiring full-time employees.

When you hire a contractor, you should have a clear contract that outlines the scope of work, payment terms, and project duration. Unlike employees, contractors are generally not entitled to benefits like paid leave and severance pay.

A major risk when hiring contractors is misclassification. If a contractor is deemed to be an employee, your company could be liable for back taxes, social security contributions, and other penalties.

To avoid misclassification, consider these factors:

An Employer of Record (EOR) can help you mitigate the risks of misclassification. An EOR legally employs the worker on your behalf, handling all the administrative and legal responsibilities. This ensures you remain compliant with South Sudanese labor laws while you manage the contractor's day-to-day work.

Navigating compensation and payroll in South Sudan requires a clear understanding of the local landscape. Salaries are influenced by industry, the employee's role and experience, and the type of organization, whether it's a government entity, an NGO, or a private business. To attract and keep good employees, you need to offer competitive pay and benefits while following South Sudan's labor laws.

Payroll cycles & wage structure

In South Sudan, the most common payroll cycle is monthly. This means you pay your employees once a month, usually at the end of the month. You can pay salaries through a direct bank transfer or in cash, although bank transfers are more secure. All payments to employees should be in South Sudanese Pounds (SSP).

Beyond the basic salary, compensation packages in South Sudan often include other allowances. These can help you build a more attractive offer for employees. Common allowances include:

• Housing Allowance: To help with accommodation costs.
• Transport Allowance: For commuting expenses.
• Hardship Allowance: For employees working in difficult or remote areas.
• Medical Allowance: To cover healthcare costs.

Overtime & minimums

The standard workweek in South Sudan is typically 40 to 48 hours, with a standard workday of 8 hours. Any work done beyond these hours is overtime. For overtime on a regular workday, you must pay the employee 1.5 times their normal hourly rate. If an employee works on a weekly holiday, the overtime rate is 2 times their normal pay.

South Sudan has a national minimum wage, which is currently 425 South Sudanese pounds per month. However, this rate is quite low, and many businesses, especially international organizations, pay significantly more to cover the actual cost of living and attract qualified workers.

Employer taxes and contributions

As an employer in South Sudan, you are responsible for contributing to the National Social Insurance Fund (NSIF) for your employees. This is a key part of your payroll obligations.

Employee taxes and deductions

Employees in South Sudan also have deductions taken from their pay. This includes their contribution to the NSIF and a progressive income tax. The income tax is deducted at the source, meaning you withhold it from their paycheck.

Here is a breakdown of the employee's responsibility:

The personal income tax is calculated based on the following monthly income brackets:

In South Sudan, providing employee benefits and leave is a matter of following the law and attracting the best talent. The Labour Act of 2017 sets the minimum requirements for employers. Understanding these rules is key to keeping your team happy and your business compliant.

Statutory Leave

The law in South Sudan requires employers to provide several types of paid leave.

• Annual Leave: Employees are entitled to paid annual leave. The amount of leave often depends on how long they have worked for you. Some sources state a minimum of 21 days per year after one year of service, while others mention a progressive allocation from 21 to 30 days based on years of service.
• Sick Leave: If an employee is sick, you must provide paid sick leave. They will need to show you a medical certificate. Employees who have worked for at least one year get 12 days of sick leave per year at their full salary.
• Maternity Leave: Female employees get 90 days of paid maternity leave. They need to let you know 14 days before they plan to take the leave.
• Paternity Leave: Fathers receive paid paternity leave after the birth of their child. The length of this leave can vary, with some sources indicating two weeks and others mentioning a shorter period.

Public Holidays & Regional Holidays

Your employees are entitled to paid time off for public holidays. If they have to work on these days, you must pay them a higher rate.

Note: Islamic holiday dates are based on the lunar calendar and may vary.

Typical Supplemental Benefits

To stay competitive, many employers offer more than the legal minimum.

