Senegal Employer of Record & Payroll

Africa Deployments Senegal offers our clients Employer of Record (EOR) services covering all the regions within. We offer full-time employment or fixed terms contracts based on your requirements in Senegal for locals or expatriates. ADS will take care of the work permit under our umbrella and will issue local work contracts to your contractors. We will also advise our clients on best Human Resource (HR) practices when setting up the employee’s locally in Senegal. ADS takes care of the local tax & PAYE remittances to the Revenue Services on a monthly basis ensuring that they are fully compliant with the law. We will also ensure that their salaries are paid on time monthly and issue them with their pay slips. In addition to our services, we can offer you the employee in Senegal, Medical, Disability, Life, and Workmen’s Compensation Insurances. Senegal is a cultural hub for the African continent and one of the most stable countries in West Africa. Its mecca includes robust arts, rich traditions, historic landmarks, and remarkable natural landscapes. Dakar, the capital, is an Atlantic port on the Cap-Vert peninsula which boasts Africa’s tallest statue at 49 metres high – The African Renaissance Monument. Dakar is also famous for the annual Dakar Rally, whose founder coined the motto: “A challenge for those who go. A dream for those who stay behind.” Home to 7 UNESCO World Heritage Sites and 6 national parks, Senegal also uniquely has a vivid pink lake – Lac Rose, which is ten times saltier than the average ocean and comparable only to the Dead Sea, hence attracting Dunaliella Salina Bacteria, causing the pink colour. Senegal has a sensational surfing scene and The Almadies peninsular in Dakar is the most popular surf spot, used as a filming location in the 1965 surfer movie, The Endless Summer. Even the sheep surf in Senegal! Every Sunday on the beaches of Dakar, shepherds do a cleansing ritual that involves washing the sheep, giving them a manicure and encouraging them to take a dip in the sea. Joal-Fadiouth, in Mbour is a tiny car-free island made entirely from millions of clam shells, harvested over centuries and held together by mangrove roots and reeds. The Senegalese population of ±17.5 million is mainly Muslim (96%).

Population

16.88 million (2021)

Currency

West African CFA franc

Capital

Dakar

Language

French

GDP

27.63 billion USD (2021)

Industries

Agriculture & Industry

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

Permanent Contract
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 13^th month bonuses are common in Senegal, but not statutory.

What Gratuity / Severance payments do you need to provide for Senegal:

First 5 years of service:

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.

Next 5 years (6th to 10th year) 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.

Years after the 10th year 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:

Yes, you can but keep in mind that Fringe Benefits will be subject to employee PAYE tax. Fringe Benefits as follows:

Domestics servants.
Accommodation
Water
Electricity
Company car.
Telephone

Only benefits that cannot be converted to cash will not be subject to tax.

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:

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.