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Hiring in Senegal
Senegal is located on the west coast of Africa, bordering the Atlantic Ocean. The more than 14 million people who live in Senegal speak French and usually their own ethnic language as well. In Dakar, the capital of Senegal, people speak Wolof.
When negotiating terms of an employment contract and offer letter with an employee in Senegal, it may be useful to keep the following in mind.
Employment contracts in Senegal
In Senegal, fixed contracts of up to 24 months, including renewals, are permitted. It’s legally required to put a written employment contract in place in Senegal, in the local language, which clearly states the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Senegal should always specify the salary and any compensation amounts in West African CFA francs rather than another currency.
Working hours in Senegal
In general, Senegal’s work week is 40 hours. Overtime is permitted up to 500 hours per year, and additional hours of up to 10 extra hours weekly are allowed with the Labor Inspector’s approval. The rate of pay for overtime varies by the number of additional hours.
Holidays in Senegal
Senegal celebrates 13 national holidays:
- New Year’s Day
- Prophet Mohammed’s Birthday
- Independence Day
- Easter Monday
- Labor Day
- Ascension
- Whit Monday
- Assumption
- Korité
- All Saints’ Day
- Tabaski
- Tamkharit
- Christmas Day
Vacation days in Senegal
In general, employees are entitled to 24 days of paid annual leave.
Senegal sick leave
Employees have the right to a minimum of 5 paid sick days per year.
Maternity/paternity leave in Senegal
Pregnant employees are entitled to 14 weeks of paid maternity leave, 8 of which must be taken after the birth. There is no statutory entitlement to paternity leave in Senegal.
Health insurance in Senegal
Companies must enroll employees in the health fund Institut de Prévoyance Maladie (IPM). In general, the fund covers 40% to 80% of medical, pharmaceutical, and hospital costs. Employers are also expected to pay employees a small hospital allowance and to cover hospitalization costs which the employee repays. Private health insurance is also available but is not a statutory requirement.
Bonuses
Performance-based, annual, and 13th-month bonuses are common in Senegal. Companies should include information about these bonuses in the employment contract onboarding new hires.
Termination/severance in Senegal
Probationary periods of 3 months for executives and 1 month for non-executives are permitted and may be renewed. Employees can terminate a contract with 15 days’ written notice, although technicians must provide 2 months’ notice.
Employers may terminate employees for just cause as long as they abide by the following notice periods:
- Executives and similar: 3 months’ notice
- Monthly paid professional workers, manual workers, and permanent hourly, daily, or weekly employees: 8 days to 1 month, depending on length of service
This notice must be provided in writing, and during this notice, employees are generally entitled to the equivalent of 2 paid days off per week to seek alternate employment.
Workers are generally eligible for severance pay for each year of service, ranging from 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 (if applicable).
Paying taxes in Senegal
Employers and employees contribute to the IPM Health Fund, social security, Industrial Accident Fund, National Retirement Fund, and Executive Pension Fund. Contributions include:
- IPM Health Fund: Employers and employees each contribute 1.5% of salaries, up to a salary cap of CFA 60,000.
- Social security: Employers contribute 7%, subject to a salary cap.
- Industrial Accident Fund: Employers contribute 1% to 5%, depending on the risk, and is also subject to a salary cap.
- National Retirement Fund: Employers and employees contribute a 60%/40% split on 14% of salaries.
- Executive Pension Fund: Employers and executives must also contribute to the executive pension fund at 6% of salaries. All contributions are subject to a salary cap.
Why G-P?
At G-P, we help companies unlock the power of the everywhere workforce through our industry-leading Global Growth Platform™. Let us handle the complex and costly tasks involved in finding, hiring, onboarding, and paying your team members, anywhere in the world, with the speed and guaranteed global compliance your business needs.
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