Employer of Record Eritrea | INS Global

Country Guide

Employer of Record Eritrea

Last updated: July 6, 2025

Capital City

Canberra

Languages

English

Currency

Australian dollar ($, AUD)

Population Size

25,771,300

Employer Taxes

18.45%

Employee Costs

2%

Payroll Frequency

Monthly

Back to All Countries

Contact Us Today

Expanding to Eritrea? EOR (Employer of Record) Services Help You Hire Globally, Pay Locally, and Expand Effortlessly

Thinking of going global and expanding your operations in Eritrea? Employer of Record services from INS Global offer a seamless approach to recruit and manage employees without local entity setup. Experience a reliable solution for overseeing local talent, facilitating entry into new markets in just a week. 

Want to have a Team in Eritrea TODAY?

Show me how to
grow my business
now!
We prefer to let
others grow their
business.

Show me how to grow my business now!

We prefer to let others grow their business.

employer of record
In a hurry? Save this article as a PDF

Tired of scrolling? Download a PDF version for easier offline reading and sharing with coworkers

Your download will start in a few seconds. If your download does not start, please click the button:

Why Choose an EOR in Eritrea Over Company Incorporation?

Opting for EOR services in Eritrea streamlines the expansion process by enabling you to expand in less than a week. Collaborating with an Eritrean EOR saves time on growing your business abroad, lowers expansion costs, ensures local compliance, and allows you to focus on growing your business within Eritrea’s unique context. 

PEO/EOR vs Company Incorporation

The Advantage in Figures

PEO/EOR

Company Incorporation

Price

80% Less Expensive

Market Entry

2-5 Days

6 Months

Employee Turnover
Decrease by 14%
Recommendation
98% of the Current PEO Clients
Administrative Fees
Saves an Average of $450
Costly Payroll and Compliance Fines
Help Avoid
Company Growth Rate
7 – 9%
ROI
27%
Closed During Pandemic
-58%
employer of record

The Advantages of Using an EOR or Professional Employer Organization in Eritrea

icon EOR

Legal Compliance Assurance

Select an Employer of Record (EOR) service well-versed in Eritrea’s regulatory landscape to facilitate effective recruitment and supervision of an international workforceThis proactive approach safeguards against potential fines with expertise and systems specifically tailored to Eritrea’s regulations. 

icon EOR

Lower Expansion Costs

Collaborate with an Employer of Record in Eritrea to advance global expansion and significantly decrease typical expenses associated with expansion. Scale your operations without the need to establish a new entity in Eritrea. 

icon EOR

Focus on Growing Your Company

An Employer of Record in Eritrea takes on all HR-related responsibilities, streamlining your operations and offering the freedom to concentrate solely on the international goals of your business.

icon EOR

Expand Effortlessly

Creating a new company in Eritrea can be time-consuming, ranging anwhere from weeks to months of intensive administrative and local steps. Instead, partnering with a local Employer of Record expedites the expansion process, allowing entry into the Eritrean market in as little as a week, ensuring an efficienct market entry.

icon EOR

Manage Your HR Online

INS Global provides an efficient means to manage your diverse, global workforce online through a state-of-the-art digital platform. Utilize our advanced cloud-based HR system to easily oversee all your employees and their needs remotely, tailored to fit Eritrea’s digital landscape.

How Does an EOR In Eritrea Work?

INS Global’s EOR in Eritrea facilitates your company’s expansion abroad in just 4 simple steps, with a plan specifically tailored to the Eritrean business environment.

1

We collaborate with your business to create a tailored expansion plan that takes into account your company culture as well as local needs.

2

Our organization provides the legal entity needed to hire and manage staff locally, ensuring compliance with Eritrea’s legal requirements.

3

We handle the HR-related tasks that come with launching in Eritrea, such as hiring, contract management, and payroll management, ensuring local compliance during the transition. 

4

Your employees focus on your goals while we take care of HR and legal compliance going forward.

What is the Difference between PEO and Employer of Record Services in Eritrea?

In Eritrea, PEO (Professional Employer Organization) services handle various Human Resources tasks as a strategic HR partner while you remain the contractual employer. On the other hand, Eritrean EOR (Employer of Record) services possess the legal authority to hire and manage employees on your behalf, streamlining the process from start to finish in accordance with all regulations.  

INS Global offers both choices, ensuring that whether you need an EOR or PEO in Eritrea, you have the support you need to expand comfortably, providing flexibility tailored to Eritrea’s business environment. 

Strategic Reasons to Enter the Eritrean Market

Despite being a relatively small economy, Eritrea presents strategic opportunities for international businesses operating in the Horn of Africa and Red Sea corridor. Reasons to consider hiring in Eritrea include:

  • Untapped Workforce: Eritrea has a growing, young labor force with strong multilingual capabilities in English, Arabic, and Tigrinya.

  • Geostrategic Location: Proximity to key shipping routes makes Eritrea a potential logistics and manufacturing hub.

  • Focus on Infrastructure: Recent investments in transportation, ports, and telecommunications are opening new avenues for foreign collaboration.

  • Cost-Effective Labor: Salaries and operating costs in Eritrea are lower than in most African countries, offering long-term savings.

An Employer of Record lets you access these advantages immediately—without the delays of setting up a local branch.

Building a Compliant Team in Eritrea: Cultural & Regulatory Considerations

Hiring in Eritrea comes with local expectations and regulatory norms that must be respected. A local EOR ensures you align with these by:

  • Understanding social norms around contracts and benefits, especially when dealing with international roles.

