Exclusive Webinar - Paying global teams: Strategic compensation and compliant payroll

Save your spot

Speed up your global expansion! Expand smartly in 150+ countries with the #1 rated EOR globally.

Explore Multiplier EOR

Book a demo

loading-animtion.gif

Expand your global workforce in Somalia

Your guide to the employment landscape, working customs and local labor laws in

Capital

Mogadishu

Currency

Somali Shilling (SOS)

Languages

Somali, Arabic

GDP per Capita

$434.88

Employer Tax

5% - 7%

Payroll Frequency

Monthly and Fortnightly

Talent overview

Somalia is a developing country whose main economic sector is agriculture. Livestock, for one, accounts for 40% of the country’s GDP and has employed most of the Nomads and the semi-pastoralists population. The country’s economic source includes telecommunication, foreign remittances, and manufacturing.

Major economic hubs:

Mogadishu, Hargeysa, Borama

Skills in demand:

Project Manager, Field Officer, Telecommunication Technicians

Top local universities in Somalia

Uni1 10

Jaamacadda Camuud

RANKING

Local: 1

World : 9,273

Uni2 8

Jaamacadda Muqdisho

RANKING

Local: 2

World : 9,925

Uni3 10

Jaamacadda SIMAD

RANKING

Local: 3

World : 10,185

Uni4 10

Jaamacada Hargeysa

RANKING

Local: 4

World : 10,760

Uni5 10

Jaamacada Burco

RANKING

Local: 5

World : 11,343

Top Local Job Boards:

QaranJobs, JobLink Somalia, Somali Jobs

Number of LinkedIn users:

231,100

Top Recruitment Agencies:

Khibrad Recruitment Agency, Mogadishu Employment Agency

Where to find talent

Top Local Job Boards:

Number of LinkedIn users:

Top Recruitment Agencies:

Salary Data

The below table mentions job titles in Somalia with average monthly salaries;

Job Title Average Monthly Salary (in SOS) Average Monthly Salary (in USD)
Accountant 177,000 311.35
Software Engineer 248,000 436.24
Financial Analyst 328,000 576.96
Graphic Designer 162,000 284.96
Project Manager 289,000 508.36
Sales Manager 444,000 781.00
Customer Service Representative 96,400 169.57

Employ in Somalia

Employing in Somalia

The Somalian Labor Act covers all the basic provisions that employers must abide by when hiring locals in the country. Below are some items from the labor law to guide you through the process of employing Somali workers.

Employee Contract

An employment contract in Somalia may be oral or written. However, for an employment period of 3 months, the contract must be in writing. The burden of explaining the terms of the employment is on the employer; therefore, the medium and language used to communicate it should be comprehensible by both parties.

Probation Period

Probationary period for Somali employees is generally 6 months but can be extended depending on the employer’s discretion

Public and Provincial Holidays 2023

Date Name Type
1 Jan New Year Public Holiday
22 Apr Eid al-Fitr (Tentative Date) Public Holiday
1 May May Day Public Holiday
26 Jun Independence Day Public Holiday
29 Jun Eid al-Adha (Tentative Date) Public Holiday
28 Jul Ashura (Tentative Date) Public Holiday
27 Sep The Prophet’s Birthday (Tentative Date) Public Holiday

Employee Leaves

Type of Leave Time Period Mandatory
Annual Leave 21 days Yes
Sick Leave 7 days Yes
Maternity Leave 3 months Yes

Leave Compliance

Payroll in Somalia

Tw Payroll Img1

Payroll cycle

Salaries for employees paid by the day must be released not later than every fortnight. For the rest of the employee classifications, salaries must be paid every month.

Tw Payroll Img2

Minimum wage

Somalia does not indicate a  mandatory minimum wage for its employees.

Tw Payroll Img3

Overtime pay

For every extra hour of work performed on a regular workday, Somali employees are entitled to 125% of their hourly rate. For work performed during holidays, employees are given 150% of their regular rate. However, for work performed during Labor day, National Commemorative day, and Revolution day, the pay will be 200%.

How taxes work

Employer Payroll Tax

Type of Contribution Tax Rate (%)
Social Insurance System 5% – 7%

Employee Payroll Tax

There are no statutory employee contributions in Somalia.

Employee Income Tax

Monthly income bracket (in USD) Tax Rate (%)
0-200 0
201-800 6
801-1500 12
1501-over 18

VAT

The VAT rate in Somalia is 10%.

Bonus

13th Month Pay

A 13th month pay is not a statutory requirement in Somalia.

Employee Benefits

Below are some benefits that Somali employees get to have during their employment:

  • Statutory Leaves
  • Medical Benefits
  • Disability benefits

Employee offboarding

Employers and employees in Somalia are given the right to end an employment contract provided that a written notice is submitted indicating the reasons for termination.

Notice Period for employees that were terminated in Somalia will be up to 30 days, depending on the nature of job.

The severance pay for terminated employees will be their rightful remuneration during their notice period.

Tw Visa Img

Visa and
immigration

Foreign employees in Somalia must secure a work permit from the Ministry of Labor to work legally. Afterwhich, they are to apply for a residence grant to stay in Somalia during their employment.

Expand into
150+ countries

Expand globally and hire talent in 150+ countries without having to set up an entity. Use Multiplier's Employer of Record to manage the complete employee experience while having the flexibility to enter new markets.

Expand into150+ countries