Burundi is a small East African country bordering Tanzania, the Democratic Republic of the Congo, and Rwanda. While this country is landlocked, which makes accessing foreign markets more difficult, it is rich in agricultural land and mineral wealth. Burundi’s top exports include minerals like gold, tin, and iron, and agricultural products like coffee and tea.

Burundi has a population of 13.77 million people and a labor force of 6.107 million workers. Agriculture employs as many as 85.6% of these workers, while industry only accounts for just 3.6% of labor, meaning that there are lots of opportunities for manufacturing and other industries in Burundi.

The country’s GDP is $6.75 billion, and that number is expected to rise by 1.9% in 2025, making this economy attractive for international investors.

If you want to start working with Burundian workers quickly, one of the best ways to do so is through an EOR, and in this review, we’ll explain how that arrangement works to the benefit of both employers and employees.

How To Hire Employees in Burundi

While the workforce in Burundi is extensive, most people are engaged in agricultural work, much of it for subsistence. Wages in the country are very low, and that means skilled Burundians are looking for opportunities to find work in industry and in services that can help them live more comfortably and support their families.

A lot of this employment comes from direct foreign investment in the local economy. Even with this large demand for employment, however, it can be challenging to connect with and hire Burundian talent without help. Foreign investors can work with recruiters to find the talent they need and then hire workers through one of these options:

Entity Incorporation

If you want to directly enter the Burundian economy and even set up a brick-and-mortar operation there, you’ll likely want to establish your own business entity. This will also allow you to hire local workers and exercise direct control over their hours and methods of work.

Most foreign investors choose to register limited liability companies (LLCs) or public limited companies (PLCs) in Burundi, though free zone companies in special investment zones are also possible for some businesses.

The World Bank ranks Burundi relatively high in terms of ease of setting up a business, with a score of 92.9% and a global ranking of 44th out of over 180 countries. Registering an LLC, for example, requires only four procedural steps and can take as few as five days to accomplish.

Setting up an entity is only one part of the process, however. You’ll still need to recruit, hire, and manage your employees over the long term, and this will require you to hire HR personnel and likely work with tax and legal experts to ensure you can manage your workers’ employment compliantly.

Working with an Employer of Record (EOR)

If you don’t want to struggle with entity set-up or risk working with contractors, you have another option – hiring employees through an Employer of Record. This kind of service provider can help you hire employees legally by using its own local entity to enter into contracts with Burundian workers and become their legal employer.

Hiring Independent Contractors

If you don’t want to make the major commitment of incorporating an entity in Burundi but still want to hire local people, one option is to work exclusively with independent contractors.

Also known as freelancers, these are self-employed workers whom you can contract for small tasks or larger projects. They take care of their own tax and social security contributions, which means that you have a far lesser administrative burden with contractors than you do with permanent employees.

At the same time, you have less control over these types of workers. Contractors work when and how they want, and you have no way of controlling their hours or methods of work. If you try to exercise this control, you’re effectively treating them as employees, and that can mean you risk being penalized for misclassifying workers.

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Burundi Employer of Record vs Burundi Entity

Of course, working with an EOR may not be the best choice for your organization. An EOR’s role is to act as the legal employer of your local staff in Burundi. This means that it enters into contracts with the employees on your behalf.

It also manages HR for them for the duration of their employment, taking care of payroll, benefits administration, paid time off (PTO), and more. For this service, the EOR typically charges a monthly fee that could end up being costly over the long term. You’ll also have slightly less direct control over your employees since some of their concerns will be managed by your EOR partner.

Is there an alternative?

If you want to legally hire employees in Burundi, you need an entity there, so if you don’t want to use an EOR’s entity, you could incorporate your own. Most foreign investors entering the Burundian market choose to set up either a limited liability company (LLC) or a public limited company (PLC).

An LLC can be set up with only one director and one shareholder of any nationality, plus just $1 in share capital. For a PLC, the minimum share capital is the same, but you need two directors and three shareholders who are of any nationality.

Registering a new business in Burundi is surprisingly simple, and the World Bank gives this country a rank of 44th in the world for ease.

You only need to follow these four steps:

  • Submit documents to the Agence des Promotions des Investissiments (API) and obtain a registration certificate and a tax identification number (NIF).
  • Pay the registration fee at the Commercial Bank of Burundi.
  • Make a company seal.
  • Register the company and employees with a health insurance provider.

