Employer of Record in Senegal

Guide to Hiring Employees in Senegal

Your guide to hiring employees in Senegal, covering the employment landscape, employer of record responsibilities, working customs, and local labor laws.

Hiring Employees In Senegal
Employer Of Record In Senegal

Capital City

Dakar

Currency

West African CFA franc

 (

CFA

)

Timezone

GMT

Payroll Frequency

monthly

Tax Year

1 January - 31 December

Employer Tax

18.40% – 31.50%

Languages

French

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How to Hire Employees In Senegal

Hiring in Senegal for the first time can be overwhelming, especially when navigating unfamiliar employment laws.  Whether you hire independent contractors, set up a legal entity, or use an EOR service, understanding the local employment landscape is crucial for success.  Playroll’s comprehensive guide can help you get started if you're hiring locally or relocating a team member.

Companies can hire employees in Senegal in the following three ways:

  • Setting up a local entity. Entity establishment reduces risk exposure and enables direct hiring, but can be costly and time-consuming – making it less practical for companies seeking quick and flexible solutions for hiring in Senegal.
  • Partnering with an Employer Of Record. An EOR, like Playroll, is a third-party entity that serves as the legal employer of your international workforce which hires, pays, and manages compliance with Senegal’s labor laws and tax regulations.
  • Hiring independent contractors. Hiring contractors gives companies a flexible, affordable alternative to hiring local employees, though it involves unique misclassification risks.

Good To Know

Hiring in Senegal offers numerous advantages for businesses looking to expand in West Africa. The country boasts a strategic geographic location, serving as a gateway to both regional and international markets.

With a stable political environment and improving infrastructure, Senegal provides a conducive atmosphere for business growth and investment.

Additionally, the country's rich cultural heritage and diverse workforce contribute to a dynamic and vibrant business ecosystem.

Furthermore, Senegal offers various incentives for foreign investors, including tax breaks and investment-friendly policies, making it an attractive destination for companies seeking to tap into Africa's growing economy.

Employment and Labor Laws in Senegal

Businesses can only operate smoothly in Senegal if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Senegal below, to avoid any compliance issues.

Employment Contract Requirements

When hiring an individual in Senegal, it is required to provide a written contract specifying the following details regarding:

  • Identification of both parties
  • Commencement date
  • Job description, duties, and responsibilities
  • Compensation and other benefits

Onboarding Process

We can help you get a new employee started in Senegal quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Senegal

The regular work schedule in Senegal comprises 40 hours distributed across a maximum of 6 days per week.

Overtime in Senegal

In Senegal, overtime compensation is provided for any work exceeding the standard weekly working hours, as outlined in employment contracts or collective agreements. The maximum allowable overtime hours per year are capped at 100. Overtime pay rates vary based on specific criteria:

  • For overtime during regular working hours, employees receive 110% of their standard hourly rate for the first eight hours, and 135% for additional hours.
  • Night work between 10 p.m. and 5 a.m. is compensated at 150% of the basic hourly rate, increasing to 200% for Sundays or holidays.
  • Overtime during daytime on weekends or public holidays is remunerated at 150% of the regular hourly rate.

Probation Period in Senegal

In Senegal, the standard probation period is three months for executives and one month for non-executives.

Employer of Record in Senegal

An Employer of Record (EOR) acts as the legal employer for workers in Senegal, taking on key responsibilities to ensure compliance with local labor laws and regulations. The EOR facilitates the hiring process for businesses that want to employ workers without establishing a legal entity in the country.

The employer of record in Senegal is responsible for:

  • Employment Compliance: Ensure all employment contracts comply with Senegal's labor laws and regulations, including proper classification of employees.
  • Payroll Management: Calculate, process, and distribute employee salaries in accordance with Senegal's payroll laws, including deductions for taxes and social security contributions.
  • Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
  • Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with Senegal's legal requirements.
  • Benefits Administration: Provide mandatory employee benefits as required by Senegal's labor laws, such as health insurance, pension contributions, and statutory leave.
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Payroll Management in Senegal

Fiscal Year in Senegal

1 January - 31 December is the 12-month accounting period that businesses in Senegal use for financial and tax reporting purposes.

Payroll Cycle in Senegal

The payroll cycle in Senegal is usually monthly, with employees being paid as per the employment contract.

Minimum Wage in Senegal

The minimum wage for employees in Senegal is typically 209.10 XOF per hour, amounting to ~106,811 XOF per month for a typical 40 hour work week.

Bonus Payments in Senegal

In Senegal, while there is no statutory requirement to pay the 13th or 14th month salary, it is customary to pay the 13th salary at the end of the year.

Employment Taxes in Senegal

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 18.40%- 31.50% on top of the employee salary in Senegal.

Tax TypeTax Rate
Social Security (CSS) – Family Allowance7% (Monthly salary cap set at 63,000 XOF per month)
Work Injury and Disability1% – 5% (Depending on the type of activity and level of risk with a monthly salary cap set at 63 000 XOF)
Health contribution2% – 7.50% (Between 2% and 7.5% with a monthly salary cap set at 250,000 XOF)
Pension Contribution8.4% – 12.00% ( There is a monthly salary limit set at 360,000 XOF and an additional rate of 3.6% for executives with a monthly salary cap set at 1,080,000 XOF)
Medical Coverage6% (levied on a contribution rate between 60,000 XOF and 250,000 XOF)

Employee Payroll Tax Contributions

In Senegal , the typical estimation for employee payroll contributions cost is around 8.00% - 13.50%%.

