Employment in Liberia is governed by the Decent Work Act 2015, with pensions run by the National Social Security and Welfare Corporation (NASSCORP) and income tax collected by the Liberia Revenue Authority. Both US dollars and Liberian dollars are used for pay. Here is what employers need to know about leave, pay, tax and ending employment.
The Decent Work Act sets minimum leave for employees. Annual leave grows with length of service, and public holidays and weekly rest days never count as annual leave.
Paid leave after 12 months of continuous service, rising with each year of service. Leave can accumulate for up to 3 years and is paid out on termination. See the table below.
At full pay for each year of continuous service, paid by the employer. A medical certificate is needed, except for up to 3 single days a year.
At full pay from the employer, with at least 6 weeks after the birth. Up to one more month of unpaid leave for complications.
Unpaid, taken within the first month after the birth.
| Continuous service | Annual leave |
|---|---|
| After 12 months | 1 week |
| After 24 months | 2 weeks |
| After 36 months | 3 weeks |
| After 60 months (5 years) | 4 weeks |
Set up each Liberian leave type in IceHrm with its own accrual, carry forward and approval rules, including annual leave that steps up with years of service. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
Minimum wages are recommended by a tripartite Minimum Wage Board and published by the Minister of Labour in the Official Gazette. The rates set under the Decent Work Act in 2015 are still the published statutory minimums.
For unskilled labourers in the formal sector (US$0.68 an hour), in effect since June 2015. Domestic and casual workers: US$3.50 a day.
8 hours a day. Hours can be spread unevenly up to 12 in a day, as long as the weekly total stays within 48.
Of the normal rate, or paid time off by written agreement. Overtime is generally limited to 5 hours a week.
Employees are entitled to at least 12 hours of rest between shifts, 36 consecutive hours of rest a week (normally including Sunday), and a paid 1 hour meal break after 5 hours of work. Work on a public holiday is paid at double time, or with paid time off by written agreement.
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so overtime and holiday premiums are paid on what was actually worked. Time & attendance →
Employers withhold personal income tax from wages each month and pay it to the Liberia Revenue Authority (LRA) by the 10th of the following month. Tax can be paid in US dollars or in Liberian dollars at the Central Bank rate.
| Annual taxable income | Rate | Tax on this income |
|---|---|---|
| L$0 – L$70,000 | 0% | Nil |
| L$70,001 – L$200,000 | 5% | 5% of the amount over L$70,000 |
| L$200,001 – L$800,000 | 15% | L$6,500 plus 15% of the amount over L$200,000 |
| Over L$800,000 | 25% | L$96,500 plus 25% of the amount over L$800,000 |
Individuals whose income comes mainly from employment are covered by withholding. Those with other Liberian-source income file an annual return by 31 March.
Private-sector employers register employees with NASSCORP, which runs the national pension scheme and employment injury cover under the Social Security Law.
Of payroll, to the NASSCORP national pension scheme, which pays retirement, invalidity and survivors' benefits.
Of monthly wages, withheld by the employer and paid to NASSCORP with the employer's share.
Work injury benefits are paid from NASSCORP's employment injury fund. Employers must give immediate medical care; confirm any separate contribution with NASSCORP when you register.
Build Liberian pay the way you already structure it, with your own salary components, deductions and formula columns, such as NASSCORP contribution columns, and run payroll in both US and Liberian dollars. Want to know how well IceHrm handles payroll calculations for Liberia? Contact us or see Payroll →
An indefinite contract can only be ended by the employer for a valid reason and with proper procedure. Wrongful and constructive dismissal are prohibited, and employees can complain to the Ministry of Labour within 6 months. Reinstatement is the primary remedy, with compensation of up to 2 years' pay where it is impractical.
| Continuous service | Notice |
|---|---|
| 3 to 6 months | 2 weeks |
| 6 to 12 months | 3 weeks |
| More than 1 year | 4 weeks |
When jobs end for economic, technological or structural reasons, employees receive severance of 4 weeks' pay for each completed year of service, on top of notice and accrued leave. The employer must notify the Ministry, the employees and any union, consult in good faith, apply "first in, last out" selection, and offer rehiring priority.
Gross misconduct includes sexual harassment, workplace violence, deliberate damage to property, endangering safety, breaches of confidentiality and unauthorised absence of more than 10 consecutive days or 20 days in six months.
Liberia observes 11 public holidays under its Patriotic Observances Law. Several fall on a set weekday rather than a fixed date. The government can declare additional holidays.
Employers cannot compel employees to work on a public holiday. Those who agree are paid double, or receive paid time off by written agreement.
Leave groups give each office its own public holiday calendar, so staff in Liberia get the right days off, including the holidays that fall on a set weekday. Holiday calendars →
A contract can be written or oral, and full-time, part-time or casual. Where the agreement is oral, the employer must still give the employee a written statement of the terms (or display a workplace notice if the terms are the same for all staff).
Probation is optional and cannot exceed 3 months. Fixed-term contracts must state their duration; the Act sets no maximum length or number of renewals. A casual employee who has worked regularly for the same employer for 6 months can choose to convert to full-time or part-time employment.
Send contracts and written statements of terms for e-signing, store them on the employee's record, and track onboarding with task lists so nothing is missed on day one. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Liberia, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Liberia? Talk to us.
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