Senegal

Employer of Record in Senegal

Skuad’s Senegal EOR (Employer of Record) solution helps your business expand into Senegal without the need for an entity setup. Our unified and automated global HR platform enables you to expedite the onboarding of your remote team, manage their payroll, benefits, etc., with ease. Skuad’s expertise helps ensure the best value for employment in Senegal. In addition, we help you streamline the global expansion process with the able assistance of our international network.

Senegal At A Glance

Population: 15.85 million

Currency: West African CFA Franc (XOF)

Capital city: Dakar

Languages spoken: French, Wolof

GDP: 6.3% (2020)

What You Must Know Before Employing In Senegal

Senegal labor laws apply to both foreign nationals and Senegalese citizens. However, there are some differences in their entitlements. To set up a local entity in Senegal, a company must be aware of all aspects of Senegal’s employment regulations. There are many different rules for employment and setting up a business, and many of these may sound complex and confusing. But, these laws are not much different from employment regulations of other countries. It is advisable to partner with a local payroll provider to minimize or mitigate the challenges of hiring, probation & termination of employees. Local partners should be well aware of the Senegal employment laws for both local as well as foreign workers.

With Skuad's innovative EOR solution, the HR functions of your organization can be addressed efficiently. Skuad’s unified employment platform enables your organizations to remain 100% compliant with the Senegalese employment laws. Speak to Skuad’s experts today here.

Contractors vs. Full-Time Employees

Employers in Senegal can hire both contract workers and full-time employees. The requirements for both depend on the job roles, responsibilities, and the project.

Contractor positions are open for indefinite terms, and the individuals hired in this role are expected to work on a certain project and deliver the same within the given time. Fixed-term contracts are either for a specified length of time, generally two years, or as long as it takes to complete the specified task.

In comparison, full-time employees are hired to deliver continuous projects and are expected to transition from one role to another during a given time. The role of full-time employees doesn't end upon the completion of the task. Unlike contractual employees, who get a fixed sum for a project, full-time employees get monthly salaries.

Full-time employees generally cost the company more than contractors.

Hiring In Senegal

If you are looking to hire an employee in Senegal, it is important to first finalize your requirements. You can choose to onboard contractual or full-time employees based on these requirements. Also, plan out if you want to do it yourself or through hiring companies in Senegal.

Senegal requires a written employment contract that can be indefinite or fixed depending on the project type. Since Senegal also has a provision for fixed employment contracts for up to 24 months, many job seekers choose this option. Contract renewal is also an option for the employee and the contractor. One must also note that foreign nationals need a work permit to start working. It can take up to four weeks for an employee to receive a work permit application as it comes under a business visa.

Most job seekers and employers visit job portals such as Yaloa.com, JobboardFinder.com or Expat.com to find jobs and candidates in Senegal. The advantage of these portals is that there are thousands of applicants to choose from, based on what suits your company’s requirements. On the downside, the turnaround time and competition can be very high due to the presence of a large number of high-value candidates.

Skuad ensures that you employ your desired candidates with ease without going through the time-consuming and strenuous conventional recruitment process. Skuad's progressive tech platform enables organizations to hire and onboard their choice employees within the ambit of Senegalese employment laws. Book a demo here.

Probation & Termination

The standard probation period in Senegal lasts for three months for executives and one month for non-executives. The employee becomes eligible for benefits and entitlements upon the completion of this probation period.

EOR Solution In Senegal

Senegal Employer of Record (Senegal EOR) solution makes it easier and faster for businesses to expand into Senegal. An Employer of Record company streamlines the processing of payroll and other employment responsibilities without any entity establishment. Skuad can help you manage monthly payroll, contracts, work permits, taxation, etc., in Senegal for your employees. Skuad’s EOR solution makes staff management easier and more cost-efficient.

General Employer of Record Service Terms

Outsourcing Employment Through An Employer of Record

When you decide to expand into Senegal as an organization, you also need to decide the strategy for doing so. This strategy is important for both routes, whether you build an in-house team or take the services of an EOR to manage payroll and employee lifecycle.

Types Of Visas In Senegal

Work Permits In Senegal

As an Employer of Record in Senegal, Skuad takes care of all the requirements and responsibilities related to employment. Skuad’s local partner in Senegal can sponsor work permits for foreign workers. Skuad’s advanced HR platform allows clients to manage their employees’ daily activities and keep tabs on various operational details remotely.

Learn more about our payroll services here.

Things You Must Know To Set Up Payroll In Senegal

Before setting up payroll and managing your taxes in Senegal, you must have a thorough knowledge of the laws and important rules. These rules may vary depending on multiple factors. Senegal’s Ministry of Interior is very strict about the application procedure, hence it is important to ensure that all the necessary details are in place.

The most important factor that will shape the success of your business establishment in Senegal is the workforce. You should decide if you want to employ foreign professionals or locals. Apart from this, having knowledge of Senegal’s tax rules is also essential for a foreign company, such as income tax, corporate tax, value-added tax, custom duties or import tariffs, excise taxes, real estate taxes, etc.

