Senegal Employer of Record & Payroll
What is the main language spoken in Senegal:
French is the official language in Senegal, understood by ±15-20% of men and ±1-2% of women.
Senegal is a multilingual country with ±36 languages listed: Wolof is the most widely spoken as a first or second language (80%).
English is taught as a second language.
What type of employment contracts can you offer in Senegal:
Through our employer of record (EOR) solutions in Senegal, we can offer the following types of employment contracts:
- Fixed Term
- Indefinite term
Contracts and Offer Letters must:
- Be in writing
- Be in the official local language and the local currency
- Include salary/compensation, benefits and termination requirements
Full-time Employees:
- Have specific working terms and conditions
- Can be eligible for organizational perks and/or other benefits
- Tend to be more focused [as only one employer] and familiar with the specific business – due to e.g. ongoing company training etc.
- Probationary period is 3 months [standard – generally renewable once]
- No special rules or requirements exist for hiring or terminating probationary employees in Senegal
First 5 years of service:
-
Workers are entitled to 25% of their monthly wages as severance pay.
-
It is calculated as 1/12 taxable gross salaries multiplied by 25%. This amount is non-taxable.
- This is equivalent to 1.25 months of wages for a worker with 5 years of service.
Fixed Term Contract
- A rate of 7% of the salary during the life of the activity (total taxable gross salaries) is applicable
- This amount is taxable.
WHAT INCOME IS TAXABLE IN Senegal:
Any individual who works and lives in Senegal for more the 183 days a year will be subject to local taxes in Senegal. The tax years from effectively from 01 January to 31 December the following year.
Any income earned in the form of cash, wages, salary, overtime, leave pay or payment in lieu of leave, commissions, gratuity, bonus, or any amount that has benefited the employee. All income will be taxed in accordance with the law and the final payroll issued monthly.
What income is exempt from taxes in Senegal:
- Family or state allowances.
- Death Benefits.
- Specific allowances to compensate for professional expenses.
- Reimbursement.
- The statutory travel allowance.
- Capital gains.
- Legal Severance.
Standard working hours: Number Overtime to be paid?
In Senegal, the standard working hours are 40 hours per week over a maximum of 6 days. When an employee works beyond the standard working hours, the overtime is regulated by the employment contract or collective agreements. Here is the information regarding overtime pay in Senegal, categorized as per your request:
Normal working hours are 40 hours per week which is equal to 173.33 hours per month. Gross salaries to be invoiced will be based on this timing.
Overtime pay for regular workdays:
-
Hours rated at 15% : from 41 to 48 hours per week (115%)
-
Hours rated at 40% : beyond 48 hours per week (140%)
-
Hours rated at 60% : overtimes done on Sunday, Public Holidays as per the day time (160%)
-
Hours rated at 100% : overtimes done on Sunday and Public Holidays at night shift_ Night shift goes from 10 PM to 5 AM (200%)
-
Normal working hours done during days considered as public holidays will be rated at 100%.
Mandatory contributions?
Employee
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Social Security |
2% – 7.5% |
Monthly salary cap: 250,000 XOF |
|
Pension Contribution |
5.6% – 9.00% |
Monthly salary cap: 360,000 XOF (Additional rate of 2.4% for executives with monthly salary cap set at 1,080,000 XOF) |
|
Medical Coverage |
6% |
Contribution rate between 60,000 XOF and 250,000 XOF |
Employer
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Social Security (Family Allowance) |
7% |
Monthly salary cap: 63,000 XOF |
|
Social Security (Work Injury and Disability) |
1% – 5% |
Monthly salary cap: 63,000 XOF |
|
Social Security (Health Contribution) |
2% – 7.5% |
Monthly salary cap: 250,000 XOF |
|
Pension Contribution |
8.4% – 12.00% |
Monthly salary cap: 360,000 XOF (Additional rate of 3.6% for executives with monthly salary cap set at 1,080,000 XOF) |
|
Medical Coverage |
6% |
Contribution rate between 60,000 XOF and 250,000 XOF |
What is the Maternity and Paternity policy within Senegal:
Maternity Leave:
- Employees are entitled to 14 weeks of maternity leave.
- Maternity leave is 100% paid and is compensated by Senegal’s Social Security or government.
- Maternity leave can begin six weeks before the expected due date.
- Maternity leave lasts for eight weeks following the birth of the child.
Paternity Leave:
- Fathers are entitled to one day of paid paternity leave.
- Paternity leave is available for fathers who are covered by the interprofessional collective agreement.
What type of leave is allowed in Senegal:
Annual leave
- Employees are entitled to 24 days of paid annual leave.
Sick Leave
Employees are generally entitled to a minimum of five paid sick days per year.
Do I need to pay a mandatory bonus annually OR is it discretionary in Senegal:
Performance-based, annual, and 13th month bonuses are common in Senegal, but not statutory.
What Gratuity / Severance payments do you need to provide for Senegal:
- Workers are entitled to 25% of their monthly wages as severance pay.
- This is equivalent to 1.25 months of wages for a worker with 5 years of service.
- Workers receive 30% of their monthly wages as severance pay.
- This amounts to 1.50 months of wages for a worker with 10 years of service.
- Workers are eligible for 40% of their monthly wages per year as severance pay.
- This includes an additional 2 months of wages for every year served beyond the 10th year.
CAN YOU GIVE FRINGE BENEFITS IN Senegal:
- Domestics servants.
- Accommodation
- Water
- Electricity
- Company car.
- Telephone
Mandatory Probation period of Senegal:
Probation Period:
- Executives: Three months probation period.
- Non-executives: One month probation period.
Benefits Eligibility:
- Employees become eligible for benefits and entitlements upon successful completion of the probation period.
Termination Notice:
- Employees can give a 15-day written notice to terminate the contract during the probation period.
- Employers must provide written notice according to the following timelines:
- Executives: Three months’ notice for termination.
- Monthly paid white-collar workers, blue-collar workers, and permanent hourly, daily, or weekly paid staff: Eight days to one month notice for termination.
Is 13th month pay (Bonus) mandatory?
Not mandatory, applicable as per contract.
What are the Corporate and VAT / Sales tax rates in Senegal:
Corporate Tax Rates: 30% [in general]
VAT / Sales Tax Rates: 18% [on most goods and services]
Public Holidays in Senegal:
- January 1 - New Year's Day
- April 04 - Independence Day
- April 10 - Easter Monday
- April 22 - Korité
- May 01 - Labour Day
- May 18 - Ascension Day
- May 29 - Whit Monday
- June 29 - Tabaski
- July 28 - Tamkarit
- August 15 - Assumption Day
- September 03 - Grand Magal of Touba
- September 27 - Prophet Mohameed's Birthday
- November 01 - All Saints' Day
- December 25 - Christmas Day
What Industries we support in Senegal:
- Non-Governmental Organization’s (NGO) / Non- profit
- Engineering & Construction
- Government / Development Agencies
- Oil & Gas
- FMCG & Manufacturing
- Private Equality, Finance, Insurance & Banking
- Mining
- Agriculture
The information provided above is for an “informative decision” and may change at any given time without prior notice. We always suggest speaking to one of our Sales Consultants before engaging in country.
