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$249/month
$49/month
2% of gross salary / month
Djibouti might be one of the smallest countries in Africa, but it has earned huge significance in the global economy due to its state-of-the-art port complex on the Red Sea, which forms a useful bridge between Africa and the Middle East. The geographical location of Djibouti has also seen it receive significant investment from several global militaries. It has a population of just under one million, who speak mostly Arabic and French, alongside some Somali and Afar. It offers a potential labor force of over 250,000 and an average monthly wage between $150 and $600 each month. All this makes Djibouti an attractive proposition for global businesses seeking to establish a workforce in the region.
Hire in Djibouti, and pay employees through our platform or app.
Our Djibouti EOR solution is the most affordable on the market.
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We draft compliant Djibouti labor contracts.
We manage all Djibouti mandatory benefits.
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In Djibouti, an Employer of Record (EOR) is a service that assumes the role of a legal employer on behalf of client businesses outside the territory. It fulfills the duties of recruitment, payroll, and human resource management while also handling any benefits and termination procedures. At every stage, an EOR ensures compliance with local labor laws. When contracted by a foreign client, the EOR serves as a local entity for that client’s business within Djibouti. This not only expedites all aspects of hiring in Djibouti, but relieves the foreign business of liability for issues and disputes at any point in the process.
Often discussed as though it is interchangeable with an EOR, a Professional Employer Organization (PEO) is a similar service that assists foreign businesses with hiring and labor force management in Djibouti. Crucially, however, a PEO does not take on the role of a legal local entity, meaning any business working with a PEO will still be required to go through the costly and complex process of establishing an entity in Djibouti.
Working with a Djibouti EOR allows a foreign business access to the best local talent at maximum speed with minimum costs or liability. As a specialist service with expert local knowledge, an EOR will streamline the entire process of hiring and managing a labor force in Djibouti.
Some of the key benefits of a Djibouti EOR include:
Horizons stands out as a Djibouti EOR through:
In Djibouti, an EOR works by connecting local workers looking for opportunities with foreign businesses that require a Djibouti labor force. It does this by agreeing with the client business to provide quality local workers for a certain number and range of positions. It then acts as an employer within Djibouti on behalf of that client. The EOR hires and maintains all necessary workers, continuing to administer their employment from contracting and payroll to benefits and termination while assigning each worker to a role within the client business.
Among the steps involved in providing this service, an EOR will:
One of the primary benefits of working with a Djibouti EOR is that it will handle compliance with local labor law. An EOR must ensure it is aware of all legal obligations, regulations, and any upcoming changes and that every process it follows should meet these requirements. Should the EOR fail to perform this function, it will be held liable for any issues or disputes that arise.
According to the Djiboutian Labor Code (Law No. 60-003 of September 21, 1960), two types of employment contracts are officially recognized in the state. Regardless of which is in place, the written agreement should always detail the parties involved, the job description and duties, the working hours, place, and conditions, any compensation and benefits, any termination procedures, and the process for resolving disputes.
No probationary period.
At completion of the project.
Not applicable
Typically up to 3 months
1 to 2 weeks
Not applicable
Typically up to 6 months
30 days
1 to 5 years: 1/5 of month salary per year of service
More than 5 years: 1/3 of month salary per year of service
The standard maximum working week set by Djibouti labor law is 48 hours over six days with at least one full day of rest in every seven. In addition to this, employers in Djibouti can mandate up to five hours per week of overtime. Additional overtime can be offered, but the employee must consent to work it. Overtime should be paid at 150% of the standard rate for the first two hours and 200% for any additional hours. Including overtime, no Djibouti employee should be asked to work more than 60 hours in a week.
150% of the standard hourly rate
200% of the standard hourly rate
200% of the standard hourly rate
China has a range of national public holidays that are celebrated annually. In 2025 these holidays are:
| Date | Holiday name |
|---|---|
| 1 Jan 2025 | New Year’s Day |
| 27 Jan 2025 | Isra and Miraj (Tentative Date) |
| 30 Mar – 1 Apr 2025 | Eid al-Fitr Holiday |
| 1 May 2025 | Labour Day / May Day |
| 6 Jun 2025 | Day of Arafat |
| 7 Jun – 8 Jun 2025 | Eid al-Adha Holiday (Tentative Date) |
| 27 Jun – 28 Jun 2025 | Independence Day |
| 27 Jun 2025 | Muharram (Tentative Date) |
| 5 Sep 2025 | Mawlid (Prophet’s Birthday) |
| 25 Dec 2025 | Christmas Day |
The amount of paid time off employees are eligible to receive is based on how long they have been employed at their current company. Small amounts of paid leave may also be granted for bereavement or on occasions such as marriage, medical appointments, or compulsory civic duties.
