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Central African Republic EOR & PEO

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Hire in Central African Republic

With a population of 5.227 million people, the Central African Republic (also known as CAR or C.A.R) is on a consistent growth path, largely through its agricultural industry. CAR’s GDP has doubled since 2000 to over $2 billion and is set to grow at a rate of 1.3% in 2024. Additionally, the IMF last year pledged over $190,000 in credit to help the country develop further. If you want to get Central African Republic employees on your payroll, your best option is to work with an Employer of Record that can hire these workers on your behalf.

With Horizons Central African Republic EOR solution, you can hire and pay employees in the CAR at a fraction of the price of traditional hiring. 

Facts & Stats

EOR Platform

Hire in Central African Republic, and pay employees through our platform or app.

EOR Cost

Our Central African Republic EOR solution is the most affordable on the market.

Time-to-hire

Fast Central African Republic onboarding, hire in as little as 12 hours.

Contracts

We draft compliant Central African Republic labor contracts.

Local benefits

We manage all Central African Republic mandatory benefits.

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What Is a Central African Republic EOR?

As in most any country, you need to own a legal entity in CAR if you want to hire local employees. An employer of record, or EOR, can bypass that condition for foreign-based companies. It does this by hiring employees directly and becoming their sole legal employer in the country. At the same time, they’re contracted by the EOR to work directly for you. The EOR will also typically provide all the related human resources (HR) functions needed to manage the employee’s recruitment, hiring, contracting, and onboarding. It can also take care of payroll, benefits administration, and leave schedule management for these workers long-term.

A PEO, or professional employment organization, is another name commonly used to refer to an Employer of Record in the Central African Republic. As a former French colony, the term Portage Salarial is also popular. 

Save Money And Time with A Central African Republic EOR

What Are the Benefits of a Central African Republic EOR?

Working with an EOR in the Central African Republic makes hiring and managing staff a lot easier. This relationship can provide your company with numerous benefits, including:

  1. Not needing an entity: To hire Central Africans for your company, you’d normally need to own a legally registered entity in the CAR. The process of registration can require lots of time, effort, and money and may not be worth it at all if you’re only looking to hire a small number of employees. With an EOR, on the other hand, you don’t need to own an entity. Instead, for a reasonable fee, the EOR legally hires the employees but contracts them to work for your company.
  2. Fast recruitment and onboarding: If your company tries to hire Central African employees alone, it will face an uphill battle. Without networks in the country and knowledge of local recruitment practices, it could take months to fill your open positions. By partnering with an EOR, however, you’re able to leverage its local knowledge, networks, and employment pool. This lets you get CAR workers on board with your company in a matter of days or weeks instead.
  3. Language skills: As a past French colony that gained independence in 1960, the CAR uses French as one of its two official languages. The other is a Ngbandi-based local creole called Sango. These languages are used for communication between people who otherwise speak as many as 80 local languages. With this much linguistic skill, CAR employees can be a great asset to companies looking to do business in the region.
  4. Affordability: The CAR is a low-income country, and its workers normally receive low salaries. Employer contributions, although they reach 19% of a worker’s salary, are therefore similarly low. This makes Central African employees very affordable.
  5. Constant compliance: The EOR, as the sole legal employer of your employees in the CAR, also takes on the responsibility of maintaining compliance with local tax and labor laws. It creates contracts that fulfill all legal obligations and monitors working conditions and payroll to ensure that all laws are being followed. 
Horizons is Best IN Class

Why Choose Horizons?

Horizons stands out as a Central African Republic EOR through:

  1. Regional HQ in Shanghai, meaning senior management are on the ground to deal with any issues.
  2. Client-focused infrastructure. Horizons won’t oversell you on products and services you don’t need. Horizons offers the easiest platform to compliantly hire and pay people worldwide.
  3. Cost-effective solutions. At $299 per employee, per month, no EOR in Central African Republic is more affordable. The cost is 100% transparent (onboarding, offboarding, deposit, no extra charges).
  4. A customer-first culture. Horizons is an efficient bootstrapped company. It is not an externally-funded company burning investor cash to aggressively acquire new clients. Horizons is the only EOR that grows with its customer, reflecting the level of care and personal attention provided to each customer. Horizons will carefully advise on the best setup in each country: the type of contract needed, how to structure your benefits, and how to offboard a person while minimizing the risk of conflicts and extra cost
  5. A long-term partnership. Horizons is the only EOR platform with a recruitment arm — a direct response to client demand. If any employee is leaving, or if our clients want to explore a new country, Horizons can recruit new candidates directly for the client.  Horizons is:
    • The only EOR doing this in-house — no subcontracting
    • The only EOR doing this without a retainer — clients are only charged upon success
    • The only EOR charging just a 2% fee per month
Step-by-step Central African Republic EOR

How Does a Central African Republic EOR Work?

