Employer of Record in Senegal

An Employer of Record (EOR) in Senegal legally employs workers on your behalf. This allows you to build a team in the country without setting up a local business entity. The EOR handles all HR tasks like payroll, taxes, benefits, and compliance with Senegalese labor laws. You continue to manage your employees' daily work. Using an EOR provider, like Rivermate, simplifies and speeds up the process of hiring talent in Senegal.

How an Employer of Record (EOR) Works in Senegal

Using an EOR in Senegal follows a straightforward process. Here is how it typically works:

• You Find the Talent. You recruit and select the professional you want to hire in Senegal.
• The EOR Hires Them. The EOR becomes the legal employer for your chosen candidate and provides a locally compliant employment contract.
• Onboarding is Handled. The EOR manages all the required paperwork and processes to properly onboard your new employee.
• Payroll and Benefits are Managed. The EOR processes payroll, withholds taxes, and administers statutory benefits as required by Senegalese law.
• You Manage the Employee's Work. You retain control over your employee's daily tasks and responsibilities.
• Ongoing HR Support. The EOR provides continuous HR support for you and your employee.

Why use an Employer of Record in Senegal

Using an EOR in Senegal offers a practical solution for companies looking to expand into the country. It removes the need to establish a local legal entity, which saves you time and money. An EOR simplifies hiring and ensures you comply with local labor laws, reducing legal risks.

Here are some key benefits of using an EOR in Senegal:

• Avoid Setting Up a Local Company. Hire employees in Senegal without the expense and complexity of establishing a legal entity there.
• Ensure Compliance. EORs have expertise in Senegalese labor law, ensuring that employment contracts, payroll, and benefits are all compliant. This helps you avoid penalties from misclassifying employees or failing to meet tax obligations.
• Simplify Payroll and Taxes. An EOR manages all aspects of payroll and tax administration. This includes calculating and paying the correct social security contributions, which for the employer is 8.4% of the monthly payroll amount up to a certain limit.
• Offer Competitive Benefits. An EOR can help you provide a benefits package that meets local standards and expectations, helping you attract top talent.
• Faster Entry into the Market. You can hire and onboard employees in a fraction of the time it would take to set up your own entity.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Senegal includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Senegal.

Hiring in Senegal requires understanding the local labor laws. The workforce is growing, and there are specific rules you need to follow. This guide breaks down the key areas to help you hire with confidence.

Employment contracts & must-have clauses

You must provide a written employment contract in Senegal. The contract should be in a language the employee understands, like French, which is the official language.

There are two main types of contracts:

• Indefinite-Term Contract (CDI): This is the standard contract for permanent positions.
• Fixed-Term Contract (CDD): You can use this for temporary work, but it cannot exceed two years, including renewals. You are not allowed to use fixed-term contracts for permanent roles.

Your employment contracts must include these essential clauses:

• Parties' Identification: Clearly state the names of the employer and employee.
• Job Details: Include the job title and a description of the duties.
• Start Date: Specify when employment begins.
• Work Location: Note the primary place of work.
• Compensation: Detail the salary, any bonuses, and benefits in West African CFA francs.
• Working Hours: Outline the expected work schedule.
• Probation Period: If applicable, state the duration.
• Leave Entitlement: Mention the paid leave policy.
• Termination Requirements: Include the required notice periods.

Probation periods

You can include a probation period to see if a new hire is a good fit. The maximum duration, including renewals, is six months.

Here are the standard probation periods:

During probation, you can terminate the contract with shorter notice.

Working hours & overtime

The standard workweek in Senegal is 40 hours. This is typically spread over five or six days. Employees are entitled to at least 24 consecutive hours of rest each week.

Overtime is allowed but regulated:

• Limits: Overtime is generally limited to 500 hours per year.
• Pay: Overtime pay is higher than the standard rate. For hours beyond the standard 40, the rate is typically 115% of the normal pay. For work on public holidays or Sundays, the rate increases to 130%.

