How to Hire Remote Employees In 

Senegal

The Basics

Currency
West African CFA franc
Employer Taxes
19.5%
Payroll Frequency
Weekly/ Fortnightly/Monthly
Official Language
French

Employment in 

Senegal

Hire Independent Contractors

Independent contractors or freelancers are self-employed individuals who provide services to companies as a non-employee. This is one of the most common ways companies tend to hire non-local designers, engineers, support reps, etc.

For legal and tax purposes, independent contractors are not classified as employees. They may work for multiple clients, set their own work hours, negotiate their pay rate, and decide how a job gets done.

For example, the IRS says that if an independent contractor or freelancer does work that can be controlled (what will be done and how it will be done) by an employer then they are, in fact, classified as an employee.

As you can imagine, hiring someone as an independent contractor versus an employee is a fine line to tread.

While there are benefits when you choose the contractor route, there are quite a few drawbacks to consider and you’ll need to weigh them carefully to determine the best fit for your company.

Benefits of Hiring Independent Contractors
Time savings: Hiring through a subsidiary or EOR can take months of onerous paperwork and legal wrangling. This is only multiplied if you want to hire in multiple countries.
Reduced overhead: You can save tens of thousands of dollars in onboarding costs by hiring through a company like Panther. You also have fewer responsibilities to provide benefits, further reducing overhead.
Greater flexibility: Contractors can be brought on as-needed. If they are not a good fit, you can choose not to renew them without incurring significant additional termination costs.
Reduced legal risk: Contractors generally don't have the host of legal protections that typically cover full-time employees.
Disadvantages of Hiring Independent Contractors
Risk of Misclassification: While it's important to understand local contractor law, for most firms, misclassification risk is minimal.
Lack of Control: For a worker to be classified as a contractor, they should be allowed to work independently on their assigned tasks. Hiring full-time employees offers a wider range of management options.
Lack of Loyalty: Contractors come and go as-needed. Many companies hire contractors for short-term work, which makes it difficult to cultivate loyalty.

Set up a subsidiary in 

Senegal

A foreign subsidiary is a company that operates overseas as part of a larger company who’s HQ is in another country.

Establishing a foreign entity is great for having an international presence and accessing new markets. Though, setting up a subsidiary in Senegal can be expensive, stressful, and time-consuming. It's not for the faint of heart.

To set up a subsidiary in Senegal, you have to:

  1. Register your business name and file articles of incorporation
  2. File for local bank accounts
  3. Learn and keep track of the local employment laws
  4. Set up local payroll
  5. Hire local accounting, legal, and HR people

If you're lucky, this process can take months. If you're not so lucky, it can take up to a year. And on average, it costs about $50k-$80k, all-in-all, to get setup. And that's just for Senegal.

Use an Employer-of-Record (EOR)

An employer-of-record (EOR) is a company that hires and pays an employee on behalf of another company.

An EOR is typically used to overcome the financial and regulatory hurdles that often come with employing remote workers.

Each country has its own payroll, employment, and work permit requirements for non-resident companies doing business in their jurisdiction. Meeting those demands can be a huge obstacle when it comes to hiring remotely.

At Panther, we help companies employ and pay people in over 160 countries, without having to set up a foreign subsidiary. Payroll, benefits, taxes, compliance, and more are all handled by us, at a fraction of the cost.

Outside of saving you months and tens of thousands of dollars, other advantages of using Panther are:

  • Ability to attract talented and motivated employees from all over the world.
  • Full legal compliance: There is no risk of violating local employment laws.
  • Transparency: Employees are still your employees. All the work, processes, operations and day-to-day business belong to you, the company, just like with any other employee. Panther just takes on all of the responsibilities, obligations and admin work related to your team's employment.
  • No risk of misclassification

Because you no longer have to set up your own subsidiary, you’ll save a ton of time and tens of thousands of dollars using Panther.

Paying Remote Employees

Paying employees in Senegal is not the same as paying workers in your own country. Employees have to be paid using Senegal’s employment and payroll standards.

This means that you have to know, understand, and keep up with 1) fluctuating currency changes, and 2) local payroll and tax laws in the countries you’re looking to hire in.

Outside of the laws and regulations around payroll, there may be different conditions surrounding leave, overtime, termination, and more. As you can imagine, maintaining this kind of regulatory knowledge can be challenging. But it is crucial and necessary to follow local legislation.

After, you’ll have to determine the best way to pay your international employees. This can be done in a number of ways, including but not limited to:

Pay through a local entity

One of the most challenging (and expensive) parts of paying international employees is setting up the infrastructure to do so.

Before you start to run payroll, you have to register your company as the local employer in the country the worker resides in. As you can see in the “Set up a subsidiary” section, this is a multi-step process that can take up to a year and put you on your way to bankruptcy.

Work with an EOR

Outside of EORs acting as the full admin employer, many also provide remote payroll.

For example, at Panther, in just 1-click, you’re able to pay your entire global team, anywhere in the world. We send you an invoice each month, charge you in US Dollars, and pay your employees the same amount in their local currency.

We factor in currency fluctuations and use the mid-market rate plus any applicable fee passed on by our provider at cost at the time of billing.

Senegal

 Specific Information

Working Hours

The standard workweek is 40 hours.

Overtime

The overtime is also capped at 100 hours per year. The overtime pay is calculated by multiplying the hourly salary by the following 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.


Payroll Tax

Employer

Employer

  • Social security
  • IPM Health Fund
  • Industrial Accident Fund
  • Pension fund


Minimum Wage

Senegal's minimum wage rate is 209.10 CFA francs per hour,for general workers and 182.95CFA francs per hour for agricultural workers.

Payroll

Pay Cycle

Monthly wages must be paid within 8 days after the end of the work.

Weekly or fortnightly wages must be paid within 2 days or 4 days respectively at the end of work giving entitlement to wages. Salaries are paid in legal tender at workplace.

Payment slip is also provided.

13th Salary

Performance-based, annual, and 13th month bonuses are common in Senegal.

Leave

Paid Time Off (PTO)

In general, employees are entitled to 24 days of paid annual leave.

Public Holidays

There are 14 public holidays.

Sick Days

Employees are generally entitled to a minimum of five paid sick days per year.

Maternity Leave

Women are entitled to 14 weeks of paid maternity leave.

Maternity leave is granted with pay at 100% of previous earnings, paid by the government.

Paternity Leave

Male employees are entitled to one day of paternity leave if they are covered by the inter-professional collective agreement.

Parental Leave

No Info

Other Leave

No Info

Marriage Leave

No Info

Bereavement Leave

No Info

Termination

Termination Process

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: 3 months’ notice

Monthly paid white-collar workers, blue-collar workers and permanent hourly, daily, or weekly paid staff: 8 days to one month, depending on length of service.

Notice Period

Notice period is 15 days, during the notice period, employees are generally entitled to the equivalent of two paid days off per week to seek alternate employment.

Severance Pay

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.

Probation Period

Probationary periods of 3 months for executives and one month for non-executives are permitted and may be renewed.