To set up your Burundi payroll, you need to manage a wide range of requirements, from legal compliance to tax regulations and local market expectations. Work with Globalization Partners to simplify and streamline payroll administration for your international employees. With our services, you can ensure compliance with labor laws and best practices while also providing efficient payment distribution to your employees.
You are responsible for withholding, declaring, and remitting Pay As You Earn (PAYE) taxes for each employee. You must send taxes to the Burundi Revenue Authority within 15 days after the end of the month in which the tax is due. Depending on the amount of income, you will need to withhold 0 percent, 20 percent, or 30 percent of revenue.
If you are not the principal employer, you must withhold 30 percent of employees’ income. If you’re employing a casual laborer, you’re required to withhold 15 percent of their income.
You must also contribute 6 percent of every employee’s paycheck to Social Security, with an additional 3 percent for jobs classified as hazardous.
Termination and Entitlement Terms
If you must terminate employment, you have to provide advanced notice based on the employee’s length of service.
Within the notice period, employees are entitled to take off up to four days per month to search for a new job. Should they find a new position before the notice period is complete, they may end their employment with your company without receiving additional compensation.
A worker dismissed for gross negligence is not entitled to any severance pay. In other circumstances, such as redundancy, workers are entitled to receive compensation based on seniority.
Burundi Payroll Options for Companies
There are several payroll outsourcing options you can consider to address your requirements. Evaluate the best choice to work with your company’s operational needs, budget, and business goals.
Some of the most commonly used options for managing payroll internationally include:
- Internal payroll processing: In some situations, your company may be able to process payroll for your international team internally. Internal payroll management can decrease transactional costs, but it will also require added personnel and time. It also makes your company fully liable for any payroll-related issues that could arise.
- Subsidiary: Establishing a subsidiary in-country allows you to manage payroll for local employees. However, it requires extensive resources, time, and money to set up and operate a subsidiary.
- Payroll processing company: In many countries, you can hire a local company to manage your in-country employees’ payroll. However, you’ll often need to pay high fees for these services, and your company will be liable for any errors.
- Global EOR:Globalization Partners serves as an Employer of Record (EOR) to take on your business requirements and assume liability so you can operate in Burundi risk-free. We have already established entities in the country to seamlessly hire and pay local workers, saving you time and resources.
How To Set Up Your Burundi Payroll
Depending on the payroll administration option you choose, you’ll need to manage different requirements. For example, the internal payroll method will require you to establish an entity in the country before you can handle other tasks. To set up a subsidiary in-country, you’ll need to navigate various legal requirements through several government agencies to create a business structure. These steps can be time-consuming and costly.
Globalization Partners helps you avoid this process as your EOR. With our established subsidiary in the country, you can start working immediately while bypassing the payroll setup process.
Optimize Your Payroll Management With Globalization Partners
For efficient and compliant payroll administration, let Globalization Partners handle payment processing for your employees. Contact us today to learn more.