There are two ways to safely conduct a business in Senegal - a) Set up an in-house team to manage the payroll in Senegal, or b) outsource these services from a local payroll specialist.

Local payroll specialists or Employers of Record in Senegal help simplify these processes by making sure that you conduct your business in accordance with the rules and regulations prescribed by the Senegalese law. Allowing Skuad’s EOR solution to manage payroll is a cost-efficient method to start your operations on foreign land as it affords the organization time to focus on their core business activities.

Tax on residents in Senegal

An individual with permanent residence in Senegal will be considered a resident for tax purposes. Residential permits are issued for six months and can be extended depending on the length of the work permit. An individual can also gain permanent citizenship if they are living in the country for more than 183 days over any 365-day period.

Taxable Income

Taxable income includes all sources of income like wages, salaries, commercial/non-commercial activities, income from agricultural activities, etc.

Income in kind and donation can come under taxable income depending on the permission and circumstances.

Exempt Income

Diplomats and foreign consular agents are exempted from taxes while working in Senegal under the condition that their country provides a similar exemption.

Payroll & Taxes in Senegal

Setting up payroll and taxes in Senegal requires in-depth knowledge of the local policies and regulations, which brings several risks and challenges. Choosing Skuad for payroll outsourcing in Senegal can ease your resources and make the entire process straightforward and legally compliant. Learn more about our payroll services here.

Incorporation: How to Set Up A Subsidiary In Senegal

Companies that take advantage of business opportunities in Senegal will have to make sure that all the important factors are taken care of. These factors range from the budget to the office location to the number of staff and more. Before starting this process, you need to create a checklist that will help you keep a check on every important factor. In addition, different regions of Senegal have different rules and regulations, so we advise you to research these places and fix an office location on priority.

After this, you can start the process of creating an LLC in Senegal. The following documents are required for the process [11]:

• A copy of your criminal record not older than three months issued in your home country.
• Photocopies of your company partners’ identity card.
• National identity cards or passports of all shareholders.
• Information sheet with details about the corporate name, head office, share ownership, contributions, etc.
• Similar information sheet revealing all the details of shareholders.

You’ll also have to pay a registration fee of 25,000 CFA Francs and deposit your share capital.

After this, you can start the process of expansion and begin the hiring process through the Employer of Record service.

Connect with a Skuad representative to learn more.

PEO

A Professional Employer Organization (PEO) takes over all your HR-related functions but keeps you as the sole owner of the employment contracts. A PEO, while streamlined, has less transparency as you cannot keep a real-time check on employee records, hiring, salary and other tasks. A PEO also doesn’t see overseas workers and contractors.

At the same time, an Employer of Record or EOR solution will allow you to outsource your HR work but also keep a tab on all the operations through their dashboard. With an EOR, you can also keep a balance between contractors vs. full-time employees.

In the modern professional world, more corporations planning to expand in another country choose EOR solutions because they are cost-effective and take care of all the paperwork and official processes.

Skuad holds long-term experience as an Employer of Record in Senegal. Skuad’s team of experts ensures that your operations are handled efficiently. Moreover, Skuad’s dashboard is also a personalized tool for employers through which they can keep a real-time check on employment contracts in Senegal.

Conclusion

Senegal offers a multitude of advantages for a business planning to expand overseas. Senegal employment laws favor employees, which makes it a favorable country to work in. Skuad ensures a smooth expansion process, leaving the senior leadership to concentrate on bringing more business to the firm. When it comes to contractors vs. full-time employees, you can rely on the team of experts to offer you the most favored solutions. With Skuad, you’ll also find the best talent to fill your workforce, thus ensuring the highest productivity and profits.

For more details, contact Skuad’s team of experts today.

FAQs

1) What is an employer of record in Senegal?

In Senegal, an Employer of Record (EOR) is a legal entity that hires and manages employees on behalf of another company. An EOR, like Skuad, handles all employment-related responsibilities such as payroll processing, tax compliance, employee benefits, and adherence to local labor laws. This service is especially useful for companies that wish to operate in Senegal without establishing their own local entity.

2) What is the probation period in Senegal?

The probation period in Senegal varies depending on the type of contract and the position. For permanent contracts, the probation period can last from 1 to 3 months for non-executives and up to 6 months for executives. For fixed-term contracts, the probation period is typically shorter, generally not exceeding 15 days for contracts less than 6 months and 1 month for longer contracts.

3) What is the notice period in Senegal?

The notice period in Senegal also varies depending on the type of employment and the length of service. For permanent contracts, the notice period ranges from 8 days for employees with less than 2 years of service to 1 month for those with 2 to 5 years of service, and up to 2 months for those with over 5 years of service. For fixed-term contracts, the notice period should be specified in the contract.

4) What is the overtime rate in Senegal?

In Senegal, the overtime rate is set at 115% of the normal hourly rate for any hours worked beyond the standard 40-hour workweek. For work done at night (from 10 PM to 5 AM), on Sundays, or public holidays, the rate increases to 130% of the normal rate.