Guinea-Bissau EOR & PEO

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Hire in Guinea-Bissau

A West African mainland with a collection of Atlantic Ocean islands, Guinea-Bissau is one of the most economically weak and politically fragile nations on earth. Since gaining independence in 1974, years of coups and political unrest have left Guinea-Bissau’s economy reliant on cashew nut exports, fishing, and subsistence farming while it has been unable to successfully exploit its offshore oil and gas reserves. In 2023, signs of improvement can be seen, with GDP climbing to over $2 billion and a growth of 5%.

From a youthful population of approximately 2 million, Guinea-Bissau is estimated to have an available labor force totaling around 750,000 and an unemployment rate of 3.2%. Variants of Portuguese are by far the most widely spoken languages, though there are also significant numbers of French, English, Spanish, and Russian speakers alongside those fluent in up to 19 African languages. This offers distinct cultural advantages and, when paired with an average wage of less than $100 per month, creates an attractive offering for global businesses seeking a local labor force.

Facts & Stats

hire employees in Guinea-Bissau

What Is a Guinea-Bissau EOR?

There can be many benefits of hiring workers in Guinea-Bissau for global business, but accessing them comes with some challenges. This begins with the costly, time-consuming, and risky process of establishing a local entity within the territory. When, and if, this is finally achieved, the employer must then learn to navigate local labor laws and cultural barriers in addition to finding the right talent at the right cost for their business. An Employer of Record (EOR) is a service that handles every part of this process, allowing foreign companies to begin hiring workers immediately and efficiently with minimum risk.

Professional Employer Organizations (PEO) are often discussed interchangeably with EOR. A PEO is another service that allows foreign employers to outsource recruitment and human resources management within Guinea-Bissau. Crucially, however, while an EOR acts as the legal employer of all workers, a PEO does not. Therefore, any foreign company working with a PEO will still be required to establish a local entity in Guinea-Bissau.

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What Are the Benefits of a Guinea-Bissau EOR?

In its most straightforward terms, working with an EOR in Guinea-Bissau helps make recruiting and managing a local workforce as efficient as possible while reducing the cost and risk to a minimum. By outsourcing every part of the process, from legal liability to contract management, any foreign business using an EOR can establish a workforce in Guinea-Bissau almost as quickly as it would in its own territory.

In addition to this, specific benefits brought to foreign employers by an EOR include:

Best value. A quality EOR in Guinea-Bissau will understand both the potential among the local talent pool for recruiters in any sector and the economic realities that dictate salary and benefits expectations. As a result, an EOR can ensure its clients find the most cost-effective workers for every role.
Cultural compliance. Keeping employment in line with local employment laws is just one way an EOR helps its clients negotiate the nuances of hiring in Guinea-Bissau. By understanding local cultures, languages, and customs, an EOR is also ideally positioned to establish strong and productive long-term relationships between all parties.
Service continuity. In most circumstances, employment is not a one-hit process. Workers leave their roles or are asked to do so for any number of reasons. When this occurs, replacements will need to be found quickly if the business in question is to maintain seamless operations. As a dedicated recruitment and human resources management service, an EOR can help this process continue with as little disruption as possible.

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Why Choose Horizons?

Horizons stands out as a Guinea-Bissau EOR through:

A strong regional presence in Africa, meaning senior management are on the ground to deal with any issues.
Client-focused infrastructure. Horizons won’t oversell you on products and services you don’t need. Horizons offers the easiest platform to compliantly hire and pay people worldwide.
Cost-effective solutions. At $299 per employee, per month, no EOR in Guinea-Bissau is more affordable. The cost is 100% transparent (onboarding, offboarding, deposit, no extra charges).
A customer-first culture. Horizons is an efficient bootstrapped company. It is not an externally-funded company burning investor cash to aggressively acquire new clients. Horizons is the only EOR that grows with its customer, reflecting the level of care and personal attention provided to each customer. Horizons will carefully advise on the best setup in each country: the type of contract needed, how to structure your benefits, and how to offboard a person while minimizing the risk of conflicts and extra cost
A long-term partnership. Horizons is the only EOR platform with a recruitment arm — a direct response to client demand. If any employee is leaving, or if our clients want to explore a new country, Horizons can recruit new candidates directly for the client. Horizons is:
- The only EOR doing this in-house — no subcontracting
- The only EOR doing this without a retainer — clients are only charged upon success
- The only EOR charging just a 2% fee per month.

Step-by-step Guinea-Bissau EOR

How Does a Guinea-Bissau EOR Work?

