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Employer of Record (EOR) Services in Djibouti

Employer of Record


$399/month

Contractor 
Management

$49/month

Talent Sourcing


2% of gross salary / month

Start hiring in Djibouti

Simple, compliant hiring with Horizons EOR & PEO

Hire in Djibouti

Djibouti might be one of the smallest countries in Africa, but it has earned huge significance in the global economy due to its state-of-the-art port complex on the Red Sea, which forms a useful bridge between Africa and the Middle East. The geographical location of Djibouti has also seen it receive significant investment from several global militaries. It has a population of just under one million, who speak mostly Arabic and French, alongside some Somali and Afar. It offers a potential labor force of over 250,000 and an average monthly wage between $150 and $600 each month. All this makes Djibouti an attractive proposition for global businesses seeking to establish a workforce in the region.

Facts & Stats

EOR Platform

Hire in Djibouti, and pay employees through our platform or app.

EOR Cost

Our Djibouti EOR solution is the most affordable on the market.

Time-to-hire

Fast Djibouti onboarding, hire in as little as 24 hours.

Contracts

We draft compliant Djibouti labor contracts.

Local benefits

We manage all Djibouti mandatory benefits.

180+ Countries

It doesn’t stop with Djibouti — we hire employees globally.

hire employees in Djibouti

What Is a Djibouti EOR?

In Djibouti, an Employer of Record (EOR) is a service that assumes the role of a legal employer on behalf of client businesses outside the territory. It fulfills the duties of recruitment, payroll, and human resource management while also handling any benefits and termination procedures. At every stage, an EOR ensures compliance with local labor laws. When contracted by a foreign client, the EOR serves as a local entity for that client’s business within Djibouti. This not only expedites all aspects of hiring in Djibouti, but relieves the foreign business of liability for issues and disputes at any point in the process.

Often discussed as though it is interchangeable with an EOR, a Professional Employer Organization (PEO) is a similar service that assists foreign businesses with hiring and labor force management in Djibouti. Crucially, however, a PEO does not take on the role of a legal local entity, meaning any business working with a PEO will still be required to go through the costly and complex process of establishing an entity in Djibouti.

Save Money And Time with A Djibouti EOR

What Are the Benefits of a Djibouti EOR?

Working with a Djibouti EOR allows a foreign business access to the best local talent at maximum speed with minimum costs or liability. As a specialist service with expert local knowledge, an EOR will streamline the entire process of hiring and managing a labor force in Djibouti.

Some of the key benefits of a Djibouti EOR include:

  1. Liability cover: When hiring in Djibouti, it is essential to remain compliant with all aspects of local labor laws. Failure to do so can cause inefficiencies and expose the business to costly penalties. By serving as the official employer for workers in Djibouti, an EOR assumes liability for legal compliance, thus removing this burden and risk from its client’s shoulders.
  2. Best talent: Thanks to its experience in the local labor market, a Djibouti EOR is much better positioned to access the right talent at the right price than an inexperienced foreign business. Working with an EOR, therefore, increases the chance of finding the best and most cost-effective employees at the first time of asking.
  3. One-stop service: An EOR is a complete service that handles every element of recruitment and human resource management, from hiring to termination and all that happens between. When working with an EOR in Djibouti, a foreign business minimizes the resources required to gain immediate access to the region’s labor force.
Horizons is Best IN Class

Why Choose Horizons?

Horizons stands out as a Djibouti EOR through:

  1. A strong regional presence in Africa, 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 $499 per employee, per month, no EOR in Djibouti 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 Djibouti EOR

How Does a Djibouti EOR Work?

In Djibouti, an EOR works by connecting local workers looking for opportunities with foreign businesses that require a Djibouti labor force. It does this by agreeing with the client business to provide quality local workers for a certain number and range of positions. It then acts as an employer within Djibouti on behalf of that client. The EOR hires and maintains all necessary workers, continuing to administer their employment from contracting and payroll to benefits and termination while assigning each worker to a role within the client business.

