Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
XAF Fr CFA (Central African CFA Franc)
Employer contributions
~21.5% employer INSESO (pension 8% + work injury 5% + family 6% + unemployment 2.5%)
Minimum wage
XAF 183,000/month (SMIG 2014; severely outdated)
Payment frequency
Monthly
Calendar year (Jan 1 - Dec 31)
Capital
Malabo
Timezone
WAT (GMT+1)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~XAF 1,822,500 total
/month
For a gross salary of
XAF 1,500,000 gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
~21.5% employer INSESO (pension 8% + work injury 5% + family 6% + unemployment 2.5%)
Mandatory extras
Annual Bonus
Monthly admin
Monthly payroll - INSESO by month-end - IRPF withholding - annual March return
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
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A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~XAF 1,822,500 total
Example gross salary
XAF 1,500,000 gross/month
~XAF 1,002,750 net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~XAF 322,500 INSESO
Employer contributions on that salary
Employer contributions
~21.5% employer INSESO (pension 8% + work injury 5% + family 6% + unemployment 2.5%)
Employee contributions
~4.5% employee INSESO + income tax (IRPF)
Total cost above gross
~21.5% above gross (INSESO)
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~XAF 1,000,000
Per month
Malabo
XAF 1,200,000 - 5,000,000
~45%
Bata
XAF 1,000,000 - 4,000,000
~30%
Monthly gross. National average salary per year:
~XAF 12,000,000
Minimum wage
XAF 183,000/month (SMIG 2014; severely outdated)
Paid:
Monthly
Extra pay
Annual Bonus
Discretionary (oil sector: 1-2 months common)
December
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
0% up to XAF 1,000,000 / 10% / 15% / 20% / 25%
Tax year:
Calendar year (Jan 1 - Dec 31)
Filing calendar
Monthly by last day
Social security payments
March 31
Income tax
By January 31
Employee tax certificate
Certificado de retenciones
March 31
Annual return
Declaracion anual IRPF
Late payment penalties
Late INSESO: 3% monthly; late IRPF: 10% + interest
Who collects what
Ministerio de Hacienda
Income tax (IRPF)
INSESO
Social security
Ministerio de Trabajo
Labour law
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Vacaciones anuales
30 working days/year
Public holidays
~14 public holidays
Sick leave
Baja por enfermedad
INSESO pays from day 4
Maternity leave
16 weeks (112 days) maternity + 12 days paternity
Full pay employer; INSESO reimburses
The contracts you can use, and what ending an employment relationship costs.
Permanent
Contrato de Trabajo por Tiempo Indefinido
Fixed term
Contrato de Trabajo de Duracion Determinada
Independent contractor
Contrato de Servicios Independientes
Collective agreements
Convenio Colectivo
Ending employment
Indemnizacion por despido
How it is calculated
Per Labour Law; scales with seniority
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
Oil Sector Expat Tax and INSESO Compliance
Risk Level: HIGH
Equatorial Guinea's oil economy generates high-income expatriate employment subject to full IRPF and INSESO obligations. Many oil service companies incorrectly apply offshore tax exemptions or home country tax credits. The Ministry of Finance and INSESO conduct joint oil sector audits annually.
Equatoguinean Worker Quota (Ecuatoguineizacion)
Risk Level: HIGH
The Labour Code requires employers to prioritize hiring Equatoguinean nationals and maintain minimum local employment ratios. The oil sector has specific national content targets. Non-compliance triggers work permit issuance bans.
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Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
150+
countries
$49
per contractor per month
1 run
to pay your whole team
USD
Global Account for every contractor
FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.