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From
$249/month
$49/month
2% of gross salary / month
Despite a difficult recent history and continued challenges with security and poverty across the country, Somalia is showing signs of a recovering economy. Between 2018 and 2023, the nation’s external debt fell from 64% of GDP to under 6%. It has a population of 17.6 million and a labor force of a little over 3.25 million. It has an extremely young population with a medium age of just 15.
The average monthly wage is between $100 and $500 in the formal sector and much less in the informal industries. This makes Somalia attractive to global businesses seeking a cost-effective workforce. However, education and literacy levels are low, as are skill levels in industries other than agriculture. The problems faced by the country can make hiring in Somalia challenging. If establishing a labor force here is your goal, a Somalia Employer of Record (EOR) could be a great asset.
Hire in Somalia, and pay employees through our platform or app.
Our Somalia EOR solution is the most affordable on the market.
Fast Somalia onboarding, hire in as little as 24 hours.
We draft compliant Somalia labor contracts.
We manage all Somalia mandatory benefits.
It doesn’t stop with Somalia — we hire employees globally.
An Employer of Record is a service that aids the hiring and managing of a workforce in a country other than a company’s own. In Somalia, this means acting as an agent, which gives foreign businesses access to Somali talent, and Somali workers opportunities to find jobs with international employers. An EOR achieves this by taking the role of local entity and legal employer within Somalia on behalf of foreign businesses. It then recruits workers who are assigned to roles within foreign companies while managing every element of the employment, from contracts to payroll and benefits, and finally, any termination processes.
Professional Employer Organizations (PEO) are often discussed interchangeably with EOR. While a PEO also carries out recruitment and human resource management services for foreign employers within Somalia, it is different in one crucial aspect. An EOR takes on the legal role of a local entity for its clients within Somalia, thus saving the cost, complications, and risk of establishing one independently. A PEO does not do this, meaning the foreign business will still need to take on that challenge before hiring can begin.
Hiring workers in Somalia can bring great rewards to a foreign business, but it also comes with significant challenges in finding the right talent, navigating local regulations, and handling cultural differences. All this can be costly and time-consuming when dealt with directly. Working with an EOR means handing over responsibilities for a Somali workforce to local experts. The advantages of outsourcing the recruitment and human resources are many, but some of the key benefits include:
Horizons stands out as a Somalia EOR through:
After agreeing to a package of services and a fee structure with a foreign employer, a Somalia EOR takes on the role of a local entity and human resources department for workers based within the region. It takes instruction regarding the roles that need to be filled and what will be expected of the Somali workers who fill them. The EOR then completes the following steps of the employment cycle:
Labor laws in Somalia are governed by the Labor Code, which was introduced in 1972 and has undergone revisions over the years. Given the complex socio-economic and political landscape in Somalia, employment laws and practices may vary regionally or based on local customs.
Among all the services of a Somalia EOR, maintaining compliance with local labor laws in all matters is one of the most vital.
While the Somali legal system recognizes both written and oral contracts, any employment lasting three months or over should be protected by a written contract. This contract should contain clauses detailing the identities of the parties, job description, salary, bonuses, benefits, working hours, intellectual property rights, and dispute resolution protocols. It should also be in a language understood by the employee, with Arabic and English most commonly used.
No probationary period.
At completion of the project.
Not applicable
Typically 1 to 3 months
30 days (minimum and maximum allowed by labor law)
Not applicable
Typically 1 to 3 months
30 days (minimum and maximum allowed by labor law)
1 month salary per year of service
While there is no codified national labor law in Somalia, several standards and guidelines have been established and are enforced through decrees issued by the Ministry of Labor and Social Affairs. It is important to note that Somalia is a disjointed nation containing some self-declared separate states such as Somaliland. Regulations in these areas may be different.
A standard working week in Somalia is defined as 48 hours spread over six days. Any hours worked in addition to this should be considered overtime and compensated at 150% of standard rates. As a guide, overtime worked by employees in Somalia should total no more than two hours each day or 12 hours in a single week.
