Sierra Leone is an English-speaking country located in West Africa, bordered by Guinea and Liberia. With its deep-water port, Freetown, on the Atlantic coastline, Sierra Leone has the potential to leverage a growing transport and logistics sector.

Despite this, Sierra Leone remains one of the poorest countries in the world, meaning its true potential has yet to be realized. The key industry sectors in Sierra Leone remain agriculture, mining, fishing, and a moderate services sector. Like much of the region, agriculture remains the largest employer in the country, with 43% of employees working in the sector.

Recent economic assessments reveal that real GDP growth in Sierra Leone reached a moderate 4% in 2024, due to the decline in iron ore prices. However, growth is expected to increase in the years to come. For businesses in the country, there’s a population of eight million people, with growing pools of workers in major hubs like Bo, Freetown, Kenema, and Makeni.

As any business in the region knows, there are tremendous barriers to doing business and hiring workers through legitimate channels in this part of the world. That’s why teaming up with an Employer of Record (EOR) is often the way forward.

In this guide, we’ll cover what an EOR can do for you and what the employment framework looks like on the ground.

How to Hire Employees in Sierra Leone

Sierra Leone is still a developing country, and modernization has been slow. Agriculture remains the largest employer, and there has been a historical lack of opportunity in the country. Although efforts are being made to grow the services sector, Sierra Leone still sees most workers operating in traditional industries.

One of the bright spots of operating a business in the country is that the Sierra Leone unemployment rate remains low, with a decline to 3.13%. Still, connecting with local talent and bringing them into your business means navigating an unfamiliar legal framework and identifying potential change-makers.

Foreign investors and business owners alike often need support to overcome these challenges. So, what are your options for hiring in Sierra Leone?

Entity Incorporation

Hiring directly in Sierra Leone means you’ll need to create a formal entity and register with the tax and social security authorities. It’s the option with the most control but with the biggest administrative burden. It’s also worth mentioning that doing business here is complex, with the World Bank placing Sierra Leone 163rd out of 190 economies.

Working with an EOR

Hiring through a Sierra Leone EOR offers the best of both worlds. You become the on-site employer, but the EOR remains the legal employer. In practice, the only part you have to handle is setting schedules and assigning tasks. Tax, social security, and other HR obligations remain in the remit of the EOR.

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Hiring Independent Contractors

An alternative to becoming a formal employer is working with freelancers and other types of independent contractors. This allows you to benefit from local workers without worrying about paying tax, managing social security, and dealing with various other rules and regulations. The downside is that the contractor remains in control, deciding when and where they work. It’s also vital to remember that using contractors to avoid employment obligations is against the law.

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Using an Employer of Record in Sierra Leone

The point of working with an EOR in Sierra Leone is to be able to hire employees legally without setting up a company inside the country. Your EOR partner hires workers and functions as their legal employer. They’ll then send these workers to work for their clients, such as your business. What does an EOR actually do, though?

