How to Use An Employer of Record in
Togo

Hiring in Togo means navigating the Code du Travail, which mandates employer social security contributions of 16.5% plus a 1% housing levy (CNSS), alongside strict rules on fixed-term contracts and collective agreement compliance. An Employer of Record in Togo becomes your legal employer on record, allowing you to hire compliantly within days without registering a local entity. The EOR removes the risk of misclassifying employees under Togolese labour inspectorate rules and handles all statutory filings with the Caisse Nationale de Sécurité Sociale, so you avoid penalties and focus on managing your team.

What Is an Employer of Record in Togo?

An Employer of Record in Togo is a third-party organisation that becomes the legal employer of your staff under Togolese law, holding the employment contract and assuming all statutory obligations, payroll administration, tax withholding, and compliance reporting, while you retain full operational control over day-to-day work, performance management, and role responsibilities. The EOR's name appears on all official government filings, contracts, and payslips.

Under Togo's Code du Travail (Law No. 2006-010), every employment relationship must be formalised through a written contract specifying job title, remuneration, location, and duration. Employers must comply with sector-level collective agreements, register employees with the Caisse Nationale de Sécurité Sociale (CNSS) within eight days of hire, and adhere to mandatory 13th-month salary provisions in certain sectors. Fixed-term contracts are permitted only for objectively temporary work and cannot exceed 24 months including renewals.

You retain control over the employee's role, objectives, deliverables, and performance reviews. The EOR owns the legal employment relationship, prepares and signs the contract, runs payroll in West African CFA francs (XOF), withholds income tax (Impôt sur le Revenu des Personnes Physiques) and employee CNSS contributions, remits employer contributions, and manages all termination procedures including notice periods and severance calculations under the Code du Travail.

How Does an Employer of Record Work in Togo?

The EOR process in Togo follows a structured sequence that ensures compliance with the Code du Travail and Togolese social security legislation. From defining the employment terms through to ongoing payroll and statutory filings, each step involves coordination between you, the EOR, and Togolese authorities. Here's how it works in practice.

Step 1: Define Role and Terms

You provide the job title, salary, benefits, start date, and reporting structure. The EOR reviews these terms against the applicable collective agreement for the sector, which may set minimum wages, mandatory benefits, and 13th-month salary requirements. If no sector agreement applies, the national minimum wage and statutory provisions in the Code du Travail form the baseline. The EOR confirms that your proposed compensation package meets or exceeds all legal minimums before drafting the contract.

Step 2: EOR Compliance Check

The EOR verifies that the role meets Togo's classification standards and working time limits under Article 153 of the Code du Travail, which caps the standard workweek at 40 hours. As of 2026, the national monthly minimum wage in Togo is approximately 52,000 XOF, set by the Conseil National du Dialogue Social. The EOR ensures the salary, leave entitlements, and working hours comply with both statute and any applicable collective agreement. This step also confirms whether the role is fixed-term or indefinite duration and that fixed-term use is justified under law.

Step 3: Employment Contract Preparation

The EOR drafts a written employment contract in French, as required by Togolese labour inspectorate practice and Article 42 of the Code du Travail. Mandatory clauses include job title and description, place of work, salary and payment terms, working hours and rest periods, probation period (maximum three months for non-managerial roles, six months for managerial or technical positions), notice periods, and governing law. Fixed-term contracts must state the precise duration and the objective reason justifying temporary employment, as indefinite-term is the default. The employee and the EOR sign the contract, and a copy is registered with the Direction Régionale du Travail within the employee's jurisdiction.

Step 4: Government Registrations

The EOR registers the employee with the Caisse Nationale de Sécurité Sociale (CNSS) within eight business days of the start date, using the employer's CNSS account and the employee's national identification number. Late registration incurs administrative penalties and can delay the employee's access to social security benefits. The EOR also registers the employment relationship with the Direction Régionale du Travail, which maintains records for labour inspectorate purposes. If the employee is foreign, the EOR coordinates work permit applications with the Ministère de la Fonction Publique, du Travail et de la Réforme Administrative, though this can add weeks to the timeline.

Step 5: Payroll Execution

Payroll in Togo runs monthly and is paid in West African CFA francs (XOF). The EOR calculates gross salary, applies the CNSS employee contribution (4% of gross salary up to the ceiling), withholds Impôt sur le Revenu des Personnes Physiques (IRPP) using the progressive tax scale administered by the Office Togolais des Recettes (OTR), and remits both to the respective authorities by the 15th of the following month. The employer's statutory contributions include 16.5% CNSS (covering pensions, family allowances, and occupational risks) plus 1% Taxe sur la Masse Salariale for housing, calculated on gross payroll. The EOR issues payslips showing all deductions and maintains records for inspection.

