If you’re considering expanding your company to Benin, you may be wondering how you’ll set up your payroll, hire employees, and more.

G-P can help streamline the payroll setup and management process, ensuring accurate and on-time payments for your teams in compliance with local laws, so you can focus on building your global company.

Taxation rules in Benin

Following Benin’s taxation rules and regulations is extremely important to staying compliant. Employees in Benin need to contribute 3.6% of their salary to social security, while employers contribute 15.4%. Employers have additional tax obligations as well, including:

  • 6.4% contribution for pension.
  • 9% contribution for family allowance.
  • 1-4% contribution for industrial injury assistance.

Failing to comply with any tax regulations could result in fines or delays to beginning operations.

Benin payroll options for companies

Instead of having only one Benin payroll option, your company can choose from several, including:

  • Internal: An internal payroll team can work well for larger companies committed to working in Benin for years to come. However, with this option, you’ll need to employ a permanent team of experts in payroll compliance.
  • Benin payroll processing company: Choosing to work with a Benin-based payroll processing company will help you outsource your payroll with a local company, but you’ll still be in charge of making sure your company stays compliant.
  • A global EOR: A quality Employer of Record (EOR) like G-P offers local expertise and guidance to ensure you stay compliant in Benin as you navigate local payroll laws. You can rest assured that your teams are paid accurately and on time, so you can reserve your resources and energy on driving your global success.

How to set up a payroll in Benin

You can’t set up your Benin payroll until you have a registered, incorporated entity in the country from which you run your company. It can take months to incorporate, however, and during that time you may lose employees you wanted to hire and business relationships you wanted to form. Partnering with a reliable Employer of Record like G-P mitigates risk and increases your speed to market, so you can start business operations quickly and confidently.

Entitlement/termination terms

One of the most challenging aspects of a global expansion is figuring out a country’s unique entitlement and termination terms. Adding these requirements to an employment contract can help you stay compliant. You can hire employees using a probationary period of up to 3 months and terminate a worker for a variety of reasons. Employees should get severance pay based on how long they’ve worked for your company.

Streamline your global payroll with G-P

G-P is the #1 rated EOR by all top industry analysts. We manage the entire employee lifecycle, including payroll, for your teams in 180+ countries. Get on-time, error-free payroll with flexible payment options and easily add bonuses, commissions, and exceptions in just a few clicks. 

G-P EOR is the preferred partner for leading HCM, PEO, and payroll platforms. Bring your workforce data together in one place to maintain existing workflows while guaranteeing consistent and accurate data across your integrated systems.

Book a demo to learn more about our global employment products, including G-P Contractor and G-P EOR help streamline your global payroll.