Burundi Faso PEO & Employer of Record

WeHG provides an International PEO and vglobal Employer of Record service in Burundi to companies willing to enter the Burundi market or hire local/emigrant employees in this country.

Traditional approach requires establishing a subsidiary in Burundi.  However our solution allows you to start the operations in Burundi within days hence save time and money.  WeHG would recruit applicants on your behalf while you maintain full operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf. 

Burundi fast facts

Population, million: 11,890,784
Land area, sq. km: 27,834 km²
Capital: Gitega
Local currency: Burundian franc (BIF)

GDP per capita:$202.00
GDP in currency:$ 2.50 billion
Economic growth percentage: 3.7%
Inflation rate (consumer prices): 7.56%
Volume of export: $ 1.3 billion
Import of goods and services: $ 887 million
Total population: 11,890,784
Population of working age (15-64): 52.93%

Burundi, a small landlocked country in the African Great Lakes region in central Eastern Africa bordering Lake Tanganyika in south west. The country shares borders with the Democratic Republic of the Congo, Rwanda, and Tanzania.

With an area of 27,834 km², the country is somewhat smaller than half the size of Croatia, or slightly smaller than the U.S. state of Maryland.

Capital and largest city is Bujumbura. Spoken languages are French (official 0.3%) and Kirundi (spoken by nine million people in Burundi and adjacent parts of Tanzania and Congo-Kinshasa), other dialects like Rundi and Kiga. More than 80% percent of the population are Christians.

Hiring, Negotiating and Doing Business in Burundi

Necessity of written employment contract

Employment contracts are concluded in writing except for daily workers. An employment contract may be of definite or indefinite duration. An employment contract without the express clause on its length is an indefinite contract. If a worker keeps working at the end of a definite contract, it turns into an indefinite contract. 

All labour contracts must include the following: worker and employer name; worker’s date and place of birth; nationality of the worker; the composition of the worker’s family; the trade or profession of the worker; the place and residence of the worker at the time of the conclusion of the contract; the date of the commitment; the duration of employment contract; the nature of work to be performed; workplace; the details about wages, basic salary, bonuses and various allowances, family benefits, benefits in kind; special conditions of the contract; and the signatures of the parties. 

The contract must provide more favourable provisions that those provided by the law and these provisions must not contradict with laws and regulation. Less favourable clause in an employment contract is considered null and void. 

Burundi Employment Contract

Types of employment agreements

The Labour Code prohibits hiring fixed term contract workers for tasks of permanent nature. The fixed term contracts are the contracts whose duration or maturity is precisely agreed between the parties; contracts for execution of a particular project; contracts for replacement of an absent worker or on the occasion of exceptional or unusual additional work; contracts whose term is dependent on a future event. 

A fixed term employment contract may be renewed twice except for temporary workers. Temporary workers are also hired under a fixed term contract. If employment of a worker continues beyond the agreed date, the contract is automatically converted to the contract of indefinite duration. An Order of the Labour Minister is supposed to determine the modalities of fixed term contracts however this legislation could not be located.

Burundi working hours

In accordance with the Labour Code, the normal hours of work are 8 hours a day and 45 hours a week. 

Overtime

If a worker works beyond the stipulated working hours, i.e., 8 hours a day and 45 hours a week, he/she is entitled to an overtime pay according to the following schedule:

• 135% of normal hourly rate for the first two overtime hours, i.e., 46th and 47th hour; 
• 160% of normal hourly rate beyond the 48th hour.

Vacation leave in Burundi

Labour Law provides 20 days paid annual leave (one and two-thirds of a day for every month of service), after completion of 12 months of continuous service. Duration of annual leave is determined either by collective agreement or by the concerned Ministry after consulting the National Labour Council. Length of annul leave does not increase with the length of service. 

Sick Leave

The Labour Code provides for the paid sick leave. The maximum duration of sick leave is 03 months in a calendar year. As for the compensation for sick leave, it is equal to at least 66.7% of daily wage a worker received before his/her sickness started. 

Burundi Maternity Leave

Female employees are entitled to a maternity leave of 12 weeks with full pay, including 6 weeks of prenatal leave. Maternity leave may be extended up to 14 weeks. 

Burundi Severance Laws

Either party can terminate a contract of indefinite duration by serving a notice or paying in lieu thereof. A fixed term contract terminates at the end of its term or by cancellation by either of the parties or in the case of gross misconduct. Otherwise, termination by one party entitles the other party to damages. Either party can terminate an indefinite term employment contract by serving a notice or paying in lieu thereof. In the case of gross negligence, notice may not be required. 

Generally notice period is fixed by collective agreement. According to the Labour Code, Minimum length of notice period for termination of employment contract by an employer is: – One month if the employee has the seniority (work experience with the firm) of less than 3 years; – One month and a half (45 days) if the employee has the seniority of 3 to 5 years; – Two months if the employee has the seniority of 5 to 10 years; and – 3 months if the employee has the seniority of more than 10 years. If a worker wants to terminate the employment contract, his/her period of notice is half of the above notice requirements. During the trial period, either party may terminate the employment contract at any time and without notice during the first month of trial period. The required notice during the trial period is 3 days after worker has completed one month of probation/trial. Workers employed on daily basis can be dismissed at any time without notice period and severance pay.

Severance Pay

In accordance with the Burundian Labour Code, severance pay is not payable to a worker employed on daily wages and when a worker is dismissed for gross negligence. In the case of individual dismissals, the rate of severance pay is as follows: – One average monthly salary for workers with seniority of 3 to 5 years; – Two average monthly salaries for workers with seniority of 5 to 10 years; and – Three average monthly salaries for workers with seniority of more than 10 years.

Burundi Tax

Income Tax – Individuals

0 – 1.8 million 0% 

1 800 001 – 3.6 million 20% 

3 600 001 and above 30%

Employment-Related Taxes

Payroll tax

When an employer makes employment income available to an employee, it must withhold, declare and remit the PAYE tax to the Burundi Revenue Authority within 15 days following the end of the month for which the tax was due. Where the employer is not the principal employer, it must withhold tax at 30%. Where the employer engages a casual labourer, the employer must withhold 15% of the taxable employment income over BIF150 000.

The employer is personally liable for the correct withholding, declaration and timely payment of PAYE to the authorities, and for keeping proper books of account to prove that the tax has been correctly withheld, paid and accounted for.

Social security

The contribution to the social security fund is 10% (6% by the employer and 4% by the employee), capped at BIF450 000 per month, and an additional 3% contribution by the employer, capped at BIF80 000 per month.

Health Insurance Benefits in Burundi

Burundi Holidays

• New Year’s Day
• Unity Day
• President Ntaryamira Day
• Labour Day
• Ascension Day
• Eid al-Fitr
• Independence Day
• Eid al-Adha
• Assumption of Mary
• Prince Rwagasore Day
• Ndadaye Day
• All Saints’ Day

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and bonuses, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.