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Expand your global workforce in Djibouti

Your guide to the employment landscape, working customs and local labor laws in Djibouti.

Capital

Djibouti city

Currency

Djiboutian franc (DJF)

Languages

French, Arabic

GDP per Capita

$2,951.90

Employer Tax

15.7%

Payroll Frequency

Monthly

Talent overview

Djibouti’s strategic location near the Red Sea has greatly contributed to its economy. The country is known to be a transit port between the African region and the middle east, as well as an international transshipment hub. The country’s participation in trade is projected to further grow as their neighbouring countries continue to expand their operations.

Major economic hubs:

Djibouti, Ali Sabih, Tadjoura

Skills in demand:

Sales, Finance, Management, Healthcare

Top local universities in Djibouti

Djibouti Uni1

Université de Djibouti

Ranking:

Local: 1

World: 9272

Top Local Job Boards:

DE Jobs , Indeed , Job Net Africa

Number of LinkedIn users:

55,200

Top Recruitment Agencies:

GLS Djibouti , ANSIE

Where to find talent

Top Local Job Boards:

Number of LinkedIn users:

Top Recruitment Agencies:

Salary Data

Below are average monthly salaries for some positions in Djibouti;

Job Title Average Monthly Salary (DJF) Average Monthly Salary (USD)
Financial Manager 516,000 2,907
Sales Representative 474,000 2,670
Project Manager 300,000 1,690
Data Analyst 258,000 1,453
Software Engineer 254,000 1,430
Technical Support Engineer 240,000 1,352
User Experience Designer 229,000 1,290

Employ in Djibouti

Employing in Djibouti

While onboarding an individual from Djibouti, the employer must know about the labor laws, deductions, benefits, and allowances. This section provides all the information to help employers.

Employee Contract

Employment Contracts in Djibouti must be expressed in their local language (French or Arabic). It may either be communicated in writing or verbally.

Probation Period

Probation period for employees in Djibouti can be 15 days to 3 months, depending on position and rank.

Public and Provincial Holidays 2023

Date Name Type
1 Jan New Year Public Holiday
18 Feb Isra and Miraj (Tentative Date) Public Holiday
22 Apr Eid al-Fitr (Tentative Date) Public Holiday
23 Apr Eid al-Fitr Holiday (Tentative Date) Public Holiday
1 May Labor Day / May Day Public Holiday
27 Jun Independence Day Public Holiday
28 Jun Arafat Day (Tentative Date) Public Holiday
28 Jun Independence Day Holiday Public Holiday
29 Jun Eid al-Adha (Tentative Date) Public Holiday
30 Jun Eid al-Adha Holiday Public Holiday
19 Jul Muharram (Tentative Date) Public Holiday
27 Sep Milad un Nabi (Mawlid) Public Holiday

Employee Leaves

Type of Leave Time Period Mandatory
Annual Leave 30 days Yes
Sick Leave 6 months Yes
Maternity Leave 14 weeks Yes

Leave Compliance

Payroll in Djibouti

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Payroll cycle

Payroll is released every month in Djibouti

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Minimum wage

There is no mandatory minimum wage in Djibouti. The pay rate is usually determined by the collective bargaining agreement.

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Overtime pay

The payment for extra work in Djibouti is fixed at an increasing rate, which is determined by a collective agreement. 

How taxes work

Employer Payroll Tax:

Type of Contribution Tax Rate
Social Security 4%
Disability Insurance 6.2%
Family Allowances 5.5%

Employee Payroll Tax:

Type of Contribution Tax Rate
Social Security 4%

Employee Income Tax:

Salary Bracket Tax Rate
From DJF 0 to DJF 500,000 0
From DJF 500,001 to DJF 150,000 18%
From DJF 1,50,000 to DJF 600,000 20%
Above DJF 600,000 30%

VAT:

The standard rate of VAT in Djibouti is 10%.

Bonus

13th-Month Pay

A 13th-month pay is not mandatory in Djibouti. 

Employee Benefits

Below are some benefits that Djiboutian employees are entitled to: 

  • Statutory Leaves
  • Disability Insurance
  • Healthcare
  • Pension

Employee offboarding

Employment contracts in Djibouti may be terminated for various reasons. Employers may terminate it on the basis of professional inadequacy, misconduct, or job redundancy. Employees may choose to terminate their contract through resignation. In all cases, a notice must be provided to inform either party of the decision. 

A notice period of up to 3 months is to be observed when an employment contract is terminated in Djibouti.

Employees in Djibouti that are dismissed unjustly are entitled to a severance pay based on the employee size of their organization. The payment must not exceed the following:

Number of Employees in the company Severance Pay
Less than 11 employees 2 month’s worth of pay
11 to 49 employees 4 month’s worth of pay
49 employees and more 6 month’s worth of pay
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Visa and
immigration

Foreigners planning to work in Djibouti must first seek employment from any company in the country. Employers will then process their employees’ work permits and work visas to stay in the country for employment purposes legally. Fees will vary based on the foreign employees’ country of residence. 

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