Hiring Talent And Managing Payroll In Senegal

Agreements

• Employment agreements in Senegal can either be indefinite or fixed-term, with indefinite contracts being allowed to be either written or verbal, although written contracts are recommended.
• Fixed-term contracts, on the other hand, must be written in French, but a version in another language can be provided upon request, with both versions being equally valid. These fixed-term contracts can be for a specific duration of up to two years or until the completion of a designated task
• Employment agreements should include:

  • The names and other identifying details of each party
  • The nature and length of the contract, indicating whether it is a fixed-term contract and stating the term
  • Qualifications of the individual and their classification or position within the organization
  • Pay and benefits for the employee
  • The job duties of the employee
  • The workplace of employment (s)
  • The applicable legal documents, collective bargaining agreements, or regulations
  • Specifics regarding accommodation, if given by the employer
  • Any other contracts that are unique to the individual work arrangement between the employer and the employee.

Onboarding Process

• An offer letter and employment contract
• Verification and documentation
• Orientation and training
• Introduction to team and stakeholders
• Provision of tools and resources
• Performance management and feedback
• Ongoing support

Minimum Wage

Payroll Cycle

Annual Bonus

Health Benefits

• The public healthcare system in Senegal is called the IPM (Institut de Prévoyance Maladie), and it provides coverage for employed residents. The IPM covers a percentage of medical, pharmaceutical, and hospital costs, ranging from 40-80%.
• Employers are responsible for enrolling employees in the IPM, and after two months of contributions, the employee becomes eligible for benefits.
• If an employee has not yet made sufficient contributions, the employer pays their medical expenses but is later reimbursed by the employee.
• In addition, the employer typically provides a small hospital allowance to hospitalized employees.
• The state welfare program in Senegal also covers primary healthcare for all citizens, regardless of employment status.

Working Hours and Overtime

• Work hours: Employees work 5 days a week for 40 hours.
• Break: Break time is 30 minutes or one to two-hour long rest periods.
• Overtime: The maximum amount of overtime that an employee can work in Senegal is 100 hours per year. 110% of the employee's hourly rate is paid as overtime for the first eight hours. For any additional hours, employees receive 135% of their hourly wages.

Social Security

• Employers pay 7% as Social Security to the family sector, 1% or 3% or 5% as Social Security to industrial accident/occupational disease and 6% to medical coverage.
• Employees pay 6% toward medical coverage.

Taxes for Employees

Termination

• In Senegal, fixed-term contracts typically end upon their expiration date and can only be terminated early for a serious reason, such as misconduct.
• An indefinite contract can be terminated by mutual agreement or with the required notice period.
• Written notice must be provided stating the reason for termination, and if the employer initiates termination, they must have a valid reason based on economic or personal factors specific to the employee.

Severance Pay

Employees or Contractors

• There are penalties for misclassifying an employee as a contractor or vice versa in Senegal. If an employer misclassifies an employee as a contractor, they can face penalties such as fines and back taxes.
• If an employer misclassifies a contractor as an employee, they may be required to provide employment benefits retroactively and could face legal action from the contractor. Employers need to understand the legal definitions of employees and contractors and classify their workers correctly to avoid penalties and legal issues

Final Words