The role of an EOR in Guinea-Bissau is to connect foreign employers with local workers. It builds and maintains a triangle of relationships between itself and both parties in order to create mutually beneficial arrangements that are fully compliant with local labor laws. This is a continual and complex process, but the key steps are:

Hire your employees. When a foreign business wishes to hire in Guinea-Bissau, it will agree terms with an EOR for the provision and management of the required workforce. The first step is recruitment. Either by advertising for applicants or approaching members of its existing talent pool, the EOR will find and hire the best worker for each required role.
Manage employment contracts and onboarding. After recruitment comes onboarding. While the hired workers may be fulfilling roles for a foreign client, the EOR becomes their legal employer in Guinea-Bissau. Terms are negotiated and agreed between the EOR and the successful candidates. Contracts are signed, and all onboarding requirements are completed before the worker is assigned their role with the client company.
Process payroll and handle employment taxes. As an official employer, the EOR becomes responsible for completing payroll and handling employment taxes. Any costs and associated fees will ultimately be collected from the client company, but the EOR must administer wages directly to each worker throughout their service.
Administer benefits. Wages are just one part of the compensation package between an employer and an employee. The EOR must also arrange and administer any legally mandated or contractually agreed-upon benefits, which can include bonuses, holidays, health packages, social security payments, and overtime.
Take care of exit procedures. Finally, when the term of any employment contract comes to an end. It is the responsibility of the EOR to ensure all exit processes are completed in a timely and legally compliant manner. This is regardless of the circumstances of the exit, whether the fault of the worker, the business, or by mutual agreement.

stay compliant with Guinea-Bissau labor laws

Labor Laws

A chief element of the remit for a Guinea-Bissau EOR is ensuring all employment contracts and conditions are compliant with local labor laws. This means being fully aware of current regulations regarding each element of employment, from initial recruitment to termination of the role.

Employment contract types

Every employment contract in Guinea-Bissau is required to include several specific clauses. They must identify all parties, state the date service begins, the working hours, all leave entitlements, and the remuneration and benefits the employee will receive for their service. They should also detail any dispute resolution or disciplinary policies alongside the grounds and processes for termination. As probationary periods are also standard in Guinea-Bissau, details of this should also be included.

Project-based

Fixed-term

Indefinite

Working hours in Guinea-Bissau

Since 1995, standard working hours in Guinea-Bissau have been restricted to a maximum of 10 hours per day and the pattern they take should be outlined in the employee’s contract. In addition to this, overtime can be taken up to a limit of 10 more hours each week or 100 extra hours in a single year. Compensation for overtime should be at least 150% of the employee’s standard hourly rate.

Overtime must be compensated in the following way:

Holiday Schedule in Guinea-Bissau [2024]

Employees in Guinea-Bissau are entitled to paid time off for a total of 10 public holidays each year. Seven of these occur on fixed calendar dates, while three more are movable in line with the Islamic holy days of Eid al-Fitr, Eid al-Adha, and Tabaski.

Date	Holiday name
1 Jan, 2024	New Year’s Day
10 Jan, 2024	Heroes Day
31 Mar, 2024	Easter Sunday
10 Apr, 2024	Eid al-Fitr
1 May, 2024	Labour Day
17 Jun, 2024	Day off for Eid al-Adha
24 Sep, 2024	Independence Day
25 Dec, 2024	Christmas Day

Paid time off

Leave entitlements varies based on the length of service of the employee. In some circumstances, workers may also receive compassionate leave in the event of close family deaths, weddings, or other life landmarks and public duties. This, however, is not legally mandated and, subject to contractual agreements, is at the discretion of the employer.

Leave entitlements may accrue over time and some may be carried over to the next year, depending on company policies and local labor laws.

Sick leave in Guinea-Bissau

Mandatory paid sick leave, which should be offered in Guinea-Bissau, totals just five days each year. Some employers may choose to offer more, either fully paid, partially paid, or even unpaid, but this is not dictated by any specific employment laws.

Less than 6 months of sick leave:

(percentage of regular wages owed to the employee)

Over 6 months of sick leave

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.

Maternity leave in Guinea-Bissau

The legal minimum for maternity leave, which should be offered in Guinea-Bissau, is 60 days at full pay. Paternity leave is not protected by law and must be negotiated between individual employers and employees.

Annual leave in Guinea-Bissau

In addition to the 10 public holidays, workers in Guinea-Bissau should be granted at least 30 days paid annual leave each year. When these days are taken is agreed between the employer and employee but should be allowed in such a way that workers receive adequate rest and recuperation.

Termination & severance in Guinea-Bissau

Excluding resignations or dismissals for serious misconduct, every employee in Guinea-Bissau is entitled to legally defined notice periods and severance packages. Any worker who has completed less than three years of service should be given at least one month’s notice of termination. After three years, this period increases to two months. In certain sectors, this can be altered by Collective Bargaining Agreements seeking to ensure more favorable arrangements for groups of employees.

Severance pay for terminated employees is expected to be at least one month’s full salary for every year of service completed. There is also a specific process that must be followed and entitles workers to five days’ notice of an upcoming termination interview, followed by a two-day waiting period before official notice of termination is given.

