How to Use An Employer of Record in
Gambia

Hiring in Gambia requires navigating the Labour Act 2007, which mandates written employment contracts within seven days of commencement and exposes foreign companies to strict termination procedures enforced by the Department of Labour. An Employer of Record in Gambia becomes the legal employer of your staff, ensuring full compliance with the Labour Act, Social Security and Housing Finance Corporation (SSHFC) contributions, and payroll tax obligations while you retain complete operational control without setting up a local entity. The EOR removes the risk of misclassifying fixed-term contracts, missing mandatory SSHFC registrations within 14 days of hire, and navigating collective bargaining agreements that apply across multiple sectors.

What Is an Employer of Record in Gambia?

An Employer of Record in Gambia is a third-party organisation that becomes the legal employer of your staff under Gambian law, handling all statutory obligations, payroll processing, and compliance requirements while you retain full operational control over day-to-day work, performance management, and business direction. The EOR holds the employment contract, manages all government filings, and assumes legal responsibility for adherence to Gambia's employment regulations.

Under the Labour Act 2007, which governs all employment relationships in Gambia, every employment contract must include specific mandatory clauses covering job description, remuneration, working hours, and termination procedures. The Act also requires employers to comply with sector-specific collective agreements negotiated by trade unions recognised under the Labour Act, register all employees with the Social Security and Housing Finance Corporation within 14 days of commencement, and withhold Pay As You Earn (PAYE) income tax at the rates set by the Gambia Revenue Authority. Your EOR ensures every contract, contribution, and filing meets these requirements from day one.

The responsibility split is clear. You manage: hiring decisions, daily work assignments, performance reviews, project priorities, and termination timing. The EOR owns: employment contracts issued under Gambian law, monthly payroll in Gambian Dalasi, SSHFC contributions and filings, PAYE withholding and remittance, compliance with the Labour Act, and executing termination procedures including notice and severance calculations.

How Does an Employer of Record Work in Gambia?

Using an EOR in Gambia follows a structured process that ensures compliance with the Labour Act 2007 and associated regulations from the moment you decide to hire. The EOR handles every legal and administrative step, so you can focus on building your team without establishing a local presence. Here's how it works in practice.

Step 1: Define Employment Terms

You provide the EOR with the role details, proposed salary, job title, and work location. The EOR reviews these terms against the national minimum wage set by the Wages Councils Board under the Labour Act and any applicable collective agreement for the sector or occupation. If your role falls under a collective agreement, the EOR ensures salary, working hours, and benefits meet or exceed the negotiated minimums. This pre-hire compliance check prevents issues with the Department of Labour down the line.

Step 2: EOR Compliance Check

The EOR verifies that your proposed terms comply with the minimum wage of GMD 2,500 per month for unskilled workers as of 2026, set by the Wages Councils Board, and the maximum 48-hour working week under Section 83 of the Labour Act 2007. The EOR confirms whether the employee is correctly classified as a permanent, fixed-term, or casual worker under the Act, because misclassification triggers penalties from the Department of Labour. If you're hiring for a fixed-term contract, the EOR ensures it does not exceed 12 months without Department of Labour approval and includes a valid reason for the fixed term as required by Section 16 of the Labour Act.

Step 3: Employment Contract Preparation

The EOR prepares a written employment contract in English, the official language of business in Gambia, that complies with Section 8 of the Labour Act 2007. The contract must include: the employee's full name and address, job title and detailed job description, place of work, remuneration amount and payment frequency, normal working hours and rest days, annual leave entitlement of at least 21 working days per year under Section 89, notice period for termination under Section 28, and the probationary period which cannot exceed six months under Section 10. For fixed-term contracts, the EOR includes the contract duration and grounds for the fixed term. The contract is issued within seven days of the employee's start date as required by the Labour Act, and both you and the employee receive signed copies.

Step 4: Government Registrations

The EOR registers the employee with the Social Security and Housing Finance Corporation (SSHFC) within 14 days of commencement, as required by the Social Security and Housing Finance Corporation Act. The SSHFC registration generates a unique employee number used for all monthly contribution filings. The EOR also registers your company as a contributing employer with the Gambia Revenue Authority (GRA) for PAYE tax withholding purposes, using the Tax Identification Number (TIN) process. Missing the 14-day SSHFC deadline triggers late registration penalties and back-dated contribution interest charges that the employer is liable for under the SSHFC Act.

