Djibouti
So you’ve found some great talent in Djibouti, but maybe a little less sure how you’re supposed to go about hiring them? You’re in the right place. In the next few minutes, you’ll learn how to hire remote talent in Djibouti, quickly, without wading into months and thousands of dollars of legal red tape.
Country snapshot
CURRENCY
Djiboutian Franc
EMPLOYER TAXES
15%
PAYROLL FREQUENCY
Bi-weekly/Monthly
OFFICIAL LANGUAGE
French, Arabic
It’s the fastest way to hire globally
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It’s a lot cheaper
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
It’s more flexible for you & your team
Can be less risky than hiring employees
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
Some people want to be employees
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
You might not have as much control over your talent
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
Hiring abroad is notoriously difficult: New labor laws, entities, a lot of words you’d rather not hear again. But we’ve got good news—it doesn’t need to be that way. Below, we’ll break down your two main options for hiring in Djibouti (and the one we prefer).
Hire talent as contractors
Hire talent as employees
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Djibouti than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Djibouti.
Employer tax
Family Allowance
Disability Insurance
Social Security
Paid Time Off (PTO)
Employees are eligible for paid leave after completing 12 months of employment. It is calculated at 2.5 days per month amounting to 30 days of annual paid leave.
Annual leave can be split into 2- batches of 14 days each. Employees are also eligible for 12 days of unpaid leave that is not deducted from the annual leave.
Public Holidays
There are 9 public holidays.
Sick Days
Employees receive 29 days of sick leave paid at 50% of the basic rate by social security. For any additional day exceed in 29 days, the employee receives 75% of the basic salary.
Maternity Leave
Employees receive maternity benefits, equally split between the employer and Social Advancement Organization. Female employees receive 14 weeks of paid maternity leave.
It is divided into two batches with 8-weeks before delivery and 6-weeks post-delivery. The leave period can be extended in case of complications with the pregnancy.
Paternity Leave
Male employees receive three days of paid paternity leave after the child’s birth.
Parental Leave
There are no statutory provisions for parental leave.
Other Leave
No Info.
Marriage Leave
No Info.
Bereavement Leave
No Info.
Termination Process
Employment in Djibouti can be terminated by either party by giving a minimum notice period.
An employment contract can also be terminated due to non-performance or inability to perform following the demands of the job. It can also include reasons related to health, lack of professional skills, and even misconduct.
For all such cases, a 48-hr notice is provided to the employee.
Notice Period
The minimum notice period in Djibouti:
- One month for regular positions
- Three months for executive positions
Severance Pay
Employees may be entitled to damages in the event of an unjust dismissal. Damages cannot exceed:
- Two months’ salary for employees in a company with less than 11 employees.
- Four months’ salary for employees employed in a company with 11 to 49 employees.
- Six months’ salary for employees employed in a company with more than 49 employees.
Probation Period
The probation period in Djibouti:
- 15 days for part-time hourly paid employees;
- 30 days for full-time monthly paid non-executive positions;and
- 3 months for full-time monthly paid executive positions.
Working Hours
The standard working hours in Djibouti is 47 hours for a six-day week, 8 hours per day.
Overtime
Employees in Djibouti overtime is paid as per convention or an agreement between both parties. Overtime should not exceed 4 hrs a day and cannot cross 60 hrs per week.
Any additional overtime beyond the defined hours requires authorization from the inspector of labor.
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