Equatorial Guinea PEO & Employer of Record Services
Global PEO Services (GPS) helps companies hire employees in Equatorial Guinea 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 Equatorial Guinea, 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 Equatorial Guinea 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 Equatorial Guinea. With Global PEO Services, you get control without taking on legal entity liabilities, contractor risks, or sacrificing on talent or speed to market.
Equatorial Guinea - Country 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 as a part of its National Economic and Social Development Plan.
Central African CFA Franc
French, Portuguese, Spanish
Republic, Presidential System, Unitary State, One-party State
Luba, Bata, Mongomo, Aconibe, Añisoc
Employment Contracts in Equatorial Guinea
Two types of employment contracts are permitted in Equatorial Guinea:
- Limited or fixed-term contracts: Contracts with a specific duration, commencement, and completion dates
- 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.
Working Hours in Equatorial Guinea
The regular work schedule comprises 8 hours in a day and 40 hours in a week.
Employees who work overtime are entitled to 25% premium over regular pay.
Employee Leave in Equatorial Guinea
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
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.
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.
Employees are entitled to 5 days’ paid sick leave in a year.
Employee Benefits in Equatorial Guinea
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%.
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
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.
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.
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 2 months of the deceased’s wages is paid.
Sickness and Maternity
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
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.
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.