Payroll and Benefits Guide Chad
Last updated: Mar 03, 2026
Contribution
| Employer Payroll Contributions | |
| 5.0% | Pension (Retirement) |
| 7.5% | Family and Maternity Benefits |
| 4.0% | Occupational Accident Insurance |
| 7.5% | Payroll Tax (FONAP) |
| 24.0% | Total Employer Costs |
| Employee Payroll Contributions | |
| 3.5% | Pension (Retirement) |
| 3.5% | Total Employee Costs |
Income tax
Personal income tax is progressive, with rates ranging from 0% to 30%, based on annual taxable income brackets. For instance, individuals with income from XAF 0–800,000 are taxed at 0%, those earning between XAF 800,001–2,500,000 at 10%, between XAF 2,500,001–7,500,000 at 20%, and above XAF 7,500,001 at 30%
Employer taxes
Working Hours
Standard working hours are 40 hours a week, 8 hours per day
Overtime
- Maximum Ordinary Hours (Non-Agricultural): The legal standard work limit for most employees in non-agricultural establishments is 39 hours per week (some sources cite 40 hours/week, but 39 hours is the specific legal threshold for overtime pay in the Collective Agreement). Any work beyond this is considered overtime.
- Maximum Ordinary Hours (Agricultural): The working hours for agricultural establishments cannot exceed 2,400 hours in a year.
- Absolute Maximum Daily/Weekly Hours: The total duration of work, including overtime, cannot exceed 11 hours a day and 54 hours per week.
- Annual Overtime Cap (Statutory): Overtime due to the employer’s special needs is strictly limited to 94 hours per year.
- Consent: Overtime work is generally only permitted for urgent work required to prevent accidents or repair damages and often requires prior authorization from the Labour Inspectorate.
- Exemptions: Senior managerial and executive positions are typically exempt from statutory overtime provisions.
Mandatory Overtime Pay Rates
Overtime compensation is mandatory and is calculated as a tiered minimum premium percentage of the employee’s regular hourly wage. The specific rates are often set by the General Collective Agreement (2002).
A. Overtime on Normal Working Days (Daytime)
| Hours Worked (Beyond 39/week) | Minimum Premium Rate (Supplement) | Total Pay Rate |
| First 8 Hours of weekly overtime (Hours 40–47) | +10% of the regular hourly wage. | 110% |
| Hours Beyond the $47^{\text{th}}$ Hour | +25% of the regular hourly wage. | 125% |
B. Night Work, Weekly Rest Days, and Holidays
The premiums are significantly higher for work performed at night or on days of rest.
| Day/Condition | Minimum Premium Rate (Statutory) | Total Pay Rate | Notes |
| Night Overtime (10:00 PM to 5:00 AM) | +50% of the regular hourly wage. | 150% | This premium is applied to hours worked during the night period. |
| Weekly Rest Day (Sunday) & Public Holidays | +60% of the regular hourly wage. | 160% | This minimum premium is mandatory for all hours worked on the designated rest day or an official holiday. |
Payroll
Wages in Chad are typically paid on a monthly basis.
13th Salary
Providing a 13th-month salary in Chad is not required by law, nor is it widely recognized as a customary bonus.
Leave
Annual Leave (vacation)
An employee who has worked a full year is entitled to 30 working days of paid leave. This is a statutory minimum and can be extended through employer policy or collective agreements.
PTO carryover
Chadian law does not clearly state that unused statutory annual leave automatically carries over to the next year. What is clear is that employees are entitled to statutory annual leave and that unused leave must be paid out on termination. Because the law is silent on carryover, employers should not assume a blanket “use-it-or-lose-it” forfeiture is lawful, but there is also no explicit statutory right to automatic carryover.
Public Holidays
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 8 March 2026 | Sunday | International Women’s Day | Standard holiday |
| 9 March 2026 | Monday | Women’s Day Holiday | Standard holiday |
| 20 March 2026 | Friday | Eid al-Fitr (End of Ramadan) | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 27 May 2026 | Wednesday | Eid al-Adha (Feast of Sacrifice) | Standard holiday |
| 11 August 2026 | Tuesday | Independence Day | Standard holiday |
| 26 August 2026 | Wednesday | The Prophet’s Birthday | Standard holiday |
| 1 November 2026 | Sunday | All Saints’ Day | Standard holiday |
| 2 November 2026 | Monday | All Saints’ Da |
Sick Days
While the exact number of paid sick days is not publicly specified, employees are entitled to time off for illness with compensation provided by the employer or the social security system.
