Employer Of Record In The Republic Of Mali

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Introduction

Skuad’s EOR Mali (Employer of Record Mali) helps your business expand into Mali without the need for an entity setup. Skuad’s unified and automated global HR platform enables you to hire employees in Mali, tend to the business opportunities in Mali, and manage employees’ payroll, benefits, etc., compliantly, thereby helping you streamline the global expansion process.

Mali At A Glance

Mali is a landlocked West African country, bordering 8 others. It is the eighth-largest country on the continent. 

Population: 19.1 Million

Currency: West African CFA franc (XOF)

Capital city: Bamako

Languages spoken: French (official Language), Bambara (spoken by at least 80% of the population)

Total GDP (PPP): $44.329 billion (2018)

Total GDP (nominal): $17.407 (2018)

Time zone: UTC GMT

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Employment In The Republic Of Mali

Mali employment laws apply to both foreign nationals and citizens. However, there are some differences in the entitlements. Therefore, to minimize the challenges that may arise for companies looking to set up a local office, it is advisable to partner with a local payroll provider who is well aware of the Mali laws for both local and foreign workers.

Entitlement Explanation
Statutory Work Hours No work hours limit for the general category.
General 40 hours per week (no particular limit for roles like managerial and medical workers with inconsistent work hours).
Women and children under 18. At least 12 hours of rest between consecutive workdays.
Domestic Work Working hours are divided between 7 AM to 9 PM. Details must be mentioned in the employment contract.
Overtime Eligibility
For loss prevention (paid at the normal rate) Up to 2 hours per day
For production increase/maintenance Up to 18 hours per week
Emergency Up to 75 hours per year
In agricultural Enterprises Total work hours must not exceed 48 hours per week.
Mechanics and electricians responsible for heavyweight machinery 1.5 hours a day
Specialized team leader 1.5 hours a day
Security and surveillance staff 4 hours a day (working hours must not exceed 56 hours per week)
Pay:
Bonus Day Shift Night Shift
Working Day 10% (41-48 hours)
25% (48 hours+)
50%
Non-Working Day 50% 100%
Paid Public Holidays
New Year’s Day January 1
Army Day January 20
Martyr’s Day March 26
Easter April 5
Labour Day May 1
Eid Al Fitr May 13
Africa Day May 25
Eid Al Adha July 20
Independence Day September 22
Prophet’s Birthday October 19 (Estimated)
Baptism of Prophet October 26
Christmas Day December 25
Medical Leave The labor law in Mali mandates employee health benefits for insured entities. In addition, employees in Mali are entitled to sick leaves (medical certificate required).
Additional 10 days of paid leave can be availed annually for unfortunate events such as serious illness, fatal accident or funeral of a family member or immediate blood relative.
Maternity Leave Female employees can avail of fourteen weeks of maternity leave, six weeks before, and the rest after the delivery, provided they have completed at least 9 months of service. This is extendable by 3 weeks in case of medical complications.
The mandatory social security in Mali funds for maternity benefits also.
Paid paternity leave of 3 days can be taken within 15 days after childbirth.
Holiday Pay And Annual Leave Accrual Entitlement Annual leave is calculated at 2.5 days of paid leave for every accrued work month. So for a calendar year, this comes to around 30 days of paid leaves.
  • Employees younger than 18 years of age - 24 days of annual paid leave
  • Employees 18-21 years of age - 21 days of annual paid leave
Additionally,
  • Employees serving for 15 years - 2 additional vacation leaves annually
  • Employees serving for 20 years - 4 additional vacation leaves annually
  • Employees serving for 25 years - 6 additional vacation leaves annually
Employee Protection and Anti-discrimination Rights Strict implementation of the following laws ensure anti-discrimination rights and employee protection:
  • Ban on discrimination based on gender
  • Equal opportunities in the choice of field of work / professional affiliation
  • Equality in terms of payment
  • Guarantee of equality during mass dismissals of employees
  • Ban on sexual harassment
  • Basic employee rights related to Employment Agreements
  • Basic employee obligations relating to Employment Contracts
  • Prohibition of Forced Labour
Confidentiality of Personal Information The personal data of employees (and all the legal residents of Mali) is maintained by the Regulatory Authority, which is obliged to assure the confidentiality of the personal data obtained and maintain the state registry of information systems of personal data. The Data Protection Law permits the authority to share some data with third-party agencies with the intent to provide better services. No personal data, including contact addresses, are shared.

Contractors vs. Full-Time Employees

While hiring employees on a contract basis seems like a logical and cost-effective way to proceed with the expansion of your business, Malian laws are strict and complex in this respect. Thus, it is more beneficial to hire full-time employees. Of course, your company would have to provide employee health benefits, travel allowances, and some other benefits. Still, it is less risky and would pay off in the long run, and it is better than paying fines annually.

