Senegal is located on the west coast of Africa and borders the Atlantic Ocean. With a population of over 14 million, Senegal provides a feasible place to expand where you can be close to trading hubs and have access to human capital. However, once you establish a subsidiary in the country, you must consider the processes for hiring employees and establishing a payroll. Globalization Partners can help through our Senegal payroll outsourcing services. We use our existing subsidiary to run your locally compliant payroll and help your company grow through the process.
Taxation Rules in Senegal
As an employer, you must focus on corporate taxes, your employees’ personal income taxes, and more. Employers and employees contribute to the IPM Health Fund, social security, Industrial Accident Fund, National Retirement Fund, and executive pension fund. Contributions include:
- 1.5% of salaries for both employers and employees up to a salary cap of 60,000 CFA francs
- 7% of salary subject to a cap for employers
- 1-5% of salary depending on the risk and subject to a cap for employers
- A 60/40% split on 14% of salaries for employers and employees respectively
- 6% of salaries for employers and executives
Senegal Payroll Options for Companies
Companies have four main Senegal payroll options:
- Remote: You can run one centralized payroll out of your parent company where you add employees from your subsidiary to the same payroll. However, both sets of employees must follow separate taxation and employment laws.
- Internal: Larger companies who want to operate in Senegal long-term may choose to set up an internal Senegal payroll. You will need the budget to hire a larger staff who can help you run your payroll.
- Outsourcing: Outsourcing with a Senegal payroll processing company will take the responsibility of payroll off your shoulders, but you will still need to handle compliance.
- Globalization Partners: You can choose Senegal payroll outsourcing services with Globalization Partners. We will manage your payroll and take on the compliance so you can grow your company.
How to Set Up a Payroll in Senegal
Setting up your Senegal payroll starts with establishing a subsidiary in the country. The process can take weeks or months depending on what type of entity you incorporate as, and certain steps require fees. However, you must set up a subsidiary before you can run payroll, hire employees, and start to work in the country.
Since termination can prove difficult in foreign countries, you should include entitlement and termination terms in an employment contract before hiring employees and setting up your Senegal payroll. Employers are allowed to institute probationary periods up to three months for executives and one month for non-executives. You may terminate an employee for just cause, and workers are generally eligible for severance pay.
Payroll Processing Company in Senegal
Globalization Partners uses Senegal payroll outsourcing services to handle your payroll and compliance. Contact us today to learn more about how we can help with your expansion.
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). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P 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.