Among the steps involved in providing this service, an EOR will:

  1. Hire your employees: The first service performed by a Djibouti EOR is recruitment. As soon as it knows what roles must be filled, the EOR will begin sourcing the right workers. It may do this by consulting an existing roster of talent or by advertising for each position individually. Any appropriate interviews and assessments will be held before the successful applicants are chosen and offered terms.
  2. Manage employment contracts and onboarding: Once terms have been agreed with each successful worker, the EOR will draft contracts to be signed and confirm the beginning of employment. It will then complete all legally required onboarding in addition to any process requested by the client company. Once this is done, each worker will be introduced to the business and assigned to their new role.
  3. Process payroll and handle employment taxes: While each worker’s day-to-day duties are performed under the management of the client business, the Djibouti EOR continues to be their official employer. This means, using funds provided by the client business, the EOR will fulfill payroll for each worker directly and handle any taxes and other deductions on their behalf. Should any disputes arise, they will also be settled by the EOR.
  4. Administer benefits: Every worker in Djibouti is entitled to certain benefits such as annual leave, sick leave, and other paid absences. They may also be due bonuses or allowances, either those decreed by local law or those contractually agreed at the time of hire. As the employer, the EOR is responsible for administering these.
  5. Take care of exit procedures: Every employment which has a beginning, also has an end. Whether that is due to retirement, the employee finding a new opportunity, disciplinary dismissal, a change of employer requirements, or any other reason, the end of a term of employment always requires certain protocols must be followed. Just as it was responsible for hiring and managing the worker throughout their employment, the EOR must ensure all exit procedures are carried out in full compliance with local regulations.
stay compliant with Djibouti labor laws

Labor Laws

One of the primary benefits of working with a Djibouti EOR is that it will handle compliance with local labor law. An EOR must ensure it is aware of all legal obligations, regulations, and any upcoming changes and that every process it follows should meet these requirements. Should the EOR fail to perform this function, it will be held liable for any issues or disputes that arise.

Employment contract types

According to the Djiboutian Labor Code (Law No. 60-003 of September 21, 1960), two types of employment contracts are officially recognized in the state. Regardless of which is in place, the written agreement should always detail the parties involved, the job description and duties, the working hours, place, and conditions, any compensation and benefits, any termination procedures, and the process for resolving disputes.

Project-based

Probationary period

No probationary period.

Termination

At completion of the project.

Severance

Not applicable

Fixed-term

Probationary period

Typically up to 3 months

Termination notice period

1 to 2 weeks

Severance

Not applicable

Indefinite

Probationary period

Typically up to 6 months

Termination notice period

30 days

Severance

1 to 5 years: 1/5 of month salary per year of service

More than 5 years: 1/3 of month salary per year of service

Working hours in Djibouti

The standard maximum working week set by Djibouti labor law is 48 hours over six days with at least one full day of rest in every seven. In addition to this, employers in Djibouti can mandate up to five hours per week of overtime. Additional overtime can be offered, but the employee must consent to work it. Overtime should be paid at 150% of the standard rate for the first two hours and 200% for any additional hours. Including overtime, no Djibouti employee should be asked to work more than 60 hours in a week.

Overtime must be compensated in the following way:

For a regular workday:

150% of the standard hourly rate

For a rest day:

200% of the standard hourly rate

For a statutory holiday:

200% of the standard hourly rate

China has a range of national public holidays that are celebrated annually. In 2024 these holidays are:

DateHoliday name
1 Jan, 2024New Year’s Day
8 Feb, 2024Isra and Miraj
10 Apr, 2024Eid al-Fitr
11 Apr, 2024Eid al-Fitr Holiday
1 May, 2024May Day
15 Jun, 2024Arafat Day
16 Jun, 2024Eid al-Adha
17 Apr, 2024Eid al-Adha Holiday
27 Jun, 2024Independence Day
7 Jul, 2024Muharram
16 Sep, 2024Mawlid

 

Paid time off

The amount of paid time off employees are eligible to receive is based on how long they have been employed at their current company. Small amounts of paid leave may also be granted for bereavement or on occasions such as marriage, medical appointments, or compulsory civic duties.

Under 1 year of employment

no leave entitlement

1-10 years of employment

30 days of paid leave annually

10-20 years of employment

30 days of paid leave annually

20+ years of employment

30 days of paid leave annually

Sick leave in Djibouti

There is no legally set amount of paid sick leave that should be granted to Djibouti workers. However, it is expected that sick and injured employees should not be made to forgo wages in most circumstances so long as they can provide the necessary medical certification.

