A beautiful country on the West Coast of Africa
Liberia is a beautiful country on the West Coast of Africa, bounded by the Ivory Coast on the East and Sierra Leone on the West. Liberia is attractive for foreign businesses thanks to its political and economic stability and rubber exports, constituting 65 percent of its of total exports. Additionally, iron ore comprises 17 percent of the total exports, followed by diamond and gold.
Liberia successfully diversified its economy by welcoming foreign workers from all around the world, and expansion into the country can be easily facilitated with the support of a Liberia PEO partner. The World Bank states that the economic potential of many of Liberia's assets remain untapped.
Liberia also has compliance requirements for tax and payroll for employers and employees. Due to the complexity of taxation and payroll procedures, handling them in-house by an entity may be ineffective, costly, and challenging without a PEO partner.
Working in Liberia
As a developing country in West Africa, Liberia provides many opportunities for foreign businesses seeking access to its rubber, diamond, and iron ore reserves. Telecommunications, mining, tourism, and electricity are also attractive industries for foreign investors.
Employment Information
With a broad range of services and industries in Liberia, working hours and days can be diverse between sectors. However, as per the labor law, the official working hours per day are 8 hours.
Liberia utilises a progressive income tax system pegged to employees' gross salary. Below is the tax bracket applicable for personal income tax denominated in Liberian dollars.
Step |
Taxable Income of—(Liberian Dollars) |
Tax Rate and Computation (Liberian Dollars) |
| 1 | 0 to 70,000 | Nil |
| 2 | 70,001 to 200,000 | 5% of the excess over 70,000 |
| 3 | 200,001 to 800,000 | 6,500 + 15% of the excess over 200,000 |
| 4 | 800,001 and above | 96,500 + 25% of the excess over 800,000 |
Liberia's corporate tax rate is 25%. However, goods and services tax (GST) is payable on telecommunications, water for a fee, hotel, car rental, and other similar services.
Employees and employers must both contribute towards the Liberia National Social Security Scheme at a rate of 10% of gross salaries (6% employer and 4% employee).
Hiring in Liberia
The Liberian Labor Law encourages employers to recruit local skills from within the country. Any employer who wishes to employ a foreign worker must first convince the labor ministry that they cannot find a suitable Liberian for the existing vacancy. Proof may include a copy of the publication regarding such vacancy in the local media. Employers must declare vacancies for at least one month in two local newspapers, two local radio stations, and two Liberian websites.
Additionally, such an employer should obtain a certificate from the Ministry of Labor to prove the non-availability of a suitable Liberian.
Should an international worker take a job offer in Liberia, they must contact the Ministry of Labor for a work permit.
Liberian employment law recognizes both fixed-term and indefinite duration contracts.
The maximum duration permitted for an oral fixed-term contract is six months and two years for a written fixed-term contract. Fixed-term contracts are automatically terminated at the end of the specified period unless stated otherwise, and renewals may not exceed 18 months.
Employment contracts may either be written or verbal. However, all fixed-term contracts exceeding six months must be in writing.
Cultural Information
Liberia is an extremely religiously diverse country. A 2008 census found that the most common religions were Christianity and Islam, and traditional religions also maintain a strong influence on the country's beliefs.
The Liberian state and public education system are secular by law and are strongly related to American values.
Liberia's official language is English, although sub-ethnic groups speak 16 dialects.
Impacts from COVID-19
Flexible and partly remote working grew significantly following the COVID-19 pandemic between April 2020 to March 2021. This shift is particularly prevalent in information technology, telecommunications, and similar industries. However, by May 2021, most regular business and working activities had resumed.
In some industries, flexible and remote working patterns have also increased significantly.
The Liberian Market – Did you know?
