Employee Benefits in Djibouti

Bonuses and additional payments

In Djibouti, the Labor Code (Article 98) mandates a minimum annual bonus of 10% of a worker's annual wage. The maximum bonus allowed by law is 30%, and the percentage the employer applies must be the same for all eligible employees.

Annual leave

Employees in Djibouti are entitled to paid vacation leave after completing one year of service. The statutory entitlement is thirty days per year, regardless of the employee's length of service. This leave is fully paid and can be taken throughout the leave year, as agreed between employer and employee. 

Additional leave may be offered as part of an employment contract, though it is not required by law. Many employers offer enhanced leave policies to stay competitive and improve retention. 

Unused statutory leave must be taken within twelve months after it is earned. Payment in lieu of unused leave is only permitted upon termination of employment.

Sick leave

Personal and sick leave are governed by the Djibouti Labor Code. Employees are entitled to up to fifteen days of paid sick leave per year, granted after thirty days of continuous employment. Employers may offer more generous sick leave policies through employment contracts or collective agreements.

Parental leave

Employers must provide 18 weeks of paid leave during an employee’s pregnancy, regardless of birth order. 

Pregnant employees who have worked for an employer for at least 180 days in the 12 months prior to the date of expected delivery are eligible for benefits, with medical certification required eight weeks before the due date.

Additional benefits

In addition to the above, employers are legally required to contribute to the National Pension Fund (CNSS). Employers contribute 6% of an employee’s basic salary for employee retirement savings. 

Free public healthcare coverage is provided to all Djiboutian residents, but a majority of the population relies on private healthcare. Employer social costs cover a large portion of employee benefits in Djibouti, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance, if needed. As your employer of record in Djibouti, we may be able to provide optional supplementary medical insurance coverage for professionals and their dependents at a more cost-effective rate.