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Employer of Record (EOR) in Senegal

Employer of Record in Senegal

Skuad’s Senegal EOR (Employer of Record) solution helps your business expand into Senegal without the need for an entity setup. Our unified and automated global HR platform enables you to expedite the onboarding of your remote team, manage their payroll, benefits, etc., with ease. Skuad’s expertise helps ensure the best value for employment in Senegal. In addition, we help you streamline the global expansion process with the able assistance of our international network.


Senegal At A Glance

Population: 15.85 million

Currency: West African CFA Franc (XOF)

Capital city: Dakar

Languages spoken: French, Wolof

GDP: 6.3% (2020)

What You Must Know Before Employing In Senegal

Senegal labor laws apply to both foreign nationals and Senegalese citizens. However, there are some differences in their entitlements. To set up a local entity in Senegal, a company must be aware of all aspects of Senegal’s employment regulations. There are many different rules for employment and setting up a business, and many of these may sound complex and confusing. But, these laws are not much different from employment regulations of other countries. It is advisable to partner with a local payroll provider to minimize or mitigate the challenges of hiring, probation & termination of employees. Local partners should be well aware of the Senegal employment laws for both local as well as foreign workers.

Entitlements Explanation
Statutory Working Hours 40 hours per week.
Overtime Eligibility Senegal labor laws define ‘overtime’ as any additional time worked beyond regular working hours. The overtime is also capped at 100 hours per year. The overtime pay is calculated by multiplying the hourly salary by the following rate:
Employee Type Basic Hourly Rate
Day Hours Overtime is paid at 110% of the employee’s standard hourly rate for the first eight hours and 135% for additional hours.
Night Hours Night work (between 10 p.m. and 5 a.m.) is paid at 150% of the employee’s basic hourly rate or 200% for night work on Sundays or holidays.Night work (between 10 p.m. and 5 a.m.) is paid at 150% of the employee’s basic hourly rate or 200% for night work on Sundays or holidays.
Weekends or public holidays The rate for work during the day on a weekend or holiday is 150% of the employee’s standard hourly rate.
Paid Public Holidays in Mongolia The public holidays in Senegal for 2021 are as follows:
  • New Year’s (1 January)
  • Independence Day (4 April)
  • Easter Monday (5 April)
  • Labor Day (1 May)
  • Ascension Day (13 May)
  • Eid al-Fitr (13 May)
  • Whit Monday (24 May)
  • Tabaski (20 July)
  • Assumption Day (15 August)
  • Ashura (18 August)
  • Magal de Touba (25 September)
  • Prophet Muhammad's Birthday (18 October)
  • All Saints' Day (1 November)
  • Christmas Day (25 December)
Holiday Pay In Senegal, the rate for work during holidays is 150% of the employee’s regular hourly rate.
Medical Leave Employees are entitled to a minimum of five paid sick days per year.
Maternity Leave Women employees get 14 weeks of paid maternity leave, of which eight weeks can be taken after the birth. In Senegal, male employees are entitled to one day of paternity leave if they are covered by the inter-professional collective agreement.
Annual Leave Accrual Entitlement In Senegal, employees are entitled to 24 days of annual leave, accrued at a rate of two days per month. Female employees with children under 14 years receive one additional day of leave each year. Additional annual leaves are calculated based on the length of service and other agreements.
Leave Expiry According to Senegal Labour Laws, it is mandatory for employees to take a minimum of six days of leave per year. They can carry the remaining holidays forward for up to three years.
Leave Cash Out It is illegal to provide compensation in lieu of annual leave.
Accrued Leave At Termination The remaining leaves can be accrued at the time of termination of employment in Senegal.
Employee Protection and Anti-discrimination Rights The Senegal Labor Code has provisions for equal pay for men and women for work of equal value. Pay inequality based on race, color, sex, religion, political opinion, national extraction/place of birth or social origin is also forbidden.
Confidentiality of Personal Information

Senegal’s Data Protection Law 2020 states the following about confidentiality of personal information:

  • Personal data must be processed lawfully and fairly.
  • Personal data must not be retained for longer than is necessary for the purposes they are collected.

Employee monitoring is allowed for employee and asset security. A CCTV system cannot be used for the sole purpose of employee monitoring.

Employers can access an employee's private emails only if justified by the protection of superior interest and in the presence of a bailiff or the employee.

