Senegal, with a population of over 14 million and multiple trading hubs, is a promising place to grow your company. However, before you begin hiring new employees, you must first set up a payroll.
Taxation rules in Senegal
Employers in Senegal must prioritize corporate taxes, 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.
In addition, any employee is liable to minimum personal income tax (MPIT), and the fixed amount is shown below:
| Annual income (XOF) | MPIT (XOF) | |
| From | To | |
| 0 | 599,999 | 900 |
| 600,000 | 999,999 | 3,600 |
| 1,000,000 | 1,999,999 | 4,800 |
| 2,000,000 | 6,999,999 | 12,000 |
| 7,000,000 | 11,999,999 | 18,000 |
| 12,000,000 | And over | 36,000 |
Senegal payroll options for companies
Companies have 3 main Senegal payroll options:
- Internal: Larger companies who want to operate in Senegal long-term may choose to set up an internal payroll. You will need the budget to hire a larger team who can help you run your payroll compliantly.
- Senegal payroll processing company: Outsourcing with a Senegal payroll processing company will help streamline your payroll, but you will still be held liable for all matters related to compliance.
- G-P: The easiest way to run payroll in Senegal and stay compliant is partnering with an Employer of Record like G-P. With us, you can rest assured that all employees will be paid on time, freeing you to focus on other important aspects of your business.
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.
Entitlement/termination terms
Since termination can prove difficult in any country, companies should include entitlement and termination terms in the employment contract before hiring employees and setting up a Senegal payroll. Employers are allowed to institute probationary periods of up to 3 months for executives and 1 month for non-executives. You may terminate an employee for just cause, and workers are generally eligible for severance pay.
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