Statutory Benefits

Non-Statutory (Supplemental) Benefits

How an EOR Can Help with Setting Up Benefits

Navigating South Sudan's labor laws can be complex. An Employer of Record (EOR) simplifies this for you.

An EOR acts as the legal employer for your staff in South Sudan. They handle all the HR tasks, including benefits and leave management. This means they:

• Ensure you comply with all local labor laws.
• Administer statutory benefits like social security contributions.
• Help you create a competitive benefits package to attract top talent.
• Manage payroll and leave tracking.

Using an EOR saves you time and reduces risk. You can focus on your business goals, knowing that your team is taken care of.

Ending a working relationship in South Sudan requires careful steps. You must follow the country's Labour Act of 2017. This law sets the rules for fair termination and offboarding. The process ensures that both you and your employee have a clear and lawful separation. Reasons for ending employment can range from employee misconduct to changes in your business needs, like restructuring. It is crucial to handle every exit by the book to avoid legal problems.

Notice Periods

You must give your employee written notice before their employment ends. The amount of notice depends on how long the employee has worked for you.

Here are the minimum notice periods required by law:

Your employment contract can state longer notice periods, but not shorter ones. If your contract specifies a longer period, you must follow that. In some cases, you can pay the employee their wages for the notice period instead of having them work.

Severance Pay

Employees may be entitled to severance pay when you terminate their contract. This payment is for employees who have worked for you for at least six continuous months. Severance is typically due in cases of unfair dismissal or redundancy. It is not required if an employee is dismissed for serious misconduct.

How Rivermate handles compliant exits

When you partner with us, we manage the entire offboarding process for you. We make sure every termination in South Sudan is compliant and smooth.

Here is how we help:

• Legal Compliance: We navigate the Labour Act, 2017 to ensure every step is correct. We handle the paperwork and procedures for you.
• Clear Communication: We help draft clear termination letters that state the reason for the exit, as required by law.
• Calculating Final Pay: We calculate and process all final payments, including notice pay and any owed severance.
• Risk Reduction: Our process reduces the risk of wrongful dismissal claims by ensuring everything is done fairly and legally.

We take on the complexity of employee exits so you can focus on your business.

Navigating the visa and work permit landscape in South Sudan requires a clear understanding of the local regulations. For any foreign national looking to work in the country, securing the proper authorization is a must. This process involves both an entry visa to enter the country and a work permit to be legally employed. The Ministry of Labour, Public Service, and Human Development oversees the issuance of work permits.

Employment visas & sponsorship realities

An Employer of Record (EOR) can be your legal employer in South Sudan, handling all the necessary sponsorship for work permits. This is a practical route if you don't have your own registered legal entity in the country. The EOR takes on the responsibility of ensuring you are compliant with local labor laws.

Here's what you need to know about sponsorship:

• EORs can sponsor: Full-time employees with a valid employment offer. The EOR acts as your official sponsor, providing the required documentation to the Ministry of Labour.
• EORs generally cannot sponsor: Independent contractors or freelancers. These individuals typically follow a different application process and do not require employer sponsorship.

The work permit application process requires several documents. Your employer, or EOR, will submit these on your behalf.

The processing time for a work permit can take anywhere from two to six weeks.

Business travel compliance

For short-term business visits, you will need a business visa. This visa allows you to enter South Sudan for activities like meetings, negotiations, or conferences. You cannot perform work on a business visa.

To apply for a business visa, you will generally need the following:

• Valid Passport: Your passport must be valid for at least six months beyond your intended stay and have at least two blank pages.
• Visa Application Form: A completed and signed application form.
• Passport Photos: Two recent, passport-sized photographs.
• Business Letter: A letter from your company explaining the purpose of your trip.
• Letter of Invitation: An invitation from a host organization in South Sudan.
• Proof of Travel: A copy of your round-trip airline tickets or itinerary.
• Yellow Fever Vaccination: Proof of vaccination is required.