With Skuad's innovative EOR solution, the HR functions of your organization can be addressed efficiently. Skuad’s unified employment platform enables your organizations to remain 100% compliant with the Senegalese employment laws. Speak to Skuad’s experts today here.

Contractors vs. Full-Time Employees

Employers in Senegal can hire both contract workers and full-time employees. The requirements for both depend on the job roles, responsibilities, and the project.

Contractor positions are open for indefinite terms, and the individuals hired in this role are expected to work on a certain project and deliver the same within the given time. Fixed-term contracts are either for a specified length of time, generally two years, or as long as it takes to complete the specified task.

In comparison, full-time employees are hired to deliver continuous projects and are expected to transition from one role to another during a given time. The role of full-time employees doesn't end upon the completion of the task. Unlike contractual employees, who get a fixed sum for a project, full-time employees get monthly salaries.

Full-time employees generally cost the company more than contractors.

Hiring In Senegal

If you are looking to hire an employee in Senegal, it is important to first finalize your requirements. You can choose to onboard contractual or full-time employees based on these requirements. Also, plan out if you want to do it yourself or through hiring companies in Senegal.

Senegal requires a written employment contract that can be indefinite or fixed depending on the project type. Since Senegal also has a provision for fixed employment contracts for up to 24 months, many job seekers choose this option. Contract renewal is also an option for the employee and the contractor. One must also note that foreign nationals need a work permit to start working. It can take up to four weeks for an employee to receive a work permit application as it comes under a business visa.

Most job seekers and employers visit job portals such as Yaloa.com, JobboardFinder.com or Expat.com to find jobs and candidates in Senegal. The advantage of these portals is that there are thousands of applicants to choose from, based on what suits your company’s requirements. On the downside, the turnaround time and competition can be very high due to the presence of a large number of high-value candidates.

Skuad ensures that you employ your desired candidates with ease without going through the time-consuming and strenuous conventional recruitment process. Skuad's progressive tech platform enables organizations to hire and onboard their choice employees within the ambit of Senegalese employment laws. Book a demo here.

Probation & Termination

The standard probation period in Senegal lasts for three months for executives and one month for non-executives. The employee becomes eligible for benefits and entitlements upon the completion of this probation period.

Topic Explanation
Notice For Termination Of Employment The employees can give 15 days’ written notice to terminate a contract. Employers may terminate employees with written notice in the following cases:
Employee Role Notice Period
Executives Three months’ notice
Monthly paid white-collar workers, blue-collar workers and permanent hourly, daily, or weekly paid staff Eight days to one month

EOR Solution In Senegal

Senegal Employer of Record (Senegal EOR) solution makes it easier and faster for businesses to expand into Senegal. An Employer of Record company streamlines the processing of payroll and other employment responsibilities without any entity establishment. Skuad can help you manage monthly payroll, contracts, work permits, taxation, etc., in Senegal for your employees. Skuad’s EOR solution makes staff management easier and more cost-efficient.

General Employer of Record Service Terms

Taxes that apply to invoices 18% GST
Minimum duration of service 3 months
Currency Accepted West African CFA Franc
Required Details and Documents

For Senegalese citizens: Personal information, copy of passport, bank details, job description.

For expatriates: Application form addressed to the Ministry of Interior, birth certificate, recent passport photos, passport, recent medical certificate, certificate of police clearance in the applicant’s country obtained within the last three months, employment contract, proof that the prospective employer is registered in Senegal.

Outsourcing Employment Through An Employer of Record

When you decide to expand into Senegal as an organization, you also need to decide the strategy for doing so. This strategy is important for both routes, whether you build an in-house team or take the services of an EOR to manage payroll and employee lifecycle.

Types Of Visas In Senegal

Visa Category Explanation
Business Visa This visa is required for the following activities in Senegal:
  • Attending business meetings
  • Attended business-related conferences
  • Client meetings
  • Trade exhibitions
E.U. residents and members from the Economic Community of West African States (ECOWAS) are exempt from business visa requirements.
Criteria To Get A Business Visa in Senegal Business visitors have to submit an invitation from the company with the following details:
  • Signature of authority along with the designation, name of the company and the stamp.
  • Local contact details.
  • Details about the purpose of travel.
  • The letter should be addressed to the respective diplomatic mission.
  • All nationals should produce a confirmed return ticket.
Senegal Work Visa There are multiple visas that allow work permits in Senegal. The most common work permits in Senegal are:
  • Local hire work permits
  • Assignment work permits
All types of work visas depend on the job conditions with the role, nature of the contract, and the work duration. A standard work permit will allow you to live and work in Senegal for more than 90 days.
Senegal work visa requirements Applicants need to get in touch with Senegal’s Ministry of Interior to get their work permit made. Some of the documents required for the procedure include:
  • An application addressed to the Ministry of Interior
  • Valid passport
  • Employment contract
  • Proof that the prospective employer is registered in Senegal
  • Police clearance certificate from your country.

