Liberia is a country in West Africa, and was the first African republic to claim independence from the American Colonization Society. Neighbouring countries include Sierra Leone, Guinea, and the Ivory Coast, and it also borders the Atlantic Ocean.

With a largely undeveloped economy reliant on natural resources, Liberia has high levels of unemployment, poverty, and general instability. However, many companies are choosing to expand into Liberia due to its growing, skilled workforce of 2.6 million people (2024), and labor costs that are highly competitive in comparison with other African countries. Its GDP is also growing, currently sitting at 5.17 billion US dollars as of 2025.

This help guide is designed to provide a comprehensive overview of employee benefits in Liberia, from a snapshot of Liberian labor laws to all mandatory employee benefits that must be provided. 

We’ll also talk you through the supplementary benefits that companies could offer to make job positions more attractive, plus information on how the team at Remote People can streamline hiring in Liberia to allow you to focus on running and growing your business.

Liberia Labor Law

The Labor Law of Liberia details a legal framework that companies must follow when hiring in Liberia, from conditions of employment to administration, and penalties for violating said labor laws.

These laws include sections on wages, hours of work, general conditions of employment, and annual leave entitlements.

Other acts that are relevant to Liberian labor laws include the Labour Relations Act, the Decent Work Act of 2015, and the Occupational Health and Safety Act.

It’s crucial when employing workers in Liberia to consult with legal experts for detailed compliance. This is to make sure that employment practices strictly comply with the latest legislation set by Liberian labor laws and streamlines the process of hiring in Liberia.

Mandatory Employee Benefits in Liberia

There are many different mandatory employee benefits that employers must provide – we’ve detailed some of these below:

Social Security Contributions

Liberia operates under the National Social Security and Welfare Corporation (NASSCORP), which was set up by the Liberian government in 1975.

The social security system was designed to administer the following three schemes:

  • The Employment Injury Scheme (EIS)
  • The National Pension Scheme (NPS)
  • The Welfare Scheme (WS)

Both employees and employers must contribute to the social security system at the following rates:

CategoryContribution RateNotes
Insured Worker4% of gross monthly earningsEmployer is responsible for paying via monthly paycheck
Self-Employed Worker7% of monthly earnings 
Employer4% of gross monthly payroll

The minimum monthly contribution by any of the above is L$50.

Annual Paid Leave

All workers in Liberia are entitled to paid annual leave. The amount of annual leave provided increases based on years of service as per the following:

Years of Service Annual Leave Entitlement
1 year 1 week
2 years 2 weeks
3 years 3 weeks
5 years 4 weeks

Employees under the age of 18 are entitled to an additional week of annual leave on top of their standard allowance.

Working Hours

Normal working hours in Liberia are 8 hours per day and 48 hours per week.

The maximum daily hours that can be worked are 12 hours, including overtime, and the total weekly hours must not exceed 53 hours.

Workers must be given a break during work time, which is usually 1 hour for up to 11 hours of work per day.

Employees between the ages of 16 and 18 are only permitted to work a maximum of 7 hours per day, or 42 hours per week.

Annual leave may be carried over to the next calendar year if unused, however, it cannot be accumulated for more than 3 years.

Overtime Pay

Hours worked that exceed an employee’s normal contracted hours are considered overtime and must be paid accordingly. 

Overtime hours are limited to 5 hours per week, and must be paid at the rate of 1.5 times an employee’s regular hourly wage.

Specific rules around overtime may apply to workers in certain occupations, such as seafarers.

Minimum Wage

Workers in Liberia are entitled to earn the minimum wage. The minimum wage in Liberia as of 2025 is $5.50 per day for unskilled laborers or $3.50 per day for domestic/casual workers.

Public Holiday Leave

There are 12 public holidays in Liberia, which count as paid days off and are separate from annual leave entitlement. The public holidays in Liberia are as follows:

  • New Year (January 1)
  • Armed Forces Day (February 11)
  • Decoration Day (March 11)
  • J. J. Roberts’ Birthday (March 15)
  • Fast and Prayer Day (April 10) (date varies)
  • National Unification Day (May 14)
  • Independence Day (July 26)
  • Flag Day (August 24)
  • Day off for Flag Day (August 25)
  • Thanksgiving (November 5) (date varies)
  • William Tubman’s Birthday (November 29)
  • Christmas Day (December 25)

Sick Leave

Employees in Liberia may take up to 10 days of sick leave per year at their normal level of pay.

This increases over a worker’s continuous service with an employer and can reach a maximum of 14 days of sick leave per year.

To be eligible for sick leave, employees must provide their employer with a medical certificate from a qualified medical professional, particularly if their absence exceeds 3 days.

Maternity Leave

Female workers in Liberia are entitled to 12 weeks of maternity leave, which is usually taken as 6 weeks before birth and 6 weeks after.

Employees must be paid at least 2/3rds of their normal wages during maternity leave, and they may claim maternity benefits from the social security system to ‘top up’ their wages.

Maternity leave may be extended by 3 weeks in the event of complications/illness during pregnancy or birth.

Pregnant women are not permitted to carry out work that is deemed hazardous to their or their child’s health. Jobs must be protected throughout pregnancy and maternity leave.

Paternity Leave

There is no statutory right to paternity leave in Liberia.

However, fathers are usually entitled to 5 days of unpaid leave when their partner/spouse has a child. This unpaid leave must be taken within 1 month of the child being born.

Severance Pay

Employers must pay severance pay to workers in Liberia where their employment contract has been terminated for economic reasons as per the Decent Work Act of 2015.

Severance pay is usually payable in a lump sum to the value of 4 weeks’ salary for every year of service with the same employer.

If employee misconduct is the reason for the employee’s dismissal, it’s very unlikely that the employee would receive severance pay, unless there were legal risks at hand.

Reasons for severance pay usually include company restructuring, job elimination, retirement, or resignation.

Pensions

The pension system in Liberia includes the old-age pension, which provides pension funds to workers in both the private and public sectors.

Workers can then contribute to an occupational pension or private voluntary pensions to raise extra funds for their retirement.

The pension age in Liberia is 60 for men and women, but this may vary depending on the industry.

Supplementary Employee Benefits in Liberia

Some employers offer their workers supplementary benefits that are above and beyond the mandatory benefits required by Liberian labor laws. 

This has been shown to improve staff retention rates and attract candidates to new job roles.

Some examples of supplementary employee benefits that companies offer include:

  • Performance bonuses
  • Advanced training programmes
  • Private pension plans
  • Flexible working
  • Company car
  • Expenses for housing, transport, or food
  • Lifestyle perks (in-house events, culture passes, etc.)
  • Life insurance/health insurance schemes

Optimize Employee Benefits with Remote People

Fully understanding Liberian labor laws can be a challenging process. This is where Remote People come in.

We specialize in helping companies hire in Liberia through our Employer of Record (EOR) services. Our team ensures seamless hiring by managing payroll, employee benefits compliance, and tax obligations—making it easier for your business to expand without setting up a local entity.

Another service you may find useful is our recruitment services in Liberia. Our team is well-experienced in navigating the Liberian hiring space, understands the local language, and knows the best places to look for top talent.

Doing business in Liberia doesn’t have to be difficult. Contact Remote People to see how we can help.