New Solution Spotlight: Benin

Mauve Group is pleased to be strengthening its West African service offering with the announcement of a new solution in Benin.

West Africa is the subject of vastly increased business interest with international organisations competing for localised oil and mineral resources. Despite these economic advances, Benin remains one of the world’s poorest countries and has seen an influx of aid and development agencies working to develop and strengthen the local infrastructure. As a consequence, global mobility into the area is experiencing a rapid rise in both the public and private sector.

History and Culture

Known as one of Africa’s most stable democracies, Benin was the first country to move from dictatorship to multiparty democracy in 1990. Benin is named after the body of water the country lies on, the Bight of Benin, from which slaves were sold until 1885. Its major exports are cotton, crude oil, palm products, and cocoa. The official language of the Beninese is French, although a total of 55 languages are spoken in the country with 50 being indigenous. Around 42 different ethnic groups live in Benin. The country’s National Parks have the largest population of lions in West Africa.

The Solution

In Benin, Mauve can provide the following solutions:

• Global Workforce Solutions (including Employer of Record)

• Global Visa and Immigration

• Global Payroll

• Project Management

• Consultancy Services

• Value-Added Services

Employer of Record and Payroll

Individuals will be employed by our in-country partner. Employees will be placed on a local payroll and salaries will be paid in West African CFA francs (XOF). Salaries can be paid into a bank account of the employee’s choice and if required, our partner can assist with the opening of a local bank account in Benin.

Local Tax and Social Security

Benin has a progressive income taxation system and rates range from 0% to 45%. The tax on salaries is deducted at source at progressive rates from 10% to 30%. The first XOF 50 000 per month of employment income is tax exempt, and tax liability is reduced in accordance with the number of dependent children the employee has.

All residents of Benin are required to pay income tax on their earnings, including expats. Expatriates are considered a tax resident of Benin if they live and work in Benin for more than 183 days in a year. They must then pay Beninese rates on their worldwide income. However, expatriates who live and work in Benin for less than 183 days per year, pay income tax at Beninese rates on their Beninese income only.

The employer must withhold tax on salaries, wages and other remuneration and pay the tax to the tax administration authority on a monthly basis by the 10th day of the month following the payment.

Employers are subject to employer wage payment / Versement patronal sur salaires (VPS) tax. This is payable at a rate of 4% for all employers except educational institutions who pay 2%. VPS is payable monthly.

The tax year is the calendar year.

The employee pays a social security contribution of 3.6% of their gross salary. Employer contributions total 15.4% (6.4% pension plus a 9% family allowance). Employers must also pay 1-4% of the gross salary amount as industrial injury insurance. The exact contribution is dependent on the degree of risk associated with the employee’s occupation.

Immigration

Most nationals entering Benin will require an entry visa. Mauve Technology International LLC, with the support of its in-country partner, will provide all the supporting paperwork required for the Entry Work Visa and Residency application.

This application should then be submitted at the diplomatic representation of Benin in the country of departure. Basic entry visas can sometimes be requested at the airport or border crossing when entering the country. In addition to having a valid passport and the entry visa, an up-to-date vaccination card is necessary. Yellow fever vaccination is mandatory.

Although no actual work permits are issued in Benin, labour contracts will need to be validated by the authorities to authorise employment. Labour contracts must be cancelled at the end of the contractual term.

If your organisation has an upcoming project in Benin, Mauve Group’s experts can help. Click here for more information or a no-obligation proposal.

Related Links:

Global Workforce Solutions

Global Visa and Immigration