  • Navigating Eritrea’s dual language system, where Tigrinya is official but English is often used in business settings.

  • Adhering to government-led employment frameworks, which emphasize national service, fair dismissal practices, and formal employment registration.

Working with a local EOR helps international companies avoid accidental non-compliance while improving employee satisfaction and retention.

INS GUIDES

Check Our Labor Law Guide

Learn how the Labor Law Guides is applied in all aspects and situations, from an employer and employee perspective.
Guide icon

Labor Law in Eritrea

Employment Contracts in Eritrea

  • Professional employment in Eritrea always starts with a letter of employment. 
  • Employers can usually include a 90-day probation period in their contracts.  
  • An employment contract should describe the employee’s role and responsibilities in detail. 
  • An employer can end the contract early if the employee violates the conditions of their employment contract. 
  • Employees are entitled to 7 days of notice if they have been with the company for less than a year. This goes up to 14 days if they have been with the company for 1-2 years. This goes up to 21 days for employees who have been with the company for over 2 years. 
  • Severance pay is required for employees and is set at 2 weeks for each year of employment. This goes up to 4 weeks’ wages for each year after 10 years of service. 

Working Hours

  • The working week in Eritrea runs from Monday to Friday. 
  • Full-time employees generally work 8 hours per day, 48 hours per week. 
  • Employees are not allowed to work more than 40 hours per week without receiving overtime pay. 
  • Employees are entitled to a higher hourly rate for overtime. This is double the normal rate. 

Types Of Leave

Annual Leave

  • Eritrea has 13 official national holidays. 
  • Employees are entitled to 14 days of paid annual leave in the first year of service and this increases by 1 day for every year of service afterward. 

Sick Leave

  • When an employee is unable to attend work due to illness, they need to get a doctor’s note and present it to HR as soon as possible.  
  • Employees are entitled to up to 6 months of sick leave.  
  • Employees can claim from social security during this time. 

Maternity / Paternity Leave

  • According to Eritrean law, female employees are entitled to 60 days of maternity leave.
  • Maternity leave is completely paid by either the employer or social security, depending on the employment contract.

Tax Law

  • Employers in Eritrea are responsible for withholding all taxes and social contributions. 
  • Employers contribute 4% towards social security. 
  • The corporate income tax rate is set at 30% for both local and foreign companies. 
  • Personal income tax ranges from 2% to 3%.  

Contact Us Today

Discover More Solutions in Eritrea

Employer of Record (EOR) in Australia

View Details

Employer of Record (EOR) in Australia

View Details

solutions

Frequently Asked Questions

faqs

While setting up a local entity is an option, collaborating with a local Employer of Record proves more efficient in Eritrea. Employer of Record services leverage local expertise, facilitating hiring and staff management on your behalf. 

An Employer of Record in Eritrea manages various HR tasks, including payroll, tax compliance, employment contracts, and social security contributions, ensuring comprehensive compliance for your entire workforce. 

Establishing a new company abroad can take months to a year, but with INS Global’s EOR services, you can hire employees and expand to a new market in as little as a week. 

Recruitment in Eritrea varies in cost, but INS Global simplifies remote recruitment and staff management, reducing the expenses of managing an international workforce. 

Absolutely, an Eritrean Employer of Record can recruit and hire employees from all regions, facilitating quick expansion across the country. 

Modifications to employment contracts require mutual agreement. 

Yes, employers in Eritrea are responsible for withholding taxes and social contributions from employee salaries, including an employer’s contribution to each employee’s social security fund

INS Global tailors its services to your company’s needs, assisting with recruiting and hiring as many or as few employees as required for your expansion plans. 

Severance pay is required for employees and is set at 2 weeks for each year of employment. This goes up to 4 weeks wages for each year after 10 years of service. 

In Eritrea, employees can be hired for both in-person and remote opportunities, allowing for reduced overheads during international expansion. 

Certainly! Our local experts bring extensive experience in finding top talent globally by providing support when recruiting, hiring, and managing your workforce, regardless of your location. 

Eritrea observes 13 public holidays where employees are entitled to a paid day off. Working on these holidays usually involves a higher hourly rate. 

Employers must adhere to strict labor laws and regulations to avoid costly penalties and fines. Partnering with an experienced EOR in Eritrea ensures compliance during your expansion. 

Yes! INS Global assists in the recruitment and management of a diverse workforce, simplifying the process of hiring both Eritrean citizens and foreigners. 

Smiling woman representing the simplicity and efficiency of a Global Employer of Record for international hiring

A Global Employer of Record is an effective solutions for companies like yours that are looking to expand a workforce abroad effortlessly.

This approach allows you to outsource the international hiring process quickly and efficiency, providing access to a global talent pool while still managing payroll compliance in each  country.

Public Holidays Calendar

Date
Day
Holiday
1 Jan 2025
Wednesday
New Year's Day
27 Jan 2025
Monday
Australia Day
18 Apr 2025
Friday
Good Friday
19 Apr 2025
Saturday
Easter Saturday
20 Apr 2025
Sunday
Easter Sunday
21 Apr 2025
Monday
Easter Monday
25 Apr 2025
Friday
ANZAC Day
5 May 2025
Monday
Labour Day
9 Jun 2025
Monday
King's Birthday
13 Aug 2025
Wednesday
Royal Queensland Show
6 Oct 2025
Monday
King's Birthday
24 Dec 2025
Wednesday
Christmas Eve
25 Dec 2025
Thursday
Christmas Day
26 Dec 2025
Friday
Boxing Day

Download the PDF Guide