Your quick guide on talent and labor compliance norms in Djibouti
Capital
Djibouti city
Currency
Djiboutian franc (DJF)
Languages
French, Arabic
Payroll Frequency
Monthly
GDP per Capita
$2,951.90
Employer Tax
15.7%
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
Local Universities
The top local universities in Djibouti are as follows:
Local: 1
World: 9272
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 |
Talent Sourcing Tips
DE Jobs , Indeed , Job Net Africa
55,200
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.
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 for employees in Djibouti can be 15 days to 3 months, depending on position and rank.
| 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 |
| Type of Leave | Time Period | Mandatory |
| Annual Leave | 30 days | Yes |
| Sick Leave | 6 months | Yes |
| Maternity Leave | 14 weeks | Yes |
Payroll
Payroll Cycle
Payroll is released every month in Djibouti
Minimum Wage
There is no mandatory minimum wage in Djibouti. The pay rate is usually determined by the collective bargaining agreement.
Overtime Pay
The payment for extra work in Djibouti is fixed at an increasing rate, which is determined by a collective agreement.
Bonus
A 13th-month pay is not mandatory in Djibouti.
Below are some benefits that Djiboutian employees are entitled to:
Taxes
| Type of Contribution | Tax Rate |
| Social Security | 4% |
| Disability Insurance | 6.2% |
| Family Allowances | 5.5% |
| Type of Contribution | Tax Rate |
| Social Security | 4% |
| 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% |
The standard rate of VAT in Djibouti is 10%.
Offboarding & Termination
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 |
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.