Guinea-Bissau's compulsory social security contributions

Compulsory social security contributions are a key part of the social protection system, designed to provide benefits to workers in cases such as retirement, disability, and unemployment. Both employers and employees are required to make contributions to the social security system.

Guinea-Bissau social security for foreigners

Social security contributions in Guinea-Bissau generally apply to both local and foreign employees working in the country. Foreigners employed in Guinea-Bissau are typically subject to the same social security regulations as local employees, unless there is a specific exemption or provision in place.

Individual income tax

The income tax system in Guinea-Bissau is progressive, meaning that the tax rate increases with the level of income. Specific deductions and allowances might be available, reducing the taxable income. These can include deductions for dependents, education expenses, and other allowable expenses. Non-residents who earn income in Guinea-Bissau may be subject to different tax rates or withholding taxes depending on the nature of their income and any applicable tax treaties.

The primary authority responsible for tax collection and administration in Guinea-Bissau is the Direção-Geral de Contribuições e Impostos (DGCI).

Health insurance

Health insurance system in Guinea-Bissau is relatively underdeveloped compared to many other countries however there are different options. Public and government heathcare funded primarily through government allocations and international aid. Private health insurance options are available though not affordable for the general population. There is also community-based health insurance for rural and low-income populations.

hassle-free Bissau-Guinean compensation & benefits

Compensation & Benefits

Guinea-Bissau compensation laws

Since 2015, the minimum wage in Guinea-Bissau has been set at CFA 59,000 per month, which converts to approximately $100.

13 month salary in Guinea-Bissau

No 13th-month salary is mandated in Guinea-Bissau, and there are no legally enforceable annual bonuses. However, it is customary for workers to receive an additional 15 days of pay each September for National Independence Day and each December for Christmas.

Social security for Bissau-Guinean nationals

Employers in Guinea-Bissau are required to contribute 14% of each employee’s salary to the National Institute of Social Providence (INSS). This is supplemented by a further 8% taken directly from the worker’s monthly wage.

Guinea Bissau Employer Of Record Peo

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Hire in Guinea-Bissau

What Is a Guinea-Bissau EOR?

What Are the Benefits of a Guinea-Bissau EOR?

Why Choose Horizons?

How Does a Guinea-Bissau EOR Work?

Labor Laws

Employment contract types

Working hours in Guinea-Bissau

Compensation & Benefits

Frequently asked questions

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Frequently asked questions

What is the role of an EOR in managing payroll in Guinea-Bissau?

As the legal employer of any workers assigned to its client companies, an EOR in Guinea-Bissau is responsible for all aspects of payroll management. While payroll costs are ultimately funded by the client, the EOR takes full responsibility for distributing salaries to each employee while ensuring all tax, social security, and benefits responsibilities are met.

How does an EOR in Guinea-Bissau handle employee terminations?

Just as it does when hiring a worker and managing them throughout their employment, an EOR in Guinea-Bissau takes full responsibility for handling terminations correctly and in compliance with local laws. Whether a working relationship is ended due to employee fault, changes in the business, or any other reason, an EOR will ensure all notice requirements are fulfilled, and any necessary severance and tax obligations are completed.

Guinea-Bissau EOR & PEO

Start hiring in Guinea-Bissau

Simple, compliant hiring with Horizons EOR & PEO

Hire in Guinea-Bissau

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hire employees in Guinea-Bissau

What Is a Guinea-Bissau EOR?

Save Money And Time with A Guinea-Bissau EOR

What Are the Benefits of a Guinea-Bissau EOR?

Horizons is Best IN Class

Why Choose Horizons?

Step-by-step Guinea-Bissau EOR

How Does a Guinea-Bissau EOR Work?

stay compliant with Guinea-Bissau labor laws

Labor Laws

Employment contract types

Project-based

Probationary period

Termination

Severance

Fixed-term

Probationary period

Termination notice period

Severance

Indefinite

Probationary period

Termination notice period

Severance

Working hours in Guinea-Bissau

Overtime must be compensated in the following way:

For a regular workday:

For a rest day:

For a statutory holiday:

Paid time off

Under 1 year of employment

1-10 years of employment

10-20 years of employment

20+ years of employment

Sick leave in Guinea-Bissau

Less than 6 months of sick leave:

Under 1 year of employment

1-10 years of employment

10-20 years of employment

20+ years of employment

Over 6 months of sick leave

Under 1 year of employment

1-3 years of employment

3+ years of employment

Maternity leave in Guinea-Bissau

Annual leave in Guinea-Bissau

Termination & severance in Guinea-Bissau

Guinea-Bissau's compulsory social security contributions

Guinea-Bissau social security for foreigners

Individual income tax

Health insurance

hassle-free Bissau-Guinean compensation & benefits

Compensation & Benefits

Guinea-Bissau compensation laws

13 month salary in Guinea-Bissau

Social security for Bissau-Guinean nationals

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