Guide to employment, payroll and benefits in


Rivermate offers complete payroll, benefits and compliance services for


01. Overview

Last updated: 

August 19, 2021

Somali Shilling
Ease of doing business
GDP growth

02. Grow your team in


with Rivermate

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


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


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

Somalia is a country in the Horn of Africa that is formally known as the Federal Republic of Somalia. It is bordered on the west by Ethiopia, on the northwest by Djibouti, on the north by the Gulf of Aden, on the east by the Indian Ocean, and on the southwest by Kenya. Somalia has the longest coastline on the continent of Africa. Plateaus, hills, and highlands make up the majority of the landscape. The climate is hot all year, with monsoon winds and intermittent rainfall. Somalia is Africa's most culturally homogeneous nation, with an approximate population of about 15 million people. Ethnic Somalis, who have traditionally populated the country's north, make up about 85% of the population. The south is home to the majority of ethnic minorities. Somalia's official languages are Somali and Arabic. The majority of Somalis are Muslims, the majority of whom are Sunni. Somalia was once a major commercial hub. It's one of the most likely locations for the fabled ancient Punt Land. Several influential Somali empires, including the Ajuran Sultanate, the Adal Sultanate, and the Sultanate of the Geledi, dominated regional trade during the Middle Ages. The Somali Sultanates were colonized by Italy, Britain, and Ethiopia in the late nineteenth century. During four expeditions against Somaliland, Sayid Mohamed's Dervish movement managed to frustrate the Abyssinians, Italians, and British, forcing them to withdraw to the coast, before eventually being defeated in the 1920 Somaliland Campaign. After successfully waging the Sultanates Campaign against the ruling Majeerteen Sultanate and Sultanate of Hobyo, Italy gained complete control of the northeastern, central, and southern parts of the region. The two territories merged in 1960 to create the independent Somali Republic, which was governed by a civilian government. In 1969, the Supreme Revolutionary Council seized power and formed the Somali Democratic Republic, which collapsed 22 years later, in 1991, when the Somali Civil War broke out. Most regions reverted to customary and religious law during this period. A number of temporary federal administrations were established in the early 2000s. In 2000, the Transitional National Government was formed, followed by the Transitional Federal Government in 2004, which re-established the Somali Armed Forces. The TFG took charge of the majority of the country's southern conflict zones from the newly established Islamic Courts Union in 2006. The ICU splintered into more militant factions, such as Al-Shabaab, which fought the TFG and its AMISOM allies for control of the region. By mid-2012, the rebels had lost much of the territories they had taken, and a search for more permanent democratic institutions had begun. In August 2012, a new provisional constitution was passed, reforming Somalia as a federation.

04. Public holidays

05. Types of leave

Paid time off

Public holidays

Sick days

Maternity leave

Paternity leave

Parental leave

Other leave

06. Employment termination

Termination process

The employer must notify the employee's trade union. Additionally, they must notify the labor officer in charge of the area in which the employee works of the reasons for and extent of the proposed redundancy at least one month prior to the scheduled date of termination due to redundancy. If the employee is not a member of a union, the employer must personally notify him or her in writing. There must be a collective bargaining agreement between the employer and a trade union outlining the terminal benefits provided upon redundancy and ensuring that the contract does not prejudice the employee for being or not being a union member.

Notice period

Either party may terminate an employment contract by giving the other a written notice of at least 30 days.

Severance pay

The severance pay should not be less than fifteen days’ pay for each completed year of service.

Probation period

A probationary period shall not exceed six months, but may be extended for an additional six months with the employee's consent.

07. Working hours



08. Minimum wage


Somalia does not have a minimum wage policy.

09. Employee benefits


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


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


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


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


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


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.