Step 5: Payroll Execution

The EOR processes monthly payroll in Gambian Dalasi (GMD), paying the employee on or before the last working day of the month as is standard practice in Gambia. The EOR calculates and withholds PAYE income tax at the progressive rates published by the Gambia Revenue Authority: 0% on the first GMD 150,000 annually, 10% on income from GMD 150,001 to GMD 360,000, 15% on income from GMD 360,001 to GMD 600,000, and 20% on income above GMD 600,000 as of 2026. The EOR deducts the employee's 5% SSHFC contribution and adds the employer's 10% SSHFC contribution, then remits both to the SSHFC by the 15th of the following month. The EOR remits PAYE to the Gambia Revenue Authority by the 15th of the following month and provides the employee with a detailed payslip showing gross salary, all deductions, and net pay.

Step 6: Ongoing Compliance Management

The EOR manages monthly SSHFC contributions and remittance by the 15th of each month, monthly PAYE withholding and remittance to the GRA by the 15th, annual PAYE reconciliation and filing with the GRA by 31 March following the tax year end, maintenance of statutory employment records as required by Section 116 of the Labour Act including a register of employees and leave records, and compliance with annual leave accrual of 21 working days per year plus 16 public holidays recognised in Gambia. The EOR also monitors changes to the Labour Act, SSHFC contribution rates, PAYE tax bands, and collective agreements to ensure your employment terms remain compliant without requiring any action from you.

Step 7: Termination and Offboarding

When you decide to terminate employment, the EOR manages the process under the Labour Act 2007, which permits termination only on grounds of misconduct, redundancy, incapacity, or mutual agreement. The EOR issues the termination notice in writing, providing the statutory notice period: one week for employees with less than six months' service, two weeks for six months to two years, one month for two to five years, and two months for over five years under Section 28, though collective agreements may require longer periods. The EOR calculates severance pay, which is mandatory for redundancy terminations at one month's salary for every two years of completed service after the first 12 months, as required by Section 39 of the Labour Act. The EOR processes the final payroll including accrued but untaken annual leave, issues the Certificate of Service required under Section 115, deregisters the employee with the SSHFC, and provides you with written confirmation of compliant termination to protect against wrongful dismissal claims at the Labour Department.

Employment Laws and Compliance an Employer of Record Handles in Gambia

When you hire through an EOR in Gambia, they take on full compliance responsibility under the Labour Act 2007 and associated regulations, so you don't need to build an in-country HR function or maintain expertise in Gambian employment law.