Step 6: Ongoing Compliance Management

The EOR files monthly payroll declarations with the CNSS and OTR, submits quarterly employer contribution summaries, and maintains the employee's dossier with the Direction Régionale du Travail. The EOR monitors changes to the Code du Travail, collective agreements, and social security rates, updating payroll and contracts as required. Annual obligations include filing the Déclaration Annuelle des Salaires with the OTR and renewing any work permits before expiry. The EOR also manages statutory leave accrual (26 working days per year under Article 142) and ensures compliance with public holiday payments.

Step 7: Termination Procedures

Termination in Togo must follow the Code du Travail's provisions on notice and severance. Article 65 requires written notice delivered via registered letter, with notice periods determined by the employee's category and length of service: typically one to three months. Just cause (faute lourde) for immediate dismissal requires serious misconduct documented through internal proceedings. Severance pay (indemnité de licenciement) is calculated at 25% to 40% of average monthly salary for each year of service, depending on the employee's tenure, and is payable unless termination is for gross misconduct. The EOR prepares the termination letter, calculates notice and severance, obtains any required labour inspectorate approval, processes final pay including accrued leave, and issues a certificat de travail and CNSS clearance documents.

Employment Laws and Compliance an Employer of Record Handles in Togo

When you hire through an EOR in Togo, they assume full responsibility for compliance with Togolese employment legislation, social security rules, and tax law, so you don't need to build an in-country HR function or risk penalties from the labour inspectorate.

• Employment Contracts: Every contract must be in writing and in French, per Article 42 of the Code du Travail, and must include job title, salary, work location, duration, and probation period. Fixed-term contracts require an objective justification and cannot exceed 24 months including renewals. The EOR drafts, executes, and registers contracts with the Direction Régionale du Travail to avoid classification disputes.
• Payroll Tax and Income Tax Withholding: Employers must withhold Impôt sur le Revenu des Personnes Physiques (IRPP) at progressive rates from 0% to 35% on monthly salary, as set by the Office Togolais des Recettes (OTR). The EOR calculates tax using the official scale, withholds amounts from gross pay, and remits to the OTR by the 15th of the following month, avoiding penalties and interest charges.
• Social Security Contributions: Employers pay 16.5% of gross salary to the Caisse Nationale de Sécurité Sociale (CNSS), covering old-age pensions, family allowances, and occupational risk insurance, plus 1% Taxe sur la Masse Salariale for housing. Employees contribute 4% to CNSS. The EOR calculates contributions on all remuneration up to the statutory ceiling, files monthly declarations, and remits payments on time to maintain employees' benefit entitlements.
• Statutory Leave Entitlements: Article 142 of the Code du Travail grants 26 working days of paid annual leave after 12 months of service, accrued monthly. Employees also receive paid public holidays and, under collective agreements, may be entitled to additional leave for family events. The EOR tracks accrual, approves leave in line with operational needs, and ensures leave pay is calculated correctly at the time of termination.
• Termination and Severance: Terminations must comply with Article 65 notice requirements (one to three months depending on category and service length) and severance pay obligations (25% to 40% of average monthly salary per year of service). Dismissal without just cause or procedural errors can result in reinstatement orders or damages awarded by the Labour Tribunal. The EOR manages the process, calculates entitlements, and documents justifications to withstand inspectorate scrutiny.
• Working Time and Overtime: The standard workweek is 40 hours (Article 153), with daily and weekly rest periods mandated by law. Overtime is compensated at 120% for the first eight hours beyond 40 per week and 150% thereafter. Night work and Sunday work attract additional premiums. The EOR enforces time-tracking, calculates overtime correctly, and ensures payroll reflects all premiums to avoid labour inspectorate fines.
• Health and Safety Obligations: Employers must maintain a safe workplace, conduct risk assessments, provide necessary protective equipment, and report workplace accidents to the CNSS within 48 hours under the Code de la Sécurité Sociale. Companies with 50 or more employees must establish a workplace health and safety committee. The EOR coordinates these requirements, maintains accident registers, and ensures reporting obligations are met.
• Data Protection and Employee Privacy: Togo's data protection framework is governed by the Loi No. 2019-014 relative à la protection des données à caractère personnel and overseen by the Haute Autorité de Protection des Données à Caractère Personnel (HAPDP). Employers must obtain employee consent for data processing, secure personal information, and register databases with the HAPDP when required. The EOR ensures payroll and HR data handling complies with these rules.
• Collective Agreements: Many sectors in Togo are covered by collective agreements (conventions collectives) that set higher minimum wages, mandatory bonuses (such as 13th-month salary), and additional benefits. The EOR identifies the applicable agreement based on the employee's sector and role, ensures contract terms meet or exceed the collective agreement floor, and monitors updates to sectoral agreements.
• Foreign Employee Work Permits: Non-Togolese nationals require a work permit issued by the Ministère de la Fonction Publique, du Travail et de la Réforme Administrative before commencing employment. The EOR prepares the application, submits supporting documents including the employment contract and proof of qualifications, and tracks renewal deadlines. Employing foreign nationals without valid permits exposes the employer to fines and potential deportation of the employee.