Public & regional holidays

Your employees are entitled to paid time off for public holidays. Here is a list of national holidays for 2024:

• January 1: New Year's Day
• April 1: Easter Monday
• April 4: Independence Day
• April 10: Korité (Eid al-Fitr)
• May 1: Labour Day
• May 9: Ascension Day
• May 20: Whit Monday
• June 17: Tabaski (Eid al-Adha)
• July 17: Tamkharit (Ashura)
• August 15: Assumption of Mary
• August 23: Grand Magal de Touba
• September 15: Maouloud (Prophet's Birthday)
• November 1: All Saints' Day
• December 25: Christmas Day

Hiring contractors in Senegal

You can hire independent contractors for project-based work. This offers flexibility and access to specialized skills. Contractors are responsible for their own taxes and social contributions.

However, you must be careful not to misclassify an employee as a contractor. Misclassification can lead to serious penalties, including back taxes and fines. The authorities look at the actual working relationship, not just the contract's title, to determine a worker's status.

An Employer of Record (EOR) can help you avoid these risks. An EOR legally hires employees on your behalf, ensuring compliance with local labor laws. They handle contracts, payroll, taxes, and benefits, so you can focus on managing your team's work. This protects you from misclassification risks and simplifies hiring in a new country.

Navigating compensation and payroll in Senegal means understanding a system governed by specific laws and regulations. To pay your team correctly and on time, you need to be familiar with the local rules on everything from payment schedules to tax withholdings. Staying compliant is key to avoiding penalties and building a strong foundation for your operations in the country.

Payroll cycles & wage structure

In Senegal, the payroll cycle is typically monthly. You'll usually pay employees near the end of the month. Bank transfers are the most common payment method.

Beyond the basic salary, compensation packages in Senegal often include other allowances. These can cover costs for transportation, housing, or meals. While not required by law, a 13th-month salary paid at the end of the year is a customary bonus.

Overtime & minimums

The standard work week in Senegal is 40 hours.

Senegal has a national minimum wage. For most sectors, this is set at an hourly rate. The law also defines specific rates for overtime work. Pay for work done at night or on a holiday is higher than the standard overtime rate.

• Daytime Overtime: The first eight hours are paid at 110% of the normal rate, and any additional hours are paid at 135%.
• Night Work: Work between 10 p.m. and 5 a.m. is paid at 150% of the standard rate.
• Sundays and Holidays: Night work on these days is paid at 200% of the basic rate.

Employer taxes and contributions

As an employer in Senegal, you are responsible for contributing to several social security funds on behalf of your employees. These contributions cover family benefits, workplace accidents, and retirement.

Employee taxes and deductions

Employees also contribute to social security and pay income tax. You must withhold these amounts from their salaries.

Here is a breakdown of the progressive income tax rates:

In Senegal, your employee benefits package is a mix of required entitlements and additional perks. The law sets clear minimums for things like paid time off, healthcare contributions, and social security. These rules ensure a basic level of protection and well-being for every employee. Understanding these statutory requirements is the first step to building a compliant and competitive benefits plan for your team in Senegal.

Statutory leave

Here are the legally required leave entitlements for employees in Senegal.

• Annual Leave Employees get 24 working days of paid vacation each year after one year of service. This works out to two days for every month worked. Workers under 18 receive 30 working days.
• Sick Leave You must provide at least five days of paid sick leave annually for employees who have worked for at least six months. A medical certificate is necessary for an employee to claim this leave. For extended illnesses, employees with up to five years of service may be entitled to six months of leave at full pay.
• Maternity Leave Female employees receive 14 weeks of fully paid maternity leave. Senegal's social security system covers the pay during this time. The leave can start six weeks before the due date.
• Paternity Leave Fathers are entitled to one paid day off following the birth of a child.
• Other Leave Employees may also be entitled to paid time off for specific events like their own marriage or a death in the immediate family.

Public holidays & regional holidays

Employees in Senegal are entitled to paid time off for 13 national holidays.

