Gabon is a small country in West Africa that borders the Atlantic Ocean. It’s one of the least densely populated countries in the world, with much of the population living in the capital city of Libreville. With major exports such as oil, manganese, uranium, and timber, it’s an attractive location for companies looking to expand to Africa.
G-P makes it easier to expand and hire employees through Gabon payroll outsourcing. Instead of setting up your own Gabon payroll, you can use our existing subsidiary and payroll to start working in a new country in as little as a single day. As the Employer of Record, we’ll even take the compliance off your shoulders.
Taxation Rules in Gabon
Setting up your Gabon payroll means following the country’s taxation rules. Employers have to contribute 20.1% of their payroll to social security to fund retirement, work injury, medicine and hospital costs, and family allowances. Employees contribute 2.5% of their earnings to social security and 1% to health insurance. Companies also have to pay corporate taxes at varying rates based on the type of company. For example, standard companies contribute 30%, while oil and mining companies contribute 35% and non-profits, public companies, and a few other entities pay 25%.
Gabon Payroll Options for Companies
Choosing a Gabon payroll option means finding the right structure for your company, including:
- Remote: A remote payroll is when you use your parent company’s existing payroll structure to compensate your employees in Gabon. With this option, you’ll need to make sure each set of employees follows the right compliance laws.
- Internal: Your subsidiary can also choose to create its own internal payroll, but you’ll need more staff, a labor law expert, and more. An internal payroll is usually only a good option for larger subsidiaries focused on Gabon.
- Gabon payroll processing company: If it makes more sense for your company to outsource, you could choose to work with a Gabon payroll processing company. The company will not be able to outsource your compliance, however.
- Gabon payroll outsourcing: Gabon payroll outsourcing through G-P is the only way you can outsource your entire payroll — even compliance. We’ll manage the risk for you so that you can focus on managing your company.
How to Set Up a Payroll in Gabon
The biggest requirement for setting up your Gabon payroll is establishing a subsidiary. Legally, you need to have a registered entity in Gabon before you can set up your payroll, hire employees, and compensate them. However, you won’t have the same requirement when you work with G-P. We’ll make it easy to start working in a few days, as you can use our existing Gabon payroll to pay employees.
One of the most difficult parts of an expansion is terminating an employment contract. Figuring out the right entitlement and termination terms before you choose a Gabon payroll option can save you time and unnecessary stress. For example, notice periods for terminations depend on how long the employee has worked for your company and can range from 15 days to six months.
Payroll Processing Company in Gabon
The team at G-P is here to help you expand to Gabon successfully. Contact us today to learn more about Gabon payroll outsourcing.