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Hiring in mali
Mali, officially known as the Republic of Mali, is a country in West Africa. Bamako is the capital and the largest city of Mali. French is the official language of Mali. Western African CFA Franc is the official currency. Agriculture is the largest sector of Mali, whereby cotton is its main export. Moreover, Mali is rich in gold, kaolin, and limestone. Mali’s main trading partners are Senegal, China, Ivory Coast and France. Global PEO or Employer of Record (EOR) play a pivotal role in providing companies with services related to hiring employees, and ensuring compliance with Mali’s legal and tax regulations. Employment regulations including probation, holidays and termination are covered by the Labor Code. Labor Code stipulates that employees are entitled to 22 days of annual leave. Global PEO’s or Employer of Record (EOR) facilitate companies by ensuring compliance with Mali’s Labor Code and tax laws.
statutory labor requirements
Probation Period
- Probationary period should not exceed 6 months
Annual Leave
- Annual leave is equivalent to two and a half days per month of work accrued, for a total of 30 calendar days per year (working days and weekends included).
- For convenience, this is considered the equivalent of 22 working days per year.
Public Holidays
- New Year's Day (1st January)
- Armed Forces Day (20th January)
- Martyrs' Day in Mali (26th March)
- Easter Monday (13th April)
- Labor Day (1st May)
- Eid al-Fitr
- Africa Day (25th May)
- Eid al-Adha
- Mali Independence Day (22nd September)
- Prophet's Birthday
- Prophet's Baptism
- Christmas Day (25th December)
Maternity Leave
- The female contract employee with at least nine months of creditable service with the employer will be entitled, upon properly documented request, to fourteen weeks of unpaid maternity leave.
- This is limited to a maximum of six weeks before confinement and eight weeks after confinement.
Paternity Leave
- The worker shall be entitled to 7 days' paternity leave on full pay.
Sick Leave
- Employees receive sick leave with a doctor’s certificate
Work Hours
- Standard workweek is 40 hours
Overtime
- Overtime is paid at the rate of 150%
Notice Period
- In the absence of collective agreements or decrees, the duration of notice period is:
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- 8 days for staff paid by the day or week;
- 1 month for the worker whose monthly salary is paid;
- 2 months for supervisors and assimilated employees;
- 3 months for executives and management.
Severance
- Employees receive severance pay of 20% to 30% of monthly salary depending on the length of service
13th / 14th Month Pay
- No
- There is no statutory requirement to pay the 13th or the 14th month salary.
- However, there is a seniority bonus that all employees are entitled to once they spend three years in their role.
income tax
- The standard corporate tax in Mali stands at 35%
- Holding companies are not subject to a corporate taxation in Mali
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Corporate Income Tax |
|
|
Tax Rate |
35% |
deductible expenses
- Some of the main corporate deductible expenses are royalties are interest expenses
- The deduction of royalties, interest expense, and service fees paid to non-resident persons is limited to 3.5% of the Malian taxpayer's annual revenue, although this limitation does not apply in respect of payments to companies that are not directly or indirectly participating in the management or share capital of the Malian taxpayer;
- The deduction of interest expense on loans granted directly or indirectly by shareholders is allowed only if the following conditions are met:
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- The share capital of the taxpayer is fully paid up;
- The total loan amount does not exceed the share capital amount; and
- The interest rate does not exceed either:
- the "Libor" rate as may be specified under an agreement signed with the Malian State increased by 2 percentage points; or
- the interest rate of the Central Bank for West African Countries increased by 3 percentage points in all other cases;
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Deductible Expenses |
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|
Business Deductions |
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immigration
- Any individual visiting Mali must obtain a visa from one of the country’s diplomatic missions unless they’re from a visa-exempt country. Currently, citizens from 25 countries can travel to Mali without a visa.
- The two main types of visas include business and tourist selections with options for single-entry, multiple-entry, or stays for up to six months.
- It typically takes 10 days to process the visa.
