How to Use An Employer of Record in
Chad

Hiring in Chad requires navigating the Labour Code (Code du Travail de la République du Tchad), which mandates employer social security contributions of approximately 18.5% on gross salary payable to the Caisse Nationale de Prévoyance Sociale (CNPS), alongside strict requirements for written employment contracts and collective bargaining agreements that vary by sector. An Employer of Record in Chad becomes the legal employer of your staff, handling all payroll, statutory filings, and compliance obligations under Chad law while you retain full operational control and avoid the cost and delay of setting up a local entity. Using an EOR removes the burden of calculating and remitting CNPS contributions, managing termination procedures under the Labour Code's just cause framework, and ensuring contract clauses comply with sector-specific conventions collectives.

What Is an Employer of Record in Chad?

An Employer of Record in Chad is a third-party organisation that becomes the legal employer of your staff under Chad law, handling all statutory obligations, payroll, and compliance while you retain full operational control. The EOR holds the employment contract, processes monthly salary payments in Central African CFA francs (XAF), withholds and remits income tax and social contributions, and manages all government filings. You continue to direct the employee's day-to-day work, set objectives, manage performance, and determine role scope.

Chad's employment law framework is governed by the Labour Code (Code du Travail), enacted by Law No. 038/PR/96 and subsequently amended. The Code requires all employment contracts to be in writing, mandates specific clauses including job classification, salary, workplace location, and notice periods, and obliges employers to adhere to collective bargaining agreements (conventions collectives) that apply to their sector. Employers must register employees with the CNPS within eight days of hire and comply with minimum wage rates set by the Salaire Minimum Interprofessionnel Garanti (SMIG), which as of 2026 stands at approximately 60,000 XAF per month for unskilled workers in the formal sector. Chad law also imposes strict termination procedures, requiring just cause and severance payments based on length of service.

When you use an EOR in Chad, you retain control over all operational decisions: hiring criteria, performance reviews, promotions, task assignments, and strategic direction. The EOR owns the legal employer responsibilities: issuing the employment contract under the Labour Code, calculating and withholding Impôt sur les Traitements et Salaires (ITS, the payroll income tax), remitting CNPS contributions, ensuring contract compliance with applicable conventions collectives, managing statutory leave entitlements, and handling termination procedures including notice and severance.

How Does an Employer of Record Work in Chad?

Using an Employer of Record in Chad involves a structured process that ensures your new hire is compliant with Chad employment law from day one. The EOR handles every legal and administrative step, from drafting the employment contract under the Labour Code to registering the employee with the CNPS and processing monthly payroll in XAF. You define the role, the EOR ensures it meets all statutory and sectoral requirements, and your employee starts work on time and fully compliant.

Step 1: Define Employment Terms

You provide the EOR with the role details, proposed salary, job title, workplace location, and start date. The EOR reviews your terms against the applicable convention collective for the employee's sector and job classification, which in Chad sets minimum wages, benefits, and working conditions that often exceed the statutory SMIG. If your proposed salary or terms fall short of sectoral minimums, the EOR flags this and recommends compliant adjustments. This step typically takes one to two business days.

Step 2: EOR Compliance Check

The EOR verifies that the role classification, working hours, and salary meet Chad legal requirements. The Labour Code limits standard working time to 39 hours per week across most sectors, with exceptions for certain industries governed by sector-specific conventions. The EOR confirms the proposed salary meets or exceeds the SMIG of 60,000 XAF per month for unskilled workers, or the higher sectoral minimum if applicable. The EOR also ensures correct classification between employee and independent contractor status, as misclassification in Chad exposes you to penalties, back payment of social contributions, and claims for employee benefits.

Step 3: Employment Contract Preparation

The EOR drafts a written employment contract in French, the official language of Chad and the mandatory language for all employment documentation. The contract must comply with the Labour Code and include mandatory clauses: employee identity and address, employer identity (the EOR), job title and classification, workplace location, salary and payment terms, working hours, notice periods, and probation period. Chad law permits probation periods of up to three months for non-supervisory roles and six months for supervisory or technical positions, renewable once. The contract specifies whether it is for an indefinite duration (contrat à durée indéterminée, CDI) or fixed-term (contrat à durée déterminée, CDD), with CDDs limited to specific cases such as temporary work, seasonal activity, or project-based roles and capped at a maximum duration of two years including renewals.

Step 4: Government Registrations

The EOR registers the employee with the Caisse Nationale de Prévoyance Sociale (CNPS) within eight calendar days of the employment start date, as required by Chad social security law. The CNPS registration generates a unique employee number and activates coverage for pensions, family allowances, and work injury insurance. The EOR also registers the employment with the Direction Générale du Travail et des Lois Sociales (DGTLS), the labour inspectorate, which oversees compliance with the Labour Code. Late or missing registration exposes the employer to fines, denial of social benefits for the employee, and potential prosecution by labour inspectors.