- Liberia has a very young population; most of its residents are under the age of 18
- Liberia was founded in 1821 by the American Colonization Society, as a place for freed African American slaves to migrate
- As a result of Liberia's origins in marking the freedom of African American slaves, their flag is modelled on the flag of the United States
- Liberia has one of the largest English-speaking populations of any African nation
Liberia PEO Services
Liberia PEO Services
Liberia is a beautiful country on the West Coast of Africa, bounded by the Ivory Coast on the East and Sierra Leone on the West. Liberia is attractive for foreign businesses thanks to its political and economic stability and rubber exports, constituting 65 percent of its of total exports. Additionally, iron ore comprises 17 percent of the total exports, followed by diamond and gold.
Liberia successfully diversified its economy by welcoming foreign workers from all around the world, and expansion into the country can be easily facilitated with the support of a Liberia PEO partner. The World Bank states that the economic potential of many of Liberia's assets remain untapped.
Liberia also has compliance requirements for tax and payroll for employers and employees. Due to the complexity of taxation and payroll procedures, handling them in-house by an entity may be ineffective, costly, and challenging without a PEO partner.
Working in Liberia
As a developing country in West Africa, Liberia provides many opportunities for foreign businesses seeking access to its rubber, diamond, and iron ore reserves. Telecommunications, mining, tourism, and electricity are also attractive industries for foreign investors.
Employment Information
With a broad range of services and industries in Liberia, working hours and days can be diverse between sectors. However, as per the labor law, the official working hours per day are 8 hours.
Liberia utilises a progressive income tax system pegged to employees' gross salary. Below is the tax bracket applicable for personal income tax denominated in Liberian dollars.
Step |
Taxable Income of—(Liberian Dollars) |
Tax Rate and Computation (Liberian Dollars) |
| 1 | 0 to 70,000 | Nil |
| 2 | 70,001 to 200,000 | 5% of the excess over 70,000 |
| 3 | 200,001 to 800,000 | 6,500 + 15% of the excess over 200,000 |
| 4 | 800,001 and above | 96,500 + 25% of the excess over 800,000 |
Liberia's corporate tax rate is 25%. However, goods and services tax (GST) is payable on telecommunications, water for a fee, hotel, car rental, and other similar services.
Employees and employers must both contribute towards the Liberia National Social Security Scheme at a rate of 10% of gross salaries (6% employer and 4% employee).
Hiring in Liberia
The Liberian Labor Law encourages employers to recruit local skills from within the country. Any employer who wishes to employ a foreign worker must first convince the labor ministry that they cannot find a suitable Liberian for the existing vacancy. Proof may include a copy of the publication regarding such vacancy in the local media. Employers must declare vacancies for at least one month in two local newspapers, two local radio stations, and two Liberian websites.
Additionally, such an employer should obtain a certificate from the Ministry of Labor to prove the non-availability of a suitable Liberian.
Should an international worker take a job offer in Liberia, they must contact the Ministry of Labor for a work permit.
Liberian employment law recognizes both fixed-term and indefinite duration contracts.
The maximum duration permitted for an oral fixed-term contract is six months and two years for a written fixed-term contract. Fixed-term contracts are automatically terminated at the end of the specified period unless stated otherwise, and renewals may not exceed 18 months.
Employment contracts may either be written or verbal. However, all fixed-term contracts exceeding six months must be in writing.
Cultural Information
Liberia is an extremely religiously diverse country. A 2008 census found that the most common religions were Christianity and Islam, and traditional religions also maintain a strong influence on the country's beliefs.
The Liberian state and public education system are secular by law and are strongly related to American values.
Liberia's official language is English, although sub-ethnic groups speak 16 dialects.
Impacts from COVID-19
Flexible and partly remote working grew significantly following the COVID-19 pandemic between April 2020 to March 2021. This shift is particularly prevalent in information technology, telecommunications, and similar industries. However, by May 2021, most regular business and working activities had resumed.
In some industries, flexible and remote working patterns have also increased significantly.
The Liberia Market - Did you know?
- Liberia has a very young population; most of its residents are under the age of 18
- Liberia was founded in 1821 by the American Colonization Society, as a place for freed African American slaves to migrate
- As a result of Liberia's origins in marking the freedom of African American slaves, their flag is modelled on the flag of the United States
- Liberia has one of the largest English-speaking populations of any African nation
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