Hiring protocols differ marginally when hiring foreign nationals. However, as opposed to Malian residents, employment of foreign employees without individual work permits attracts hefty penalties. In addition, both the foreigners and residents of Mali need an indefinite or a fixed-term employment contract in writing.

The process of hiring both types of employees can be long-drawn due to the legal hassles, bureaucratic, and administrative processes involved. An EOR like Skuad can make a crucial difference to your hiring and talent recruitment process in Mali.

Hiring In Mali

For arranging a meeting to hire employees in Mali, you need to send a letter to the concerned party outlining your company's background, its history, and a request for a meeting, as well as details of what you’ll cover. A minimum of two copies of the contract is required, and both copies need to be signed or sealed by both the employer and the employee. The hiring companies in Mali must include the following in the employment contract:

  • Name and address of the employee and employer
  • Position and place of work
  • Employment contract period
  • Work duration and breaks
  • Employees’ duty
  • Compensation
  • Insurance provided by the employer.

Probation & Termination

Probation period

The standard probation period in Mali can last up to 6 months.  The probation period is generally equal to the notice period of service termination. The pay scale in the probation period is the same as that of a permanent position of equal stature.

Termination of employment in Mali

In general, termination of an employment contract in Mali is strict and must be carried out with utmost compliance with the rules and procedures. Mali labor laws regarding termination of employment are mostly in favor of the employee, and any misstep can have major consequences for the employer. In case the employer terminates a fixed-term contract, the employee is eligible for compensation.

In adherence to the employment contract law in Mali, an employment agreement in Mali may be terminated for the following reasons:

  • expiration of the fixed term
  • change of employment conditions
  • the inability of the employee to perform the work
  • staff reduction or downsizing
  • failure to complete the probationary period in Mali
  • reaching pensionable age
  • any other grounds as laid out in the employment agreement contract.

EOR Solution In Mali

There are two ways to expand into Mali; either build an in-house team or take the services of an EOR to manage payroll and employee lifecycle.

Working with an Employer of Record solution in Mali makes it quick and easy for businesses to expand into Mali. Skuad’s Mali EOR solution can help you manage monthly payroll, contracts, work permits, taxation, etc., in Mali for your employees. Book a demo with Skuad here to learn more.

Types of Visas in Mali

Here are some of the types of work visas and work permits required to take up employment in Mali:

The documents required for obtaining a work visa in Mali:

  • Two duly filled and signed visa applications forms
  • A passport valid for at least six months after the planned departure from Mali
  • Two recent passport-size photos
  • Business cover letter 
  • Certificate of yellow fever vaccine
  • Flight itinerary
  • Your company's registration certificate and the most recent income tax filing.

Work Permit

Skuad’s local partner in Mali can sponsor foreign workers for work permits. As an EOR in Mali, Skuad takes care of all the requirements and responsibilities related to

employment. On Skuad’s HR platform, the client company can manage their employees’ daily activities and operations.

Topic Explanation
Can Skuad Sponsor Work Permit in Mali Yes, Skuad can do that.
Processing time 2 weeks.
Working visa permit process
  • Step 1: Skuad’s local partner in Mali applies for the Employment Pass.
  • Step 2: The Ministry of Manpower gives an in-principle approval (IPA) letter.
  • Step 3: The worker enters Mali with the IPA letter.
  • Step 4: The worker is provided with a letter that permits them to start work and travel to Mali.
  • Step 5: The employee submits his biometrics at the Employment Pass Services Centre.
  • Step 6: The employee gets his pass card.
Passport submission The employee's original passport is presented during their appointment with the Ministry of Manpower.
Work Permit Validity The Employment Pass is valid for 1 year. The employee can get it renewed after 1 year.
Work Permit Process for Different Countries For most, the process to obtain a work permit for foreigners is the same. However, there are some exceptions for citizens of some countries, such as China.
Change of Sponsor Within Mali The employee needs to submit a new application for a change of sponsor.
Where is the application processed? The application may be processed in either Mali or the employee’s home country.
Duration of business visa processing 5-10 days.
Switch Business Visa to Work Permit? No
Can spouses work on a dependent visa? The spouse of the employee, who has obtained the work permit, cannot work on a dependent's visa. They must apply for a Letter of Consent to work in Mali.
Termination of Work Permit The work permit should be canceled within a week of the last day of employment termination.
Special Requirements for Work Permit Cancellation The employer or appointed employment agent must cancel the work permit.

Setting up payroll and taxes in Mali requires thorough knowledge of the local policies and regulations, which come with several risks and liabilities. Choosing Skuad for payroll outsourcing in Mali can ease your resources and make the entire process straightforward and legally compliant. Learn more about our payroll services here.

