Employee Benefits in Chad
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Chad, officially known as the Republic of Chad, is a country in Central Africa bordered by Libya, Sudan, the Central African Republic, Cameroon, Nigeria, and Niger. It has a GDP of 20.63 billion US dollars (2024) and a growing workforce of 6.5 million people (2024).
The economy of Chad is developing and highly reliant on particular industries such as oil and agriculture, facing challenges due to its being a landlocked country and experiencing issues with remoteness, lack of infrastructure, and drought. However, its young labor force and opportunities in natural resources have led to an increased interest from foreign employers, particularly those in the agriculture and services industries.
This help guide is designed to help employers hiring in Chad, primarily through providing a comprehensive list of mandatory employee benefits that workers are entitled to receive. We’ll also explain the local labor laws that companies should familiarize themselves with when doing business in Chad, and how Remote People can support you through Employer of Record services.
Chad Labor Law
The main labor law in Chad that provides a legal framework to employers and employees is the Labor Code of Chad (Loi no. 38/PR/96 du 11 décembre 1996 portant Code du travail). This law explains key elements of an employment relationship, including employment contracts, annual leave, termination rules, and working hours.
Other legal acts and frameworks that further inform on Chad’s labor laws include:
- Social Insurance / Social Security Degrees
- Laws on family allowances, maternity benefits, and workplace injuries
- Laws / Decrees setting out social security contribution rates/ceilings
When employing workers in Chad, it’s key that employers consult with legal experts for detailed compliance with local labor laws. This is to ensure that your employment practices adhere to the latest legislation set by the government of Chad and ensure the hiring process is as streamlined and compliant as possible.
Mandatory Employee Benefits in Chad
Chad sets out many different employee benefits that workers are entitled to by law. We’ve included the main employee benefits that companies must provide in the sections below.
Social Security Contributions
Chad operates under a Social Security System known as the Caisse Nationale de Prevoyance Sociale (CNPS). This system requires contributions from both employers and employees to ensure all workers and citizens have access to financial support upon retirement age, sickness, maternity, or unemployment.
The rates of social security in Chad are as follows:
| Category | Contribution Rate |
|---|---|
| Employees | 3.5% of gross earnings |
| Self-Employed Workers | N/A |
| Employers | 5% of gross payroll |
Annual Paid Leave
Employees in Chad are entitled to 24 days of fully paid annual leave per year, provided that they have completed one continuous year of service.
Workers with over 10 years of service are entitled to increased annual leave, with 2 days awarded after 10 years of service, 4 days awarded after 20 years of service, and 6 days awarded after 25 years of service.
Annual leave may be taken in separate amounts; however, at least 14 days of annual leave must be taken consecutively.
Working Hours
Working hours in Chad are typically 39 hours per week, or 54 hours per week, including overtime.
Employees are restricted from working more than 11 hours per day (including overtime), and must receive a minimum of one weekly rest day, which is usually taken on a Sunday.
Night hours consist of any hours worked between 10 pm and 5 am.
Overtime Pay
Hours worked over an employee’s normal contracted hours count as overtime. Overtime must be paid at an increased rate as per the following:
| Condition | Overtime Rate |
|---|---|
| First 8 hours of overtime | 10% |
| Overtime beyond the 8th hour | 25% |
| Night overtime | 50% |
| Daytime overtime on weekly rest days or public holidays | 50% |
| Night overtime on weekly rest days or public holidays | 100% |
Public Holiday Leave
Chad recognizes a number of public holidays, and these usually count as a paid day off for full-time employees. The public holidays in Chad are as follows:
- January 1: New Year
- March 8: International Women’s Day
- March 9: Day off for International Women’s Day
- March 20 (Date varies): Eid al-Fitr
- April 6 (Date varies): Easter Monday
- May 1: May Day
- May 27 (Date varies): Eid al-Adha
- August 11: Independence Day
- August 26 (Date varies): The Prophet’s Birthday
- November 1: All Saints’ Day
- November 28: Proclamation of the Republic
- December 1: Freedom and Democracy Day
- December 25: Christmas Day
Sick Leave
Employees in Chad are entitled to 6 months of sick leave if they can provide a medical certificate from a licensed medical professional. Sick pay is calculated as follows:
| Length of Service | Sick Leave Entitlement |
|---|---|
| Less than 12 months | 1 month of sick leave at full pay |
| More than 12 months | 3 months of sick leave at full pay, plus 3 months of sick leave at half pay |
| More than 5 years | 6 months of sick leave at full pay |
Employees must not be dismissed while on sick leave, except in cases of serious employee misconduct. They must also receive access to full medical and surgical care as administered by the CNPS, including hospitalization, prosthetics, and transportation.
Maternity Leave
Female employees are entitled to 14 weeks of maternity leave, which may be extended by 3 additional weeks in the event of a medically certified illness.
Maternity leave is paid at 50% of an employee’s normal salary, which is payable by the social security system for 6 weeks before birth and 8 weeks postpartum.
Free medical care is provided to pregnant women and women on maternity leave, which must be financed by the employer. Mothers must also be permitted to take paid breastfeeding breaks in the 15 months after having a baby, which must not exceed 1 hour per working day.
The jobs of pregnant employees must be protected while they are on maternity leave, except in situations of gross misconduct.
Paternity Leave
Male employees are entitled to 1 day of paid paternity leave when they have a baby.
The worker must inform their employer of their intention to take paternity leave no later than 48 hours after paternity leave in order to be paid.
Severance Pay
Employees are eligible for severance pay if they have been employed for 2 years and have had their contracts terminated (except in cases of employee misconduct). Severance pay in Chad is calculated as follows:
| Length of Service | Severance Pay |
|---|---|
| 2 – 5 years | 25% of gross monthly salary per year |
| 5 – 10 years | 30% of gross monthly salary per year |
| 10 years or more | 35% of gross monthly salary per year |
Pensions
The pension system in Chad is made up of three pillars:
- The Old-Age pension scheme, which is mandatory and administered by the CNPS
- Occupational pension schemes, which are voluntary and not common
- Private pension schemes, which are not regulated or common, provide options for wealthier individuals to save more for retirement age
Supplementary Employee Benefits in Chad
Companies are encouraged to provide their employees with supplementary benefits to improve staff retention and increase recruitment results. Examples of supplementary benefits that are often provided in Chad include:
- Private health insurance
- Performance bonuses
- Housing allowances
- Fuel allowances
- Educational allowances
- Life insurance
- Extended maternity/paternity leave
Optimize Employee Benefits with Remote People
Remote People supports businesses hiring in Chad through comprehensive Employer of Record (EOR) services.
An EOR in Chad serves as the legal employer for your team, managing contracts, payroll, benefits, taxes, and HR obligations in full compliance with local labor law. By centralizing these responsibilities, the EOR reduces your risk exposure and removes the administrative burden, so you can concentrate on scaling your business with confidence.
We can also help your company hire contractors, carry out executive searches, outsource payroll, and find a certified PEO provider.
Contact Remote People to see how we can help your business hire workers in Chad compliantly and efficiently.
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