Maternity Leave
Maternity leave in Chad is guaranteed by law and provides at least 14 weeks of paid leave to expecting mothers. The leave typically begins a few weeks before the expected due date and continues after childbirth.
Paternity Leave
Fathers are entitled to around one week of paid paternity leave. While the law provides maternity and paternity protections, it does not currently mandate extended parental leave policies or shared leave arrangements. However, employers may choose to extend additional unpaid or partially paid time off to accommodate family needs.
Employer taxes
Termination
Termination may occur for just cause—such as serious misconduct, economic redundancy, or incapacity—or through mutual agreement. Employers are required to provide written notice of dismissal, stating the reasons for termination, and must adhere to notice periods defined by law, contract, or collective agreements. If an employee is dismissed without just cause, they may be entitled to compensation or severance as determined by labor courts. Although the law does not mandate fixed severance pay amounts for all termination types, payments are typically owed in cases of redundancy or unlawful dismissal. During the notice period, the employee may be granted paid time off to seek new employment. Probationary contracts may be terminated with minimal notice, but outside of probation, employers must follow a formal process that may include notifying the labor inspectorate, especially in cases of mass layoffs or unionized roles.
| Salary payment interval / date | Final payment on termination | Bank account payment requirement |
|---|---|---|
| Salaries must be paid in legal tender and at a regular interval; for monthly paid workers, it must be paid within 8 days after the end of the wage month. | On termination, wages and allowances “must be paid at the end of the service” (i.e., when employment ends). | Payment must be made in legal tender and at or near the workplace unless otherwise agreed. |
Notice Period
The length of the notice period is typically determined by the employee’s length of service and the terms of the contract or applicable collective agreement. While the Labor Code does not publicly specify universal notice durations, standard practice in line with regional norms suggests:
• Shorter notice periods (around 1–2 weeks) for employees with less than a year of service
• Longer notice periods (up to 1–3 months) for more senior or long-serving employees
Probation Period
The duration of the probationary period depends on the nature of the job but is usually between 1 and 6 months. If the employer wishes to dismiss the employee during probation, they can generally do so without justification and with minimal notice, unless otherwise stipulated in the contract.
Severance Pay
Employers are required to provide financial compensation based on the employee’s length of service, calculated as a percentage of the gross monthly salary per year worked. The standard rates are 25% of monthly salary per year for service between 2 and 5 years, 30% for 5 to 10 years, and 35% for over 10 years of continuous service. In cases where termination is due to a work-related accident or occupational illness—and the employee has worked at least one year—the rates are slightly higher: 30% per year of service for 2–5 years, 35% for 5–10 years, and 40% for over 10 years of service
Immigration
Foreign nationals seeking employment in Chad must obtain a valid work permit or residency visa before commencing work. Employers are responsible for verifying that all workers have the legal right to work in the country. While regional labor mobility exists within the Economic and Monetary Community of Central Africa (CEMAC), foreign nationals from outside the region must undergo immigration checks. The country adheres to international labor standards on forced labor and non-discrimination. However, due diligence, background checks, and compliance with local permit laws are essential steps in the hiring process for foreign nationals.
Minimum Wage
As of 2025, Chad does not apply a universal statutory minimum wage. However, the SMIG for non-agricultural workers is approximately XAF 59,995 per month, while the SMAG for agricultural workers is around XAF 60,560 per month. These rates are determined through collective agreements rather than general legislation.
MINIMUM WAGE (PER MONTH)
VAT
In Chad, the standard Value Added Tax (VAT) rate is 18%, which applies to most goods and services within the country. Businesses are required to register for VAT once their annual turnover exceeds a specified threshold set by the tax authorities. Once registered, companies must file monthly VAT returns, detailing the VAT collected on sales (output VAT) and the VAT paid on business purchases (input VAT). The net VAT amount, after deducting input VAT from output VAT, must be remitted by the 15th of the following month. This system ensures timely compliance and efficient tax collection across the formal economy.
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Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 8 March 2026 | Sunday | International Women’s Day | Standard holiday |
| 9 March 2026 | Monday | Women’s Day Holiday | Standard holiday |
| 20 March 2026 | Friday | Eid al-Fitr (End of Ramadan) | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 27 May 2026 | Wednesday | Eid al-Adha (Feast of Sacrifice) | Standard holiday |
| 11 August 2026 | Tuesday | Independence Day | Standard holiday |
| 26 August 2026 | Wednesday | The Prophet’s Birthday | Standard holiday |
| 1 November 2026 | Sunday | All Saints’ Day | Standard holiday |
| 2 November 2026 | Monday | All Saints’ Da |
Questions & Answers