- Foreigners seeking employment in Mali must obtain a work permit.
|
Type of Visa/Permit |
Documentation |
Validity |
Eligibility |
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Tourist Visa |
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3 months to 6 months |
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Business Visa |
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3 months to 6 months |
|
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Work Permit |
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1 year |
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value added tax
- The standard VAT rate is 18%
- A reduced rate of 5% is applicable on solar and IT materials
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VAT |
|
|
Standard Rate |
18% |
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Reduced Rate |
5% |
withholding tax
- Dividends are subject to a 10% WHT
- Interest payments are subject to WHT of 9%/13%/15%/18%
- Royalties are subject to a WHT of 15%
|
WHT |
|
|
Dividends |
10% |
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Interest |
9%/13%/15%/18% |
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Royalties |
15% |
termination
In the absence of collective agreements or decrees, the duration of notice period is:
-
- 8 days for staff paid by the day or week;
- 1 month for the worker whose monthly salary is paid;
- 2 months for supervisors and assimilated employees;
- 3 months for executives and management.
- Employees receive severance pay of 20% to 30% of monthly salary depending on the length of service
statutory benefits
- These are mandatory benefits as postulated by law
- These include public holidays, sick leave, maternity leave, paternity leave, overtime pay, severance pay.
- Statutory benefits also include social security benefits
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Statutory Benefits |
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Public Holidays |
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Maternity Leave |
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Paternity Leave |
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Sick Leave |
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Overtime Pay |
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Severance Pay |
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Social Security Benefits |
payments and invoicing
- All companies are required to file their tax return before 30th April of the following year
- They must pay provisional taxes before 30th March, 31st July and 30th November’s based on the 35% tax liability of the previous year
ease of doing business
- The ease of doing business index is an index created by Simeon Djankov, an economist at the Central and Eastern Europe sector of the World Bank Group.
- Higher rankings (a low numerical value) indicate better, usually simpler, regulations for businesses and stronger protections of property rights.
- According to the World Bank Mali ranked 148th in the World in 2019 in terms of ease of doing business
employee accruals
| Christmas Bonus% |
0% |
| Christmas Bonus Over Vacations % |
0% |
| Severance per Year % |
Employees are entitled to 20% of their monthly pay as severance pay (1.66% of annual salary) |
| Vacations % | Employees are entitled to an annual holiday of 30 days (8.24% of annual salary) |
| Notice % |
Employees are entitled to 8 days of notice after one year of service (2.19% of annual salary) |
| Christmas Bonus Over Notifications% | 0% |
| Vacations Plus% | 0% |
| Total percentage of Salary (yearly) | The total employment accruals as a percentage of salary per anum are equal to 12.09% |
employer accruals
Additional information (Country Accruals)
| Social security | 5.40% |
| Maternity | 14 weeks |
| Description |
Coverage
Employed persons, including certain public-sector employees.
Voluntary coverage for self-employed persons.
Special system for civil servants, magistrates, and military personnel.
|
Employer Accruals Additional information
| Employment Accruals | ||
| Annual Leave | Annual leave is equivalent to two and a half days per month of work accrued, for a total of 30 calendar days per year (working days and weekends included). For convenience, this is considered the equivalent of 22 working days per year. |
This equals 6.02% (22/365 days) of annual income |
| Maternity Leave | The female contract employee with at least nine months of creditable service with the employer will be entitled, upon properly documented request, to fourteen weeks of unpaid maternity leave. | Unpaid |
| Paternity Leave | The worker shall be entitled to 7 days' paternity leave on full pay. | This equals 1.91% (7/365 days) of annual income |
| Overtime | Overtime is paid at the rate of 150% | Depends on the number of overtime hours worked |
| Severance | Employees receive severance pay of 20% to 30% of monthly salary depending on the length of service | Subjective |
| Social Security | For social security tax funds, for both health care and pensions, employees are subject to a 3.6% of their pretax salary while the employer pays 35% of the employee’s gross salary | This equals 35% of annual income |
