Senegal PEO

Maternity and Paternity leave 

Mothers in Senegal are entitled to 14 weeks of maternity leave paid at 100% normal salary. 6 weeks are taken before the birth, and 8 weeks after. 

Generally, fathers in Senegal are not entitled to paternity leave. Fathers covered by the ‘interprofessional collective agreement’ are entitled to one day of paid paternity leave. Many international employers will offer more as part of the benefits package. 

Healthcare 

For employees, healthcare is normally covered by the IPM (Institut de Prévoyance Maladie) health fund. The IPM covers 40% – 80% of primary care costs, including vaccinations, hospitalization, and emergency treatment. 

 Employers enroll employees and their families to the scheme, and the benefits are managed by a choice of funds: health funds, private insurance, or mother and child protection centres. Employees must contribute for a minimum of two months before claiming any benefits. 

In addition to the fund entitlements, employees are entitled to benefits if hospitalized. 

1. Hospital allowance: a small payment per day of hospitalization 

1. Hospital deposit: If the contribution period to the health funds is not enough to cover the costs of hospitalization, the company acts as guarantor to the employee and pays their hospital expenses. The employee will then reimburse the employer over a set period of time after hospitalization. 

The cost of medical coverage in Senegal is approximately 6% of the salary, with 3% being paid by the employer and 3% by the employee. 

Since only ~22% of employment in Senegal is formal employment (with the rest informal), the number of people covered by the IPM is relatively low. Those not covered by the IPM are covered by the Senegal welfare system, which is organized as a pyramid structure: local / community healthcare as the bottom layer, followed by health centers, specialized health centers, and national hospitals & institutes. 

It is possible to have private insurance in Senegal, and to visit private healthcare facilities in-country. Most of the time, private insurance plans are taken out by individuals and are not related to employment. For foreign staff, private health insurance would be expected. However, offering private health insurance could be very attractive to local candidates. 

With Horizons Senegal PEO, you can offer employees in Senegal affordable private health insurance options.  

Pensions  

All employees in Senegal who are not civil servants are covered by the general social security program (Régime general de retraite). This is available voluntarily for employees over the age of 40 with at least 5 years of contributions under the mandatory coverage scheme.  

Pensions in Senegal are based on a points system. Points are calculated by dividing the amount of contributions by the ‘reference salary’, a number determined by the Social Insurance Institute of Senegal. 

The requirements for the General social security program follow: 

Old-age pension: Age 55 – 60 (depending on difficulty of work conducted) with 400 points. For non-civil-service employees, employment must end when the pension is collected. For the complimentary program, available only to civil servants, employment can continue until age 60 (without accumulating additional points). If an employee has 400 points at age 53, they may retire early with a reduced pension. 

Old-age settlement: A lump sum to be collected at age 55 – 60 (depending on difficulty of work conducted) with less than 400 points. Employment must end when the settlement is collected. For the complimentary program, available only to civil servants, they may retire at age 55.  

Disability pension: For those aged 53+ and assessed by a Social Insurance Institute doctor as being disabled. Full old-age pension can be collected if the doctor determines the employee is, in fact, disabled. 

Survivor pension: For the family of a deceased pensioner. Eligible survivors include: 

• A widow aged 45+ (or younger, if caring for 2+ dependents under the age of 21). Must have been married to the deceased for minimum 2 years. 
• A widower aged 55+ (or any age if disabled, or aged 53+ while caring for a disable dependent and unable to work). Must have been married to the deceased for minimum 2 years. 
• An orphan aged 21 or younger, if their guardian in ineligible to receive the pension. 

Funding for general pensions comes from a combination of employee and employer contributions. 

Employer: 8.4% of monthly payroll amount, to a maximum (for the calculation) monthly salary amount of 360,000 CFA francs. 

Employee: 5.6% of monthly payroll amount, to a maximum (for the calculation) monthly salary amount of 360,000 CFA  francs. 

A Senegal PEO will make sure all contributions are made on time and all pensions are paid according to local law. This increased focus on compliance (performed entirely by the PEO) protects companies from civil litigation or hefty government fines.