150% to 200% of the standard hourly rate
200% to 300% of the standard hourly rate
200% to 300% of the standard hourly rate
Workers in Somalia are entitled to paid time off for up to 11 public holidays in a calendar year. These are a mixture of Islamic religious holidays and secular occasions such as New Year’s Day, Labor Day, Independence Day, and Republic Day.
| Date | Holiday name |
|---|---|
| 1 Jan 2025 | New Year’s Day |
| 27 Jan 2025 | Isra and Mi’raj |
| 31 Mar 2025 | Eid al-Fitr (Tentative Date) |
| 1 Apr 2025 | Eid al-Fitr Holiday (Tentative Date) |
| 1 May 2025 | May Day / Labour Day |
| 18 May 2025 | Restoration of Somaliland Sovereignty |
| 19 May 2025 | Restoration of Somaliland Sovereignty Holiday |
| 7 Jun 2025 | Eid al-Adha (Tentative Date) |
| 8 Jun 2025 | Eid al-Adha Holiday (Tentative Date) |
| 26 Jun 2025 | Independence Day |
| 27 Jun 2025 | Muharram |
| 1 Jul 2025 | Independence Day |
| 6 Jul 2025 | Ashura (Tentative Date) |
| 5 Sep 2025 | The Prophet’s Birthday (Tentative Date) |
The amount of paid time off employees are eligible to receive is based on how long they have been employed at their current company:
no leave entitlement
15 days of paid leave annually
15 days of paid leave annually
15 days of paid leave annually
Sick leave entitlement in Somalia can depend on a number of factors. In general, however, workers are expected to be offered at least seven days at full pay and seven additional days at half pay. A medical certificate may be required before this is authorized.
(percentage of regular wages owed to the employee)
No official limit
No official limit
No official limit
No official limit
There isn't a standard statutory provision (due to the informal nature of labor practices and the lack of comprehensive labor regulations)
There isn't a standard statutory provision (due to the informal nature of labor practices and the lack of comprehensive labor regulations)
There isn't a standard statutory provision (due to the informal nature of labor practices and the lack of comprehensive labor regulations)
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.
Female workers requiring maternity leave in Somalia are guaranteed a minimum of 14 weeks, with at least six weeks taken post-birth, paid at a rate of 50% of their usual basic salary. Male workers should be offered at least two weeks of paternity leave at full pay. In some circumstances, allowances are also made for either paid or unpaid time off for bereavement, voting, and military service.
Labor Code Law No. 65 of 18 October 1972 states every worker in Somalia should be offered at least 15 days of paid annual leave in a calendar year, accrued on a month-by-month basis. These should be given in addition to public holiday entitlement.
Regulations regarding termination, notice, and severance payments in Somalia are not codified in law. It is, therefore, vitally important that procedures are laid out and agreed upon at the time of contracting. As a guide, best practice in Somalia suggests written notice of at least 30 days should be given for termination of most roles or 10 days’ notice for manual workers. In circumstances of gross misconduct or probationary periods, this requirement is removed. Severance pay is not mandated but should be paid in relation to basic salary and length of service.
There is no comprehensive national social security system that mandates compulsory contributions for employees or employers. The country lacks formalized social security programs that are common in many other countries, such as pension funds, healthcare contributions, unemployment benefits, or disability insurance.
There is no comprehensive national social security system that mandates compulsory contributions for employees or employers.
In Somalia, individual income tax is not uniformly applied or standardized across the country due to the absence of a comprehensive national taxation system. The tax regime is generally underdeveloped and formal income tax collection is limited.
The concept of formal health insurance as seen in many other countries is not widely established due to the country’s challenging socio-economic conditions and the absence of a comprehensive national healthcare system.
While there is increasing advocacy for establishing a minimum wage in Somalia, no agreement or legislation is currently in place.
Somalia does not have any legally mandated benefits or bonuses that should be offered to employees. This includes no requirement for a 13th-month salary. However, due to the poor infrastructure within the country, many employers find it advantageous to provide accommodation or mobile phone allowances as part of their employment packages.
There are no national mandatory social security contributions in Somalia. However, due to the country’s disjointed structure, employers and EORs should be careful to check regional requirements at the time of hire and maintain a strong awareness of any changes that might be made during an employment cycle.
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It is a prime responsibility of a Somalia EOR to maintain knowledge and awareness of local labor laws, any regional variations, and any potential upcoming changes. By doing this, it can ensure both itself and its client companies remain in full compliance with regulations at all times. In addition, an EOR assumes legal liability for this compliance, thus protecting its client companies from any potential issues.
An EOR is a service designed to reduce or even eliminate the challenges of hiring in Somalia. As such, the only challenge of hiring through an EOR in the region is ensuring the right EOR is chosen. Before contracting any EOR or other human resources service in Somalia, it is recommended that you thoroughly check the EORs experience, reputation, and expertise.
Holiday Schedule in Somalia [2025]
