Average Salary in Somalia in 2026: Guide to Hiring and Paying With Confidence

You’re considering Somalia. Maybe you are exploring expansion. Maybe you found strong talent in Mogadishu, or you’re comparing labor costs across East Africa.

Then you look up the average salary, and realize that the numbers are inconsistent.

That’s not an error. It reflects how the market works.

In Somalia, wages are shaped by location, sector, funding source, and a largely informal economy. If you want to hire and pay confidently, you need context, not just a number. Let’s walk through it.

Understanding the average salary in Somalia

What is the average salary in Somalia?

There’s no single centralized payroll database that captures every worker in Somalia. Salary estimates are built from international economic data, labor modeling, NGO surveys, and regional reporting.

Although the Somali shilling (SOS) is the official currency, U.S. dollars are widely used in everyday transactions. The most recent consolidated estimates place the average monthly salary between US$250 and US$400 per month. Annually, that translates to roughly US$3,000 to US$4,800 per year. That range reflects formal employment and modeled informal income. It’s not a guaranteed benchmark—it’s a directional indicator.

To understand why wages sit in this band, consider broader economic indicators.

Somalia’s GDP per capita, which remains under US$700, limits overall earning capacity. When national output per person is low, wage ceilings follow.

At the same time, inflation affects purchasing power. Recent inflation figures for Somalia showing year-to-year fluctuation means a salary that feels competitive one year may lose ground the next.

You should also factor in remittances. Somalia receives substantial diaspora inflows. According to recent remittance data showing billions in annual transfers, household income is not always limited to local wages alone. That dynamic influences salary expectations in urban areas.

Three realities complicate average salary reporting:

• Large informal sector. Many workers operate in agriculture, trade, or family businesses where income is irregular.
• Regional economic differences. Mogadishu does not mirror rural regions.
• Dollar-denominated wages. Many formal salaries are paid in USD, not Somali shillings.

If you’re benchmarking compensation, these factors matter more than the headline figure.

If you’re new to global hiring structures, understanding what an Employer of Record (EOR) does will help you interpret these numbers through a compliance lens.

Demographic and geographic variation

Location changes everything.

In Mogadishu, you’ll find the highest concentration of telecom companies, financial institutions, and international organizations. Skilled professionals in IT, finance, and project roles often earn between US$600 and US$1,200 per month.

In Hargeisa, salaries are slightly lower on average but still stronger than rural benchmarks, driven by banking and cross-border trade.

In Bosaso and other regional cities, port activity creates pockets of opportunity, yet many wages remain closer to the national average.

Education level strongly correlates with pay. English-speaking graduates working with international NGOs can earn multiples of informal sector income. Meanwhile, agriculture and small-scale retail typically sit at the lower end of the range.

If you’re building a hiring model, you should not ask, “What is the average salary in Somalia?” Instead, ask, “What does a qualified professional in this city and this sector earn?”

That question gets you closer to reality.

Factors influencing salaries in Somalia

Macroeconomic context and job market conditions

Somalia’s wage structure reflects its economic structure.

With national economic data showing limited industrial diversification, large segments of the workforce remain in low-margin sectors. That suppresses average earnings.

Unemployment and underemployment, especially among youth, increase labor supply. More available workers often means slower wage growth in lower-skilled roles.

At the same time, skilled professionals with international experience are scarce. That drives wage premiums in telecom, banking, logistics, and donor-funded projects.

Year-on-year wage changes are typically influenced by:

• Inflation and exchange rate movement. When import costs rise, salary negotiations follow.
• Growth in telecom and finance. These sectors consistently outpace national averages.
• International donor activity. Project-based roles can temporarily elevate salary bands.

If you’re setting compensation, you need to know whether a wage increase reflects economic growth or short-term funding cycles.

How salaries in Somalia compare regionally and globally

Regional comparison brings perspective.

Kenya’s diversified economy and stronger formal employment systems explain its higher averages. Ethiopia’s figures are closer to Somalia’s, though Addis Ababa salaries can exceed rural levels.

Cost of living, PPP, and salary value

Raw salary numbers do not tell you how far money goes.

Somalia’s cost of living is generally lower than in Nairobi or Addis Ababa, especially outside major urban centers. Purchasing power parity adjustments suggest wages stretch further in rural areas.

However, imported goods and fuel are priced globally. That limits how much lower salaries truly translate into lower living costs in cities.

If you’re building distributed teams, pairing salary benchmarking with structured global EOR services can help you balance cost efficiency with compliance and fairness.

Minimum wage, common jobs, and sectoral distribution

Minimum wage and wage policy in Somalia

Somalia doesn’t currently enforce a nationally standardized minimum wage across the private sector. Public sector pay scales exist, but private sector wages are largely market-driven. International organizations apply structured salary bands aligned with global frameworks. Local employers negotiate pay individually.

When you’re planning to hire, reviewing regulatory expectations around contracts, termination, and payroll is critical. You can explore key considerations for hiring in Somalia before extending offers.

Most common jobs and income ranges

The workforce is concentrated in several key sectors:

• Agriculture and livestock. Often informal, frequently below US$200 per month in rural regions.
• Retail and trade. Typically US$200 to US$400 per month.
• Telecommunications and finance. Frequently, US$600 to US$1,200 per month for skilled professionals.
• Public sector and NGOs. Often US$800+ per month, depending on role and funding.

The difference between informal and internationally funded roles is substantial. Structured pay, written contracts, and compliant payroll practices help you attract top talent in this environment.

If you do not want to establish a local entity, an EOR in Somalia allows you to legally employ talent while managing risk.

Tips and resources for successful hiring and compliance in Somalia

If you want to hire successfully in Somalia, start with clarity.

Benchmark salaries by city and sector. Decide whether you will pay in USD or local currency. Account for inflation and economic volatility. Document everything.

And consider your employment structure.

An employer of record is a third-party organization that legally employs workers on your behalf in another country. You manage the employee’s daily work. The EOR manages employment contracts, payroll processing, tax withholding, benefits administration, and compliance with local labor rules.

In practical terms, that means:

• Legal employment without entity setup. You can hire without opening a subsidiary.
• Payroll and tax administration handled correctly. Salaries are processed in line with local requirements.
• Risk mitigation. Terminations, documentation, and reporting align with in-country expectations.

If you’re testing the market or scaling carefully, this model reduces administrative strain while protecting your brand.

What this means for you

Understanding the average salary in Somalia is not about memorizing US$300 per month.

It’s about knowing where that number comes from, understanding why a telecom engineer in Mogadishu earns far more than a rural agricultural worker, and recognizing how inflation, funding, and sector growth shift expectations.

When you look at compensation through that lens, you can price roles competitively without overestimating savings or underpaying key talent.

That’s how you hire with confidence.

How Pebl can help you hire and pay in Somalia

Hiring in Somalia requires precision. Contracts, payroll currency, compliance expectations, and termination rules all matter.

Pebl’s employer of record services help you hire, onboard, and pay employees in Somalia without opening a local entity. We also manage payroll, employment documentation, and compliance so you can focus on building your team.

You get clarity around compensation benchmarks, structured onboarding, and payroll that runs correctly.

And you move forward knowing your global hiring model is built on solid ground.

If Somalia is part of your expansion strategy, our experts are ready to walk you through it.

This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.

© 2026 Pebl, LLC. All rights reserved.