Definitive Guide to Hiring in Senegal

Hiring in Senegal

Hiring employees compliantly in Senegal means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Senegal so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Senegal; or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Labor Laws in Senegal

Employee Probation Period

Annual Leave in Senegal

Holidays in Senegal

Maternity Leave Senegal

Paternity Leave Senegal

Sick Leave in Senegal

Working Hours in Senegal

Overtime in Senegal

• Overtime work can be carried out up to 10 hours per week and up to 100 hours per year, in order to maintain or increase production, provided that this has been authorized by the labor inspection.
• In general, overtime is to be remunerated by an increase of 10% for the performance of in between 41 and 48 hours per week, and by an increase of 35% for hours exceeding 48 per week.

Termination of Employment in Senegal

• Employees can terminate a contract with 15 days’ written notice, although technicians must provide two months’ notice.
• Employers may terminate employees for just cause with written notice as follows:
  • Executives and similar: three months’ notice
  • Monthly paid white-collar workers, blue-collar workers and permanent hourly, daily, or weekly paid staff: eight days to one month, depending on length of service.
• Workers are generally eligible for severance pay for each year of service of 25% to 40% of their average wages over the past 12 months.
• The percentage is based on length of service and the collective bargaining agreement

Notice Period in Senegal

• Employees can terminate a contract with 15 days’ written notice, although technicians must provide two months’ notice.
• Employers may terminate employees for just cause with written notice as follows:
  • Executives and similar: three months’ notice
  • Monthly paid white-collar workers, blue-collar workers and permanent hourly, daily, or weekly paid staff: eight days to one month, depending on length of service.

Severance in Senegal

• Workers get: -
  • 25% of the monthly wages during the first 5 years of service (1.25 months of wages for a worker with 5 years of service)
  • 30% of the monthly wages during the next 5 years i.e. up till 10 years of service (1.25 months + 1.50 months of wages for a worker with 10 years of service)
  • 40% of the monthly wages per year after 10th year (1.25 months+1.50 months+ 2 months wages for 15 years of service)

Senegal Salary and Wages

13th / 14th Month Salary in Senegal

• No
• There is not statutory requirement to pay the 13th or the 14th month salary.
• Employees receive annual leave not exceeding 15 days per month.
• However, there are several articles in the code that refer to seniority and performance bonus.
• This points to the possibility of those bonuses being customary.

• Social security contributions are paid by the employer, up to an annual ceiling of XOF756 000, i.e. the annual salary on which contributions are payable. 
• The rate for family benefits is 7% and that for industrial accidents ranges from 1% to 5%, depending on the type of business. 
• National retirement fund contributions are shared between the employer (60%) and the employee (40%). 
• The contribution rate for the general scheme is 14%, with an annual ceiling of XOF4.320 million.
• The contribution rate for the executives’ scheme is 6%, with an annual ceiling of XOF12.960 million.

Immigration Senegal

• There are several different kinds of visas that will allow foreign nationals to enter Senegal. 
• Individuals who are planning to work in Senegal will need a work permit to do so.
• The most common types of work permits in Senegal are:
  • Local-hire work permits
  • Assignment work permits
• The type of permit your employees will need depends on several variables, including their qualifications and the nature and duration of the work they will be doing for your company.
• The Senegalese government also issues business visas, which may be relevant for some members of your team.
• Business visas allow foreign nationals to enter Senegal for short term business activities, such as:
  • Negotiating business contracts
  • Attending conferences, business meetings, or training seminars
  • Developing professional contacts for business purposes
• However, long-term employees will need a work permit.

Value Added Tax (VAT) in Senegal

• Subject to certain exclusions, most commercial operations are subject to an 18% VAT.
• VAT on tourism activities is 10%.
• A 17% special tax on financial activities (mainly banking, money transfers, and change operations) is applicable instead of VAT.

Mandatory Benefits in Senegal

• These are mandatory benefits as postulated by law
• These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, notice period, and severance pay
• Statutory benefits also include social security benefits

Payroll Accrual in Senegal

Country Accruals Additional Information

Description

Payroll Accruals Additional Information

Accrued Benefits in Senegal

Why use Global Expansion to hire in Senegal

Establishing a branch office or subsidiary in Senegal can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Senegal labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Senegal law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Senegal. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Senegal Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.