Work Permits In Senegal

As an Employer of Record in Senegal, Skuad takes care of all the requirements and responsibilities related to employment. Skuad’s local partner in Senegal can sponsor work permits for foreign workers. Skuad’s advanced HR platform allows clients to manage their employees’ daily activities and keep tabs on various operational details remotely. Learn more about our payroll services here.

Work Permits Explanation
Can Skuad Sponsor Work Permits in Senegal? Yes
Processing Time 15 days
Work Permit Process

Step 1: Skuad’s local partner in Senegal applies for the work permit.

Step 2: Senegal’s Ministry of Interior approves the letter within due time.

Step 3: The worker enters Senegal with the work permit.

Step 4: The worker collects the work permit that allows them to start their professional life in Senegal.

Step 5: The employee submits the necessary details to their employer for office access.

Step 6: They start their regular day

Passport Submission The employee’s original passport is provided with a letter of request at the Senegal Ministry of Interior. It is mandatory for the passport to have more than 6 months of validity; otherwise, the letter will be rejected.
Work Permit Validity The work permit is valid for 2 years. The employee can choose to renew it after this period.
Work Permit Process for Different Countries Senegal's work permit for foreigners follows the same process as with most other countries. Minor variations in the processes and documentation may occur.
Change of Sponsor Within Senegal Employees will have to apply for a new permit if they change their job in Senegal [5].
Where is the application processed? The application may be processed in Senegal or in the applicant's home country.
Work Permit Restrictions The work permit may be rejected if the employment is not confirmed by the employer. The application is also rejected if the passport is not valid after six months. The permit can also be rejected on the grounds of the health and character of the applicant
When Can Employee Travel to Senegal The employee can travel to Senegal once their work permit is approved by the Ministry of Interior.
What’s The Cost Of Business Visa Single entry up to 90 days - $70
Duration Of Business Visa Processing Business visa processing takes 10-15 business days.
Switch Business Visa to Work Permit? Depends on special circumstances. Approvals can take 4 weeks.
Can Spouses Work On Dependent Visas? Spouses cannot work on dependent visas. They’ll have to apply for work permits from the Ministry of Interior and wait for the approvals. Their employers can also get the permits via an Employer of Record in Senegal who can streamline the entire process.
Special Requirements for Work Permit Cancellation The employer or the appointed employment agent can cancel the work permit.

Things You Must Know To Set Up Payroll In Senegal

Before setting up payroll and managing your taxes in Senegal, you must have a thorough knowledge of the laws and important rules. These rules may vary depending on multiple factors. Senegal’s Ministry of Interior is very strict about the application procedure, hence it is important to ensure that all the necessary details are in place.

The most important factor that will shape the success of your business establishment in Senegal is the workforce. You should decide if you want to employ foreign professionals or locals. Apart from this, having knowledge of Senegal’s tax rules is also essential for a foreign company, such as income tax, corporate tax, value-added tax, custom duties or import tariffs, excise taxes, real estate taxes, etc.

There are two ways to safely conduct a business in Senegal - a) Set up an in-house team to manage the payroll in Senegal, or b) outsource these services from a local payroll specialist.

Local payroll specialists or Employers of Record in Senegal help simplify these processes by making sure that you conduct your business in accordance with the rules and regulations prescribed by the Senegalese law. Allowing Skuad’s EOR solution to manage payroll is a cost-efficient method to start your operations on foreign land as it affords the organization time to focus on their core business activities.

Tax on residents in Senegal

An individual with permanent residence in Senegal will be considered a resident for tax purposes. Residential permits are issued for six months and can be extended depending on the length of the work permit. An individual can also gain permanent citizenship if they are living in the country for more than 183 days over any 365-day period.

Taxable Income Exempt Income
Taxable income includes all sources of income like wages, salaries, commercial/non-commercial activities, income from agricultural activities, etc. Income in kind and donation can come under taxable income depending on the permission and circumstances. Diplomats and foreign consular agents are exempted from taxes while working in Senegal under the condition that their country provides a similar exemption.

