Global EOR Services in Chad
Find, Hire & Pay Employees in Chad
Chad, located in Central Africa, is rich in natural resources and offers growing opportunities in oil, mining, agriculture, and infrastructure development. However, expanding into Chad can be complex due to language barriers, regulatory hurdles, and local employment laws.
A Global Employer of Record (EOR) makes it easier for international companies to hire employees in Chad without establishing a local entity. The EOR manages employment contracts, payroll, benefits, taxes, and compliance, allowing businesses to focus on their operations while maintaining full legal compliance with Chadian labor regulations.
🇹🇩 Employer of Record (EOR) Services in Chad
Effortless Market Entry: Hire local talent swiftly without the need for entity establishment.
Regulatory Compliance: Ensure adherence to labor, tax, and social security laws.
Cost Optimization: Reduce overhead expenses by avoiding entity setup and administrative burdens.
Operational Focus: Delegate HR and compliance tasks while concentrating on core business activities.
🇹🇩Chad: A Comprehensive Guide to Employment and Labor Practices
Official Name: Republic of Chad
Capital: N’Djamena
Population: ~18 million
Official Languages: French and Arabic
Currency: Central African CFA Franc (XAF)
Time Zone: UTC +1
Government Type: Unitary Republic
Economy: Primarily driven by oil production, agriculture, and livestock
Corporate Tax Rate: 35%
Labor Law: Governed by the Chadian Labor Code (Law No. 038/PR/96) and related decrees.
Social Security Authority: Caisse Nationale de Prévoyance Sociale (CNPS) oversees pensions and contributions.
Chad’s workforce is youthful and growing, providing a large labor pool, especially for industries like agriculture and construction. However, the labor market remains largely informal, and foreign investors must comply with strict employment and immigration laws when hiring locally.
Employment Laws and Policies in Chad
Employment relationships in Chad are regulated by the Labor Code, which ensures fair labor practices, social protection, and rights for both employers and employees.
\Employment Contracts
All employment contracts must be in writing and in French.
Must specify job title, salary, working hours, duration, and benefits.
Contracts can be fixed-term (for specific projects) or indefinite.
Probation period: Up to 3 months for employees and 6 months for managers.
Employers must register each employee with the CNPS and the Labor Inspectorate.
Working Hours
Standard Workweek: 39 hours per week (usually 7.8 hours per day).
Overtime: Paid at 115% of normal rate for the first 8 hours, 150% thereafter.
Rest Day: Minimum of one full day per week (usually Sunday).
Leave Entitlements
Annual Leave:
24 working days per year (2 days per month of service).
Increases with seniority (up to 26 days after 10 years of service).
Public Holidays: 10–12 per year, including Independence Day and religious holidays.
Sick Leave:
Paid leave depends on tenure.
Employees with 1+ year of service receive up to 3 months (50% to 100% salary).
Maternity Leave: 14 weeks (6 before and 8 after childbirth), paid at full salary by social security.
Paternity Leave: 2 days (paid).
Payroll, Tax & Contributions
Income Tax: Progressive rates up to 30%.
Social Security Contributions:
Employer: 16.5% (social insurance, family allowance, and work injury).
Employee: 3.5%.
Payroll Frequency: Monthly, in XAF.
Social Security Registration: Mandatory for both employer and employee under CNPS.
Withholding Taxes: Employers must withhold and remit both income tax and social contributions.
Health & Safety
Employers must provide a safe and hygienic working environment as per the Labor Code.
Safety equipment and training are mandatory for high-risk industries.
Medical exams are required before employment in certain sectors (e.g., mining, construction).
Termination & Severance
Notice Period:
8 days (for employees with less than 1 year).
1 month (for 1–5 years of service).
2 months (for more than 5 years).
Severance Pay:
25% of monthly salary per year of service (minimum).
Grounds for Termination:
Just cause (misconduct, absenteeism).
Economic redundancy or business closure.
Termination must be approved by the Labor Inspectorate in most cases.
Non-Discrimination & Equality
The Chadian Constitution and Labor Code prohibit discrimination based on gender, race, religion, political opinion, or nationality.
Women are entitled to equal pay for equal work.
Sexual harassment and forced labor are criminal offenses.
Opening a Legal Entity in Chad
Limited Liability Company (SARL)
- Most common structure for small and medium-sized enterprises.
- Requires at least one shareholder and one director.
- Minimum Capital: XAF 1,000,000 (approx. USD 1,600).
- Must register with the Commercial Court and Tax Administration.
Public Limited Company (SA)
- Suitable for large enterprises.
- Requires at least one shareholder and three directors.
- Minimum Capital: XAF 10,000,000 (approx. USD 16,000).
- Subject to more complex governance and auditing requirements.
Branch Office
- Allows a foreign company to operate in Chad under its parent company’s name.
- Must register with the Registrar of Companies and Ministry of Commerce.
- Legal representative required in Chad.
Representative Office
- For market research or promotion only (cannot engage in direct commercial activity).
- Must be approved by the Ministry of Commerce.
Entity Setup Timeline:
- Typically takes 3 to 6 weeks, depending on document approvals and translations.
Key Registration Requirements:
CNPS registration for employees.
Articles of Association.
Proof of registered office address.
Identification of directors/shareholders.
Tax Identification Number (TIN).
Global EOR Services as an Alternative:
Establishing a legal entity in Chad can be time-consuming and bureaucratic, with strict compliance requirements and French-language documentation.
By using a Global Employer of Record (EOR), your company can:
- Hire employees in Chad within days, not months.
- Ensure full compliance with labor, tax, and social security laws.
- Manage payroll, benefits, and contracts efficiently.
- Avoid legal complexity and focus on business expansion.
A Global EOR provides a faster, compliant, and cost-effective way to test the Chadian market or build a local workforce without setting up a subsidiary.
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