• Employment Contracts: The Labour Act 2007 Section 8 requires every employment contract to be in writing and issued within seven days of commencement. The contract must specify job description, remuneration, working hours, leave entitlement, notice period, and probationary period, which cannot exceed six months under Section 10. Failure to provide a written contract exposes you to penalties from the Department of Labour and weakens your position in any employment dispute.
• Income Tax Withholding (PAYE): The Gambia Revenue Authority administers Pay As You Earn (PAYE) income tax at progressive rates: 0% on the first GMD 150,000 annually, 10% on GMD 150,001 to GMD 360,000, 15% on GMD 360,001 to GMD 600,000, and 20% above GMD 600,000 as of 2026. Employers must withhold PAYE monthly, remit to the GRA by the 15th of the following month, and file annual reconciliation by 31 March. Non-compliance triggers interest charges at 1.5% per month and penalties up to 50% of the tax due, plus personal liability for directors in serious cases.
• Social Security Contributions: The Social Security and Housing Finance Corporation Act requires all employers to register employees within 14 days of commencement and contribute 10% of gross salary as the employer contribution plus deduct and remit 5% from the employee. Contributions are capped at a maximum insurable earnings ceiling of GMD 20,000 per month as of 2026. Remittance is due by the 15th of the following month, and late payment incurs penalties of 1% per month plus interest on the outstanding amount.
• Annual Leave and Public Holidays: Section 89 of the Labour Act 2007 grants a minimum of 21 working days of paid annual leave per year after 12 months of continuous service, accruing proportionately during the first year. Gambia observes 16 public holidays in 2026, including Independence Day, Eid al-Fitr, Eid al-Adha, and Christmas Day, all of which must be paid if they fall on a working day. Denying annual leave or requiring work on public holidays without the triple-time pay required by the Act creates liability for back pay and penalties.
• Termination and Severance: The Labour Act 2007 permits termination only on lawful grounds: misconduct, redundancy, incapacity, or mutual agreement. Notice periods under Section 28 range from one week to two months depending on tenure, and redundancy terminations require severance of one month's salary for every two years of completed service after the first year under Section 39. Wrongful dismissal claims are heard by the Labour Department, which can order reinstatement or compensation up to 12 months' salary.
• Working Time Limits: Section 83 of the Labour Act 2007 sets a maximum 48-hour working week and eight-hour working day for most employees, with exceptions for agricultural and domestic workers. Overtime work requires a 50% premium on normal hourly wages under Section 84, and work on rest days or public holidays requires at least double or triple the normal rate. Employers who exceed working time limits without proper overtime payment face penalties and back-pay orders from the Department of Labour.
• Health and Safety Obligations: The Factories Act (Cap 59:01) requires employers to maintain a safe working environment, provide first aid facilities, and report accidents resulting in death or serious injury to the Department of Labour within 48 hours. Employers must conduct risk assessments for hazardous work and provide personal protective equipment at no cost to employees. Non-compliance with health and safety regulations can result in prosecution, fines, and shutdown orders for dangerous workplaces.
• Data Protection and Privacy: The Data Protection Act 2021 governs the collection, processing, and storage of employee personal data in Gambia. Employers must obtain employee consent for data processing, maintain secure data storage systems, and register as a data controller with the Data Protection Commission. The Act requires that personal data be used only for the purpose for which it was collected and imposes fines up to GMD 500,000 or imprisonment for data breaches involving employee information.
• Collective Agreements and Unionisation: The Labour Act 2007 recognises trade union rights and requires employers to comply with collective agreements negotiated for their sector or occupation. Collective agreements in Gambia often set higher minimum wages, longer notice periods, and additional benefits than the statutory floor. Employers who refuse to recognise a union or comply with a registered collective agreement face complaints to the Labour Department and potential strike action.
• Probationary Period Limits: Section 10 of the Labour Act 2007 caps probationary periods at six months, during which either party may terminate with one week's notice or payment in lieu. Probationary terms must be stated explicitly in the written employment contract. Extending probation beyond six months or applying probationary terms to an employee beyond that period is unlawful and converts the employment to permanent status automatically, with full notice and severance protections applying.

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

Using an EOR in Gambia involves two separate cost components: the EOR service fee and the statutory employment costs mandated by Gambian law. Statutory costs including social security contributions and any payroll taxes are fixed by legislation and apply whether you hire through an EOR or your own entity. Playroll's EOR service fee starts from $399 per employee per month and is billed separately from the employee's salary and statutory on-costs, covering all compliance management, payroll processing, contract administration, and government filings.

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

The EOR service fee covers preparation and maintenance of compliant employment contracts under the Labour Act 2007, monthly payroll processing in Gambian Dalasi, SSHFC registration and monthly contribution filing, PAYE withholding and remittance to the Gambia Revenue Authority, compliance monitoring for changes to employment law and tax rates, termination management including notice and severance calculations, and ongoing advisory support for all Gambia employment matters.

Employer of Record vs Setting Up an Entity in Gambia

Choosing between an EOR and establishing your own entity in Gambia depends on your hiring scale, timeline, and commitment level. Foreign companies typically register a private limited company (Limited Liability Company) under the Companies Act 2013, which requires a local registered office address, at least two directors (one of whom must be ordinarily resident in Gambia), share capital of GMD 10,000 minimum, and registration with the Gambia Investment and Export Promotion Agency (GIEPA) and the Registrar General. The full incorporation process takes three to six months and costs between $5,000 and $12,000 including legal fees, registration fees, and GIEPA approval costs.

