Eritrea has a population of 3.5 million people. Agriculture, mining, and energy are key industries, with many opportunities for companies looking to expand. The corporate tax rate varies by location and type of company.

Labor and Payroll Considerations in Eritrea:

  • The standard work week is 8 hours per day, 6 days per week
  • Minimum wage only applies to the public sector, currently 360 Eritrean nakfa per month
  • Work contracts lasting more than 1 year must be written
  • Eritrea has a Pay-As-You-Earn (PAYE) system for submitting taxes
  • Income tax is withheld from employee pay
  • Employers must submit 4% municipal tax on behalf of employees
  • Social security has not yet been created in Eritrea
  • Foreign workers need an employment visa to enter Eritrea, with the employer sponsoring the foreign worker

Payroll in Eritrea can be complicated, but Blue Marble is here to help. Our cloud-based payroll technology with customized reporting gives you real-time access to your payroll costs. We have a hybrid service model with a US-based team and in-country experts to help when questions come up. Get started or improve operations in Eritrea with Blue Marble payroll solutions. Click here to learn more