Once you have your own entity, you can legally hire employees in Burundi. However, you’ll also need to spend time and money to manage their pay, taxes, social security contributions, and HR concerns compliantly going forward. This means registering an entity may only be worthwhile if you plan to enter the local market and employ workers long-term.

Using an Employer of Record in Burundi

An EOR in Burundi is a provider that helps you hire local employees even if you don’t have an entity in the country. It signs contracts with Burundians directly and becomes their legal employer, while your role is that of the worksite employer. The EOR then manages HR for your employees and makes sure their employment is compliant while you focus on their day-to-day work.

The key responsibilities that an EOR takes on in this arrangement include:

  • Onboarding: Effectively, all EORs now use online cloud-based platforms to administer their services. When new employees are hired, an EOR will create profiles for them on its platform after it collects their personal information and important documents. Some EORs even help by providing orientations to their clients’ businesses.
  • Payroll: Your EOR will also add each new employee to your payroll and set up a calculation for them based on their salary, benefits, and tax obligations. Each pay period, you need to provide the EOR with your time and attendance data, which it uses as the basis for payroll processing. It will calculate each employee’s gross salary, subtract their taxes and benefits, and end up with their net pay. It will then pay your employees’ salaries and also keep all payroll records on file for future reporting and analysis.
  • Taxes: Burundi requires that its citizens pay personal income taxes on their income and requires employers to calculate and withhold these taxes from their employees’ salaries. EORs are in charge of making these calculations as part of their payroll processing, and they pay the taxes they withhold to the Office Burundais des Recettes (OBR). They also report to this national tax authority on your behalf as required.
  • Benefits administration: Burundian employees are entitled to mandatory benefits like annual leave, sick leave, parental leave, and social security programs. Rather than having to manage all of these benefits on your own, your EOR will administer them for you, helping employees also keep track of what they’ve received and what they’re owed. If you also want to provide them with additional benefits like private health insurance and retirement savings plans, your EOR will often be able to connect you with plan providers and will assess an additional fee to administer these benefits as well.
  • Contracts: While you may have little or no experience with employment in Burundi, your EOR will employ professionals who have the experience and know-how to create employment agreements or contracts that are fully compliant with all local employment laws. The EOR is also the employer in these contracts, signing them with your employees and storing them for future reference.
  • Terminations: When it’s time to terminate workers, it’s the EOR’s job to handle all relevant procedures as the legal employer. It will assess the justifications you give for dismissing workers and provide them with notice and severance pay if required. 
  • Compliance: Without experience with Burundi’s labor laws, you’d struggle to employ local workers compliantly and risk penalties if you made mistakes. This is why EORs take responsibility for compliance. They ensure that contracts are in line with the law and that employment is maintained correctly, thus protecting both your local workers and your interests as an employer.
  • Recruitment: Some EORs also offer recruitment as one of their services, but they offer it in different ways. A handful of EORs actually employ recruiters who can help you find the talent you need in Burundi. Many more support your recruitment function by offering you tools to help you find people on your own. These tools often include things like access to talent pools, connections to popular job boards, and applicant tracking systems built into their platforms.

Employment and Labor Laws in Burundi

Burundi’s legal system draws on French and German civil codes and includes numerous legal instruments that protect both employers and employees. Important statutes include the Burundi Labour Code 2020, the Constitution of the Republic of Burundi 2018, and the Social Security Code 1999. While your EOR will manage compliance with these regulations, it’s still useful to be familiar with your obligations as an employer and the entitlements of your workers.

Employment Contract Requirements

Contracts in Burundi must be written in French, English, or Kirundi. Oral contracts are allowed, but written contracts are increasingly preferred and provide better legal protection. Contracts must include the following:

  • Identification of the parties
  • Position and duties
  • Work start date
  • Duration (for fixed-term contracts)
  • Place of work
  • Hours of work
  • Salary and payment terms
  • Benefits entitlements
  • Probationary periods (if applicable)
  • Termination conditions 
  • Notice periods
  • Severance pay

Fixed-term contracts are legal in Burundi. Established companies can only use them for short, temporary, and non-durable tasks. However, newly established firms can hire workers for fixed terms of up to one year.