  • Onboarding: EORs today use online cloud-based platforms to work with businesses looking for local workers. Whenever they hire someone new, they’ll create a profile on the platform, including personal information and any other documentation needed for compliance.
  • Payroll: Each time you hire a new worker, they’ll be added to your payroll automatically. The platform automatically calculates how much they have to be paid, the benefits they receive, and any deductions needed for tax and social security purposes. You’ll need to upload hours worked and attendance every pay cycle before these calculations are run. Some EORs can also do this for you with payroll management services.
  • Taxes: Employers are responsible for deducting tax from paychecks and submitting the amounts to the National Revenue Authority (NRA). Your EOR can manage this process as well, calculating tax deductions correctly and remitting the necessary amounts to the NRA every pay cycle. This also includes any additional reporting requirements that might apply to your organization.
  • Benefits Administration: By law, Sierra Leone workers are entitled to receive certain benefits, like annual leave and pension contributions. The National Social Security and Insurance Trust (NASSIT) is responsible for administering the state pension system, and so you’ll need to enroll workers with them and submit regular contributions.
  • Contracts: There’s a high chance you’re unfamiliar with what compliant employment contracts look like in Sierra Leone. Your EOR will be able to draft standardized templates that comply with the Employment Act 2023 and prevent you from going into non-compliance.
  • Terminations: All employees have protections to prevent arbitrary or unfair dismissals. Employers must ensure the necessary steps are followed to prevent fines and legal disputes later, whether you’re terminating for gross misconduct or for economic reasons. Your EOR will manage this, including any necessary notice periods or severance packages.
  • Compliance: One of the biggest headaches foreign businesses have is compliance. Rather than hiring a separate legal counsel, your EOR will utilize their local experts to keep you in compliance and ensure that workers’ rights are respected.
  • Recruitment: The process of finding workers to hire can be a headache if you’re new to Sierra Leone. Some EORs may provide separate recruitment services to aid businesses in identifying qualified candidates. This may include in-house recruiters, recruitment tools like applicant tracking systems, or direct connections to talent pools in different regional hubs.

Employment and Labor Laws in Sierra Leone

Sierra Leone has taken steps to modernize its labor framework. The latest version of the Employment Act was passed in 2023 and remains the primary piece of legislation governing employment relationships nationwide.

The 2023 Act was crucial because it updated and consolidated rules on a wide range of topics, including employment contract clauses, working time, wages, and termination procedures. Your EOR will support you in interpreting these laws and how they apply to you at every turn.

Employment Contract Requirements

Written employment contracts aren’t mandated by any law in Sierra Leone. Despite this, they’re still essential because it becomes impossible to achieve compliance without them. Functionally, they’re a legal requirement, even if there’s no specific clause that requires them.

Whether you’re hiring someone on a fixed-term or open-ended arrangement, contracts should be in English, which is Sierra Leone’s official first language. Standard areas your contracts should address include:

  • Job title
  • Responsibilities
  • Start date
  • Duration (for fixed-term contracts)
  • Place of work
  • Working hours
  • Salary and payment terms
  • Benefits entitlements
  • Probationary period
  • Termination conditions
  • Notice periods
  • Severance

Note that probationary periods are recognized in Sierra Leone, allowing you to trial a new hire to assess their suitability. The Employment Act sets guardrails on probation to prevent abuse, though, including how long they can last and what rights probationary employees are entitled to.

Either party can terminate probationary periods in Sierra Leone without going through formal termination procedures, but they must be done so in writing using a simplified version.

Standard Working Hours

Sierra Leone follows the standard 40-hour work week split over five days. The law still permits overtime to be taken, up to certain limits. Hours can be distributed differently, but this must be stated within each worker’s contract of employment. Note that workers must receive periodic breaks and a 24-hour uninterrupted period of rest.

Overtime

Workers are allowed to work overtime, but the law limits this to a maximum of ten hours per week. That means most workers can work up to 50 hours weekly, but no more. Typically, overtime rates are paid at a premium and work out to 150% of a staff member’s basic salary for weekday overtime and 200% on Sundays and public holidays.

The Employers and Employed Act of 1962 sets the standard for overtime compensation, but collective bargaining agreements mean these rates could be higher.

Probation Periods

Probation periods in Sierra Leone may be applied and can last for up to six months. The law also allows for six-month probationary periods to be renewed once if the worker is promoted to a radically different role during their initial probationary period. Either party is allowed to terminate the relationship with a simplified dismissal process.

Payroll and Employment Taxes in Sierra Leone

Fiscal Year

The fiscal year in Sierra Leone follows the calendar year. Each financial year begins on January 1st and ends on December 31st.

Payroll Cycle

Monthly payroll is the norm in Sierra Leone, with most workers paid at the end of the month or the very beginning. There are no strict rules on what your payroll cycle must look like, but income tax deductions must be submitted by the 15th of the month following the culmination of the previous pay period.

