Are you looking to hire employees in Senegal? As a foreign business owner, it can be challenging to navigate the legal and administrative requirements of hiring employees in a new country.
Fortunately, an Employer of Record (EOR) service provider can make the process a breeze.
Reasons to Employ in Senegal
Senegal is located in West Africa and has a population of over 16.8 million people. It is home to a young and educated workforce which is desirable for businesses with a strong emphasis on innovation.
Senegal has a diversified economy, with a focus on agriculture, fishing, and services, and is one of the fastest-growing economies in West Africa. The workforce is motivated and has the diversity of skills to offer employers.
Many Senegalese citizens are multilingual. Over 36 languages are spoken in Senegal. The official language is French, but Wolof is spoken by over 80% of the population. This can help you tap into European and African markets. If you are looking to expand to other French-speaking countries, this is a great starting point.
Finally, wages and the cost of living in Senegal are also much lower than in the US or Canada. This means that hiring staff in Senegal can reflect positively on your bottom line.
What Does an Employer of Record (EOR) Service Provider Do?
An EOR handles all the administrative tasks related to employment. This includes payroll, taxes, and compliance with local labor laws for your business in a foreign country. By using an EOR service provider, you can hire employees without setting up a legal entity in the country, which can save you time and money.
How to Hire in Senegal Legally
To legally hire an employee in Senegal, you must comply with local labor laws and regulations. The labor laws in Senegal are governed by the Labor Code, which outlines the rights and obligations of employers and employees. Without an EOR service provider, you would also need to:
- Set up your own entity
- Sign an employment contract (in French)
- Register with social security
Or, you can work with an EOR service provider, like Borderless, to skip all these steps.
Benefits of Hiring an Employee with an EOR in Senegal
Using an EOR service provider to hire employees in Senegal offers several benefits.
Contracts and documentation
An EOR can handle all the administrative tasks related to employment, such as drafting employment contracts and maintaining employee files. EORs help you translate employment contracts drafted in English into French and keep copies of contracts in both languages.
Payroll, employee insurance & benefits
An EOR can provide your employees with health insurance, retirement benefits, and other perks that can help attract and keep top talent in Senegal. An EOR can also make sure your employees are paid correctly and on time.
Paid vacation and holidays
An EOR will ensure that your employees receive the minimum paid vacation days and holidays required by law. In Senegal, these vary depending on the employee's seniority and the industry they work in. Also, businesses currently observe 14 public holidays.
- January 1: New Year’s Day
- April 4: Independence Day
- April (varies yearly) 10: Easter Monday
- April 22: Korité
- May 1: Labor Day
- May 18: Ascension Day
- May 29: Whit Monday
- June 29: Tabaski
- July 28: Tamkarit
- August 15: Assumption Day
- September 3: Grand Magal of Touba
- September 27: Prophet Mohammed’s Birthday
- November 1: All Saints’ Day
- December 25: Christmas Day
Taxes and social security contributions
An EOR can handle all the tax and social security contributions for your employees, ensuring that you remain compliant with regulations. It's important to note that the employer and employee are both responsible for paying social security contributions in Senegal.
The employer is subject to a 3% payroll tax and is required to contribute up to 15% of salary to old-age pension, health insurance, work-related accidents, and family benefits.
Additionally, the employer is also responsible for deducting income tax from the employee's salary and paying it to the tax authorities.
Choosing the Right EOR Service Provider for Your Business
Partnering with the right EOR is crucial to ensure that your employees are properly taken care of and your business remains compliant with the regulations. When choosing an EOR service provider, consider the following factors.
- Expertise and experience: Look for an EOR service provider that has experience working in Senegal and understands the local labor laws and regulations.
- Services offered: Consider the services offered by the EOR, such as payroll management, compliance, and employee benefits.
- Reputation: Check the EOR’s reputation by reading reviews and testimonials from other businesses that have used their services.
- Cost: Consider the cost of the EOR service provider and ensure that it offers transparent pricing.
Borderless: Your Go-To EOR Service Provider in Senegal
Hiring employees in Senegal can be a challenging process. Using an EOR service provider will make it easier and more efficient. By choosing Borderless, you can ensure that your employees are properly taken care of and your business remains compliant with local regulations. Book a demo now.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.