Guinea still has an emerging economy. The country has the world's largest reserves of bauxite and untapped high-grade iron ore, as well as gold and diamonds. In addition, Guinea has fertile soil, ample rainfall, and is the source of several West African rivers, including the Senegal, Niger, and Gambia. Guinea's hydro potential is enormous and the country could be a major exporter of electricity in the future. The country also has great potential in agriculture potential. International investors have shown interest in Guinea's unexplored mineral reserves, which have the potential to propel Guinea's economy. The GDP (PPP) of Guinea is $26.45 billion (2017) and the GDP for real growth rate is 6.7% (2017).
Currency: Guinean Franc
Principal Languages: French, Fula, Malinké
Government: Unitary Presidential Republic
Capital City: Conakry
Major Cities: Camayenne, Nzérékoré, Kindia, Kankan
The duration of fixed-term contracts should not exceed 2 years. If an employee continues after 2 years, the contract gets converted into an indefinite term contract.
It is legally required to have a written employment contract in place in Guinea, in the local language, which clearly outlines the terms of an employee’s compensation, benefits, and termination requirements. The contract may be agreed upon for an indefinite or a fixed-term and may only be agreed upon by individuals of at least 16 years of age. However, minors under the age of 16 may be contracted only with the authorization of the minor’s parent or guardian.
The law mandates that regular work should not exceed 10 hour per day or 48 hours in a week. The law mandates a period of at least 24 consecutive hours of rest every week, usually on Sunday.
The minimum age for employment is 16. Exceptions allow children to work at age 12 as apprentices for light work in the sectors as domestic service and agriculture. For other types of work, the minimum age requirement is 14. The law does not permit workers and apprentices under 18 years to work more than 10 consecutive hours, at night, or on Sundays. The Ministry of Labor maintained a list of occupations in which youth under 18 years cannot be employed, but enforcement is limited to large firms in the modern sectors.
Under the Labor Law in Guinea, there are also provisions for overtime and night wages, which are a fixed percentage of the regular wage. The law stipulates a maximum of 100 hours of mandatory overtime in a year.
Guinea celebrates the following 11 national holidays:
- New Year’s Day
- Easter Monday
- Labor Day
- Africa Day
- Lailat al-Qadr
- Eid al-Fitr
- Assumption of Mary
- Eid al-Adha
- Independence Day
- The Prophet’s Birthday
- Christmas Day
Employees are eligible to accrue paid leave at a rate of 2½ days per month worked.
Female employees are entitled to 14 weeks of paid maternity leave.
Employees are generally entitled to up to 26 weeks of paid sick leave.
Pension and Social Security
Old-age pension is paid for up to 30 years at 2% of the insured’s average earnings in the last 10 years multiplied by the number of years of contributions (some periods of disability are credited).
- The minimum monthly income used to calculate benefits is 440,000 francs.
- The maximum monthly income used to calculate benefits is 1,500,000 francs.
Early Pension: The pension is reduced by 5% to 10% for every year in which an employee receives pension before the normal retirement age.
Pensions are paid quarterly. The pension may be paid in addition to the work injury/permanent disability pension.
A lump sum is paid calculating an insured’s average monthly income in the last 10 years multiplied by the number of years of contributions.
Benefit Adjustment: Benefits are adjusted based on the changes in the national average wage, depending on the financial resources of the system.
If assessed with a total disability, 100% of an insured’s average annual income is paid.
40% of an insured’s average annual income is paid.
- The minimum monthly income used to calculate benefit is 440,000 francs.
- The maximum monthly income used to calculate benefit is 1,500,000 francs.
Constant-attendance Supplement: 20% of the disability pension is paid.
The disability pension ceases at age 55 and is replaced by an old-age pension of the same value. Pensions are paid quarterly.
Benefit Adjustment: Benefits are adjusted according to changes in the national average wage, depending on the financial resources of the system.
Spouse’s Pension: 30% of a deceased’s average income in the last 12 months before the insured died is paid to the widow(er). The surviving spouse must have been married to the deceased for a minimum of 1 year before the disability began. If there is more than one eligible widow, the pension is split equally.
The pension ceases on remarriage or cohabitation, and a lump sum is paid.
Remarriage Settlement: A lump sum of 3 years of pension is paid.
Dependent Relative’s Pension: 10% of a deceased’s average income in the 12 months before the insured died is paid to each surviving dependent relative, up to 20%.
All survivor benefits combined must not be more than 85% of the deceased’s average income in the 12 months before the insured died. Pensions are paid quarterly.
Insured person: None.
Employer: 4% of covered payroll.
Employers with 20 or more employees pay contributions monthly whereas employers with 1 to 19 employees pay contributions quarterly.
Work Injury Benefits: There is no minimum qualifying period. Accidents that occur while commuting to and from work are covered.
Temporary Disability Benefits
50% of an insured’s average daily wage in the month before the disability started is paid for the first 28 days; thereafter, 66.7% of the average daily wage. The benefit is paid from the day after the disability began until full recovery or certification of permanent disability. Benefits may be adjusted if the disability lasts more than 1 month. Benefits are paid monthly.
Permanent Disability Benefits
Permanent Disability Pension: If assessed with a total disability, 70% of an insured’s average income in the 12 months before the disability started is paid.
Partial Disability: If the assessed degree of disability is at least 15%, a percentage of the full pension is paid based on the assessed degree of disability; from 1% to 14% as a lump sum. Pensions are paid quarterly. The permanent disability pension may be paid in addition to the old-age pension.
Benefit Adjustment: Benefits are adjusted periodically.
How GPS can Help
With our Global PEO/Employer of Record services, companies can expand into Guinea and hire their employees without having to establish a branch office or subsidiary in Guinea.
- Your candidate is hired via our 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 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.