Djibouti's location on the Horn of Africa with both land and sea borders makes it a desirable place for companies looking to expand. The country also controls shipping access to the Red...
Read MoreDjibouti's location on the Horn of Africa with both land and sea borders makes it a desirable place for companies looking to expand. The country also controls shipping access to the Red Sea, with the U.S. operating a naval base in the country as well. While your whole company looks forward to an expansion in Djibouti, you need to focus on how you'll expand from setting up your payroll to establishing an entity.
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Djibouti’s location on the Horn of Africa with both land and sea borders makes it a desirable place for companies looking to expand. The country also controls shipping access to the Red Sea, with the U.S. operating a naval base in the country as well. While your whole company looks forward to an expansion in Djibouti, you need to focus on how you’ll expand from setting up your payroll to establishing an entity.
Globalization Partners is a global PEO that makes it easier and faster to expand to countries around the globe. We’ll use our existing Djibouti subsidiary and Djibouti payroll outsourcing services to help you work without the risk of compliance. We’ll take care of everything from hiring talented employees who work for you to making sure they get the compensation and benefits they deserve.
Djibouti uses a progressive payroll tax scale that ranges from 2-30% depending on what an employee makes. On top of that, employees also contribute 4% of wages each month to social security. Employers contribute the same 4% to social security but are also required to pay 6.2% of monthly wages for disability insurance and 5.5% of monthly wages for family allowances.
You can choose from four main Djibouti payroll options:
Before setting up a Djibouti payroll, most companies will have to incorporate in the country. This process varies based on where you are and what kind of entity you set up, but it can take anywhere from a few weeks to a couple of months. Working with Globalization Partners doesn’t come with the same restriction, as we can use our Djibouti PEO to help you work without your own entity. We’ll use our subsidiary to hire employees on your behalf and add them to our compliant payroll so that you can concentrate on your business.
Terminating an employee can be tricky in a foreign country, so we recommend adding termination and entitlement terms to all employment contracts before adding an employee to your payroll. You can terminate employees in Djibouti for gross misconduct, force majeure, economic or financial difficulties, court order, or a written agreement of both parties.
Globalization Partners wants to help you make the most of your expansion. Contact us today to learn more about Djibouti payroll outsourcing.
If you’re ready to grow your business, or you have questions about a specific country, complete the form. One of our experts will be in touch shortly.
