Equatorial Guinea

Overview

Equatorial Guinea is the 3rd largest oil producer in sub-Saharan Africa and one of the fastest growing economies in Africa. The country witnessed rapid economic growth after the discovery of hydrocarbons in the 1990s, its GDP per capita (PPP) went up nearly US$32,000, the highest in the continent. The economy is leveraged by the country’s excellent security situation and political stability. The country has significantly modernized its infrastructure in recent years by its National Economic and Social Development Plan.

Currency: Central African CFA Franc

Principal Languages: French, Portuguese, Spanish

Government: Republic, Presidential System, Unitary State, One-party State

Capital City: Malabo

Major Cities: Luba, Bata, Mongomo, Aconibe, Añisoc

Employment Contracts

Two types of employment contracts are permitted in Equatorial Guinea:

  1. Limited or fixed-term contracts: Contracts with a specific duration, commencement, and completion dates
  2. Unlimited contracts: Employees continue to work for the employer from a specific date until the termination of the contract by either party subject to giving prior notice

An employment contract must contain the following details:

  • Nature of the contract (limited or unlimited)
  • Nature of the work
  • Duration of the contract (for fixed-term contracts)
  • The location of employment
  • Wages/remuneration payable
  • Date of the employment contract
  • Date of commencement of the employment contract.

Work/Time Regulations

The regular work schedule comprises 8 hours in a day and 40 hours in a week.

Overtime
Employees who work overtime are entitled to 25% premium over regular pay.

Leave

Holidays
The following national holidays are observed in Equatorial Guinea:

  • Jan. 1 - New Year’s Day
  • April 14 - Good Friday
  • May 1 - Labor Day
  • June 5 - President’s Day
  • June 15 - Corpus Christi
  • Aug 3 - Freedom Day
  • Aug 15 - Constitution Day
  • Oct 12 - Independence Day
  • Dec 8 - Immaculate Conception
  • Dec 25 - Christmas Day

Annual Leave
Employees are entitled to 1 month’s paid annual leave after completing 1 year of employment. After 10 years of employment, annual leave increases by 1 day for each year of employment.

Maternity Leave
Female employees are entitled to 12 weeks’ maternity leave out of which 6 weeks can be taken before the childbirth and 6 weeks after childbirth. In case of medical complications, employees can return to work only if the competent health authority deems it appropriate. Employees are required to submit the relevant leave of absence form to the Human Resources Department and the supervisor to seek approval for maternity leave.

Sick Leave
Employees are entitled to 5 days’ paid sick leave in a year.

Benefits

Pension and Social Security

Social Security Contributions
Employers are required to contribute 21.5% of their gross salary to the National Institute of Social Security (INSESO, Spanish acronym) while employees contribute 4.5%.

Employers are required to contribute 1% of gross salary to the Work Protection Fund while employees contribute 0.5%.

Old-age Pension:
The old-age pension paid is equal to 40% of an individual’s average monthly wages in the previous 2 years plus 2% of the average monthly wages for every year’s contribution exceeding 10 years. The monthly pension cannot be more than 80% of an individual’s average monthly wages in the last 2 years. Benefits are adjusted every 5 years.

Permanent Disability Benefits:

Disability Pension
Employees who are assessed with a total loss of work capacity are paid disability pension equal to 40% of their monthly wages. Those who are assessed with a total loss of capacity to do usual work but not a complete loss of work capacity are provided disability pension for 6 months. Constant-attendance allowance equal to 40% of the individual’s monthly wages is paid.

For partial disability, employees are paid 40% of their monthly wages for up to 3 months. Benefits can be suspended if an employee fails to undergo required medical check-up. Benefits are adjusted every 5 years.

Survivor Pension:

Spouse’s Pension
Spouse of the deceased is paid 50% of the deceased’s monthly wages as survivor pension. In case the deceased was receiving a disability or old-age pension at the time of death, an amount equal to 80% of the deceased’s pension is paid as pension. Widows younger than 30 years who have no children receive the pension only for up to 24 months.