Tax TypeTax Rate
Health Contribution2% – 7.50% (Between 2% and 7.5%, with a monthly salary cap set at 250,000 XOF)
Pension Contribution5.6% – 9.00% (There is a monthly salary limit set at 360,000 XOF, alongside an extra 2.4% rate for executives whose monthly salary limit is fixed at 1,080,000 XOF)
Medical Coverage6% ( Levied on a contribution rate between 60,000 XOF and 250,000 XOF)

Individual Income Tax Contributions

In Senegal, the taxation system operates under 'Pay As You Earn' for income tax, with rates ranging from 0 to 43%, calculated based on progressive rates.

Income BracketTax Rate
0 - 630,000 XOF0%
630,000 XOF - 1,500,000 XOF20%
1,500,001 XOF - 4,000,000 XOF30%
4,000,001 XOF - 8,000,000 XOF35%
8,000,001 XOF - 13,500,000 XOF37%
13,500,001 XOF - 50,000.00 XOF40%
50,000,001 XOF And above43%

Pension in Senegal

The formal pension system in Senegal comprises two mandatory retirement schemes: the civil-service pension scheme for civil employees and the pension scheme for private sector employees. These unfunded, pay-as-you-go defined benefit schemes are tied to formal employment.

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The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Senegal tailored to your needs.

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Work Permits & Visas in Senegal

Annual Leave & Company Policies In Senegal

Mandatory Leave Entitlement in Senegal

The annual leave entitlement in Senegal is 24 Days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Senegal

Religious holidays are determined by the lunar cycle and will show as tentative until they are confirmed nearer the date of the holiday.

HolidayDate
New Years Day1 January
Easter Monday10 April
Independence Day4 April
Eid al-FitrDetermined by the lunar cycle
KoritéDetermined by the lunar cycle
Labour Day1 May
Ascension Day40 days after Easter
Whit MondayMonday after Pentecost
TabaskiDetermined by the lunar cycle
Assumption15 August
All Saints Day1 November
TamkharitDetermined by the lunar cycle
Christmas Day25 December

Paid Time Off in Senegal

Employees are entitled to 24 days of paid annual leave.

Maternity Leave In Senegal

Employees in Senegal receive 14 weeks of fully paid maternity leave, covered by Senegal's Social Security or government. Maternity leave can commence six weeks prior to the anticipated due date and extends for eight weeks after childbirth.

Paternity Leave In Senegal

Under the interprofessional collective agreement, fathers covered therein are eligible for 1 day of paid paternity leave following the birth of a child.

Sick Leave In Senegal

In Senegal, sick leave is paid and dependent on the following: Senegalese workers who have served 6 months within a company are eligible for 5 days of paid sick leave annually.

Parental Leave In Senegal

Senegal's labor laws provide distinct leave entitlements for mothers and fathers, without a shared parental leave policy.

Employment Termination and Severance Policies in Senegal

Termination Process in Senegal

In Senegal, employers can end a fixed-term contract for any of the following reasons:

  • Business
  • Personal
  • Workers misconduct

Notice Period in Senegal

In Senegal, the notice period for termination varies based on the job role and industry:

  • White-collar employees, blue-collar employees, and permanent hourly, daily, or weekly workers: 8 days to 1 month, depending on tenure.
  • Executives: 3 months.

Severance in Senegal

Severance pay in Senegal varies from 25% to 40% of the 12-month average wages per year of service, depending on tenure and any collective bargaining agreements in place.

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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ABOUT THE AUTHOR

Jesse Weisz

Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).

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FAQS

FAQs About Hiring In Senegal

Questions and Answers

What Is an EOR in Senegal?

An Employer of Record (EOR) in Senegal is a third-party organization that legally employs workers on behalf of your company. The EOR handles all local employment tasks, including compliance with labor laws, payroll, taxes, benefits, and employment contracts. This allows businesses to easily hire talent in Senegal without the need to set up a legal entity there, saving time and ensuring compliance with local regulations.

Can I Hire in Senegal Without an Employer of Record?

Yes, you can hire in Senegal without an Employer of Record, but this typically requires setting up a legal entity in the country. Establishing a local entity involves navigating registration processes, tax systems, and employment regulations. This can be costly and time-consuming, often taking between 4-6 months to enter a new market. An EOR provides an alternative by allowing you to hire talent quickly and compliantly without the need to establish a legal presence in Senegal.

How Much Does It Cost To Employ Someone In Senegal?

The cost of employing someone in Senegal includes more than just their salary. You also need to consider mandatory contributions such as taxes, social security, insurance, and benefits. These additional costs can vary based on the role, location, and specific employment laws in Senegal. When using an Employer of Record, there are additional service fees, usually charged as a percentage of the employee's salary or as a monthly or annual fee. This ensures compliance and covers administrative tasks.

What Is the Minimum Wage In Senegal?

As of January 1, 2024, Senegal's minimum wage rates are:

  • 209.10 XOF p/h XOF per month.
  • Applies nationwide across all sectors.
  • Adjustments typically occur annually.

How Does an EOR Help You Run Payroll In Senegal?

An EOR simplifies payroll management in Senegal by handling all aspects of salary payments, tax deductions, and compliance with local labor laws for your international employees. The EOR calculates gross pay, deducts necessary taxes and contributions, and ensures employees are paid accurately and on time. They also manage year-end tax reporting and compliance filings, reducing the administrative burden on your team and minimizing the risk of errors or penalties.

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