How does Sierra Leone payroll tax work in 2026?
Sierra Leone taxes employment income at nil up to NLe 7,200 a year, then 15%, 20%, 25% and 30% in bands. The employer withholds the tax, files by the 15th of the following month and adds NASSIT contributions. For companies paying staff in Sierra Leone, 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.
· Sierra Leone guide
Photo: Abdulai Sayni on Unsplash
Sierra Leone's employment income tax has five steps. The first NLe 7,200 a year is taxed at nil, then 15%, 20% and 25% in bands of NLe 7,200 each, and 30% above NLe 28,800.
The employer calculates the tax after deducting the employee's 5% NASSIT contribution, withholds it and files by the 15th of the following month. NASSIT adds 10% for the employer, due within 15 days after the month ends.
How does income tax work for Sierra Leone employees?
Employment income tax is nil on the first NLe 7,200 a year, then 15%, 20% and 25% in NLe 7,200 bands, and 30% above NLe 28,800.
The monthly equivalent is nil on the first NLe 600, then bands of NLe 600.
| Annual chargeable income (NLe) | Monthly equivalent (NLe) | Rate on the band |
|---|---|---|
| 0 to 7,200 | 0 to 600 | Nil |
| 7,201 to 14,400 | 601 to 1,200 | 15% |
| 14,401 to 21,600 | 1,201 to 1,800 | 20% |
| 21,601 to 28,800 | 1,801 to 2,400 | 25% |
| Above 28,800 | Above 2,400 | 30% |
| Monthly chargeable income (NLe) | Tax payable (NLe) |
|---|---|
| 600 | 0 |
| 1,140 | 81 |
| 4,750 | 1,065 |
| 14,250 | 3,915 |
The Finance Act, 2020 sets the annual bands in old leones, from Le 7,200,000 up to Le 28,800,000. The National Revenue Authority's 2022 tax guide gives the monthly equivalents. Sierra Leone redenominated its currency. The Redenomination of the Leone Regulations, 2024 divide the old leone by one thousand, and the new leone is written NLe. Older statutes still print amounts in old leones, so this page converts them by that rule and says so.
The worked rows are our arithmetic from the monthly bands. Their chargeable income is monthly earnings less the 5% NASSIT deduction, for earnings of NLe 1,200, 5,000 and 15,000, and we assume no allowances. The bands come from the Finance Act, 2020, which replaced Part I of the First Schedule to the Income Tax Act. We found no later Finance Act through 2026 that changes them, and we confirm the bands before the first payslip.
What pay counts as employment income in Sierra Leone?
The tax authority treats basic salary and fringe benefits in cash or kind as employment income, with a threshold for non-taxable allowances.
Redundancy and termination payments are excluded from employment income under the Finance Act, 2026.
The National Revenue Authority's 2022 guide says one month's leave allowance is the exception on salary, and that a consolidated allowance of up to NLe 6,000 a year, NLe 500 a month, is not taxable. Leave allowance above a month's salary is taxed at 30%, or the higher marginal band the employee falls in. The guide words that limit as gross monthly salary in one place and basic salary in another, so we confirm the base.
The Finance Act, 2026 replaced paragraph (h) of section 23(3) of the Income Tax Act so that any redundancy or termination payment is excluded. It also repealed the older cap of Le 50,000,000, with 5% tax on any excess. The National Revenue Authority says the same in its February 2026 note. We confirm how a particular payment is treated before the first payslip.
How does Sierra Leone payroll run each month?
The employer works out each employee's tax after the 5% NASSIT deduction, withholds it and files the monthly return, and does the same for NASSIT.
The PAYE return is due on or before the 15th of the following month.
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Add up the month's pay
Add earnings, overtime, allowances and other pay, and note which part is NASSIT earnings.
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Deduct the employee's 5%
Take 5% of NASSIT earnings off before working out income tax, as the National Revenue Authority describes the order.
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Apply the tax bands
Withhold tax on the rest using the monthly bands, and file the PAYE return on or before the 15th of the following month.
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Pay NASSIT
Add the employer's 10% to the employee's 5% and pay within 15 days after the month ends, with the advice of payment form.
Tax paid late carries a 10% charge within 30 days of the due date, 15% after 30 days and up to 90 days, and 25% after 90 days, under the National Revenue Authority's guide. An itemised pay statement goes to the employee with each payment, showing gross wages, each deduction and net wages.
Is there a payroll tax on foreign employees?
The National Revenue Authority's 2022 guide describes an annual payroll tax on employers of foreign nationals, with different amounts for ECOWAS and other citizens.
We did not read the current amounts, so we confirm them before we quote.
Later Finance Acts amend the payroll tax, and the amounts have changed over time. A foreign employee also needs a work permit, covered in the hiring guide.
How does Teamed handle Sierra Leone payroll for you?
Where the route allows, Teamed runs the tax calculation, the employee deductions, NASSIT and the remittance 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 before the first offer goes out.
Frequently asked questions
When must a Sierra Leone employer file PAYE?
On or before the 15th of the month following the payment of staff pay, using the National Revenue Authority's monthly return. Late tax carries a charge of 10%, 15% or 25% depending on how late it is.
What is the income tax rate in Sierra Leone?
Nil on the first NLe 7,200 a year, then 15% on the next NLe 7,200, 20% and 25% on the following NLe 7,200 bands, and 30% above NLe 28,800, under the Finance Act, 2020.
What is the tax-free threshold in Sierra Leone?
NLe 7,200 a year, or NLe 600 a month, is taxed at nil. The National Revenue Authority also treats a consolidated allowance of up to NLe 500 a month as non-taxable.
What are the NASSIT contribution rates in Sierra Leone?
The employer pays 10% of earnings and the employee pays 5%, paid to NASSIT within 15 days after the month ends. NASSIT's earnings definition leaves out housing, overtime, travel, bonus and commission.
Is severance pay taxed in Sierra Leone?
Under the Finance Act, 2026, any redundancy or termination payment is excluded from employment income. We confirm how a particular payment is treated before the first payslip.
Sierra Leone taxes employment income at nil up to NLe 7,200 a year, then at 15% to 30% in bands.
The tax is the employee's and the withholding is yours, with a filing deadline of the 15th of the following month and NASSIT alongside.
We run the calculation and the remittance where the route allows, and confirm the bands before the first payslip.
Looking for a job in Sierra Leone 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.
How does NASSIT work for Sierra Leone employers?
The employer deducts 5% of the employee's earnings, adds 10% and pays all 15% to NASSIT within 15 days after the month ends.
Every worker must be registered, even if the employer has only one.
The fine is Le 5,000,000 in the 2001 Act, which is NLe 5,000 after redenomination. NASSIT's own page says it covers workers who are not over 55 years old. An employer cannot reduce earnings because of its contribution liability, and the contributions are held in trust until paid. We confirm the current penalty wording before the first payslip.