Introduction
This document aims to provide a comprehensive understanding of salary calculations, any account balance, and salary report preparation for an employee in Senegal. It is intended for Pay Managers and Directors of Human Resources (HRD) to enable them to effectively manage payroll and employee departure processes.
- Calculation of the Salary
The salary in Senegal is composed of several elements, including basic salary, allowances, bonuses, benefits in kind, and deductions. Here is a detailed overview of the key elements:
1.1. Base Salary and Excess Salary
The basic salary is the amount fixed by the employment contract or by the applicable collective agreements. This amount must respect the interprofessional minimum wage (SMIG) set by decree. Overpayment is an additional salary negotiated between the employee and the employer.
Legal references:
- Decree setting the SMIG: Decree no. 2020-1567 of 7 December 2020
- Senegalese Labour Code, Articles L.122 et seq.
1.2. Allowances
Allowances may include compensation for specific working conditions, transport allowances, seniority bonuses, etc. They are generally negotiated and fixed by collective agreements or the employment contract.
Legal references:
- Senegalese Labour Code, Articles L.141 et seq.
1.3. Premiums
Bonuses can be linked to performance, goals achieved, or specific events (13th month, earnings bonuses, etc.). They are often provided for by collective agreements or the employment contract.
Legal references:
- Senegalese Labour Code, Articles L.144 et seq.
1.4. Benefits in Kind
Benefits in kind are goods or services provided by the employer to the employee such as housing, vehicle, food, etc. Their value must be added to the gross salary and is subject to social security contributions and taxes.
Legal references:
- Senegalese Labour Code, Articles L.147 et seq.
1.5. Overtime
Overtime is the hours worked beyond the statutory working time. The legal duration is 40 hours per week. Overtime must be paid with an increase.
Rate of increase:
- 15% for the first 8 hours of overtime.
- 40% for subsequent hours.
- 60% for hours worked at night, on Sundays or on public holidays.
Legal references:
- Senegalese Labour Code, Articles L.136 et seq.
- Taxes and Social Contributions
2.1. Income Tax (IR)
Income tax is calculated on the basis of gross salary after deduction of social contributions. Tax brackets and rates are set by the finance law.
Legal references:
- General Tax Code (CGI), Articles 118 et seq.
- General Tax Code (CGI), Article 164 et seq.
2.2. Social contributions
Social security contributions include contributions to the Pension Institute of Senegal (IPRES), the Social Security Fund (CSS), the Flat Minimum Tax Replacement Tax (TRIMF), and the Flat Rate Contribution to the Employers (CFCE).
- Pension Institute of Senegal (IPRES)
IPRES covers retirement benefits for employees. The contribution is shared between the employer and the employee according to a rate fixed by decree. Contributions also depend on the call-in rate for contributions, which since April 1994 has been 14% of the general scheme and 6% of the supplementary scheme for managers, on the basis of:
- 60% for the employer share;
- and 40% for the employee share.
Since January 1, 2017, the maximum salary subject to the contribution is as follows:
General scheme
- Monthly cap increases from 300,000 to 360,000 CFA francs
- Annual cap increased from 3,468,000 to 4,320,000 CFA francs
Framework Supplementary Scheme
- Monthly cap increased from 900,000 to 1,080,000FCFA
- Annual ceiling increased from 10,404,000 to 12,960 000FCFA
Contribution Rate:
- Salary share: 5.6% of gross salary in the General Scheme and 2.4% in the Executive Scheme.
- Employer share: 8.4% of gross salary in the General Scheme and 3.6% in the Executive Scheme.
Legal references:
- Decree No. 67-1281 of 19 December 1967.
- Social Security Fund (CSS)
The CSS covers family benefits, accidents at work and occupational diseases. Contributions are also shared between the employer and the employee.
- Contribution for family benefits at the rate of 7% on a maximum base of 63,000 FCFA payable by the employer
- Contributions for Employment Injuries and Occupational Diseases at rates of 1%, 3% or 5%, depending on risks incurred on a maximum base of 63,000 FCFA
Legal references:
- Decree No. 69-082 of 5 February 1969.
- Flat Minimum Tax Replacement Tax (TRIMF)
The TRIMF is a tax paid by the employer and applies to all salaried employees exempt from income tax.
Fee Schedule:
|
Salary base less than 49,999 FCFA |
0 |
|
Salary base between 83,333 FCFA and 166,665 FCFA |
400 FCFA |
|
Salary base between 165,666 FCFA and 583,332 FCFA |
500 FCFA (1000 FCFA if annual) |
|
Salary base between 583,333 FCFA and 999,999 FCFA |
1.500 FCFA |
|
Salary base above 1.000.000 FCFA |
3,000 FCFA |
Legal references:
- Finance Law No. 2013-10 of 28 December 2012.
- Lump Sum Employer Contribution (CFCE)
The CFCE is a contribution paid by employers and calculated on the payroll.
Contribution rate: 3% of total payroll.
Legal references:
- Law no. 2004-06 of 6 February 2004.
- Calculating the Balance of Any Account
The balance of any account is a document that summarizes all the sums due to the employee upon termination of the employment contract. It must include:
3.1. Gross Salary of the Last Month: The gross salary of the employee’s departure month, including the allowances and premiums due.
3.2. Paid Leave Allowances: The balance of paid leave not taken by the employee.
3.3. Termination Benefits: Depending on the reason for the termination of the contract (termination, resignation, etc.), benefits may be due. These allowances are calculated on the basis of seniority and base salary.
Legal references:
- Senegalese Labour Code, Articles L.48 et seq.
3.4. Bonuses and Gratuities: All bonuses and gratuities due but not paid on the date of departure.
3.5. Benefits in Kind: Value of benefits in kind for the current month.
3.6. Overtime balance: Payment of overtime worked but not yet paid.
- Legal Procedures
4.1. Notification and Deadlines: The employer must notify the employee of the breach of the contract within the notice periods set out in the Labour Code or collective agreements.
Legal references:
- Senegalese Labour Code, Articles L.39 et seq.
4.2. Remittance of the Balance of Any Account: The balance of any account must be remitted to the employee at the end of the employment contract. The employee may sign a receipt for the balance of any account that reflects the payments made.
Legal references:
- Senegalese Labour Code, Articles L.52 et seq.
4.3. Dispute: The employee has three years to dispute the balance of any account in case of disagreement.
Legal references:
- Senegalese Labour Code, Articles L.53 et seq.
- Preparation of the Pay Slip
The pay slip must include a number of mandatory information to comply with Senegalese legislation.
5.1. General Information
- Name and address of employer
- Name and address of the employee
- Pay period
- Employee’s position and seniority
5.2. Compensation Details
- Basic salary, excess salary, overtime wages
- Allowances, premiums and benefits in kind
- Amount of social contributions (IPRES, CSS, TRIMF, CFCE)
- Amount of income tax
- Net salary payable
- Various deductions from salary
- Employers' Expenses and their Method of Calculation
Employer charges include all contributions that the employer must pay on behalf of its employees. This includes contributions to IPRES, CSS, TRIMF, and CFCE.
- IPRES: See above
- CSS: See above
- TRIMF: See above
- CFCE: The employer must pay 3% of the total payroll.
Conclusion
Managing the salary and balance of any account in Senegal requires a good knowledge of the applicable legal and contractual provisions. A well-trained HRD must ensure that all payments are made correctly and in a timely manner to avoid litigation. The information provided in this document is essential, even if it is provided for information purposes, to ensure the efficient and proper management of employees' salaries and departures.
