Providing the right compensation and benefits to new employees is a great way to build a strong employment relationship and encourage higher retention rates. However, learning Senegal’s compensation laws while running your company can be challenging. Here are a few useful guidelines to get you started.
Senegal compensation laws
Senegal has a national minimum wage companies must meet to comply with the country’s compensation laws. General workers must receive at least CFA 209.10 per hour, while agricultural workers are entitled to at least CFA 182.95 per hour.
Collective Bargaining Agreements (CBAs) can also impact compensation in Senegal. While not very common, some CBAs outline the minimum wage for specific industries. Always check if employees are covered under a CBA.
Guaranteed benefits in Senegal
Your Senegal benefits management plan must include certain guaranteed benefits required by law. For example, employees are entitled to time off for the country’s 13 national holidays. Most employees are also entitled to 24 days of paid annual leave, and a minimum of 5 paid sick days each year.
Although private health insurance is available, employers must enroll all employees in the Institut de Prévoyance Maladie (IPM) health fund. This fund covers 40-80% of an employee’s medical, pharmaceutical, and hospital costs. Employers must also give employees a hospital allowance that covers any hospitalization costs, which the employee pays back.
Senegal benefits management
Fringe benefits are an important aspect of every benefits management plan. Many Senegal employers choose to give out performance-based, annual, and 13th-month bonuses throughout the year. You should include information about these bonuses in the employment contract before hiring employees in Senegal.
If you’re not sure what supplemental benefits to offer, try researching similar companies in your industry. You can also poll employees to see what benefits mean the most to them.
Restrictions for benefits and compensation
The biggest restriction for Senegal benefits and compensation is incorporation. Companies must establish a subsidiary before hiring employees and offering benefits and compensation. By partnering with G-P, we take this step out of the equation. We have subsidiaries all around the world to help you start working in a new country faster. With us, you won’t have to set up a subsidiary or worry about staying compliant with Senegal’s benefits and compensation laws.
Partner with G-P to build your everywhere workforce.
As your partner in global expansion, G-P will handle payroll and compliance, so you can focus on growing your team and scaling your business. Our market-leading Global Growth Platform™ is powered by the first fully customizable suite of global employment products and backed by the industry’s largest team of in-country HR and legal experts to streamline payroll management and help you offer competitive, compliant local benefits.
Learn more about our platform and request a proposal today.