What are the Mandatory Benefits for employees in Liberia?

In Liberia, certain mandatory benefits ensure employees have access to social insurance and other protections in the workplace. Here’s an overview of key benefits, including social insurance contributions, workmen’s compensation, and fringe benefits.

Social Insurance Contributions

In Liberia, both employees and employers are required to contribute to social insurance, which supports employees in the case of retirement, disability, or other qualifying needs. Social insurance contributions are as follows:

  • Employee Contribution: 1.75% of the employee’s monthly gross income
  • Employer Contribution: 3% of the employee’s monthly gross income

These contributions help build a financial safety net for employees, providing support during unexpected life events or after retirement.

Workmen’s Compensation

In addition to social insurance, employers are required to contribute to workmen’s compensation, which covers employees in the event of a workplace injury or illness. Employers contribute 1.75% of the monthly gross remuneration of each employee toward workmen’s compensation. This benefit ensures employees are supported financially if they experience work-related injuries.

Fringe Benefits

Employers in Liberia may offer fringe benefits—additional perks such as allowances, housing, or other non-salary benefits. However, fringe benefits are subject to Pay-As-You-Earn (PAYE) tax unless they are non-cash convertible benefits. Only non-cash benefits that cannot be converted into cash are exempt from PAYE tax.

Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select at least one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article