How to Hire Remote Employees In 

Guinea Bissau

The Basics

Currency
West African CFA franc (XOF)
Employer Taxes
14%
Payroll Frequency
Monthly
Official Language
Portuguese

Employment in 

Guinea Bissau

Hire Independent Contractors

Independent contractors or freelancers are self-employed individuals who provide services to companies as a non-employee. This is one of the most common ways companies tend to hire non-local designers, engineers, support reps, etc.

For legal and tax purposes, independent contractors are not classified as employees. They may work for multiple clients, set their own work hours, negotiate their pay rate, and decide how a job gets done.

For example, the IRS says that if an independent contractor or freelancer does work that can be controlled (what will be done and how it will be done) by an employer then they are, in fact, classified as an employee.

As you can imagine, hiring someone as an independent contractor versus an employee is a fine line to tread.

While there are benefits when you choose the contractor route, there are quite a few drawbacks to consider and you’ll need to weigh them carefully to determine the best fit for your company.

Benefits of Hiring Independent Contractors
Time savings: Hiring through a subsidiary or EOR can take months of onerous paperwork and legal wrangling. This is only multiplied if you want to hire in multiple countries.
Reduced overhead: You can save tens of thousands of dollars in onboarding costs by hiring through a company like Panther. You also have fewer responsibilities to provide benefits, further reducing overhead.
Greater flexibility: Contractors can be brought on as-needed. If they are not a good fit, you can choose not to renew them without incurring significant additional termination costs.
Reduced legal risk: Contractors generally don't have the host of legal protections that typically cover full-time employees.
Disadvantages of Hiring Independent Contractors
Risk of Misclassification: While it's important to understand local contractor law, for most firms, misclassification risk is minimal.
Lack of Control: For a worker to be classified as a contractor, they should be allowed to work independently on their assigned tasks. Hiring full-time employees offers a wider range of management options.
Lack of Loyalty: Contractors come and go as-needed. Many companies hire contractors for short-term work, which makes it difficult to cultivate loyalty.

Set up a subsidiary in 

Guinea Bissau

A foreign subsidiary is a company that operates overseas as part of a larger company who’s HQ is in another country.

Establishing a foreign entity is great for having an international presence and accessing new markets. Though, setting up a subsidiary in Guinea Bissau can be expensive, stressful, and time-consuming. It's not for the faint of heart.

To set up a subsidiary in Guinea Bissau, you have to:

  1. Register your business name and file articles of incorporation
  2. File for local bank accounts
  3. Learn and keep track of the local employment laws
  4. Set up local payroll
  5. Hire local accounting, legal, and HR people

If you're lucky, this process can take months. If you're not so lucky, it can take up to a year. And on average, it costs about $50k-$80k, all-in-all, to get setup. And that's just for Guinea Bissau.

Use an Employer-of-Record (EOR)

An employer-of-record (EOR) is a company that hires and pays an employee on behalf of another company.

An EOR is typically used to overcome the financial and regulatory hurdles that often come with employing remote workers.

Each country has its own payroll, employment, and work permit requirements for non-resident companies doing business in their jurisdiction. Meeting those demands can be a huge obstacle when it comes to hiring remotely.

At Panther, we help companies employ and pay people in over 160 countries, without having to set up a foreign subsidiary. Payroll, benefits, taxes, compliance, and more are all handled by us, at a fraction of the cost.

Outside of saving you months and tens of thousands of dollars, other advantages of using Panther are:

  • Ability to attract talented and motivated employees from all over the world.
  • Full legal compliance: There is no risk of violating local employment laws.
  • Transparency: Employees are still your employees. All the work, processes, operations and day-to-day business belong to you, the company, just like with any other employee. Panther just takes on all of the responsibilities, obligations and admin work related to your team's employment.
  • No risk of misclassification

Because you no longer have to set up your own subsidiary, you’ll save a ton of time and tens of thousands of dollars using Panther.

Paying Remote Employees

Paying employees in Guinea Bissau is not the same as paying workers in your own country. Employees have to be paid using Guinea Bissau’s employment and payroll standards.

This means that you have to know, understand, and keep up with 1) fluctuating currency changes, and 2) local payroll and tax laws in the countries you’re looking to hire in.

Outside of the laws and regulations around payroll, there may be different conditions surrounding leave, overtime, termination, and more. As you can imagine, maintaining this kind of regulatory knowledge can be challenging. But it is crucial and necessary to follow local legislation.

After, you’ll have to determine the best way to pay your international employees. This can be done in a number of ways, including but not limited to:

Pay through a local entity

One of the most challenging (and expensive) parts of paying international employees is setting up the infrastructure to do so.

Before you start to run payroll, you have to register your company as the local employer in the country the worker resides in. As you can see in the “Set up a subsidiary” section, this is a multi-step process that can take up to a year and put you on your way to bankruptcy.

Work with an EOR

Outside of EORs acting as the full admin employer, many also provide remote payroll.

For example, at Panther, in just 1-click, you’re able to pay your entire global team, anywhere in the world. We send you an invoice each month, charge you in US Dollars, and pay your employees the same amount in their local currency.

We factor in currency fluctuations and use the mid-market rate plus any applicable fee passed on by our provider at cost at the time of billing.

Guinea Bissau

 Specific Information

Working Hours

The standard workweek is 45 hours, with eight hours a day over seven consecutive days.

Overtime

In Guinea Bissau, any overtime work in the evening should be paid at 25%, while weekend overtime work is paid at 50%.

Payroll Tax

Employer

Employer

  • Gross Monthly Payroll
  • Sickness Benefits
  • Medical Benefits

Minimum Wage

The Guinea Bissau minimum wage is 19,030 CFA francs per month plus a bag of rice.

Payroll

Pay Cycle

In Guinea Bissau, employees expect to be paid monthly.

13th Salary

In Guinea Bissau, bonuses are not required by law, but some employers choose to offer performance-based bonuses.

Leave

Paid Time Off (PTO)

Fixed-term employment contracts with less than one year, the annual leave is paid at 2.5 days for each month of work.

Employees receive 30 days of paid annual leave per year, which cannot be accumulated, and the dates are decided by an agreement between parties.

Public Holidays

There are 10 public holidays.

Sick Days

In Guinea Bissau, the employee may receive five days of sick leave under the employment.

Maternity Leave

Female employees are entitled to receive 60 days of paid leave, which are paid by the employer unless the employee is covered by social security.

Paternity Leave

There is no statutory paternity leave.

Parental Leave

There is no statutory paternal leave.

Other Leave

No Info.

Marriage Leave

No Info.

Bereavement Leave

No Info.

Termination

Termination Process

Termination of the employment is possible with the following reasons:

  • By consent of both the parties
  • If there is enough reason for termination such as gross misconduct, constant absence, or inability to comply with the policy
  • When there is an economic reason
  • By the expiration of the date that has been mentioned on the contract as the end date

Notice Period

The notice period in Guinea Bissau depends on the job role of employees:

  • Operational staff members are entitled to two weeks’ notice.
  • If the employee is a supervisor or foreman, they should serve a notice period of one month.
  • In case the employee is a middle manager or a similar kind, then a three-month notice period is required.

Severance Pay

In Guinea Bissau, employees under an indefinite contract who have completed at least 12 months of service are generally entitled to receive severance pay of at least 50 hours worth of wages for hourly workers and 25% of one month's wage for monthly paid workers.

Probation Period

The probationary period in Guinea Bissau is 3 months.