An employer of record helps foreign-based companies hire local workers in the CAR by acting as their legal employer. In addition, it performs multiple HR functions for your company. The EOR will:

  1. Hire your employees. This process begins with the EOR consulting with you on the number of employees you need, the positions you have available, and the requirements you’ve set for each. With this information, the EOR then looks to its networks and labor pool to find CAR workers that match your specifications. If you approve the candidates it puts forward, the EOR will hire these workers on your behalf. It will sign contracts with the workers and become their legal employer. At the same time, it hires them to work for and be directly managed by your company.
  2. Manage employment contracts and onboarding. EORs have expert knowledge of the legal statutes that govern employment in the Central African Republic. They use this expertise to prepare complete legal contracts that they then enter into with the employees. Once they’ve been officially hired, the EOR will onboard the workers for you. It will collect their personal and payment information and add them to their employee management systems. It will also register them with tax and Social Security authorities and sign them up for benefits.
  3. Process payroll and handle employment taxes. Every pay period, you’ll need to transfer funds to the EOR to allow it to pay employee salaries. It does this by calculating gross salaries based on hours worked, deducting social contributions, withholding taxes, and paying the net salaries left over to the employees. The EOR will also issue pay slips to employees detailing their salaries and deductions and keep all records of its payroll activities.
  4. Administer benefits. Many employers promise benefits like pensions and medical, disability, or life insurance to their workers to add to their compensation. The EOR will manage the regular administration of these benefits for you. It will sign employees up for benefits programs and calculate and pay any necessary contributions to them from you and the employee.
  5. Take care of exit procedures. When it’s time to terminate employees, either individually or collectively, the EOR can manage this task for you. It will prepare the appropriate notice letters for employees and, if necessary, calculate and distribute severance payments to them.
stay compliant with Central African Republic labor laws

Labor Laws

The CAR has multiple laws set up to protect the rights of workers. These laws are written in French and Sango and are also distributed across many legal instruments, including the Constitution of the Central African Republic, the Labo Code, the Social Security Code, the National Collective Agreement on Commerce of 1975, and many other orders and decrees. This can make it challenging to keep track of all relevant legislation and is better left up to the capable staff of the EOR. It’s useful, though, for client companies to know some of the basic regulations that govern employment in the CAR. 

Employment contract types

Contracts in the CAR must be written and include the employer’s details, the employee’s details, the nature and duration of the work, the worker’s classification in the professional hierarchy, and the salary and other compensation provided for the work. Though permanent contracts are standard, fixed-term contracts may also be created, provided they don’t last longer than two years. However, fixed-term contracts can be renewed without limit.

Project-based

Probationary period

No probationary period.

Termination

At completion of the project.

Severance

Not required, but may be offered

Fixed-term

Probationary period

3-6 months

Termination notice period

None, unless specified in contract

Severance

Not required unless specified in the contract

Indefinite

Probationary period

3-6 months

Termination notice period

8 days for less than a year
1 month for 1-5 years
3 months for more than 5 years

Severance

20% monthly salary for each year of service for 1 to 5 years
25% monthly salary for each year of service for more than 5 years

Working hours in Central African Republic

Normal working hours for Central Africans are limited to 40 hours per week, except for agricultural workers who can work up to 48 hours per week. Overtime hours are not limited by law.

Overtime must be compensated in the following way:

For a regular workday:

135% of the standard hourly rate
150% of the standard hourly rate for any additional beyond 8 hours

For a rest day:

150% of the standard hourly rate

For a statutory holiday:

200% of the standard hourly rate

There are 13 public holidays in the Central African Republic. Only four of these are paid, while the others are given with no pay. In 2024, they include:

 

DateHoliday name
1 Jan, 2024New Year’s Day
29 Mar, 2024Barthelemy Boganda Day
1 Apr, 2024Easter Monday
10 Apr, 2024Eid-al-Fitr
1 May, 2024Labour Day
9 May, 2024Ascension Day
16 Jun, 2024Eid-al-Adha
13 Aug, 2024Independence Day
15 Aug, 2024Assumption Day
1 Nov, 2024All Saints’ Day
1 Dec, 2024Republic Day
5 Dec, 2024Reconciliation Day
25 Dec, 2024Christmas Day

Paid time off

Workers are entitled to one 24-hour rest period per week. They can also take up to 15 days of paid leave for family-related events (marriages, funerals, birthdays, etc. of relatives in the same household).

