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Compensation & Benefits in TgTogo.






Country Capital



West African CFA franc (XOF)

Employee benefits planning in Togo can be challenging without the proper knowledge. An understanding of local employment law and the labor market can guide your planning and help you create competitive and compliant benefits packages.

Togo employee benefits plans

Benefits plans are just one way to support company growth. During recruitment, a competitive benefits package can persuade job seekers to apply for your open positions. In the workplace, these provisions may boost morale and increase employee retention. With higher retention, you can save on employee turnover costs. You can also benefit from having a more experienced team on the job.

Possible benefits for your team in Togo include:

  1. Holiday bonuses
  2. Housing allowances
  3. Private health insurance

Mandatory benefits in Togo

Benefits are also essential to ensure compliance. Local labor laws require employers to provide a range of minimum provisions for employees, including:

  1. Social security contributions
  2. Sick leave
  3. Paid annual leave
  4. Maternity leave
  5. Public holidays

Designing Togo employee benefits plans

Designing benefits plans requires an organized approach. While labor laws and market standards differ in every country, you can follow these basic steps to create a competitive program anywhere your company grows.

1. Assess your finances

Employee benefits will require company spending. Evaluate your revenue and existing expenses to see how your plan will fit among them.

2. Explore the market

Becoming competitive is a matter of meeting and exceeding labor market standards. Research other companies’ benefits packages and look for similarities. Commonly offered provisions will inform job seekers’ expectations.

3. Choose provisions

Allocate a portion of your budget for required benefits, then use the remaining funds for additional provisions and perks. Consider including the benefits you uncovered in your research. If your budget allows, you can exceed expectations with offerings beyond the market standards.

Average cost of benefits

Characteristics such as size, location, and industry can impact how much a company is willing to pay for its benefits plan. With every employer paying different amounts, an average is not the most helpful metric for your planning. 

The best way to gauge your spending is to create a budget unique to your company’s goals, revenue, and expenses. Rather than setting an amount, you might determine a percentage of your revenue to put toward benefits. This method ensures your budget scales with your growth. As your company succeeds, you can allocate more to employee welfare and stay competitive.

How to calculate employee benefits

The calculation process for benefits depends on the provision. Offerings such as allowances and bonuses are generally simple to determine. You can set an amount and distribute it to employees evenly. 

More complex calculations include benefits such as social security contributions. Rather than relying on a set amount, employers must contribute a percentage of earnings. Employees must pay 4 percent of their income to the social security fund, and employers must contribute 17.5 percent of employees’ incomes to the fund. You can reference the labor laws for more guidance on calculations for required provisions.

How are employee benefits taxed in Togo?

The country’s tax laws define income as any salary, allowances, earnings, life annuities, and pensions earned through employment. Benefits in cash are subject to this tax, but benefits in kind are not recognized under income tax law.

Employee health benefits

Social security funds cover the small public healthcare system in the country, and employers are responsible for making these contributions. Private health insurance is not required, but employers can provide it as an additional benefit.

Choose G-P for employee benefits planning in Togo

G-P’ global employment platform helps you build and scale an international team quickly and easily, ensuring all benefits offered to candidates are compliant and in line with local regulations. Learn more about our platform and request a proposal today


THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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