Capital: Dakar
Population: (2022 est.) 17,739,000
Monetary Unit: West African CFA franc (XOF)
Language(s): French, Wolof
Senegal, officially known as the Republic of Senegal, is a country in West Africa. Dakar is the capital and the largest city of Senegal. Senegal is bordered by Mauritania to the north, Mali to the east, Guinea and Guinea-Bissau to the south, and the Atlantic Ocean to the west. Senegal is divided into 14 regions, each administered by a regional council, with Dakar as its capital.
The public holidays in Senegal are;
Date Holiday
- 1 Jan New Year’s Day
- 4 Apr Independence Day
- 10 Apr Easter Monday
- 21 Apr Eid al-Fitr
- 1 May Labour Day
- 18 May Ascension Day
- 29 May Whit Monday
- 28 Jun Tabaski
- 28 Jul Ashura
- 15 Aug Assumption Day
- 3 Sep Magal de Touba
- 27 Sep Prophet Muhammad’s Birthday
- 1 Nov All Saints’ Day
- 25 Dec Christmas Day
Probationary periods of three months for executives and one month for non-executives are permitted and may be renewed.
In general, employees are entitled to 24 days of paid annual leave.
In general, female employees are entitled to 14 weeks of paid maternity leave, eight of which must be taken after the birth.
There is no statutory paternity leave
Employees are generally entitled to a minimum of five paid sick days per year.
Workers are generally eligible for severance pay for each year of service of 25 to 40% of their average wages over the past 12 months. The percentage is based on length of service and the collective bargaining agreement.
13th / 14th Month Pay: There is not statutory requirement to pay the 13th or the 14th month salary. Employees receive annual leave not exceeding 15 days per month. However, there are several articles in the code that refer to seniority and performance bonus. This points to the possibility of those bonuses being customary.
Foreign nationals can enter Senegal using a variety of different visas. The necessity for a work permit is necessary for anybody wishing to engage in paid employment in Senegal. In Senegal, local-hire and assignment work permits are the two most popular kinds of work authorization.
Your workers’ credentials, as well as the kind and length of the job they will be conducting for your business, will all play a role in determining the kind of permit they require. For some of your staff, the Senegalese government may be able to help with business visas. Foreign nationals can enter Senegal on a business visa to engage in transient commercial operations like:
- Negotiating business contracts
- Attending conferences, business meetings, or training seminars
- Developing professional contacts for business purposes
However, long-term employees will need a work permit.
Type of Visa/Permit
Business Visa: Validity – 3 months
Requirements
- A valid passport
- Completed visa application form
- Two passport size photos
- Invitation Letter
Eligibility: Foreigners who wish to enter Senegal for business purposes such as meetings must obtain a business visa
Work Permit: Validity – 2 months
Requirements
- A completed application form addressed to the Ministry of Interior
- A birth certificate
- Three recent passport photos
- A valid passport
- A recent medical certificate
- A certificate of police clearance in the applicant’s country, obtained within the last three months
- The employment contract
- Proof that the prospective employer is registered in Senegal
Eligibility: Foreigners who wish to work in Senegal must obtain a work permit
Employees can terminate a contract with 15 days’ written notice, although technicians must provide two months’ notice. Employers may terminate employees for just cause with written notice as follows:
- Executives and similar: three months’ notice
- Monthly paid white-collar workers, blue-collar workers and permanent hourly, daily, or weekly paid staff: eight days to one month, depending on length of service.
Workers are generally eligible for severance pay for each year of service of 25 to 40% of their average wages over the past 12 months. The percentage is based on length of service and the collective bargaining agreement
These are mandatory benefits as postulated by law. These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, notice period, and severance pay. Statutory benefits also include social security benefits
In general, Senegal’s work week is 40 hours.
Overtime work can be carried out up to 10 hours per week and up to 100 hours per year, in order to maintain or increase production, provided that this has been authorized by the labor inspection. In general, overtime is to be remunerated by an increase of 10% for the performance of in between 41 and 48 hours per week, and by an increase of 35% for hours exceeding 48 per week.
Employees can terminate a contract with 15 days’ written notice, although technicians must provide two months’ notice. Employers may terminate employees for just cause with written notice as follows:
- Executives and similar: three months’ notice
- Monthly paid white-collar workers, blue-collar workers and permanent hourly, daily, or weekly paid staff: eight days to one month, depending on length of service.
Senegalese tax residents are taxable on their worldwide income. In any cases, salary income is taxable in Senegal, provided that the work is performed in Senegal, or the employer is established there. The personal income tax (PIT) corresponds to a progressive duty to be applied to the taxable income of individuals, including net salaries. By splitting one’s income into shares (personal allowances), the taxpayer benefits from the progressive rates for each share. To calculate the total tax payable, the tax corresponding to each share is thereafter multiplied by the number of shares. The following scale shows the different rates applicable to income.
Annual Income (XOF*) Tax rate (%)
0 – 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
13,500,001 – 50,000,000 40
50,000,001 and over 43
Minimum Personal Income Tax (MPIT)
Any employee is liable to MPIT, and the amount is fixed as follows:
Annual Income (XOF) MPIT (XOF)
0 – 599,999 900
600,000 – 999,999 3,600
1,000,000 – 1,999,999 4,800
2,000,000 – 6,999,999 12,000
7,000,000 – 11,999,999 18,000
12,000,000 & over 36,000
Social security contributions are paid by the employer, up to an annual ceiling of XOF756 000, i.e. the annual salary on which contributions are payable. The rate for family benefits is 7% and that for industrial accidents ranges from 1% to 5%, depending on the type of business. National retirement fund contributions are shared between the employer (60%) and the employee (40%). The contribution rate for the general scheme is 14%, with an annual ceiling of XOF4.320 million. The contribution rate for the executives’ scheme is 6%, with an annual ceiling of XOF12.960 million.
Regarding each type of income, there are various abatements and permitted deductions. For calculating the taxable base for employment income tax, a lump sum deduction of 30% of earnings is allowed, with a limit of XOF900,000.
Subject to certain exclusions, most commercial operations are subject to an 18% VAT. VAT on tourism activities is 10%. A 17% special tax on financial activities (mainly banking, money transfers, interest, premiums, and other remunerations received on loans, keeping of bank accounts or equivalent, financial intermediation and change operations) is applicable instead of VAT.
VAT returns must be filed monthly.
Senegal has various withholding taxes. The primary ones are as follows:
- 20% withholding tax on remuneration paid for services (including royalties) rendered by a foreign individual or foreign company.
- 5% withholding tax on remuneration paid for services rendered by a resident individual (liable for tax under lump sum taxation, among others) or resident company that are not subject to CIT.
- 10% withholding tax on dividends distributed.
- 13% withholding tax on bond interest.
- 8% withholding tax on deposits or guaranteed interest on accounts with a bank.
- 16% withholding tax on other revenues, notably interest on loans.