Your quick guide on talent and labor compliance norms in Somalia
Capital
Mogadishu
Currency
Somali Shilling (SOS)
Languages
Somali, Arabic
Payroll Frequency
Monthly and Fortnightly
GDP per Capita
$434.88
Employer Tax
5% - 7%
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
Local Universities
The top local universities in Somalia are as follows:
Local: 1
World : 9,273
Local: 2
World : 9,925
Local: 3
World : 10,185
Local: 4
World : 10,760
Local: 5
World : 11,343
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 |
Talent Sourcing Tips
QaranJobs, JobLink Somalia, Somali Jobs
231,100
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.
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.
Probationary period for Somali employees is generally 6 months but can be extended depending on the employer’s discretion
| 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 |
| Type of Leave | Time Period | Mandatory |
| Annual Leave | 21 days | Yes |
| Sick Leave | 7 days | Yes |
| Maternity Leave | 3 months | Yes |
Payroll
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.
Minimum Wage
Somalia does not indicate a mandatory minimum wage for its employees.
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%.
Bonus
A 13th month pay is not a statutory requirement in Somalia.
Below are some benefits that Somali employees get to have during their employment:
Taxes
| Type of Contribution | Tax Rate (%) |
| Social Insurance System | 5% – 7% |
There are no statutory employee contributions in Somalia.
| Monthly income bracket (in USD) | Tax Rate (%) |
| 0-200 | 0 |
| 201-800 | 6 |
| 801-1500 | 12 |
| 1501-over | 18 |
The VAT rate in Somalia is 10%.
Offboarding & Termination
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.
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.
