G-P provides employer of record services for customers that want to hire employees and run payroll without first establishing a branch office or subsidiary in Senegal. Your candidate is hired via G-P’ Senegal PEO in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. The individual is assigned to work on your team, working on your company’s behalf exactly as if he or she were your employee to fulfill your in-country requirements.
Our solution enables customers to run payroll in Senegal while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As a Global PEO expert, we manage employment contract best practices, statutory and market norm benefits, and employee expenses, as well as severance and termination if required. We also keep you apprised of changes to local employment laws in Senegal.
Your new employee is productive sooner, has a better hiring experience and is 100% dedicated to your team. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. G-P allows you to harness the talent of the brightest people in more than 185 countries around the world, quickly and painlessly.
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, they 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
Fixed contracts of up to 24 months, including renewals, are permitted.
It is legally required to put a written employment contract in place in Senegal, in the local language, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Senegal should always state the salary and any compensation amounts in West African CFA francs rather than a foreign currency.
Working Hours in Senegal
In general, Senegal’s work week is 40 hours.
Holidays in Senegal
Senegal celebrates 14 national holidays
- New Year’s Day
- Prophet Mohammed’s Birthday
- Independence Day
- Easter Monday
- Labour Day
- Whit Monday
- All Saints’ Day
- Christmas Day
Vacation Days in Senegal
In general, employees are entitled to 24 days of paid annual leave.
Senegal Sick Leave
Employees are generally entitled to a minimum of five paid sick days per year.
Maternity/Paternity Leave in Senegal
In general, female employees are entitled to 14 weeks of paid maternity leave, eight of which must be taken after the birth.
Health Insurance in Senegal
Employers enroll their employees in the IPM health fund (Institut de Prévoyance Maladie). 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.
Performance-based, annual, and 13th month bonuses are common in Senegal.
Termination/Severance in Senegal
Probationary periods of three months for executives and one month for non-executives are permitted and may be renewed.
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.
During the notice period, employees are generally entitled to the equivalent of two paid days off per week to seek alternate employment.
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.
Paying Taxes in Senegal
IPM Health Fund: employers and employees each contribute 1.5% of salaries, up to a salary cap of 60,000 CFA francs.
Social security: employers contribute 7%, subject to a salary cap.
Industrial Accident Fund: employers contribute 1% to 5%, depending on the risk and subject to a salary cap.
National Retirement Fund: Employers and employees contribute with a 60%/40% split on 14% of salaries. Employers and executives must also contribute to the executive pension fund at 6% of salaries. All contributions are subject to a salary cap.
This information is provided as generally accepted information and is not intended as advisory services.
Establishing a branch office or subsidiary in Senegal to engage a small team is time-consuming, expensive and complex. Labor law in Senegal has strong worker protections, requiring great attention to detail and an understanding of local best practices. G-P makes it painless and easy to expand into Senegal. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws, without the burden of setting up a foreign branch office or subsidiary. Our Senegal PEO and Global Employer of Record solution provides you peace of mind so that you can focus on running your company.
If you would like to discuss how G-P can provide a seamless employee leasing or PEO solution for hiring employees in Senegal, please contact us.