For companies hiring fewer than 20 employees in Gambia, 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 Gambia when the time is right, without switching providers or rebuilding your HR processes.

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

You can hire an employee in Gambia through an EOR in 10 to 15 business days from accepting the offer to the employee starting work and being on compliant payroll.

• Stage 1: Contract preparation and signing (2 to 3 business days): The EOR prepares a compliant employment contract under the Labour Act 2007 that includes all mandatory clauses covering job description, remuneration, working hours, leave entitlement, notice period, and probationary period not exceeding six months. Timing depends on how quickly you provide the final job details and salary, and whether any collective agreement applies to the role requiring additional benefit clauses.
• Stage 2: Government registrations (5 to 7 business days): The EOR registers the employee with the Social Security and Housing Finance Corporation (SSHFC) within the 14-day legal deadline under the SSHFC Act and registers your company as a contributing employer with the Gambia Revenue Authority for PAYE purposes. Missing the SSHFC 14-day deadline triggers late registration penalties and backdated contribution interest that you as the employer are liable for.
• Stage 3: Payroll configuration and first cycle (2 to 3 business days): The EOR configures the employee in its payroll system, sets up PAYE withholding at the correct tax band, and schedules the first salary payment for the last working day of the month as is standard in Gambia. The employee receives their first payslip showing gross salary, SSHFC deductions (5% employee contribution), PAYE withholding, and net pay within the first pay cycle after start date.
• Stage 4: Gambia-specific requirements (1 to 2 business days): If the employee is a foreign national, the EOR supports the work permit application through the Gambia Immigration Department, which requires GIEPA registration and typically takes 15 to 30 business days for approval, though this process can run in parallel with contract preparation. For Gambian nationals, no additional documentation beyond national ID and Tax Identification Number (TIN) is required.

The timeline can extend if the employee does not have an existing Tax Identification Number (TIN) and must apply to the Gambia Revenue Authority, which adds three to five business days, or if the role falls under a collective agreement requiring union consultation or approval before finalising contract terms. Complex roles in regulated sectors like banking or telecommunications may require pre-employment clearance from the Central Bank of The Gambia or the Public Utilities Regulatory Authority, adding another five to ten business days.

By comparison, incorporating a Limited Liability Company, obtaining GIEPA approval, opening a corporate bank account, registering for PAYE and SSHFC as an employer, and hiring your first employee takes 90 to 180 calendar days in Gambia.

How Playroll's Employer of Record Process Works in Gambia

Playroll's EOR service in Gambia is built to get your employees onboarded quickly while ensuring full compliance with the Labour Act 2007 and all statutory obligations. Here's what the process looks like from your side.

1. You define the role and employment terms

You provide Playroll with the job title, proposed salary, work location, and start date. Playroll reviews the terms against the minimum wage set by the Wages Councils Board and any applicable collective agreement for the sector to ensure compliance from the outset.

2. Playroll prepares a compliant employment contract

Playroll drafts a written employment contract in English that meets all requirements under Section 8 of the Labour Act 2007, including mandatory clauses for job description, remuneration, working hours, annual leave of at least 21 days, notice period, and a probationary period not exceeding six months. The contract is issued within seven days of the employee's start date as required by law.

3. Employee onboarding and payroll activation

Playroll registers the employee with the Social Security and Housing Finance Corporation (SSHFC) within 14 business days and with the Gambia Revenue Authority for PAYE tax withholding. Your employee is onboarded and on compliant payroll within 10 to 15 business days, receiving their first salary payment on the last working day of the month in Gambian Dalasi.

4. Playroll manages ongoing compliance and growth

Playroll handles monthly payroll processing, SSHFC and PAYE remittance by the 15th of each month, annual leave accrual, compliance monitoring for changes to employment law and tax rates, and termination procedures including notice and severance calculations. If your hiring in Gambia grows to where a local entity makes sense, Playroll can handle that too through its global entity setup service, so you can transition from EOR to your own compliant Limited Liability Company without switching providers or rebuilding your payroll infrastructure.