Burkina Faso PEO & Employer of Record Services
Global PEO Services (GPS) helps companies hire employees in Burkina Faso without establishing a legal entity. All human resources, benefits, payroll, and tax needs for the employees are managed by the Global PEO, while the new hires and headquarter teams focus on your business goals.
When hiring employees in Burkina Faso, establishing a subsidiary or branch office is not always the best route, as it’s often a lengthy and expensive process. Hiring via a Professional Employer Organization (PEO), or Employer of Record (EOR), is a faster and often more effective option – especially when starting up in a new country.
Global PEO Services hires the employees on your behalf, legally contracting them through our subsidiary in accordance with Burkina Faso labor laws. As a result, the burden of compliance is on us and the employees can begin work for your company in a matter of days. PEOs/EORs provide you with a streamlined option for hiring employees, testing markets, and responding to growing business needs in Burkina Faso. With Global PEO Services, you get control without taking on legal entity liabilities, contractor risks, or sacrificing on talent or speed to market.
Burkina Faso - Country Overview
Burkina Faso, a West African nation, has achieved constant annual growth of 5% in the past 5 years. Sound macroeconomic management mainly due to significant exports of cotton and gold has helped consolidate the country’s GDP. The government has liberalized the economy and introduced banking reforms to aid in foreign direct investments, the inflow of which is currently over $500 million. Food processing, textiles, and import substitution are some industries that are promising for foreign investors.
West African CFA Franc
Other Major Cities
Bobo-Dioulasso, Banfora, Koudougou
Employment Contracts in Burkina Faso
Fixed term employment contracts in Burkina Faso need to be in writing, and these contracts cannot be more than 3 years. In the case of permanent contracts, it is the best practice to sign a written contract that specifies the compensation, benefits, and conditions of termination. The salary and other types of remuneration payable to employees must be in West African CFA francs rather than any other currency.
Working Hours in Burkina Faso
The standard workweek has 40 hours for non-domestic workers, but for domestic workers, it may extend up to 60 hours.
Additional payments for overtime work range from 15% to 120% over the regular wages.
Employee Leave in Burkina Faso
Burkina Faso observes 13 national holidays:
- New Year’s Day
- International Women’s Day
- Easter Monday
- International Labor Day
- Ascension Day
- Eid-Al Fitr
- Independence Day
- Assumption Day
- Aid-El Kebir
- Columbus Day
- Commemoration of Independence
- Christmas Day
Employees are eligible for 22 days of paid annual leave.
Workers and employees are entitled to sick leave after 1 month of employment while employees such as executives and technicians are entitled to the same after 3 months. Compensation for sick leave is based on the difference between the employee’s salary and the minimum salary in that job category. Also, allowances attached to a position may include sick leave benefits.
Female employees get paid maternity leave for 14 weeks which both the employer and the country’s social security need to bear.
Male employees in Burkina Faso get 20 days of paid paternity leave for special events of their home life, and childbirth qualifies as such an event.
Employee Benefits in Burkina Faso
Pension and Social Security
Employees need to make contributions equal to 5.5% of their salary to social security, while employers need to pay 16% along with a payroll tax of 3%.
Insured employees receive 2% of their average monthly earnings during the 5 years of the highest contributions each year, with a cap of 80%. The minimum pension payable to employees is 84% of the minimum wage. The early pension is paid and calculated in the same manner as the old-age benefit. In case a pensioner has a child, he or she receives 2,000 CFA francs as the child’s benefit.
A disabled employee receives 2% of the insured’s average monthly earnings during the year in which the employee’s contribution was highest for that year, which is up to 80%. The minimum payable monthly pension is 84% of minimum wage. In case of partial disability, a constant-attendance allowance equal to 50% of the eligible disability pension is paid.
Child’s supplement is paid for eligible children of disabled pensioners, which is 2,000 CFA francs per month.
Disabled employees may be eligible for benefits under the work injury compensation scheme. Such employees are entitled to 100% of disability pension in addition to the general disability pension if it is more than the work injury pension amount.
A surviving spouse is eligible for 50% of the disability pension that the deceased person would have received if he/she was alive. In the case of more than one orphan qualifying as survivors, the pension amount is split equally between them.
The disability pension of 50% that the deceased employee would have received if he or she was alive is paid to an orphan. In the case of more than one orphans qualifying as survivors, the pension amount is split equally between them.
Parents, grandparents or other eligible dependents are entitled to receive 25% of the old-age or disability pension. The maximum disability pension payable to the dependents is 100% of the deceased’s old-age pension. Survivors are also eligible to receive compensation under the work injury scheme.