Senegal Employer of Record & Payroll

Flag-Senegal

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, officially the Republic of Senegal, is a country along the Gulf of Guinea and the Atlantic Ocean, in the subregion of West Africa.

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.

What type of leave is allowed in Senegal:

  • Annual leave – Employees have 24 days paid annual leave.
  • Sick leave – Employees typically have a right to a minimum of 5 paid sick days annually.
  • Maternity leave – Entitled to 14 weeks working days leave and 8 weeks after childbirth.
  • Family Responsibility – For each child under the age of 14, Women have the right to an additional day off each year.

CAN YOU GIVE FRINGE BENEFITS:

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.

What are the Employer & Employee contributions in Senegal:

  • IPRES pension contributions – Employee – 5.60%, Employer – 8.40%.
  • IPRES Special Executive Contribution – Employee – 2.04%, Employer – 3.6%.
  • Social Security – Employer.
  • IPM – Health Insurance/Medical Aid.

IS THERE GRATUITY PAYMENTS FOR TERMINATION:

An Employer and Employee can agree on severance pay.  However, it should be noted that the Bill seeks to legislate a fixed severance pay as of 1 month’s gross salary for each year of service. Severance must be agreed by both parties and paid within 21 days of acceptance. Severance is based on 25% to 40% of the average wages over the past 1 year.

WHAT DOUBLE TAX TREATIES ARE IN PLACE:

  • Belgium
  • Canada
  • France
  • Italy
  • Mauritania
  • Mauritius
  • Morocca
  • Norway
  • Qatar
  • Spain
  • Tunisia
  • United Kingdom

Get in touch with one of our consultants should you have any further questions regarding our Employer of Record solutions or only require a payroll solution in Senegal.