Note: Some holiday dates are tentative as they depend on lunar cycles.

Typical supplemental benefits

To attract and retain talent, you should consider offering benefits beyond the legal minimums.

How an EOR can help with setting up benefits

Navigating a new country's labor laws and benefits expectations can be complex. An Employer of Record (EOR) simplifies this process for you.

An EOR already has a legal entity in Senegal, so you don't need to set one up. We handle all the administrative work. This includes enrolling your employees in the mandatory social security and health insurance programs like the IPM.

We also help you create a competitive benefits package that aligns with local customs and expectations. We can advise on common supplemental benefits, like performance bonuses or meal allowances, to help you attract top talent. Using an EOR ensures you are fully compliant with Senegalese law from day one, saving you time and reducing risk.

When you decide to end a working relationship in Senegal, you need to follow a clear and fair process. It's not just about saying goodbye. You must handle the offboarding process according to local labor laws. This involves providing proper notice, calculating final pay, and ensuring all legal requirements are met to avoid disputes.

Notice Periods

When you terminate an employment contract, you must give the employee a written notice. The length of this notice period depends on the employee's role and how long they've worked for you.

Here are the typical notice periods:

During the notice period, employees are generally allowed two paid days off per week to look for a new job. You can also choose to pay the employee their salary for the notice period instead of having them work.

Severance Pay

In most cases, you will need to pay severance to a terminated employee. This is required unless the employee is terminated for serious misconduct. The amount of severance pay is based on the employee's length of service and their average monthly salary over the last 12 months.

The calculation is a percentage of the average monthly salary for each year of service:

• 1 to 5 years of service: 25% of average monthly salary per year.
• 6 to 10 years of service: 30% of average monthly salary per year.
• 11+ years of service: 40% of average monthly salary per year.

To be eligible for severance pay, an employee usually needs at least one year of continuous service.

How Rivermate Handles Compliant Exits

Navigating terminations and offboarding in a different country can be complex. We make sure every step of the process is compliant with Senegalese labor law.

Here’s how we help:

• Legal Compliance: We ensure that all termination procedures follow local laws, minimizing your risk of legal issues.
• Notice and Severance: We manage the required notice periods and accurately calculate severance pay, ensuring your former employees receive everything they are entitled to.
• Documentation: We handle all the necessary paperwork, including providing the employee with a certificate of employment and a final pay slip.
• Clear Communication: We facilitate clear communication with the departing employee, making sure they understand the terms of their exit.

By handling the complexities of offboarding, we allow you to focus on your business while we ensure a smooth and compliant exit process.

Navigating the visa and work permit process in Senegal requires careful planning. If you intend to work in the country for more than 90 days, you will need both a work permit and a residence permit. The work permit allows you to be legally employed, while the residence permit, or carte d'identité d'étranger, authorizes you to live there. Your employer must start the application process for you.

Employment visas & sponsorship realities

The path to working in Senegal is employer-sponsored. This means your employer in Senegal must initiate and support your work permit application. You cannot apply for one on your own. The company must be legally registered and operating in Senegal.

Generally, the government issues work permits for an initial period of one to two years, and you can renew them.

To apply for a work permit, your employer will typically need to submit the following documents on your behalf:

• A completed application form
• A valid passport
• Your birth certificate
• Recent passport-sized photos
• A signed employment contract
• A medical certificate
• A police clearance certificate from your home country
• Your CV and copies of your professional qualifications
• The employer's business registration documents

Business travel compliance

If you are visiting Senegal for short-term business, you may be able to enter without a prior visa. Many nationalities can get a visa on arrival that is valid for up to 90 days.

This visa is suitable for activities like:

• Attending meetings
• Visiting client sites
• Conducting pre-employment interviews

It is crucial to understand that a visa on arrival does not permit you to work. You cannot convert this visa into a work permit or long-term residence permit from within Senegal. For any stay longer than 90 days or for employment purposes, you must secure the proper long-stay visa and work permit before you start your job.