Under 1 year of employment

2 days per month of service

1-10 years of employment

24 days of paid leave annually

10-20 years of employment

26 days of paid leave annually

20+ years of employment

28 days of paid leave annually

Sick leave in Central African Republic

Employees are entitled to six months of sick leave.

Less than 6 months of sick leave:

(percentage of regular wages owed to the employee)

Under 1 year of employment

No official limit

1-10 years of employment

up to 6 months

10-20 years of employment

up to 8 months

20+ years of employment

up to 10 months

Over 6 months of sick leave

Under 1 year of employment

100% on first 3 months + 50% on the subsequent months

1-3 years of employment

100% on first 4 months + 50% on the subsequent months

3+ years of employment

100% on first 5 months + 50% on the subsequent months

In order for employees to receive the full wages due to them, workers must present a valid medical certificate from a certified doctor to their employer.

Maternity leave in Central African Republic

Expecting mothers are entitled to 14 days of maternity leave paid at 50% of their normal wages. They are also entitled to take paid breaks totaling one hour per day for breastfeeding for 15 months after they resume work.

Annual leave in Central African Republic

Workers are entitled to two days of annual leave for every month they work or 24 days per year. This entitlement increases by two extra days per year for each period of five years of service to the employer.

Termination & severance in Central African Republic

Mandatory notice periods are eight days for daily workers, one month for regular employees, two months for supervisors, and three months for managers. Half a month’s salary in severance is paid to workers with three to five years of service, one month’s salary for five to seven years, two months’ salary for seven to ten years, three months’ salary for 10-15 years, four months’ salary for 15-20 years, and six months’ salary for over 20 years of service. 

Central African Republic's compulsory social security contributions

Compulsory social security contributions are mandated by law to provide various benefits to employees, including old-age, disability, work injury and survivors insurance. 

Central African Republic social security for foreigners

Social security contributions and benefits generally apply to all employees working within the country, including foreign workers. These regulations ensure that foreign workers are integrated into the social security system, providing them with necessary protections and benefits during their employment in the Central African Republic.

Individual income tax

The individual income tax rates range from 0% to 40%, depending on the income level. The tax system is progressive, ensuring higher earners pay a higher percentage of their income in taxes.

Health insurance

Health insurance coverage and access to healthcare services are managed through several systems, primarily aimed at providing essential healthcare to the population. Caisse Nationale d’Assurance Maladie is the primary agency responsible for managing health insurance in CAR. CAR also offers community-based health insurance to extend coverage to informal sector workers, rural populations, and others not covered by CNAM.

In addition, there’s also public healthcare system funded by the government and international aid. 

hassle-free Central African compensation & benefits

Compensation & Benefits

Central African Republic compensation laws

The minimum wage in the CAR is only 35,000 XOR (Central African CFA francs) per month (approximately 60 USD). Average salaries are higher at roughly 100,000 XOF/month (about 160 USD/month). 

Overtime must be paid at 120% of normal wages for the first eight hours and then at 140% of normal wages after the 48th hour worked that week.

If an employee works on a rest day or holiday, they must be paid 160% of their regular wages for their worked hours. This increases to 200% of normal wages for night work on rest days or unpaid holidays or 250% on paid public holidays without receiving holiday pay. 

13 month salary in Central African Republic

A 13th-month bonus is not mandatory in the Central African Republic. It may be given by some employers as an annual bonus at their own discretion.

Social security for Central African nationals

Employers pay the equivalent of 19% of an employee’s salary to Social Security, including 4% to cover old age pensions, disabilities, and death; 3% for professional risk insurance; and 12% for family allowances. Employees are deducted just 3% of their salaries for pensions, disability, and death benefits. 

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Frequently asked questions

Central Africans work 40 hours a week and must be paid more for overtime hours. They’re entitled to 24 days of annual leave and six months of sick leave, plus 14 weeks of maternity leave in the case of expecting mothers.

An EOR in the Central African Republic recruits candidates, prepares contracts, and hires workers on your company’s behalf. It also manages onboarding by collecting the employees’ personal and payment information, registering them with tax and Social Security authorities, and signing them up for benefits programs. After this, the EOR can help to orient workers to your company and get them ready to work directly with you.

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