Minimum Wage

In Sierra Leone, the current minimum wage is SLE 800 per month (roughly $35 USD). However, after recent negotiations, the government has officially announced that this will increase to SLE 1,200 per month starting April 1, 2026.

This 50% raise was approved by the Joint National Negotiating Board to help workers deal with high inflation. Until the new rate kicks in this April, the SLE 800 rate remains the legal requirement, though it is currently among the lowest in the world.

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Employer Tax Contributions

NASSIT is responsible for administering the country’s national pension system. All private-sector employers and employees are responsible for contributing to the system, which provides for old-age pensions.

The standard employer contribution is 10% of an employee’s monthly salary. Note that self-employed workers are required to cover both the employer and employee sides of contributions, adding up to a total of 15%.

Employee Payroll Tax Contributions

Employees are also required to pay a portion of their salaries to NASSIT every month. Currently, this rate is 5%, deducted by the employer at source and remitted to NASSIT each month. Employers are responsible for timely deductions, remittances, and accurate record-keeping.

Individual Income Tax Contributions

Sierra Leone uses a progressive tax system, with tax rates rising alongside incomes. The NRA tax guide outlines what the current tax bands are. In practice, most citizens don’t qualify for paying any income tax, and the presence of the informal economy means Sierra Leone has an extremely small tax base.

Nevertheless, rates are as follows (using the annual income table):

Tax RateTaxable Income Range (SLE)
0%Up to 15,000
15%15,001 – 45,000
25%45,001 – 95,000
30%Over 95,000

Note that you may encounter some tax tables with substantially higher numbers. This is because the SLE was redenominated from SLL in 2022 by removing three zeros to address rampant inflation.

Bonus Payments

The 13th-month bonus given to workers in some countries doesn’t apply in Sierra Leone. Any employment bonuses paid remain the decision of individual companies or collective agreements. If a company chooses to pay bonuses, these are taxed as standard employment income.

Time Off and Leave in Sierra Leone

Mandatory Leave Entitlement

Workers become eligible for annual leave once they have completed a year of continuous service. How much they’re entitled to depends on how long they’ve worked for a particular company. It works out to:

Length of ServiceAnnual Leave Entitlement
1–5 Years19 working days
5–10 Years22 working days
10+ Years28 working days

All annual leave must be paid at the same basic salary rate. Furthermore, these leave entitlements don’t include public holidays.

Public Holidays

Sierra Leone has a multi-faith population, meaning that a selection of Christian and Islamic holidays are recognized each year. Employees who’re asked to work on a public holiday must be paid at the premium overtime rate of 200%. Some industries may have higher rates negotiated via collective bargaining.

  • New Year’s Day: January 1
  • Armed Forces Day: February 18
  • International Women’s Day: March 8
  • Good Friday: Date varies (Christian calendar)
  • Easter Monday: Date varies (Christian calendar)
  • Independence Day: April 27
  • Labour Day: May 1
  • Eid al-Fitr (Korité): Date varies (Islamic lunar calendar)
  • Eid al-Adha (Tabaski): Date varies (Islamic lunar calendar)
  • Mawlid (Prophet’s Birthday): Date varies (Islamic lunar calendar)
  • Christmas Day: December 25
  • Boxing Day: December 26

Sick Leave

Paid sick leave is available in Sierra Leone. The law allows for a minimum of five paid sick days each year, with an accompanying medical certificate. Some industries may offer additional sick leave or sick leave that’s tied to years of service.

Parental Leave

Parental leave is 14 weeks of paid maternity leave, under the terms of the Gender Equality and Women’s Empowerment Act. Leave must be paid, and pregnant female employees cannot be terminated. Leave may also be extended if there are any medical complications. Paternity leave isn’t a legal requirement.

Bereavement Leave

Sierra Leone does not have statutory bereavement leave. Instead, it’s very much a company issue. However, in practice, most businesses offer some form of bereavement leave for the deaths of close family members.

