Eritrea Payroll & Social Contributions

Payroll withholding and social contributions

Employers withhold personal income tax at source on salaries under the Income Tax Proclamation No. 24/2011. Eritrea does not operate a broad, well-documented mandatory national social-security contribution scheme comparable to neighbouring countries; arrangements should be confirmed locally as several figures here are uncertain.

• Payroll income tax withholding (PAYE-equivalent) — 2%–30% percent (Employer withholds progressive income tax from monthly salary) (Income Tax Proclamation No. 24/2011)
• Payroll tax remittance deadline — Withheld tax remitted to the Inland Revenue Department monthly (approx — confirm exact day of month) (Income Tax Proclamation No. 24/2011)
• National social security / pension scheme — No widely documented mandatory general social-security contribution regime for private-sector employees (approx — confirm; may apply to civil servants/military) (Eritrean labour and social welfare legislation)
• Employer social-security contribution rate — Not clearly established for private sector (approx — confirm) (Eritrean labour and social welfare legislation)
• Employee social-security contribution rate — Not clearly established for private sector (approx — confirm) (Eritrean labour and social welfare legislation)
• Contribution wage base / cap — Not documented (no clear contributory scheme) (approx — confirm) (Eritrean labour and social welfare legislation)
• National service salary deductions — National-service obligations may affect remuneration arrangements in practice (approx — non-tax; confirm applicability) (National Service Proclamation No. 82/1995)
• Diaspora 2% tax interaction — 2% percent (Eritrean nationals abroad remain liable to the 2% rehabilitation tax outside payroll) (Proclamation on the 2% Rehabilitation and Recovery Tax (diaspora tax))