HRsolution » COUNTRIES » Yemen

Population

Yemen has an estimated population of around 31 million people (as of 2023). The majority of the population lives in rural areas, although there has been increasing urbanization in recent decades. The population is ethnically homogeneous, with most being Arabs. Yemen has a very high birth rate, leading to rapid population growth.

Capital

The official capital of Yemen is Sana’a, although it has been controlled by the Houthi rebels since 2014 due to the ongoing civil war. Aden, a significant port city in the south, currently serves as the provisional capital for the internationally recognized government.

Economic Strength

Yemen’s economy has been severely impacted by the ongoing civil war and political instability. Before the war, the economy was primarily based on agriculture, fishing, the export of oil and gas, and trade. Since the conflict began in 2015, most economic activities have slowed down considerably, and the country suffers from widespread poverty, unemployment, and a humanitarian crisis. International aid is a crucial part of the economy, but it is insufficient to fully prevent economic collapse.

Culture

Yemen’s culture is deeply rooted in Arab and Islamic traditions. Historically, the country is known for its unique architecture, particularly in cities like Sana’a and Shibam, as well as its rich traditions in music, dance, and poetry. Islam, particularly the Sunni and Shia branches, plays a central role in daily life. Yemen is also recognized for its rich history, as it was once home to the ancient Kingdom of Saba. Festivals such as Eid al-Fitr and Eid al-Adha are widely celebrated across the country.

Currency

The official currency of Yemen is the Yemeni Rial (YER). Due to the war and economic instability, the value of the Rial has significantly depreciated in recent years.

Health Insurance and Social Security System

Yemen does not have a comprehensive social or health insurance system. Before the war, there were limited public health services, but the system has largely collapsed due to the conflict. Most Yemenis have no access to adequate healthcare, and there are few private health insurance options. Social security benefits, such as pensions and disability payments, exist only in rudimentary forms and are highly limited by the current situation.

Employer Costs

Employer costs in Yemen typically include the payment of salaries, often in the local currency (YER), and possibly contributions to social security, if organized. There are no standardized contributions to a social security system, as found in more developed countries, and most social benefits like sickness or accident insurance are not systematically provided.

Salary and Bonuses

Salaries in Yemen are very low compared to international standards, with many people working in the informal sector. Due to the economic crisis and hyperinflation, many workers struggle to meet their basic needs. In the public sector, there are occasional bonuses, particularly around religious holidays like Eid, but these payments have become irregular due to the conflict.

Payroll

In the sectors where formal employment exists, employees receive monthly payroll statements detailing their base salary, allowances, and deductions. However, many businesses are unable to pay salaries regularly due to the ongoing economic difficulties.

Public Holidays

Yemen observes several public holidays, primarily of religious and national significance, including:

  • New Year’s Day (January 1)
  • Eid al-Fitr (End of Ramadan)
  • Eid al-Adha (Festival of Sacrifice)
  • Unity Day (May 22)
  • Revolution Day (September 26)

Many of these holidays are based on the Islamic lunar calendar, so their dates vary each year.

Working Hours

The standard working hours in Yemen are typically 40 to 48 hours per week, depending on the sector. Fridays are traditionally a day off, as it is the main prayer day in Islam. During Ramadan, working hours for Muslim employees are usually reduced.

Vacation

Employees in Yemen generally have the right to 20 to 30 days of paid annual leave, depending on the length of employment and agreements with their employer. In addition, they are entitled to leave during public holidays. Many employers also offer extra vacation time during Ramadan or other religious festivals.

Sick Leave

Sick leave and disability regulations in Yemen are minimal and severely restricted. Workers who are unable to work due to illness generally do not have a systematic entitlement to sick pay. In some cases, employers may continue to pay wages for a short period, but there are no binding rules.

Termination/Severance

Yemeni labor law provides for notice periods, typically around 30 days. Due to the current situation and economic instability, layoffs and dismissals are common, and in many cases, workers do not receive severance pay. Severance packages are typically negotiable and depend on the length of employment and individual contracts. In practice, labor laws are often difficult to enforce.

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