Payroll & Taxes in Mali

As a foreign company, it is important to adhere to the Mali payroll tax rates. For this, it is important to first decide whether you wish to hire locals or foreigners.

Tax Explanation
Corporate Tax The corporate tax rate is applicable at 35%.
Holding companies are not required to pay corporate tax in Mali.
Tax Returns The tax returns must be filed before 30th April of the following year.
Withholding Tax The Withholding Tax rate is 10%.
Provisional Tax Provisional tax needs to be paid before 30th March, 31st July, and 30th November and is determined by 35% of the tax liability of the previous year.
Value Added Tax VAT is levied at 18% on goods and services. The VAT registration number must be obtained within 30 days of incorporation of a subsidiary.
Payroll Tax Payroll tax is levied at 3.5% on the gross salary of every employee.
Social Security Tax For Employees - 3.6% of pre-tax salary.
For Employers - 35% of employee’s gross salary.
Property Tax Property tax is applicable at 3% of the property's total value.
Interim Tax Generally, the interim tax levied is not more than 3%, but if a company has no Tax Identification Number (TIN), it can be levied at a rate of up to 5%.

Choosing Skuad for payroll outsourcing in Mali can ease your resources and make the entire process straightforward and legally compliant. Learn more about our payroll services here.

Incorporation

The process of incorporation of a company in Mali varies depending upon the type of company that you need to set up. Most small to medium-sized businesses take the LLC route (Limited Liability Company) as it enjoys the most freedom when it comes to actions that can be taken as a business in Mali. 

The following steps must be followed to set up a subsidiary in Mali as an LLC:

  • Obtain the investment approval
  • Deposit the startup capital in a local bank
  • Sign an affidavit as proof of no criminal record
  • Notarize the bylaws and pay the registration fees at the notary
  • Purchase legal stamps
  • Fill the applications for taxes, Tribunal de Commerce, and Statistical Office.
  • Submit the proof of payment

Depending upon your company’s needs and intent, you can also opt to register as a PLC (Public Limited Company), Branch Office, or Representative Office.

Incorporating a holding company in Mali takes approximately 11 days, and there are seven procedures to be followed. The parent company is required to provide an apostille or notarized/translated copy of the incorporation document and the charter of the parent company abroad. Skuad’s formation agents can supervise the creation of a subsidiary in Mali in 2021.

Here is a table that compares the four types of companies across different aspects:

LLC PLC Branch Office Rep Office
Alias in Mali SARL SA Succursale Bureau de representation
Time required to set up 4 weeks 6 weeks 6 weeks 4 weeks
Time required to open a bank account in Mali 4 weeks 4 weeks 4 weeks 4 weeks
Legal Liability Limited Limited Unlimited Unlimited
Entirely foreign-owned? Yes Yes Yes Yes
Recommended Corporate Bank Account Banque Atlantique Mali EcoBank Bank Of Africa EcoBank
Corporate rate tax 35% 35% 35% N/A
Allowed to sign contracts Yes Yes Yes No
Allowed to import and export goods Yes Yes Yes No
Can rent an office in Mali Yes Yes Yes Yes
Can buy property in Mali Yes Yes Yes No
Total Business Set Up cost for 1 year USD 20,050 USD 20,050 USD 21,250 USD 21,300
Subsequent Annual Cost USD 7000 USD 9000 USD 8400 USD 9000

However, incorporating a holding company in Mali means that you need to thoroughly understand the nitty-gritty of the incorporation process. The best way is to work with Skuad’s EOR solution to avoid incorporating a holding company in Mali and yet hire the best local talent here for your Malian business.

Skuad’s expert agents can walk you through all these procedures and answer all your queries regarding the incorporation of subsidiaries in Mali. Register here to schedule a meeting with the experts.

Professional Employer Organization (PEO)

A Professional Employment Organization (PEO) is like an outsourced HR department. When a medium to small-sized company collaborates with a PEO, it continues with its usual mode of operations while the PEO handles the HR-related operations. Moreover, the HR documents and employee checks will display the PEO’s name instead of the company’s name.

Benefits:

  • Managing employee benefits, including academic, medical, and dental
  • Payroll processing and record maintenance
  • Managing the workers’ compensation
  • Employee training and development
  • Recruitment and hiring
  • Management of HR costs, planning, and advertisement costs for hiring in Mali.

Drawbacks:

  • Loss of control
  • Unexpected changes
  • Cash flow disturbance
  • The potential risk of penalties

Skuad primarily offers EOR services. Skuad EOR solutions enables seamless business expansion into Mali and facilitates employment for organizations. Book a demo here.

Conclusion

You can choose either one of the above services, depending on your requirements. Discuss with Skuad’s legal assistants and experts regarding your needs and expectations. Visit Skuad today and talk to an expert to understand how you can expand your business in Mali.

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