Are you looking to hire an employee in Niger but don’t know how much it’ll cost? Don’t worry; this article has you covered! We’ll explain the costs of hiring in Niger so that you can plan your budget accordingly. Let’s get started!
Overview of the costs associated with hiring an employee in Niger
The costs associated with hiring an employee in Niger can vary depending on the industry and the qualifications of the employee hired. Employers must pay the employee's salary, social security contributions, and any other applicable taxes required by law. In addition, employers may need to provide the employee health insurance and other benefits. It is essential to consider the total cost of employment when hiring in Niger, as it can lead to a much higher total expense than anticipated.
Mandatory Costs
Minimum Wage & Average Salary
The minimum wage in Niger is 30,047 CFA (USD 50) per month before tax. Salaries for skilled professionals differ according to skills and experience. The minimum wage in Niger is relatively low. Employers should also consider the cost of living in Niger when determining salaries and wages.
In Niger, the average gross monthly salary, including housing, transport, and other benefits, is around 338,000 CFA (USD 554). The salary range varies from the lowest gross average of 85,600 CFA (USD 140) to the highest gross average of 1,510,000 CFA (~USD 2,473), with actual maximum salaries potentially exceeding that.
Overtime Pay
According to the National Minimum Wage Act, employees are entitled to receive compensation for overtime at a higher rate. Specifically, employees must be paid 110% of their standard wage rate for the initial eight hours of overtime worked and 135% of their standard wage rate for any subsequent hours beyond that.
Paid Leave
Workers in Niger are entitled to 30 days of annual paid leave, which accrues over time based on employee tenure. Specifically, employees receive two additional days of leave after 20 years of service. They receive an extra four days after 25 years of service and an additional six days after 30 years of service. Businesses in Niger also observe 13 public holidays.
In Niger, women employees are eligible for 14 weeks of paid maternity leave. Mothers must split maternity leave into two portions: six weeks before the expected due date and eight weeks after giving birth. It is essential to furnish the Maternity confirmation certificates before the maternity leave can begin. If the employee has served for at least two years, the employer would pay 50% of the cost, and the remaining 50% would be paid by social security. Meanwhile, fathers are entitled to a day of paid paternity leave within a calendar year.
Lastly, employees are eligible for five days of fully compensated sick leave per year. No legislation surrounds other types of parental leave or other types of leaves.
Social Contributions & Other Taxes
Employers in Niger must be contribute to social security funds, including the National Social Security Fund (CNSS) and the National Health Insurance Fund (CNAM). The employer's contribution to the CNSS is calculated as a percentage of the employee's salary or wage. In contrast, the contribution to the CNAM is a fixed amount per employee per month. Additional contributions may also apply depending on the type of work and industry.
The CNSS deduction totals 15.4% of the salary. The second deduction is for public unemployment insurance, which is 0.5%. Lastly, there is an apprenticeship tax of 3% to 5%, depending on the country. The employer pays all of these deductions, while employees contribute 5.25% to the CNSS. Income taxes also start at 1% for 25,000 CFA to 35% for over 1,000,000 CFA for employees.
All of this may impact the overall wage an employee receives.
Severance Pay
If an employee has worked consistently for at least one year with an employer, they are entitled to severance pay, which is determined by the duration of their service. The amount of severance pay is calculated as a percentage of the employee's monthly salary per year of service.
For the first five years, severance pay is set at 20% of the monthly salary per year of service, which equates to 6 days of pay for each year of service. From the sixth to the tenth year, severance pay increases to 30% of the monthly salary per year of service, equivalent to 9 days of pay per year. After completing ten years of service, the severance pay further rises to 35% of the monthly salary per year of service, resulting in 12 days of pay for each year served.
Additional Pay
There is no mandatory additional pay, such as the 13th-month salary in Niger.
Optional Costs
When hiring in Niger, employers may encounter several optional costs. These costs can vary depending on factors such as the industry, the size of the company, and the specific employment terms.
Benefits and allowances
Employers may choose to provide additional benefits and allowances to attract and retain employees. This can include health insurance, housing allowances, transportation allowances, meal allowances, and other similar perks. While these are not mandatory, many businesses in Niger offer these benefits to remain competitive and attract top talent.
Training and development
Investing in employee training and development programs can be an optional cost for employers. This includes providing professional development opportunities, workshops, seminars, or specialized training to enhance employee skills and knowledge.
Recruitment
When hiring new employees, there may be costs associated with recruitment. These costs may include advertising job vacancies, conducting interviews, and background checks.
Employee engagement initiatives
Employers might invest in employee engagement initiatives, such as team-building events, employee recognition programs, or employee wellness programs. These initiatives aim to enhance morale, motivation, and productivity within the workforce.
Hire beyond Borders, Hire from Niger
Understanding the cost of hiring an employee in Niger is crucial for employers looking to expand their workforce. While there are mandatory expenses, it's essential to consider the optional cost. By carefully assessing your budget and considering your organization's specific needs, you can make informed decisions about the costs they are willing to incur to attract and retain talented individuals. It is also essential to stay updated with labor laws to ensure compliance.
Borderless is here to help employers remain compliant while hiring the best in Niger. We help you balance costs and benefits so you can focus on your business and create a rewarding work environment for employees in Niger. See Borderless in action; book a demo today.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