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

The total cost of hiring through an EOR in Togo comprises two components: the EOR's service fee and the statutory employer contributions required under Togolese law. Statutory on-costs are fixed by legislation and apply to every employer in Togo, while the EOR service fee is charged separately. Playroll's EOR service fee starts from $399 per employee per month, which is billed independently of the employee's salary and statutory costs.

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

The EOR service fee covers contract drafting and registration, monthly payroll processing and statutory filings with the CNSS and Office Togolais des Recettes, compliance monitoring and updates, employee onboarding and offboarding, HR advisory support, and government liaison including labour inspectorate correspondence and work permit coordination.

Employer of Record vs Setting Up an Entity in Togo

The choice between using an EOR and registering your own legal entity in Togo depends on your hiring volume, timeline, and long-term commitment. Foreign companies typically establish a Société à Responsabilité Limitée (SARL) or a branch office, which requires notarised incorporation documents, registration with the Agence de Promotion des Investissements et de la Zone Franche (API-ZF), tax registration with the Office Togolais des Recettes, and social security registration with the CNSS. Realistic incorporation timelines range from eight to twelve weeks, with setup costs between $3,000 and $6,000 including legal fees, notarisation, and registration charges.

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

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

The total timeline to hire an employee in Togo through an EOR typically ranges from 10 to 15 business days, assuming the candidate's documentation is complete and no work permit is required.

• Stage 1: Contract preparation and signing (2 to 4 business days): The EOR drafts the employment contract in French, incorporating all mandatory clauses under the Code du Travail and the applicable collective agreement, then circulates it for your review and the employee's signature. Timing depends on how quickly you confirm terms and the employee returns the signed document.
• Stage 2: Government registrations (3 to 5 business days): The EOR registers the employee with the Caisse Nationale de Sécurité Sociale (CNSS) and notifies the Direction Régionale du Travail within the legal eight-day deadline from the start date. Missing this deadline can result in fines and delays in the employee's access to social security benefits, so registration typically begins as soon as the contract is executed.
• Stage 3: Payroll configuration and first cycle (3 to 5 business days): The EOR configures the employee in the payroll system, sets up bank transfer details, and schedules the first pay run. Payroll in Togo is monthly, so if the employee starts mid-cycle, their first payslip will reflect a pro-rated amount. The first full payslip is issued on the company's regular monthly pay date.
• Stage 4: Togo-specific requirements (0 to 10 business days, often parallel): If the employee is a foreign national, the EOR must apply for a work permit through the Ministère de la Fonction Publique, du Travail et de la Réforme Administrative, which can take four to six weeks. This process should ideally begin before the contract start date, running in parallel with other steps, to avoid delaying the employee's first day.

Timelines can extend if the candidate lacks a Togolese national identification number or tax registration with the Office Togolais des Recettes, if the applicable collective agreement requires employer verification with a trade union or sectoral body, or if there are delays in obtaining apostilled documents for foreign nationals. Public holidays and administrative backlogs at the Direction Régionale du Travail can also add a few days.

By contrast, setting up your own entity in Togo takes eight to twelve weeks before you can legally hire your first employee, making the EOR the faster option by a factor of six to eight times.

How Playroll's Employer of Record Process Works in Togo

Playroll's EOR process in Togo is designed to get your hire working compliantly and quickly, without requiring you to navigate Togolese employment law or government agencies yourself.

1. You Define the Hire

You tell us the role, salary, benefits, and start date. We confirm the terms comply with Togo's minimum wage, applicable collective agreement, and the 40-hour workweek under the Code du Travail.

2. We Prepare the Contract

Playroll drafts a compliant employment contract in French that includes all mandatory clauses such as job title, remuneration, probation period (maximum three to six months depending on role), and notice terms, in line with the Code du Travail. You review, approve, and we execute the contract as the legal employer.

3. Employee Onboarded and Payroll Live

Within 10 to 15 business days, we register your employee with the Caisse Nationale de Sécurité Sociale and the Direction Régionale du Travail, configure payroll in West African CFA francs, and issue the first payslip. Your new hire is onboarded and working while we handle all filings.

4. Ongoing Compliance and Growth

Playroll manages monthly payroll, tax withholding with the Office Togolais des Recettes, CNSS contributions, statutory leave tracking, and any changes to collective agreements or legislation. If your hiring grows to where a local entity makes sense, Playroll can handle that too through our global entity setup service, so you transition seamlessly without changing providers.