Liberia PEO & Employer of Record

WeHG provides an International PEO and global Employer of Record service in Liberia to companies willing to enter the Liberian market or hire local/expat employees in this country.

Traditional approach requires establishing a subsidiary in Liberia.  However, our solution allows you to launch the operations in Liberia within days hence save time and money.  WeHG would hire job-seekers on your behalf during the time you maintain full operational management of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf.

Liberia fast facts

Population, million: 5
Land area: 111,369  km²
Capital: Monrovia
Local currency: Liberian dollar (LRD)

GDP per capita:$ 1,413
GDP in currency:$ 6.468 billion

Liberia, country along the coast of western Africa. Liberia’s terrain ranges from the low and sandy coastal plains to rolling hills and dissected plateau further inland. The country is home to a lush rainforest containing a rich diversity of flora and fauna.

Liberia is the only Black state in Africa never subjected to colonial rule and is Africa’s oldest republic. It was established on land acquired for freed U.S. slaves by the American Colonization Society, which founded a colony at Cape Mesurado in 1821. In 1824 the territory was named Liberia, and its main settlement was named Monrovia, which is the present-day capital. Liberian independence was proclaimed in 1847, and its boundaries were expanded. The country enjoyed relative stability until a rebellion in 1989 escalated into a destructive civil war in the 1990s that did not fully cease until 2003. The country’s first post-conflict elections, held in 2005, were noteworthy for the election of Ellen Johnson Sirleaf to the presidency, as she was the first woman to be elected head of state in Africa.

Hiring, Negotiating and Doing Business in Liberia

Necessity of written employment contract

Employment contracts may either be written or oral. However, all fixed term contracts exceeding 6 months must be in writing.

Different forms of engagement: employment, contracting, work with private entrepreneur

Foreign nationals are only permitted to work in Liberia if they have a local sponsor.

A foreign company that wishes to employ foreign nationals must first set up its Liberian business entity. This Liberian entity is then required to apply for the relevant work permit for the employee before the employee commences work in Liberia.

Liberia Employment Contract

Types of employment agreements

Liberian employment law recognises both fixed-term and indefinite duration contracts.

The maximum duration permitted for an oral fixed term contract is 6 months and 2 years for a written fixed-term contract. Fixed term contracts are deemed to automatically terminate at the end of the specified period, unless stated otherwise. Renewals may not exceed 18 months.

Liberia working hours

Working hours cannot exceed more than 8 hours per day or 48 hours a week. Employees are also entitled to an uninterrupted period of 24 hours rest per week.

Overtime

Employee who works less than 8 hours on any day of the week may be required to work overtime on other days of the week, with a maximum of 9 hours per day and 48 hours per week with no overtime pay.

Vacation leave in Liberia

Workers who have been with the same employer for 3 years are entitled to 2 weeks leave (by number of working days), increasing to 3 weeks for 4 years of service.

Employees in 5 years of service with the same employer are entitled to 4 weeks leave.

Liberia Maternity Leave

As one of the most generous policies in the world, female employees are entitled to 3 months paid maternity leave.

Liberia Severance Laws

Unless guilty of a gross breach of misconduct, employees are entitled only to severance payments equivalent to their remaining wages due.

Employees may also be entitled to redundancy/severance payments in cases where the company is bankrupt, in liquidation etc.

An employee may be dismissed if he or she is guilty of a “gross breach of duty” or a “total lack of capability to perform”.

Examples of “gross breach of duty” include:

• Unprovoked assault on the employer
• Persistent disregard for safety measures imposed by the employer
• Disclosure of company working secrets

An employer may terminate the employment contract provided he or she gives at least 2 weeks written notice (casual employee) or 4 weeks (salaried employee). Compensation in lieu of notice may be given. However, employees guilty of a gross breach of duty may be terminated without notice or severance pay.

Liberia Tax

Individuals are considered resident in Liberia for tax purposes if they meet any of the following conditions:

• has a normal place of abode in Liberia and is present in Liberia at any time during the tax year;
• is present in Liberia for more than 182 days in a 12-month period that ends during the tax year; or
• is an employee or an official of the Government of Liberia posted abroad during the tax year.

All Liberian companies and employees are required to participate in the national social security scheme.

Both the employee and employer’s monthly mandatory social security contribution is 3% of gross monthly remuneration.

Only the employer is required to contribute to workmen compensation, equal to 1.75% of the gross monthly remuneration.

Health Insurance Benefits in Liberia

Liberia does not have any statutory paternity leave policy or guaranteed sick leave.

Additional Benefits in Liberia

Companies expanding to Liberia cannot provide compensation or benefits until they have a subsidiary in the country. This legal entity is necessary to handling all tasks, from payroll to hiring to giving out benefits. Unfortunately, you could spend weeks, months, or even a year trying to set up your subsidiary before you can even start working in the country.

Globalization Partners envisions a world where companies can expand quickly without any unnecessary barriers. You can use our subsidiary infrastructure to work fast and avoid compliance issues. We’ll act as the Employer of Record, so you can focus your time on building your business.

Liberia does not have a national minimum wage. Instead, this wage varies by type of employee. For example, unskilled laborers must make at least 15 Liberian dollars an hour, while civil servants earn at least 5,600 Liberian dollars a month. Certain unions in Liberia have more power in the country and are currently negotiating or have already achieved wage increases. For example, the United Workers Union of Liberia (UWUL) and ArcelorMittal Liberia (AML) recently signed a labor contract for miners, forklift drivers, and other workers that will increase wages by 14.5%.

General market practice benefits/additional allowances

Among the benefits that are specifically enjoyed are the following:

• Liberian IBCs do not have to pay any corporate taxes
• Non-resident Liberian companies do not incur in tax liabilities within the country if the income comes from foreign sources, or if it is not remitted to Liberia
• They do not disclose beneficial owners information
• Only one director is required
• The director can be a natural or legal person
• Only one shareholder is required
• No need to file annual return
• No need to submit accounts
• There are no exchange controls in Liberia
• A company incorporated in Liberia has the same powers as a natural person
• Liberia has double tax agreements with Germany, Sweden, Canada and New Zealand, although they do not extend to Non-Resident companies of Liberia, they may benefit shipping owned by Liberian corporations

Liberia Holidays

There’re 11 public holidays:

• New Year’s Day
• Armed Forces Day
• Decoration Day
• J.J. Roberts’ Birthday
• Fast and Prayer Day
• National Unification Day
• Independence Day
• Flag Day
• Thanksgiving
• William Tubman’s Birthday
• Christmas

Why Choose WeHireGlobally

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