Working Hours

Burundian workers normally work eight hours a day and 45 hours a week, which typically means five full days during the week and a shortened day on Saturday. They must receive at least on 24-hour period of uninterrupted rest each week. Breaks for rest and meals at work are provided at the employer’s discretion and are normally detailed in employment contracts.

Overtime

Burundian workers are allowed to work overtime up to 15 hours a week and 150 hours a year. The first two hours of overtime worked per week are paid at the rate of 135% of their normal wages, and hours worked after that must be paid at 160% of normal wages.

Probation Periods

Probationary periods are legal in Burundi, but they must appear in workers’ contracts in writing. While three-month periods are most common, they can last up to six months for regular workers and 12 months for managers and supervisors.

When an employee is on probation, either they or their employer can terminate the contract with just three days’ notice. Employers can dismiss workers at will and do not need to provide them with justifications, though it’s still a best practice to do so.

Payroll and Employment Taxes in Burundi

Fiscal Year

Burundi follows the calendar year from January 1 to December 31 as its fiscal year for accounting and taxes.

Payroll Cycles

Once you have your own entity, you can legally hire employees in Burundi. However, you’ll also need to spend time and money to manage their pay, taxes, social security contributions, and HR concerns compliantly going forward. This means registering an entity may only be worthwhile if you plan to enter the local market and employ workers long-term.

Minimum Wage

While Burundi protects workers with a legal minimum wage, this wage hasn’t been increased since 1988 and is effectively irrelevant for most employment situations. The legal minimum wage for rural workers is only 105 BIF /day (around 0.036 USD) while for workers in the main urban areas of Bujumbura and Gitega, the minimum wage is 160 BIF (Burundi francs)/day (around 0.054 USD).

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13th Month Salary

Thirteenth-month bonuses are not mandatory or common in Burundi. They may, however, be given at the employer’s discretion and must be reported for tax purposes.

Employer Tax Contributions

Employers in Burundi normally contribute the equivalent of 10% of their employees’ earnings to the following three national social schemes:

  • Social Security Fund (CNaPS): The CNaPS is funded by both employers and employees. Employers contribute 6% of workers’ wages. A portion of this (3%) goes toward workers’ compensation insurance.
  • National Health Insurance Fund (CNAM): Employers pay 3% of their employees’ wages to this national health insurance fund, which protects workers when injured and ill. 
  • National Employment and Vocational Training Fund (FNEF): Employers pay 1% of workers’ salaries to the FNEF, which helps develop workers for the future.
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Employee Payroll Contributions

Employees also contribute to three different programs in Burundi:

  • Social Security Fund (CNaPS): Employees contribute 3.5% of their wages to this social security scheme.
  • CNaPS Pension: CNaPS provides workers with a national pension to which employees contribute 1% of their wages.
  • National Health Insurance Fund (CNAM): Employees also pay 3% of their wages to the health insurance fund.

Individual Income Tax Contributions

While Burundi levies personal income tax, most people don’t pay it, as a majority of workers have income below the national cutoff rate for taxation. This progressive tax system includes just three tiers for income as follows:

Taxable Income Band (BIF)Taxable Income (BIF)Tax Rate
0 – 1,800,0001,800,0000%
1,800,001 – 3,600,0001,800,00020%
More than 3,600,000Any excess30%
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Time Off and Leave in Burundi

Mandatory Leave Entitlements

Burundian workers are entitled to 20 working days of annual leave after they work for their employer for 12 months. After this, they can accumulate leave at the rate of 1 2/3 days for each month they work.

This leave is fully paid, and workers must receive their leave pay by their last day of work before taking leave. Workers can roll their leave over to the next year.

Public Holidays

Burundians receive an entitlement to 13 paid public holidays per year. If they must work on these days, they have to be paid 200% of their normal wages. The holiday schedule in Burundi includes the following days:

  • New Year’s Day (January 1)
  • Reconciliation Day (February 5)
  • Commemoration of the Assassination of President Ntaryamira (April 6)
  • Eid-el-Fitr (date varies)
  • Labour Day (May 1)
  • Day of Ascension (date varies)
  • Eid-el-Hajj (date varies)
  • Independence Day (July 1)
  • Assumption Day (August 15) 
  • Commemoration of the Assassination of Prince Louis Rwagasore (October 13)
  • Commemoration of the Assassination of President Ndadaye (October 21)
  • All Saints Day (November 1)
  • Christmas Day (December 25)

Sick Leave

With medical certificates as proof of their conditions, employees can take as many as three months of sick leave in a year. CNaPS pays for this leave, though workers only receive 66.7% of their normal wages. Their positions are protected during these leave periods.

