Chad, a land-locked country in Africa, is a major oil producer and oil provides nearly 60% of export revenues. On the other hand, cattle, cotton, gum arabic, and livestock contribute to the majority of non-oil export earnings. The country’s GDP is US$ 29 billion and registered a 3.4% 5-year compound annual growth. The government envisages implementing successive national development plans to earn the coveted “emerging country” tag by 2030.

Currency: Central African CFA Franc

Principal Languages: French and Arabic

Government: Presidential system

Capital City: N'Djamena

Major Cities: N'Djamena, Moundou, Abéché

Employment Contracts

It is recommended to draft written employment contracts in the local language with details including wages, benefits, and termination requirements. Fixed-term contracts must not exceed 24 months and can be renewed only once. The wages must be stated in Central African CFA Francs, and not in a foreign currency.

Work/Time Regulations

The regular work schedule comprises 39 hours in a week. All employees are entitled to rest periods of 24 hours to 48 hours in a week. The labor code enforces occupational health and safety standards for main industries.



The following national holidays are observed in Chad:

  • New Year’s Day
  • Easter Monday
  • May Day
  • End of the Second World War
  • Eid al-Fitr
  • Independence Day
  • Eid al-Adha
  • Proclamation of the Republic
  • The Prophet’s Birthday
  • Christmas Day

Annual Leave
Employees are entitled to 24 days’ paid annual leave, and those with more than 10 years’ service are entitled to 26 days’ annual leave.

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

Maternity Leave
Pregnant employees are entitled to 14 days’ maternity leave.

Paternity Leave
Employees are generally eligible for 2 weeks’ paternity leave.


Pension and Social Security

Social Security Contributions
The monthly contribution to Social Security is:

  • 5% of the gross salary by the employer (upper limit is XAF 82,500 per month)
  • 5% of the gross salary by the employee (upper limit is XAF 17,500 per month)

The employee social security contributions are deductible from taxable income and withheld by the employer each month.

The table below contains the items and applicable rates:


Rate (%)

Basic ceiling of contribution (XAF)

Ceiling of contribution (XAF)

Contributions related to family and maternity benefits




Contributions related to occupational accidents and professional diseases




Contributions related to insurance and pension for old age, incapacity, and death








Old-age Pension
Employees who retire at the age of 60 years (55 years for prematurely aged) and have at least 180 months of coverage qualify for the old-age pension.

If an individual is prematurely aged, the pension is reduced by 5% for every year the pension is taken before the regular retirement age. The minimum pension is 60% of the monthly minimum wage and the national monthly minimum wage is 59,995 CFA francs. Benefits are provided quarterly.

Disability Pension
To qualify for disability pension, employees must be:

  • assessed with a minimum of 66.7% loss of earning capacity due to disability, and
  • registered with the fund for a minimum of 5 years with at least 6 months of contributions in the year before the disability started.

An insured person is credited with 1 year of coverage for each year when a claim is made before the individual reaches the normal retirement age. The disability pension stops at the normal retirement age and is replaced by an old-age pension of the same amount.

The constant-attendance allowance equal to 50% of the pension is paid. Benefits are paid on quarterly basis. Benefits are adjusted based on the changes in the cost of living and the minimum wage.

Spouse's Pension
Spouse pension equal to 50% of the disability or old-age pension the deceased was receiving until death or was entitled to receive is paid. In case there is more than one eligible widow, the pension is divided equally. A lump sum equal to 6 months’ survivor pension is paid as a remarriage settlement.

Orphan's Pension
An orphan pension equal to 25% of the disability, or old-age pension the deceased was receiving until death or was entitled to receive is paid for each orphan. The percentage is increased to 40% in case of a full orphan. Benefits are paid on quarterly basis. Benefits are adjusted based on the changes in the cost of living and the minimum wage. A lump sum equaling 1 month’s wages is paid for every year of coverage.

How GPS can Help

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

  • Your candidate is hired via our Chad 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 Chad 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 150+ 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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