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Liberia

Benefits and Entitlements Overview

Learn about mandatory and optional employee benefits in Liberia

Mandatory benefits

In Liberia, labor laws establish a framework for minimum mandatory benefits that employers must provide to their employees. These core benefits ensure a baseline level of protection for Liberian workers.

Probationary Period

The Liberian labor code allows for a probationary period of no less than one month and no more than three months. This period allows employers to assess an employee's suitability for the role.

Annual Leave

All Liberian employees are entitled to a minimum of 10 days of paid annual leave per year. This provides employees with time to rest and recharge, improving overall well-being and potentially boosting productivity upon return.

Public Holidays

Liberian employees are entitled to paid leave on all official public holidays declared by the government. The specific number of public holidays can vary slightly from year to year.

Paternity Leave

Fathers are entitled to 5 days of unpaid paternity leave in Liberia.

Optional benefits

In Liberia, employers often offer optional benefits to attract and retain top talent. These benefits go beyond the country's mandatory requirements and can significantly improve employee well-being and financial security.

Additional Paid Time Off

While Liberia mandates a minimum of 10 days of paid annual leave, employers can enhance this benefit by providing additional paid time off for vacation, sick leave, and personal days. Offering generous paid time off allows employees to recharge and maintain a healthy work-life balance.

Extended Maternity Leave

Some employers may extend the mandated maternity leave period or offer additional benefits for new mothers. These benefits can include subsidized childcare, which can help employees manage childcare costs during the initial months after childbirth, and lactation rooms, providing a private space for mothers to pump breast milk.

Allowances

Many employers offer various allowances to their employees. These can include a housing allowance to help offset housing costs, a transport allowance to cover commuting costs, and a meal allowance to help with meal expenses during work hours. These allowances can significantly boost employees' take-home pay and improve their overall financial well-being.

Other Benefits

Employers may offer additional benefits to attract and retain talent. These can include performance bonuses to incentivize employees and recognize their achievements, training and development programs to invest in employee skills development, flexible work arrangements to improve work-life balance and potentially attract a wider talent pool, and company discounts on their products or services.

Health insurance requirements

In Liberia, the health insurance system is a combination of public and private options. While there is no mandatory national health insurance program, there are certain requirements for employers in the formal sector.

Employer Contributions

Employers are obligated to contribute 2% of an employee's monthly salary to the government-run social security scheme. This is known as the Employment Injury Scheme, which provides accident insurance. It covers work-related injuries and illnesses, including those sustained while commuting.

Additional Health Insurance Options

Employees in Liberia have two primary ways to obtain health insurance:

  • Private Health Insurance: Employers may offer private health insurance plans to their employees. The coverage and cost of these plans can vary.
  • Employee Contributions: Some employers and employee associations require their members to contribute towards health insurance plans. These plans cover a broader range of medical services.

The health insurance landscape in Liberia is still evolving. While there are no mandatory national health insurance requirements for employees, employers in the formal sector are required to contribute to an accident insurance scheme. Private health insurance is an option, but coverage depends on individual employer policies or employee association memberships.

Retirement plans

In Liberia, employees have access to a two-pronged approach to retirement plans, which includes a mix of public and private options.

National Social Security Scheme (NASSCORP)

Managed by the National Social Security and Welfare Corporation (NASSCORP), this public plan offers two main benefits:

  • National Pension Scheme (NPS): This is the primary retirement plan for employees in the formal sector. Both employers and employees contribute 4% of the employee's monthly salary.
  • To qualify for a pension, an employee must reach the retirement age of 60 and have contributed for a minimum of 144 months (12 years). There are reduced contribution requirements for those born before 1980.
  • The benefit amount is calculated based on the employee's average earnings during their highest five earning years within the last decade before retirement.

Government Pension Plans

Government employees have a separate pension plan managed by the Civil Service Agency (CSA) in collaboration with NASSCORP.

  • Eligibility: Similar to the NPS, the retirement age is 60 with a minimum service requirement. There's also a provision for early retirement due to ill-health with proper medical documentation.

Private Pension Plans

Some private companies might offer their employees additional voluntary pension plans. These plans can vary significantly depending on the employer.

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