no leave entitlement
30 days of paid leave annually
30 days of paid leave annually
30 days of paid leave annually
There is no legally set amount of paid sick leave that should be granted to Djibouti workers. However, it is expected that sick and injured employees should not be made to forgo wages in most circumstances so long as they can provide the necessary medical certification.
(percentage of regular wages owed to the employee)
no leave entitlement
Up to 6 months of paid leave annually
Up to 6 months of paid leave annually
Up to 6 months of paid leave annually
Unpaid (unless specified in the employment contract or under special circumstances)
Unpaid (unless specified in the employment contract or under special circumstances)
Unpaid (unless specified in the employment contract or under special circumstances)
In order for employees to receive the full wages due to them, workers must present a valid medical certificate from a certified doctor to their employer.
Minimum maternity leave in Djibouti is set at 14 weeks with full pay, split into six weeks before the birth and eight weeks after. Paternity leave is just three days and should be taken around the time of the birth.
After one continuous year of service, Djibouti workers are entitled to a minimum of 30 days of paid leave in addition to public holidays. Workers who have served less than a year accrue 2.5 days of annual leave for every completed month. It is generally required that workers take at least two weeks of each year’s leave as a continuous holiday.
The notice periods required in Djibouti depend on the circumstances of termination and the type of role. Supervisors and managers should be given at least three months’ notice for a no-fault termination, while regular employees are entitled to only one month. When resigning, any worker would be expected to give their employee at least one month’s notice. Severance pay, unless in the case of dismissal for serious misconduct, should be offered at one month’s salary during the first year, two months’ salary for one to five years, and three month’s salary for any continuous employment longer than five years.
The total contribution to the social security system in Djibouti is approximately 36.5% of the employee’s gross salary, with the employer responsible for 29% and the employee for 7.5%.
Contributions are designed to support various social insurance programs, including health care, pensions, and other social benefits.
Generally, foreign employees are also subject to the same social security contributions unless exempted by specific bilateral or multilateral agreements.
The individual income tax system is structured to ensure that residents and non-residents contribute to the nation’s revenue based on their income levels.
Djibouti employs a progressive tax system where tax rates increase with higher income levels.
Health insurance in Djibouti is primarily governed by the National Social Security Fund (Caisse Nationale de Sécurité Sociale, CNSS), which provides coverage for workers and their dependents.
The CNSS provides health insurance coverage to employees in the formal sector, which includes medical care, hospitalization, and maternity benefits.
Private health insurance options are available in Djibouti, particularly for expatriates, high-income individuals, and employees of multinational companies. These private plans often offer more comprehensive coverage than the CNSS.
While public sector workers in Djibouti are guaranteed a minimum wage of DJF 35,000, which converts to roughly $200 per month, there are no such requirements for private sector employees.
There are no mandatory bonuses or allowances in Djibouti, and no 13th-month salary payments are required to be made. Any additional elements of a worker’s compensation package should be negotiated directly at the time of hire.
Both the employer and employee expect to make several social security contributions in Djibouti. These are taken as a percentage of the worker’s gross salary up to a maximum monthly amount of DJF 400,000, or $2250. For employers, these amounts are 4% for retirement, 6.2% for family allowance, 5.5% for disability insurance, and 2% for health insurance. For employees, the contributions should be 4% for retirement and 2% for health insurance.
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One of the primary functions of a Djibouti EOR is ensuring compliance with local labor laws. The EOR achieves this by maintaining detailed and current knowledge of all regulations and anticipating any planned changes. The EOR also accepts full liability for failures in this responsibility.
The benefits of working with an EOR when hiring in Djibouti are significant. An EOR is a local expert with experience in the territory. It will allow any foreign business to begin hiring immediately and have the best chance of finding the right talent for the right cost. While a fee must be paid for the services of a Djibouti EOR, the savings in cost, time, and risk are likely to far outweigh this outgoing.
Holiday Schedule in Djibouti [2025]