Payroll & Taxes in Senegal

Taxable income in West African Franc (CFA) Percentage
Up to 630,000 0%
630,001 – 1,500,000 20%
1,500,001 – 4,000,000 30%
4,000,001 – 8,000,000 35%
8,000,001 – 13,500,000 37%
13,500,000 40%
Tax Returns Yes
Financial Year End Date 31 December
Corporate Tax Corporate tax in Senegal is at 30%. This corporate tax is based on the net income made by the company during the given financial year. In the case of deficit exercise, the corporate tax is substituted for Minimum Flat Tax (MFIs).
Withholding Tax (For Non-Residents) Senegal has various Withholding Taxes. The most common ones are:
Services rendered by a foreign entity (individual or a company). 20% WHT
Services rendered by a resident individual who is liable for tax under lump-sum taxation. It is also valid for resident companies on whom CIT is not applied. 5% WHT
Dividends distributed. 10% WHT
Bond Interest. 13% WHT
Deposits or guaranteed interest on bank accounts. 8% WHT
Revenues from interest on loans. 16% WHT
Payroll Tax Senegal’s payroll tax rate is 3% of the taxable gross salary.
Sales Tax Sales tax in Senegal is calculated at a rate of 18%
Employers Social Security and Statutory Contributions Senegal’s Social Security Tax rate is 24% . The annual ceiling for contributions is set at XOF 756,000. Employers have to contribute to the National Retirement Fund at a rate of 60%.
Employees Social Security and Statutory Contributions Employees have to contribute to the National Retirement Fund at a rate of 40%.
Reimbursements Reimbursements are claimable if the employee has scanned copies of all the receipts from the given month.
Public Pension Citizens (aged 55 to 60) of Senegal are entitled to pensions.
Medical Insurance
  • Citizens of Senegal have access to medical insurance through The Social Security Fund of Senegal, but it does not support healthcare needs outside of employment.
  • Companies generally provide employee health benefits in Senegal through their preferred insurance provider. Spouses and children of the employees are also covered.
  • Citizens aged above 60 years and children under the age of 5 are entitled to receive free healthcare through a public medical assistance scheme.

Setting up payroll and taxes in Senegal requires in-depth knowledge of the local policies and regulations, which brings several risks and challenges. Choosing Skuad for payroll outsourcing in Senegal can ease your resources and make the entire process straightforward and legally compliant. Learn more about our payroll services here.

Incorporation: How to Set Up A Subsidiary In Senegal

Companies that take advantage of business opportunities in Senegal will have to make sure that all the important factors are taken care of. These factors range from the budget to the office location to the number of staff and more. Before starting this process, you need to create a checklist that will help you keep a check on every important factor. In addition, different regions of Senegal have different rules and regulations, so we advise you to research these places and fix an office location on priority.

After this, you can start the process of creating an LLC in Senegal. The following documents are required for the process [11]:

  • A copy of your criminal record not older than three months issued in your home country.
  • Photocopies of your company partners’ identity card.
  • National identity cards or passports of all shareholders.
  • Information sheet with details about the corporate name, head office, share ownership, contributions, etc.
  • Similar information sheet revealing all the details of shareholders.

You’ll also have to pay a registration fee of 25,000 CFA Francs and deposit your share capital.

After this, you can start the process of expansion and begin the hiring process through the Employer of Record service.

Connect with a Skuad representative to learn more.

PEO

A Professional Employer Organization (PEO) takes over all your HR-related functions but keeps you as the sole owner of the employment contracts. A PEO, while streamlined, has less transparency as you cannot keep a real-time check on employee records, hiring, salary and other tasks. A PEO also doesn’t see overseas workers and contractors.

At the same time, an Employer of Record or EOR solution will allow you to outsource your HR work but also keep a tab on all the operations through their dashboard. With an EOR, you can also keep a balance between contractors vs. full-time employees.

In the modern professional world, more corporations planning to expand in another country choose EOR solutions because they are cost-effective and take care of all the paperwork and official processes.

Skuad holds long-term experience as an Employer of Record in Senegal. Skuad’s team of experts ensures that your operations are handled efficiently. Moreover, Skuad’s dashboard is also a personalized tool for employers through which they can keep a real-time check on employment contracts in Senegal.

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