Less than 6 months of sick leave:

(percentage of regular wages owed to the employee)

Under 1 year of employment

no leave entitlement

1-10 years of employment

Up to 6 months of paid leave annually

10-20 years of employment

Up to 6 months of paid leave annually

20+ years of employment

Up to 6 months of paid leave annually

Over 6 months of sick leave

Under 1 year of employment

Unpaid (unless specified in the employment contract or under special circumstances)

1-3 years of employment

Unpaid (unless specified in the employment contract or under special circumstances)

3+ years of employment

Unpaid (unless specified in the employment contract or under special circumstances)

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 Djibouti

Minimum maternity leave in Djibouti is set at 14 weeks with full pay, split into six weeks before the birth and eight weeks after. Paternity leave is just three days and should be taken around the time of the birth. 

Annual leave in Djibouti

After one continuous year of service, Djibouti workers are entitled to a minimum of 30 days of paid leave in addition to public holidays. Workers who have served less than a year accrue 2.5 days of annual leave for every completed month. It is generally required that workers take at least two weeks of each year’s leave as a continuous holiday.

Termination & severance in Djibouti

The notice periods required in Djibouti depend on the circumstances of termination and the type of role. Supervisors and managers should be given at least three months’ notice for a no-fault termination, while regular employees are entitled to only one month. When resigning, any worker would be expected to give their employee at least one month’s notice. Severance pay, unless in the case of dismissal for serious misconduct, should be offered at one month’s salary during the first year, two months’ salary for one to five years, and three month’s salary for any continuous employment longer than five years.

Djibouti's compulsory social security contributions

The total contribution to the social security system in Djibouti is approximately 36.5% of the employee’s gross salary, with the employer responsible for 29% and the employee for 7.5%.

Contributions are designed to support various social insurance programs, including health care, pensions, and other social benefits.

Djibouti social security for foreigners

Generally, foreign employees are also subject to the same social security contributions unless exempted by specific bilateral or multilateral agreements.

Individual income tax

The individual income tax system is structured to ensure that residents and non-residents contribute to the nation’s revenue based on their income levels.

Djibouti employs a progressive tax system where tax rates increase with higher income levels.

Health insurance

Health insurance in Djibouti is primarily governed by the National Social Security Fund (Caisse Nationale de Sécurité Sociale, CNSS), which provides coverage for workers and their dependents.

The CNSS provides health insurance coverage to employees in the formal sector, which includes medical care, hospitalization, and maternity benefits.

Private health insurance options are available in Djibouti, particularly for expatriates, high-income individuals, and employees of multinational companies. These private plans often offer more comprehensive coverage than the CNSS.

hassle-free Djiboutians compensation & benefits

Compensation & Benefits

Djibouti compensation laws

While public sector workers in Djibouti are guaranteed a minimum wage of DJF 35,000, which converts to roughly $200 per month, there are no such requirements for private sector employees.

13 month salary in Djibouti

There are no mandatory bonuses or allowances in Djibouti, and no 13th-month salary payments are required to be made. Any additional elements of a worker’s compensation package should be negotiated directly at the time of hire.

Social security for Djiboutians nationals

Both the employer and employee expect to make several social security contributions in Djibouti. These are taken as a percentage of the worker’s gross salary up to a maximum monthly amount of DJF 400,000, or $2250. For employers, these amounts are 4% for retirement, 6.2% for family allowance, 5.5% for disability insurance, and 2% for health insurance. For employees, the contributions should be 4% for retirement and 2% for health insurance.

Hire borderless talent with Horizons

Hire in Djibouti without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

Frequently asked questions

One of the primary functions of a Djibouti EOR is ensuring compliance with local labor laws. The EOR achieves this by maintaining detailed and current knowledge of all regulations and anticipating any planned changes. The EOR also accepts full liability for failures in this responsibility. 

The benefits of working with an EOR when hiring in Djibouti are significant. An EOR is a local expert with experience in the territory. It will allow any foreign business to begin hiring immediately and have the best chance of finding the right talent for the right cost. While a fee must be paid for the services of a Djibouti EOR, the savings in cost, time, and risk are likely to far outweigh this outgoing.

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