 Orphan’s Pension:
All eligible orphans are provided the orphan’s pension and the combined orphan’s pension up to 20% of the deceased’s monthly wages is paid. The pension equal to 40% of the deceased’s monthly wages is paid to full orphans or half-orphans in case the widow’s pension ceases.

Other Dependent’s Pension:
Dependent’s pension equal to 40% of the deceased’s monthly wages is given to a dependent parent and is increased to 80% if the deceased was a pensioner. In case there is no dependent parent, the pension equal to 40% of the deceased’s monthly wages is given to a dependent relative for a maximum of 24 months. Benefits are adjusted every 5 years.

A funeral grant equal to the deceased’s 2 months’ wages is paid.

Sickness and Maternity

Coverage
Covered: Disability pensioners, old-age pensioners, and employed persons including military personnel and civil servants

Excluded: Self-employed individuals

Source of Funds

Insured person: 4.5% of gross earnings

Employer: 21.5% of gross payroll

Qualifying Conditions

Cash sickness benefits: Should have made contributions in each of the last 12 months and must be undergoing medical treatment.

Cash maternity benefits: Should provide a medical certificate.

Medical benefits: No minimum qualifying period applies.

Sickness and Maternity Benefits

Sickness benefit: 50% of the individual’s daily earnings is payable for up to 26 weeks after a waiting period of 3 days. The benefit can be extended under special circumstances.

Maternity benefit: 75% of the individual’s daily earnings is payable for 12 weeks if the employee made contributions in the last 12 months. If the contributions have been made for less than 12 months, a lump sum of 2 months’ salary is paid.

Workers’ Medical Benefits
Benefits include medical care for a maximum of 26 weeks, and the employee pays 25% of the medical care costs and 50% of the cost of medicines. Medicine during pregnancy, hospitalization, and the postnatal period are free.

Dependents’ Medical Benefits
Dependents receive the same medical benefits as the regular employees.

Workers' Injury

Coverage
Employed individuals, which include military personnel and civil servants.

Source of Funds

Insured person: 4.5% of gross income.

Employer: 21.5% of gross payroll.

The employer also funds sickness, maternity benefits, work injury benefits, and family allowances.

Qualifying Conditions: No minimum qualifying period.

How GPS can Help

With our Global PEO/Employer of Record services, companies can expand into Equatorial Guinea and hire their employees without having to establish a branch office or subsidiary in Equatorial Guinea.

  • Your candidate is hired via our Equatorial Guinea PEO. If needed, we can also help you find the right talent in any country with our comprehensive global staffing services.
  • Your new employee begins work quickly as we take care of employment contracts, statutory and non-statutory benefits, and running their payroll - all in full compliance with Equatorial Guinea laws.
  • Global PEO Services experts manage all day-to-day operational issues such as employee expenses, and severance/termination if required.
  • With no contractor risks, pass on the compliance burden to Global PEO Services.

Spin Off/M&A Support

  • Ensure continuity of payroll, benefits and HR support when acquiring or spinning off a business with employees overseas.

24/7 Support in 100+ Countries

  • Empower your teams with 24/7 support and a single point-of-contact model in which experienced client services directors are in continuous communication with information and advice.
  • We are backed by a mix of 300+ multidisciplinary experts from HR, Payroll, Finance, Tax, and Legal domains who are ready to respond to the expected and unexpected needs of your business on the shortest notice.

Easy Visibility into Your Employee Time & Attendance and Benefits Data
With our Global PEO, you get access to Mihi, our proprietary SaaS solution for time and attendance, vacation, leave management and benefits enrollment and management. Mihi enables clients to have easy access to employee data in real time. It is designed specifically for companies with a global workforce, especially when working in multiple countries with low headcount.

Ready for Growth When You Are
When ready, we can seamlessly transition you from the PEO/EOR model to your own legal entity and provide ongoing international HR, finance, legal, compliance and staffing support. Learn more about our end-to-end international expansion services.

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