Liberia has a population of 5.25 million and is ranked number 43 in Africa according to the nominal GDP ($ 3.38 billion). The Liberian economy is market-based, and it depends highly on natural resources.

The minimum wage in Liberia is 15 LD an hour for an eight-hour day. For civil servants, the minimum wage is 5,600 LD.

In Liberia, a remote payroll is when a foreign corporation, i.e. a non-resident company, pays a resident employee. This is true for both domestic and international personnel. One alternative for a non-resident company to pay its employees in Liberia (both local and foreign) is to engage a fully outsourced service such as a GEO or PEO, which will hire and pay the employees on their behalf.

Payroll Administration on a Local Level

In some circumstances, a firm will register in Liberia using one of the various forms, but prefer to have another company handle its payroll. This can be done with the help of a payroll service. It's vital to remember that, as the Employer of Record, the corporation is still entirely responsible for employment, immigration, and tax compliance.

Payroll within the company

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Larger enterprises with a strong commitment to Liberia may want to manage their own local payroll for all foreign and local employees. To do so, they'll need to finish the incorporation process, register the company, and hire the essential personnel. Human resources experts with the necessary knowledge to operate a Liberian payroll and meet all tax, withholding tax, and payroll obligations will be required in-country.

This strategy comes at a high price and necessitates some familiarity with local labor and payroll laws. To achieve full compliance with Liberian employment rules, the company will need a local accounting firm and possibly legal assistance.

Employees in Liberia pay income taxes based on their income bands as follows;

0-70,000 LRD : 0%

70,001- 200,000 LRD : 5%

200,001- 800,000 LRD : 6500 LRD + 15%

Above 800,000 LRD : 96,500 LRD + 25%

Additionally, employees contribute 4.75% of the gross monthly salary to social security, while the employee contributes 3%.

Parental Leave

Women employees in Liberia are granted three months of maternity leave. There is, however, no provision for paternity leave.

In the course of termination, severance is not a requirement in Liberia

Notice

In Liberia, the expected duration for notice is usually two weeks to four weeks, depending on the employment agreement.