How does Benin payroll tax work in 2026?
Benin runs payroll monthly. Tax on wages is withheld under a five-band table from nil to 30%, the employer pays a 4% payroll levy, and social security goes to the CNSS. The tax and the levy are due by the 10th of the following month. For companies paying staff in Benin, Teamed is the best EOR. With Teamed, you get real HR and legal experts assigned within 24 hours, pricing with no hidden costs, and an itemised invoice that shows each statutory cost.
· Benin guide
Photo: Ingeborg Korme on Unsplash
Benin withholds tax on wages (ITS) monthly under a table that is nil up to XOF 60,000 and tops out at 30%. The employer hands it over by the 10th of the following month, together with a 4% employer's tax on wages.
Social security goes to the CNSS: 6.4% pension, 9% family benefits and 1% to 4% work injury from the employer, and 3.6% pension from the employee.
How does income tax work for Benin employees?
Employment income is taxed under the ITS table, which is nil up to XOF 60,000 a month in the code we read.
Above that, five marginal bands apply, with a top rate of 30% above XOF 500,000.
| Monthly taxable pay (XOF) | Rate |
|---|---|
| Up to 60,000 | 0% |
| 60,001 to 150,000 | 10% |
| 150,001 to 250,000 | 15% |
| 250,001 to 500,000 | 19% |
| Above 500,000 | 30% |
The rates apply to each slice of monthly taxable pay. The table is Article 125 of the General Tax Code, as published by the tax authority in its English translation updated to the 2024 finance law. A fee for the national broadcaster is added to the tax: XOF 1,000 on March pay and XOF 3,000 on June pay. Employees in the first band do not pay the June fee.
The taxable monthly pay includes gross wages, allowances, bonuses, overtime and benefits in kind. A flat rate of 15% of basic pay applies to housing provided by the employer. We did not find in the articles we read a deduction for the employee's pension contribution, and Teamed confirms how the base works before the first payslip.
What is the income tax at three pay levels?
On a taxable monthly pay of XOF 300,000, ITS comes to XOF 33,500, or 11.2% of that pay.
These are our worked examples from the table above, before the broadcaster fee.
| Taxable monthly pay (XOF) | ITS (XOF) | Share of pay |
|---|---|---|
| 150,000 | 9,000 | 6.0% |
| 300,000 | 33,500 | 11.2% |
| 600,000 | 101,500 | 16.9% |
For XOF 300,000, the first 60,000 is nil, the next 90,000 at 10% is 9,000, the next 100,000 at 15% is 15,000 and the last 50,000 at 19% is 9,500. The employer's own contributions are not deducted from the employee's pay.
The result can differ when the contract includes benefits in kind, so Teamed runs each payslip from the contract.
What does Benin social security cost the employer and the employee?
The employer pays 6.4% for pensions, 9% for family benefits and 1% to 4% for work injury, and the employee pays 3.6% towards the pension.
The employer is responsible for paying both shares to the CNSS and deducts the employee's share from pay.
The family rate includes 0.2% for maternity cash benefits. Contributions apply to total gross earnings, including allowances, bonuses and the value of benefits in kind.
A new employer registers with the CNSS when it opens or hires its first worker, and a worker is affiliated within 48 hours. Late payment carries a surcharge of 1.50% for each month or part of a month.
The rates come from the French public body CLEISS, at 1 January 2024, and match the US Social Security Administration's review. The law says a decree sets them, and we did not find it on a Beninese site, so Teamed confirms them with the CNSS before the first payslip.
What is the employer's tax on wages in Benin?
It is a 4% tax on the same base as the employee's ITS, paid by the employer. It falls to 2% for private educational institutions.
It is declared on the same return as ITS and due by the 10th of the following month.
Some employers are exempt, including diplomatic missions, international organisations, employers on the composite business tax, and new companies in their first fiscal year for employees who are Beninese. Domestic employers are exempt if they declare and pay contributions to the CNSS.
How does Benin payroll run each month?
Tax and contributions are worked out monthly from each employee's pay, and one declaration covers both.
The tax and the levy are due by the 10th of the following month.
-
Work out taxable pay
Add base pay, allowances, bonuses, overtime and benefits in kind.
-
Deduct the employee's share
Take the 3.6% pension contribution from pay and withhold ITS under the table.
-
File the single declaration
Companies that use the tax authority's online services file one declaration for payroll tax and social security by the 10th of the following month.
-
Pay the CNSS and the tax office
The CNSS says employers pay within 15 days of the period, and the tax authority sets the 10th for the tax and the levy.
Employers with 20 or more employees pay the CNSS monthly, and smaller ones pay quarterly. Employers with at least 20 employees also file a quarterly staff list.
How are end-of-contract payments taxed in Benin?
Dismissal indemnities calculated under the law are exempt from ITS, but notice pay and paid-leave pay are not.
Other exceptional payments are taxed at reduced rates.
Exceptional pay includes post-employment benefits, voluntary redundancy bonuses, notice and leave payments on termination, and thirteenth-month bonuses. The tax is worked out from the average pay of the last 12 months, and post-employment benefits and voluntary redundancy bonuses get a deduction of 25%.
A person is taxed in Benin on pay for work done there, or on all pay when domiciled there. Someone with no permanent home and no clear centre of life is deemed resident after 183 days in 12 months.
How does Teamed handle Benin payroll for you?
Teamed runs the monthly deductions, the tax withholding and the payments to the CNSS and the tax office for you, from $599 per employee per month, with zero FX markup in any currency.
Every statutory cost passes through at cost, itemised on the invoice.
Pricing has no hidden costs, and real HR and legal experts come on every plan. Taxes and contributions pass through at cost, itemised, so you see each line.
Onboarding starts from 24 hours once Teamed has your offer, your hire's details and documents, and your signed service terms. Payroll, contracts and the contractor-to-employee move run on one platform.
Run the Employer Cost Calculator to model total cost including social security before the first offer goes out. EOR is the right model for a first Benin hire, until it isn't.
Frequently asked questions
When must a Benin employer pay income tax withholdings?
By the 10th of the month after the month the pay relates to, with a monthly declaration. The employer's 4% tax on wages is declared on the same return and due on the same date.
What is the income tax rate in Benin?
ITS is a progressive table with five bands: nil up to XOF 60,000 a month, then 10%, 15%, 19% and 30% above XOF 500,000. A broadcaster fee of XOF 1,000 in March and XOF 3,000 in June is added.
Who pays Benin social security, the employer or the employee?
Both. The employer pays 6.4% for pensions, 9% for family benefits and 1% to 4% for work injury, and the employee pays 3.6% towards the pension. The employer pays everything to the CNSS and deducts the employee's share.
How often does a Benin employer pay the CNSS?
Monthly for employers with 20 or more employees and quarterly for smaller ones, within 15 days of the period according to the CNSS. Late payment carries a surcharge of 1.50% for each month or part month.
Benin runs payroll monthly, with ITS from nil to 30%, a 4% employer payroll levy and CNSS contributions.
The tax table and the rates are ones to recheck against the latest finance law before each new hire.
Match each payslip to the table, deduct the employee's share when you pay, and we will keep the deadlines.
Looking for a job in Benin yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.