Step 5: Payroll Execution

The EOR processes monthly payroll in Central African CFA francs (XAF), the legal tender in Chad. Salary must be paid by the last working day of the month, typically via bank transfer to the employee's local account. The EOR calculates and withholds Impôt sur les Traitements et Salaires (ITS), the payroll income tax, which is levied on gross salary at progressive rates ranging from 0% to 45% under the 2026 tax code administered by the Direction Générale des Impôts (DGI). The EOR remits ITS to the DGI by the 15th of the following month and submits a monthly payroll declaration.

Step 6: Ongoing Compliance Management

The EOR manages recurring statutory obligations throughout the employment relationship. This includes calculating and remitting monthly CNPS contributions at approximately 18.5% of gross salary (16.5% employer share, 2% employee share, plus 2% to 5% for work injury insurance depending on risk classification), submitting quarterly social security declarations to the CNPS, maintaining employee work records (registre du personnel) as required by the Labour Code, and filing annual labour statistics with the DGTLS. The EOR also manages statutory leave entitlements, including a minimum of 24 working days of paid annual leave per year, public holidays (11 days in Chad for 2026), and paid sick leave supported by a medical certificate. The EOR monitors changes to the Labour Code, conventions collectives, tax rates, and CNPS contribution schedules, implementing updates to payroll and contracts as laws evolve.

Step 7: Termination and Severance

The Labour Code requires that termination of an indefinite employment contract be justified by a legitimate and serious cause (motif légitime et sérieux), whether economic, technical, or related to the employee's conduct or capability. Notice periods are set by the applicable convention collective and typically range from one to three months depending on job classification and length of service. Severance pay (indemnité de licenciement) is mandatory for employees with at least one year of continuous service and is calculated at a minimum of 30% to 40% of average monthly salary per year of service, with the exact formula and rate specified in the relevant convention collective. The EOR prepares the termination letter, serves the required notice (or payment in lieu), calculates and pays severance, issues the certificat de travail (certificate of employment) and attestation de radiation CNPS (CNPS deregistration certificate), and deregisters the employee from the CNPS and DGTLS. The EOR ensures all steps comply with the Labour Code and the convention collective to minimise the risk of wrongful termination claims before the labour tribunal.

Employment Laws and Compliance an Employer of Record Handles in Chad

When you hire through an Employer of Record in Chad, the EOR takes on full compliance responsibility under the Labour Code, tax law, and social security regulations, so you do not need to build an in-country HR or legal function. The EOR ensures every aspect of the employment relationship meets Chad statutory and sectoral requirements.

