In Somalia, the Labor Code mandates several benefits that employers must provide to their workers. These benefits are designed to ensure employee well-being and protect their rights.

Leave

Somali employees are entitled to various types of leave with pay:

• Annual Leave: Employees accrue 21 days of paid annual leave for every year of continuous service.
• Maternity Leave: Female employees are entitled to 3 months of paid maternity leave, which can be taken before or after childbirth. To qualify, they must have been employed for at least six months without interruption (excluding certified illness).
• Paternity Leave: Fathers are entitled to 2 weeks of paid paternity leave.
• Sick Leave: Employees are entitled to seven days of paid sick leave per year.
• Public Holidays: Employees receive paid time off for all national holidays.

Other Mandatory Benefits

• Overtime Pay: Employees must be compensated for any work hours exceeding the standard workweek, typically at a rate of 1.5 times their regular pay.
• Severance Pay: In cases of redundancy or dismissal without fault, employees are entitled to severance pay. The amount is calculated as 15 days' pay for each completed year of service.

In Somalia, employers often enhance their employee value proposition by offering additional perks and programs beyond the mandatory benefits outlined in the Labor Code.

Wellness Programs

Some companies implement wellness programs that encourage healthy habits. These can include gym memberships, discounted fitness classes, or on-site fitness facilities.

Financial Security

Forward-thinking employers might offer pension plans to supplement employees' retirement income.

Flexible Working Arrangements

Offering flexible work options like remote work schedules or compressed workweeks can improve employee satisfaction and productivity.

Additional Perks

Some companies may provide life insurance to employees, offering financial security to their families in case of an unfortunate event. To ease commuting burdens, employers might offer transportation allowances or operate shuttle services, especially if public transportation is limited. Subsidized meals in cafeterias or meal vouchers can be a cost-effective benefit for employees. Employers may also offer financial assistance or paid time off for employees to pursue relevant professional development opportunities.

In Somalia, the labor code does not currently mandate health insurance for employees. This implies that employers are not legally required to provide health coverage for their workers. Despite this, the challenge of accessing quality healthcare in some areas of Somalia has led some employers to offer health insurance plans as an optional benefit to their employees.

Employer-Sponsored Plans

Some companies may offer health insurance plans, either fully funded by the employer or with employee contribution options. These plans can vary in coverage and may include hospitalization, outpatient care, and prescription drugs.

Individual Plans

Employees also have the option to purchase individual health insurance plans from private providers if available. However, the availability and affordability of such plans might be limited.

Somalia's formal retirement plan system is currently under development. The progress made so far is noteworthy, and here's a brief overview of the current situation:

Public Pension System

In 2022, the Federal Government of Somalia initiated the Civil Service Retirement Bill. If enacted, this bill would establish a defined benefit (DB) pension system for civil servants employed by the federal government.

Private Sector

At present, there is no mandated pension system for private sector employees in Somalia. This implies that employers are not obligated to contribute to or provide a formal pension plan for their workers. Some forward-thinking private companies might offer voluntary pension plans, but the widespread availability of such plans is likely limited.

The Future of Retirement Savings

The Civil Service Retirement Bill signifies a positive step towards establishing a national pension system. The development and implementation of this bill, along with potential expansion to the private sector in the future, could significantly impact retirement security for Somali employees.