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Global Payroll Team
Written by Global Payroll Team
Last updated May 1, 2026
Expert Reviewed
Equatorial Guinea map

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Mercans offers complete payroll, PEO and HR services in Equatorial Guinea

Located on the west coast of Central Africa, Equatorial Guinea’s economy has long been shaped by hydrocarbons, alongside fishing, timber and agriculture. While oil and gas remain central to the economy, agriculture and small business activity continue to support employment for much of the population.

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Doing Business in Equatorial Guinea

Equatorial Guinea continues to encourage foreign investment, especially in hydrocarbons, infrastructure and selected strategic sectors. The government also promotes small and medium enterprises, while employers should plan carefully for labor, immigration and administrative compliance requirements.

Entity Registration and Incorporation Requirements

Setting up a new business or expanding an existing one in Equatorial Guinea is straightforward. Choose how your company operates from a range of entity types which suit your individual circumstance.

Banking

Banking Hours: Monday – Friday from 8:00 am – 4:30 pm

Working Week

The standard full-time working week is generally 40 hours.

Labor Law

Labor laws in Equatorial Guinea are generally employee-protective, and employers must account for written contract requirements, limits on working time, leave, social security contributions and work authorization rules for foreign employees.

Main Industries

Petroleum, natural gas, fishing, timber, agriculture and related services

GDP Growth

0.9%

Dates & Numbers

dd/mm/yyyy

Official State Name

Republic of Equatorial Guinea

Population

1.89 million

Capital

Malabo

Major Languages

Spanish, French, Portuguese

Currency

Central African CFA Franc (XAF)

Internet Domain

.gq

International Dialing Code

+240

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Equatorial Guinea
Malabo, GQ
2:20 pm, May 2, 2026
32°C
thunderstorm
84 %
Wind Gust: 0 mph
Clouds: 75%
Sunrise: 6:14 am
Sunset: 6:29 pm

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Payroll

The minimum wage and mandatory labor protections remain important payroll considerations in Equatorial Guinea. Employers hiring foreign workers should also note that local labor authorities play an active role in approving employment arrangements and work authorization processes.

It is acceptable to provide employees with online payslips

Payslip

Payroll reports should be kept in line with labor, tax and social security recordkeeping requirements

Reports

One month of paid annual leave after one year of continuous service

Annual Leave

Sick leave may extend up to 26 weeks, with social security rules applying to benefit payment

Sick Leave

12 weeks of paid maternity leave. There is no general statutory paternity leave entitlement

Maternity & Paternity Leave

Termination rules depend on the reason for dismissal and the applicable labor procedure

Employee Termination

–

13th month salary

129,035 XAF per month

Minimum Wage

Overtime is generally limited to 2 hours a day and 200 hours a year

Overtime

Severance compensation is generally equal to 10 working days’ pay for each year of employment after the first year

Severance Pay

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Tax and Social Security

Tax payments are generally calculated according to the applicable tax scale and withheld monthly by the employer. Employees and employers also contribute to the social security system, mainly through INSESO and the Work Protection Fund.

Tax

Taxable employment income generally includes salary, bonuses, allowances, reimbursed expenses and benefits in kind. Equatorial Guinea continues to apply corporate tax, personal income tax and VAT under its national tax framework.

35%

Corporate Income Tax

35%

Personal Income Tax

15%

Sales Tax

15%

VAT

Social Security

Contributions are mainly made to the National Institute of Social Security and to the Work Protection Fund. The standard contribution split is generally 22.5% for employers and 5% for employees in total.

27.5%

Social Security Rate

22.5%

Social Security Rate for Employers

5%

Social Security Rate for Employees

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Employment Law

Labor laws in Equatorial Guinea generally favor the employee. They include provisions on employment conditions, written contracts, working time, leave, occupational safety and dismissal protections.

Employment Agreement

Written employment contracts are generally required. Employers should ensure that terms on role, remuneration, duration, place of work and other mandatory conditions are properly documented and, where required, notified to the labor authority.

Working condition

Work must generally be performed in conditions that allow for sufficient rest and protect the worker against occupational accidents and disease. The normal weekly working time is generally 40 hours.

Leaves

To qualify for one month’s leave, a worker must complete one year of continuous service. After 10 years of service, annual leave increases by one additional day for each additional year worked.

Employment termination

Labor laws differentiate between dismissal for cause, economic dismissal and other termination scenarios. Employers should review all legal obligations carefully before terminating employment.

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Varies

Minimum notice period for terminating an employee

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10

Total number of public holidays

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40

Working hours per week

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Varies

Total number of days for Compassionate & Bereavement Leave

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Immigration

The Ministry of Labour, Social Security and Promotion of Employment plays a central role in authorizing employment contracts and processing work authorization for foreign workers.

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Residency permits

Except for certain exempt categories, foreign workers generally need a visa to enter Equatorial Guinea and a work permit to work legally. Work permits are commonly issued for one year and renewed if the applicable conditions continue to be met.

Work Permit validity

One year

Required Documents

Completed visa or permit application

Passport-size photo

Proof of yellow fever vaccination

Passport with sufficient validity and at least one blank page

Copy of the flight itinerary where applicable

A supporting letter from the company for business travel or employment

Employment contract or work authorization documents where applicable

Compliant, reliable, error-free and touchless payroll in Equatorial Guinea

Build the best team and hire top talent compliantly in Equatorial Guinea. Get in touch with Equatorial Guinea payroll outsourcing & PEO specialists for a free consultation!

This document was prepared for informational purposes only. As local laws & regulations keeps on changing. Please consult your tax & legal advisors as well.
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    FAQs

    What is an Employer of Record (EOR) in Equatorial Guinea and how does it work for foreign companies?

    An Employer of Record in Equatorial Guinea legally employs staff on behalf of foreign companies. It manages contracts, payroll, taxes, and compliance with labor laws, allowing international businesses to hire local talent without setting up a legal entity.

    Why should businesses use an EOR instead of setting up a legal entity in Equatorial Guinea?

    Using an EOR saves time and cost by eliminating the need for local company registration. It ensures full compliance with employment and tax regulations, reduces administrative work, and enables faster market entry.

    How does payroll outsourcing in Equatorial Guinea ensure compliance with tax and labor regulations?

    Payroll outsourcing ensures accurate salary processing, tax deductions, and social security contributions in line with national laws. It reduces compliance risks and keeps businesses aligned with local employment requirements.

    Can an Employer of Record in Equatorial Guinea hire employees and manage work permits for international companies?

    Yes, an EOR can hire employees on behalf of foreign companies and assist in obtaining work and residence permits. It ensures all employment and immigration processes meet local legal standards.

    What are the main benefits of using EOR and payroll services in Equatorial Guinea for global expansion?

    EOR and payroll services enable quick market entry, cost savings, legal compliance, and access to local expertise. They let companies expand into Equatorial Guinea efficiently while focusing on core operations.

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