• Employment Contracts and Documentation: The EOR drafts and issues compliant written employment contracts in French as required by the Labour Code (Law No. 038/PR/96), including all mandatory clauses such as job title, salary, workplace, working hours, and notice periods. The EOR maintains the registre du personnel (employee register) and ensures contract terms align with the applicable convention collective. Non-compliant contracts or missing documentation expose you to fines from the Direction Générale du Travail et des Lois Sociales (DGTLS) and give employees grounds to claim unfair dismissal or unpaid benefits.
• Payroll Tax and Income Withholding: The EOR calculates, withholds, and remits Impôt sur les Traitements et Salaires (ITS), Chad's payroll income tax, which is levied at progressive rates from 0% to 45% on gross salary under the 2026 tax code. The EOR submits monthly payroll tax declarations and payments to the Direction Générale des Impôts (DGI) by the 15th of the following month. Failure to withhold or remit ITS on time results in penalties, interest charges, and potential criminal liability for the employer.
• Social Security Contributions: The EOR registers employees with the Caisse Nationale de Prévoyance Sociale (CNPS) within eight days of hire and calculates total social security contributions of approximately 18.5% to 21.5% of gross salary, comprising a 16.5% employer contribution, a 2% employee contribution, and a 2% to 5% work injury insurance premium based on occupational risk classification. The EOR remits monthly contributions and submits quarterly declarations to the CNPS. Late registration or payment triggers penalties, denial of pension and medical coverage for employees, and potential prosecution.
• Statutory Leave Entitlements: The EOR administers paid annual leave of a minimum 24 working days per year under the Labour Code, accruing from the first day of employment and typically taken after 12 months of service. The EOR also manages 11 public holidays observed in Chad in 2026, paid sick leave (which requires a medical certificate and is partially covered by the CNPS after three days), and maternity leave of 14 weeks (six weeks prenatal, eight weeks postnatal) paid by the CNPS. Denying statutory leave or failing to pay employees during leave exposes you to labour tribunal claims and DGTLS sanctions.
• Termination and Severance: The EOR manages termination procedures in compliance with the Labour Code's requirement for just cause (motif légitime et sérieux) and the notice periods specified in the applicable convention collective, typically one to three months. The EOR calculates and pays severance (indemnité de licenciement) at a minimum rate of 30% to 40% of average monthly salary per year of service for employees with at least one year of tenure. The EOR issues the certificat de travail and attestation de radiation CNPS and deregisters the employee from government bodies. Wrongful termination in Chad can result in reinstatement orders or damages equivalent to six to 24 months' salary.
• Working Time and Overtime: The EOR ensures compliance with the Labour Code's 39-hour standard workweek and maximum 12-hour workday, with exceptions for sectors governed by specific conventions collectives. Overtime is compensated at 115% for hours 40 to 48 per week, 130% for hours beyond 48 on weekdays, and 135% to 160% for weekend and public holiday work. The EOR calculates overtime premiums, includes them in monthly payroll, and maintains records for inspection by the DGTLS. Unpaid overtime is the most common source of labour tribunal claims in Chad.
• Health and Safety Obligations: Chad law requires employers to provide a safe workplace, conduct risk assessments, and report work injuries to the CNPS and DGTLS within 48 hours. The EOR ensures your employees receive work injury insurance coverage through CNPS contributions and coordinates accident reporting and claims. The DGTLS conducts workplace inspections and can issue closure orders or fines for serious safety violations.
• Data Protection and Employee Privacy: Chad does not have a comprehensive data protection statute equivalent to GDPR, but the Labour Code requires employers to protect employee personal data and limits disclosure to government authorities and the employee. The EOR maintains secure records, restricts access to employee files, and ensures that payroll and HR data handling complies with general confidentiality principles. Unauthorised disclosure can trigger wrongful dismissal or privacy claims.
• Collective Bargaining Agreements: The EOR identifies and applies the convention collective applicable to your employee's sector and job classification, which in Chad may impose higher minimum wages, longer notice periods, enhanced severance formulas, and additional benefits beyond the statutory floor set by the Labour Code. Major sectors such as banking, oil and gas, telecommunications, and construction each have distinct conventions collectives negotiated between employer federations and trade unions. Non-compliance with a convention collective exposes you to back payment claims, fines, and labour tribunal orders.
• Labour Inspectorate Filings and Audits: The EOR submits annual workforce statistics and employment reports to the Direction Générale du Travail et des Lois Sociales (DGTLS) and responds to inspections or information requests. The DGTLS has authority to audit payroll records, employment contracts, leave registers, and CNPS filings. The EOR represents you during inspections, provides documentation, and remedies any deficiencies. Obstruction of an inspection or failure to provide records can result in fines and prosecution.

How Much Does It Cost to Use an Employer of Record in Chad?

The total cost of using an Employer of Record in Chad comprises two components: Playroll's monthly service fee and the statutory employer on-costs mandated by Chad law. The statutory costs are fixed by the Labour Code, tax law, and CNPS regulations and are calculated as a percentage of gross salary. Playroll's EOR service fee starts from 399 United States dollars per employee per month, billed separately from payroll costs in your preferred currency.

Let's look at an example that includes a base salary and the EOR service fee.

Playroll's EOR service fee covers all employment administration, compliance monitoring, payroll processing in XAF, statutory filings with the CNPS and Direction Générale des Impôts, employment contract preparation in French under the Labour Code, government registrations, ongoing advisory on Chad employment law, termination and severance management, and dedicated support from Playroll's in-country employment specialists. The fee does not include employee salary, statutory contributions, or any discretionary benefits you choose to offer.

Employer of Record vs Setting Up an Entity in Chad

Deciding between an Employer of Record and establishing your own legal entity in Chad depends on your hiring volume, commitment timeline, and tolerance for administrative complexity. The most common legal structure for foreign companies in Chad is a Société à Responsabilité Limitée (SARL, limited liability company), which requires registration with the Agence de Promotion des Investissements au Tchad (API-Tchad), notarised articles of association, a registered office in N'Djamena or another Chad city, a minimum share capital deposit, and publication in the Journal Officiel. Realistic setup time is four to six months, and total incorporation and first-year costs typically range from 15,000 to 25,000 United States dollars including legal fees, notary costs, registration fees, office lease deposits, and initial accounting setup.

For companies hiring fewer than 15 employees in Chad, an Employer of Record is almost always the faster and more cost-effective route.

