Guide to employment, payroll and benefits in

Sao Tome and Principe

Rivermate offers complete payroll, benefits and compliance services for

Sao Tome and Principe

01. Overview

Last updated: 

August 19, 2021

Currency
Droba
Capital
Sao Tome
Ease of doing business
Language
Portuguese
Population
219159
GDP growth

02. Grow your team in

Sao Tome and Principe

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Sao Tome and Principe

, particularly if you don't have established local relationships. You can hire employees in

Sao Tome and Principe

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

So Tomé and Prncipe is an island nation in the Gulf of Guinea, off the western equatorial coast of Central Africa. Its official name is the Democratic Republic of So Tomé and Prncipe. It is made up of two archipelagos that surround the two major islands of So Tomé and Prncipe, which are about 140 kilometers apart and about 250 and 225 kilometers off Gabon's northwestern coast. The islands were uninhabited until Portuguese explorers discovered them in the 15th century. Throughout the 16th century, the Portuguese gradually colonized and settled them, and they collectively acted as a crucial commercial and trade hub for the Atlantic slave trade. The fertile volcanic soil and proximity to the Equator made So Tomé and Prncipe suitable for sugar production, which was followed by cash crops like coffee and cocoa; the lucrative plantation economy was heavily reliant on imported African slaves. Throughout the 19th and 20th centuries, cycles of civil strife and economic turmoil resulted in peaceful independence in 1975. Since that time, So Tomé and Prncipe has remained one of Africa's most prosperous and democratic nations. So Tomé and Prncipe, with a population of 201,800 people, is the smallest African sovereign state after the Seychelles, as well as the smallest Portuguese-speaking republic. Its inhabitants are mostly of African and mestiço descent, with the majority of them practicing Catholicism. The country's culture, traditions, and music, which combine European and African influences, bear the mark of Portuguese rule. So Tomé and Prncipe is a member of the Community of Portuguese Language Countries since its inception.

04. Public holidays

05. Types of leave

Paid time off

Employees are entitled to 14 days of paid annual leave each year.

Public holidays

Birthday of Prophet Muhammad (Eid Milad un-Nabi)Kashmir DayPakistan DayLabor DayEid ul FitrIndependence DayEid ul AzhaBirthday of Muhammad IqbalAshuraEid Milad-un-Nabi

Sick days

Employees receive 26 days of casual and sick leave.

Maternity leave

Female employees receive 12 weeks of maternity leave.

Paternity leave

There is no statutory paternity leave.

Parental leave

Apart from maternity leave, there is no other parental leave.

Other leave

06. Employment termination

Termination process

Employment contracts in So Tomé and Prncipe can be oral or written, but it is best practice to have a robust, written contract in Portuguese that details the employee's remuneration, perks, and termination criteria.

Notice period

In Sao Tome and Principe, the notice period is typically one month.

Severance pay

Employers are typically required to pay their employees a month's salary for each year of service.

Probation period

In Sao Tome and Principe, the probation is typically 3 to 6 months.

07. Working hours

General

The standard work week is 48 hours across 5 to 6 days.

Overtime

Overtime is compensated twice the regular wage depending on the industry.

08. Minimum wage

General

So Tomé and Prncipe's does not have a private sector minimum wage rate. Civil employees are paid a monthly minimum salary of 750,000 So Tomé and Prncipe dobras.

09. Employee benefits

General

Mandatory benefits postulated by law include a probationary period, pay on annual leaves, public holidays, sick leaves, maternity leave, paternity leave, and overtime pay. Statutory benefits also include social security benefits.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Sao Tome and Principe

to hire a team takes time, money, and effort. The labor law in

Sao Tome and Principe

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Sao Tome and Principe

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Sao Tome and Principe

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Sao Tome and Principe

via our Employer of Record / PEO solution.

Ready to get started? Our friendly staff is ready to assist you with all your questions, let's connect.