Termination and Severance in Sierra Leone

Termination

Termination must follow the fairness standards outlined by the Employment Act. Examples of fair reasons would include proven misconduct, incompetence, and redundancy. Employers looking to terminate a worker should ensure they have sufficient performance-related records to demonstrate that proper termination procedures were followed.

If workers are terminated for economic reasons, business owners are obligated to consult workers’ representatives and notify the Labour Commissioner four weeks in advance.

Notice Periods

Notice periods vary, but for an indefinite contract, it’s standard to provide 30 days of notice. An alternative to a notice period is to provide pay in lieu of notice. In the case of fixed-term contracts, these expire automatically, and so workers can be terminated without notice. Premature terminations must be in line with the Employment Act’s fairness standards.

Severance Pay

Severance payments don’t apply to all terminated workers. However, they must be paid if they’re incorporated into a worker’s employment contract. There’s also the option to provide pay in lieu of a notice period. Your EOR will help you determine whether a severance package is due, and how much has to be paid.

Why Hire in Sierra Leone with an Employer of Record?

Hiring in Sierra Leone comes with its challenges, but with low labor costs and a modernizing economy and employment framework, there are opportunities for ambitious entrepreneurs. Rather than setting up your own entity, working with an EOR streamlines the process, simplifying the process of expanding your workforce. Some of the advantages of hiring in Sierra Leone with an EOR include:

  • Language: Sierra Leone’s primary language is English, making it relatively easy for foreign businesses to enter the market, since there are no language barriers to deal with. However, there are still local dialects to be aware of.
  • Affordability: Sierra Leone is one of the poorest countries in the world, meaning wages remain incredibly low. This makes tapping into the West African workforce far more affordable when it’s done in Sierra Leone.
  • Risk Mitigation: The country has made substantial changes to its employment framework in recent years, meaning it can be challenging to keep up with everything that’s going on. By working with an EOR, you’ve got local experts on your side who can keep you in compliance and provide regular updates on any upcoming regulatory changes that apply to you.
  • New Opportunities: Recent shocks like COVID-19 and Ebola have disrupted the country’s growth trajectory, but there are strong signs of stabilization and recovery. The country is modernizing, and the formal economy is becoming more prominent, unlocking opportunities for foreign investors and businesses.

Sierra Leone is a country that many international business owners don’t consider when moving into the West African regional market, but they should. The country’s strategic location on the Atlantic Ocean and its natural resources, including iron and diamonds, make it an intriguing prospect for intrepid entrepreneurs.

How to Choose an Employer of Record in Sierra Leone

An increasing number of EORs have entered the Sierra Leonean market, and that poses a challenge if you’re looking for a partner. With so many operators, how do you know which one will offer the best service for your expansion into West Africa?

Here are some of the key aspects to examine while researching different EOR options:

Reputation

Every EOR will tell you how great they are, but that’s hardly an objective viewpoint. The best way to learn about how an EOR treats its clients is to look up reviews from previous clients. This gives you a better understanding of their strengths and weaknesses and the overall experience of working with them.

Services

It might seem like every EOR offers precisely the same services, but this couldn’t be further from the truth. Most EORs provide the same core services, but you’ll also find operators providing options like payroll management, recruitment services, and supplementary benefits administration. Determine what your needs are and align your search with what each EOR offers.

Price

EORs use bespoke pricing to ensure you only pay for the services you actually need. All relationships start with a consultation, where the EOR will get a sense for what your company does and the services that you’ll need. With this information, they’ll provide you with a quote. Hunt for several quotes and determine whether they match up with your budget.

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

At Remote People, we know that there are substantial challenges in choosing an EOR in Sierra Leone that you can rely on. As a leading EOR brokerage in Sierra Leone, our consultants can connect you with trustworthy EOR providers capable of offering the five-star service you deserve.

Launch the process of finding your Sierra Leone EOR by getting in touch with Remote People today.