Playroll also supports your long-term growth through its Global Entity Setup product, which handles entity incorporation and local payroll in 120+ countries, so you can transition from EOR to your own compliant entity in Chad when the time is right, without switching providers or rebuilding your HR processes.

How Long Does It Take to Hire Someone in Chad Through an Employer of Record?

The typical timeline to hire and onboard an employee in Chad through an Employer of Record ranges from 10 to 15 business days from the moment you provide role details to the employee's first day on payroll.

• Stage 1: Contract preparation and signing (2 to 3 business days): The EOR drafts a compliant employment contract in French under the Labour Code, including all mandatory clauses and alignment with the applicable convention collective. Timing depends on how quickly you approve the contract terms and the employee signs.
• Stage 2: Government registrations (3 to 5 business days): The EOR registers the employee with the Caisse Nationale de Prévoyance Sociale (CNPS) and notifies the Direction Générale du Travail et des Lois Sociales (DGTLS). Chad law requires CNPS registration within eight calendar days of the employment start date. Missing this deadline exposes you to fines, denial of social benefits, and potential labour inspectorate sanctions.
• Stage 3: Payroll configuration and first cycle (2 to 3 business days): The EOR configures payroll to calculate gross-to-net salary, withhold Impôt sur les Traitements et Salaires (ITS) at the applicable progressive rate, deduct the 2% employee CNPS contribution, and prepare bank transfer instructions. Chad employers pay monthly salaries by the last working day of each month. The employee receives their first payslip on the first scheduled pay date after start.
• Stage 4: Chad-specific requirements (1 to 2 business days, often parallel): The EOR confirms the employee's identification documents (national ID card or passport) and bank account details for XAF salary payment. This step typically runs in parallel with contract signing and does not extend the overall timeline if documents are provided promptly.

Timeline extensions in Chad most commonly result from delays in employee document submission, CNPS registration backlogs during peak periods (typically end of quarter), or the need to obtain an advance ruling from the Direction Générale du Travail on contract classification or termination terms for senior or expatriate roles. Starting the process two weeks before your preferred start date provides a comfortable buffer.

By comparison, incorporating a local SARL entity in Chad and hiring through your own payroll takes four to six months, including API-Tchad registration, notarisation, share capital deposit, obtaining a tax identification number (Numéro d'Identification Fiscale, NIF), registering as an employer with the CNPS, and setting up compliant payroll systems.

How Playroll's Employer of Record Process Works in Chad

Playroll's Employer of Record service in Chad takes you from offer acceptance to compliant first payslip in as little as 10 business days. Here is how it works step by step.

You Define the Role and Terms

You provide Playroll with the job title, proposed salary in XAF or USD, workplace location, start date, and any role-specific details such as working hours or probation period. Playroll's team reviews your terms against the Labour Code, the applicable convention collective for the employee's sector and classification, and the current SMIG minimum wage to confirm compliance or recommend adjustments.

Playroll Prepares a Compliant Employment Contract

Playroll drafts a written employment contract in French under the Labour Code (Law No. 038/PR/96), including all mandatory clauses such as employee and employer identity, job title and classification, salary and payment terms, workplace, working hours, notice periods, and probation duration. The contract specifies whether it is indefinite (CDI) or fixed-term (CDD) and incorporates the relevant convention collective provisions. You review and approve the contract, and Playroll issues it to the employee for signature.

Employee Onboarded and Payroll Goes Live

Once the contract is signed, Playroll registers the employee with the Caisse Nationale de Prévoyance Sociale (CNPS) and notifies the Direction Générale du Travail et des Lois Sociales (DGTLS) within the legally required eight-day window. Playroll configures payroll to calculate gross salary, withhold ITS at the correct progressive rate, deduct the 2% employee CNPS contribution, and process monthly payment in XAF to the employee's bank account. The entire onboarding process typically takes 10 to 12 business days from contract signature to first day on payroll, assuming all employee documents are provided promptly.

Playroll Manages Ongoing Compliance and Growth

Playroll handles all recurring obligations: monthly payroll processing, ITS withholding and remittance to the Direction Générale des Impôts by the 15th of each month, CNPS contribution payments and quarterly declarations, administration of statutory leave and public holidays, maintenance of the registre du personnel, and implementation of changes to the Labour Code, tax rates, or conventions collectives. Playroll also manages contract amendments, performance documentation, and termination procedures including notice, severance calculation, and issuance of the certificat de travail and attestation de radiation CNPS. If your team in Chad grows to the point where establishing your own entity makes strategic sense, Playroll's global entity setup service can incorporate your SARL, transfer employees, and transition payroll without disrupting operations or requiring you to engage a new provider.