Senegal has a population of about 16 million people. Agriculture and manufacturing are key drivers of the economy. The corporate tax rate in Senegal is 30%, with an 18% VAT applied to remittances. The tax year corresponds to the calendar year, and tax returns must be submitted by April 30 each year for the previous tax year.

Labor and Payroll Considerations in Senegal:

  • Employment contracts should be written
  • Minimum wage is 209 CFA Francs per hour, but for agriculture labor the minimum wage is 182 CFA Francs per hour
  • Income tax is withheld from employee pay
  • Senegal uses a Pay-As-You-Earn (PAYE) system
  • Employees do not pay social security, but employers must contribute
  • Retirement funds are paid by employees and employers
  • Work contracts for foreign workers cannot begin until the work permit is approved, so contracts usually have a “projected start date”
  • Foreign nationals need work and residence permits to live and work in Senegal
  • Foreign workers who are ECOWAS nationals do not need a work permit

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