Burkina Faso offers plenty of benefits for companies looking to expand, including the opportunity to form business relationships with other African countries. However, companies must first set up a payroll before starting the recruiting process.

Taxation rules in Burkina Faso

Burkina Faso taxes apply to both employers and employees. For example, employees must contribute 5.5% of their salary to social security, while employers contribute 16%. Employers also need to pay a 3% payroll tax.

The country’s tax year runs from December to December and follows a progressive income tax scale. Employees making up to CFA 500,000 contribute 10% of their salary to personal income taxes, while employees making more than CFA 1,000,000 contribute 27.5%.

Burkina Faso payroll options for companies

All companies have different goals and ways of operating, which is why you have 3 different Burkina Faso payroll options to choose from:

  • Internal: Many large companies that plan to work in Burkina Faso for an extended period may opt to run an internal payroll. Keep in mind that with this option, you’ll need to set up a subsidiary and hire an HR team to support this operation.
  • Burkina Faso payroll processing company: A local Burkina Faso payroll processing company can easily outsource your payroll, but they won’t take on the risk. You’ll still be held liable for all compliance matters related to your payroll.
  • G-P: The easiest way to run payroll in Burkina Faso and stay compliant is partnering with an Employer of Record (EOR) like G-P. With us, you can rest assured that all employees will be paid on time, freeing you to focus on other important aspects of your business.

How to set up a payroll in Burkina Faso

Companies need a registered and incorporated entity in Burkina Faso before setting up payroll unless they work with an EOR like G-P. We can eliminate the need to establish a subsidiary through our Employer of Record solutions.

Entitlement/termination terms

Termination and severance can be difficult in any country, which is why you should outline these terms in your employment contract before choosing a Burkina Faso payroll option. Termination should be in writing, and notice depends on the type of employee. Group dismissals require a 30-day notice period.

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