Parental Leave

Pregnant mothers are entitled to 12 weeks of fully paid maternity leave, or 14 weeks if there are complications with the pregnancy. They must take six of these weeks prior to the expected delivery date of their children. During this time, they are protected from dismissal. Maternity leave is paid 50% by the employer and 50% by social security, so that workers receive their full regular wages.

Paternity leave is also provided for in Burundian law. Fathers of newborn children can take four days of fully paid paternity leave during which time their positions are protected.

There is no other provision for parental leave in Burundi.

Bereavement Leave

There is no mandate to provide bereavement or compassionate leave in Burundi. Employers can choose to offer this leave in their employee contracts.

Terminations and Severance in Burundi

Termination

During probation periods, either party can terminate their contract by giving three days’ notice. In cases of gross misconduct, employees can be terminated immediately or, if they are deemed unfit for work by a physician. Daily workers can also be dismissed at any time without notice or severance pay.

Notice Periods

Employees need to provide half the amount of notice that employers are required to give should they choose to resign. Employers generally must give notice according to the period of time an employee has worked for them:

Duration of EmploymentLength of Notice Period
Less than 3 years1 month
3 – 5 years45 days
5 – 10 years2 months
10 years or more3 months

Severance Pay

Severance pay is generally required for workers who are dismissed, except in cases of gross misconduct) or downsized and is also based on seniority:

Duration of EmploymentSeverance Entitlement
Less than 3 yearsBasic entitlement: half a month’s wages in cash plus a month’s benefits paid in cash or in kind
3 – 5 yearsDouble the basic entitlement
5 – 10 years4 times the basic entitlement
10 years or more6 times the basic entitlement

Why Hire in Burundi with an EOR

If you’re considering hiring Burundian workers, employing them through an EOR can be a very effective option that conveys the following advantages:

  • Language Skills: Most Burundians speak the national language Kirundi, though at least 10% of the population speaks French as well. English has also been granted official status in the country and is becoming widespread in business and education. These language skills can make working with Burundian employees easy and convenient.
  • Low Costs: Burundian wages are some of the lowest in the world. This means you can access skilled workers in this country affordably and easily provide compensation packages that will be attractive to top local talent.
  • Low Risk: When you engage an EOR to hire local employees on your behalf, you’re protected against several risks. The EOR follows local statutes to protect you from penalties for non-compliance, and you’ll also be shielded against misclassification risks as you won’t need to use contractors.
  • Extensive Opportunities: Burundi is a low-income country, but one with lots of natural wealth. Its population is also underserved in terms of services and manufacturing, which means that there are
    ample opportunities for investment in sectors with little competition.

How to Choose an EOR in Burundi

There are many EORs operating in Burundi, and it can be a challenge to tell them apart. We suggest you focus on the following criteria to help you differentiate them:

Reputation

The amount of experience that an EOR has in employing workers in Burundi is an important factor in how well it can manage people compliantly there. While all EORs will claim they are professional and experienced, real reviews and ratings from current and past clients can let you know how well these providers actually perform.

Services

While it may seem that all EORs provide the same services, this isn’t exactly true. All providers will offer the core services of an EOR, like employee administration, hiring, and payroll management.

However, many offer extra services like supplementary benefits administration, recruitment, and intellectual property protection. Make sure you choose an EOR that provides all the services you need.

Price

The fees charged by EORs can vary widely, and you also have to be careful that the services you require are included or are considered add-ons. The best practice is to first estimate your hiring costs and then find an EOR that charges fees that fit into what you’ve budgeted.

Expand into Burundi Easily with Remote People’s Employer of Record in Burundi

Remote People offers Employer of Record (EOR) services in Burundi and beyond to help businesses hire efficiently and compliantly. Our team ensures you’re partnered with a reliable and experienced local EOR solution tailored to your needs. Contact Remote People today to simplify your hiring in Burundi.