How to hire remote employees in

Djibouti

So you’ve found some great talent in Djibouti, but maybe a little less sure how you’re supposed to go about hiring them? You’re in the right place. In the next few minutes, you’ll learn how to hire remote talent in Djibouti, quickly, without wading into months and thousands of dollars of legal red tape.

Country snapshot

CURRENCY
Djiboutian Franc
EMPLOYER TAXES
15%
PAYROLL FREQUENCY
Bi-weekly/Monthly
OFFICIAL LANGUAGE
French, Arabic

What to know before you hire in 

Djibouti

Hiring abroad is notoriously difficult: New labor laws, entities, a lot of words you’d rather not hear again. But we’ve got good news—it doesn’t need to be that way. Below, we’ll break down your two main options for hiring in Djibouti (and the one we prefer).

If you want to successfully hire in 

Djibouti

, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in 

Djibouti

. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Panther for.

Hire talent as employees

This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in 

Djibouti

 is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Why hire independent contractors in 

Djibouti

Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in 

Djibouti

.

It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Panther’s locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.

It’s a lot cheaper

It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.

It’s more flexible for you & your team

Hiring contractors in 

Djibouti

 means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.

It’s less risky than hiring employees

Hiring employees is a bigger commitment, and generally puts you at a bigger risk for legal fees. When you hire contractors overseas, your biggest risk is misclassification—but even then, misclassification penalties are often minimal and just require you to pay off any compensation that the person would have been owed as an employee.

Some people want to be employees

The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.

You might not have as much control over your talent

Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.

How can I pay people in 

Djibouti

?

If you’re hiring contractors in 

Djibouti

, you can pay them with Panther in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.

Hiring and paying your team in 

Djibouti

Hire and pay with Panther

Pay everyone with a single click
Get great currency conversion rates
Pay $0 in platform fees
Run payroll in seconds
Let Panther automatically create & store invoices
Let Panther automatically write locally-compliant contracts
Let Panther automatically file local tax documents

Hire and pay without Panther

Pay all your contractors individually
Do all currency conversions yourself
Shoulder the burden of platform fees
Spend hours each month making payments
Manually track & store invoices
Manually write & sign contracts
Manually file relevant tax documents

Let Panther save you from hiring headaches.

Sign up today for $0

If you want to hire employees in 

Djibouti

If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Djibouti than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Djibouti.

Taxes in 

Djibouti

Employer tax

Family Allowance

Disability Insurance

Social Security

Individual tax

Leave

Paid Time Off (PTO)

Employees are eligible for paid leave after completing 12 months of employment. It is calculated at 2.5 days per month amounting to 30 days of annual paid leave.

Annual leave can be split into 2- batches of 14 days each. Employees are also eligible for 12 days of unpaid leave that is not deducted from the annual leave.

Public Holidays

There are 9 public holidays.

Sick Days

Employees receive 29 days of sick leave paid at 50% of the basic rate by social security. For any additional day  exceed in 29 days, the employee receives 75% of the basic salary.

Maternity Leave

Employees receive maternity benefits, equally split between the employer and Social Advancement Organization. Female employees receive 14 weeks of paid maternity leave.

It is divided into two batches with 8-weeks before delivery and 6-weeks post-delivery. The leave period can be extended in case of complications with the pregnancy.

Paternity Leave

Male employees receive three days of paid paternity leave after the child’s birth.

Parental Leave

There are no statutory provisions for parental leave.

Other Leave

No Info.

Marriage Leave

No Info.

Bereavement Leave

No Info.

Termination

Termination Process

Employment in Djibouti can be terminated by either party by giving a minimum notice period.

An employment contract can also be terminated due to non-performance or inability to perform following the demands of the job. It can also include reasons related to health, lack of professional skills, and even misconduct.

For all such cases, a 48-hr notice is provided to the employee.

Notice Period

The minimum notice period in Djibouti:

  • One month for regular positions
  • Three months for executive positions

Severance Pay

Employees may be entitled to damages in the event of an unjust dismissal. Damages cannot exceed:

  • Two months’ salary for employees in a company with less than 11 employees.
  • Four months’ salary for employees employed in a company with 11 to 49 employees.
  • Six months’ salary for employees employed in a company with more than 49 employees.

Probation Period

The probation period in Djibouti:

  • 15 days for part-time hourly paid employees;
  • 30 days for full-time monthly paid non-executive positions;and
  • 3 months for full-time monthly paid executive positions.

Employee requirements in 

Djibouti

Working Hours

The standard working hours in Djibouti is 47 hours for a six-day week, 8 hours per day.

Overtime

Employees in Djibouti overtime is paid as per convention or an agreement between both parties. Overtime should not exceed 4 hrs a day and cannot cross 60 hrs per week.

Any additional overtime beyond the defined hours requires authorization from the inspector of labor.

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