Currency
The Djiboutian franc (DJF) has been pegged at DJF 177.721 per USD since 1973 under a currency board. Salaries are paid in DJF. USD contracts are common for expatriates, but statutory amounts are in DJF.
Income tax (ITS)
Salary tax is the Impôt sur les Traitements et Salaires (ITS), under the General Tax Code, Article 15, as amended by the 2022 Finance Law. The tax year is the calendar year, and ITS is withheld monthly at source.
| Monthly taxable salary (DJF) | Rate |
|---|---|
| 0 – 30,000 | 2% |
| 30,000 – 50,000 | 12% |
| 50,000 – 150,000 | 15% |
| 150,000 – 300,000 | 22% |
| 300,000 – 600,000 | 25% |
| 600,000 – 1,000,000 | 30% |
| 1,000,000 – 2,000,000 | 35% |
| Above 2,000,000 | 45% |
The scale comes from the official 2022 finance-law text. The text does not say “monthly”, but the amounts only make sense monthly, and payroll tools apply them that way. We found no later law changing the scale, but did not review the 2023–2026 finance laws in full. Some guides show 26% for the 300,000–600,000 band; the official text says 25%.
The taxable base is gross salary, including benefits in kind, less employee CNSS contributions. One payroll tool claims ITS is nil below DJF 50,000 a month; this is not in the 2022 law, so do not rely on it.
Any departure indemnity benefits from a DJF 1,500,000 deduction before tax (CGI Art. 5, added by the 2022 Finance Law).
Social security (CNSS)
The Caisse Nationale de Sécurité Sociale (CNSS) collects contributions.
| Branch | Employer | Employee |
|---|---|---|
| Family benefits | 5.5% | – |
| Health (AMU) | 5% | 2% |
| Work injury | 1.2% | – |
| Pension | 4% | 4% |
| Total | 15.7% | 6% |
The CNSS site gives a combined total of 21.7%. The 1.2% work-injury share is the remainder after the other branches. Third-party guides quoting other totals are inconsistent.
The minimum contribution base is DJF 20,000 a month (DJF 15,850 for domestic employers). Some guides cite a DJF 400,000 monthly ceiling, but it is not confirmed on the CNSS site. Confirm the ceiling and payment calendar with CNSS.
We found no expatriate exemption, so expatriates are generally affiliated like nationals. Confirm with CNSS.
End of service
The Labour Code (Loi n°133/AN/05/5ème L, as amended in 2018) has no statutory end-of-service or seniority gratuity. Severance arises only from the contract or a collective agreement.
Dismissal without real and serious cause leads to damages on top of notice pay (Art. 55), capped at:
- 2 months’ salary for employers with under 11 employees;
- 4 months for 11–49 employees;
- 6 months for 50 or more.
Notice (Art. 56): 15 days for hourly-paid workers, 1 month for employees and workers, 3 months for supervisors and managers.
Wage payment rules
There is no wage protection system. Wages are paid in legal tender at least monthly, or every 15 days for hourly workers, and no later than 8 days after the end of the month (Art. 146–147). Final pay is due when service ends.
Working time and leave
- Hours: 48 a week (Art. 84). Several EOR guides wrongly cite 40.
- Overtime: the premium is set by collective agreement (Art. 88), not by the Code. The employer may impose up to 5 hours a week; more needs labour inspector approval. The limits are 60 hours a week and 12 a day.
- Annual leave: 2.5 working days per month of service, or 30 working days a year (Art. 99).
- Maternity leave: 14 weeks, 8 before and 6 after birth, on full pay split 50% CNSS and 50% employer (Art. 113).
- Bonuses: no statutory 13th month; premiums are usually set by collective agreements.
Minimum wage
The minimum wage is DJF 35,000 a month (about USD 197) since 2018, under Labour Code Art. 60 as amended. No 2025 or 2026 revision was found. Guides citing DJF 60,000 or 100,000 give no legal reference.
Gotchas for foreign employers
- Foreign nationals can only be hired on written fixed-term contracts approved by the Labour Minister. Work authorisation lasts one year and lapses when the employee leaves.
- Fixed-term contracts are capped at 12 months, renewable once. Long expatriate assignments need careful structuring.
- The top ITS rate is 45% above DJF 2 million a month (about USD 11,250), and benefits in kind are taxable.
- Many English-language guides misstate the hours, CNSS rates and minimum wage. Rely on the Code and the CNSS site, or ask an Employer of Record.