Guide to employment, payroll and benefits in


Rivermate offers complete payroll, benefits and compliance services for


01. Overview

Last updated: 

August 19, 2021

Yemeni Rial
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

Yemen, officially the Republic of Yemen, is a country in Western Asia located at the southern end of the Arabian Peninsula. It is the peninsula's second-largest Arab sovereign state, covering 527,970 square kilometers. The coastline is approximately 2,000 kilometers long. Sanaa, Yemen's constitutionally designated capital, has been under Houthi rebel rule since February 2015, as has Aden, which has been under the control of the Southern Transitional Council since 2018. Riyadh, Saudi Arabia, is the seat of the executive government. The Sabaeans, a trading kingdom that included parts of modern-day Ethiopia and Eritrea, lived in Yemen in ancient times. In 275 CE, the Jewish-influenced Himyarite Kingdom was founded. The fourth century saw the arrival of Christianity. In the seventh century, Islam spread rapidly, and Yemenite troops were crucial in the early Islamic conquests. The Rasulid dynasty was one of many that arose from the 9th to 16th centuries. In the 1800s, the world was split between the Ottoman and British empires. Before the Yemen Arab Republic was founded in 1962, the Zaydi Mutawakkilite Kingdom of Yemen was established after World War I. The Aden Protectorate remained a British protectorate until 1967, when it became an independent state and later a Marxist-Leninist state. In 1990, the two Yemeni states came together to form the modern Republic of Yemen. President Ali Abdullah Saleh served as the new republic's first president until his resignation in 2012, following the Arab Spring. Yemen has been in a state of political crisis since 2011, with street demonstrations against poverty, unemployment, corruption, and President Saleh's attempt to change Yemen's constitution and abolish the presidential term limit. President Saleh stood down, and the presidency was handed over to Abdrabbuh Mansur Hadi. Yemen has been embroiled in civil war since then, with many proto-state bodies claiming to rule the country: the Cabinet of Yemen, the Supreme Political Council, and the Southern Transitional Council. Since January 2016, armed conflict in Yemen has killed at least 56,000 civilians and combatants. A famine has engulfed 17 million people as a result of the conflict. The largest and fastest-spreading cholera epidemic in recent history has been triggered by a shortage of safe drinking water caused by depleted aquifers and the degradation of the country's water infrastructure, with the number of confirmed cases reaching 994,751. Since the epidemic started spreading rapidly at the end of April 2017, over 2,226 people have died. The current humanitarian crisis and war has drawn international condemnation for worsening Yemen's humanitarian situation, which some argue has reached the level of "humanitarian catastrophe" and even genocide, according to some. It has exacerbated the country's already deteriorating human rights situation.

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

When a worker's contract is terminated, the employer shall present the worker with a free certificate of severance showing the date of his entry into service, the date of his termination, the type of his job, and the amount of his remuneration. If the employment contract is canceled prior to the expiration of its set term while discussions to renew or extend it are ongoing, the contract must remain effective for a maximum period of three months during such negotiations. If the negotiations fail to generate results ensuring the contract's continuation within the specified period, the contract shall be regarded terminated.

Notice period

The notice period specified in paragraph 1 of this article is calculated as follows: 30 days for employees paid on a monthly basis; 15 days for employees paid on a half-monthly basis; and one week for employees paid on a production or piecework basis, or on hourly, daily, or weekly rates.

Severance pay

Where a worker is not covered by the Social Insurance Act or by any special regulations implementing the preceding paragraph, he is entitled to receive severance pay from his employer equal to at least one month's wages for each year of service. Severance pay shall be calculated on the basis of the worker's last wage received.

Probation period

When a worker signs an employment contract, he or she may be subject to a probationary period of up to six months with the same employer, as specified in the contract. It is prohibited to hire a probationary employee more than once for the same job.

07. Working hours


Hours of official work shall not exceed eight hours per day or forty-eight hours per week. Weekly hours of work shall be spread across six working days, followed by one paid day of rest. During the month of Ramadhan, official working hours shall not exceed six hours per day or 36 hours per week.

The Minister may reduce official working hours in certain occupations, jobs, and industries where working conditions are hazardous to health. After consultation with all parties involved, including representatives of workers and employers, such order shall specify the said occupations and jobs, as well as the reduced hours.

Official working hours shall be interrupted by one or more periods of not more than one hour each for rest, prayer, and meal. Such rest period(s) shall be determined in such a way that no continuous period of work exceeds five hours. Such period(s) shall not be included in the calculation of working time.


On normal working days, overtime pay shall be one and a half hours' basic wage per hour worked; and two hours' basic wage per hour worked at night, on the weekly rest day, and on official holidays and leave, in addition to the standard wage for such holidays.

08. Minimum wage


Yemen's minimum civil service wage is 21,000 rials per month.

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.

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