Employer of Record (EOR) in Senegal

An EOR in Senegal allows businesses to enter the market quickly and help maintain compliance with local laws, all while reducing the overhead costs of establishing a local entity. Atlas HXM offers a seamless EOR service that handles all aspects of employment from payroll processing to compliant administration.

Partner with Atlas HXM for a cost-effective, compliant solution to hire and manage your workforce in Senegal.

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Quick Overview of EOR in Senegal

Expanding into Senegal doesn't have to mean drowning in paperwork or hefty setup costs. With an Employer of Record (EOR), you can bypass the complexities of local regulations and quickly hire employees, all while maintaining compliance with Senegal's labor laws. From payroll processing and tax compliance to benefits management, an EOR takes care of the legal nitty-gritty like social security contributions and IPRES pension scheme enrollment, so you can focus on growing your business without the need to set up a costly local entity.

The EOR model offers a low-risk, cost-effective alternative to setting up a subsidiary. Establishing a local entity in Senegal can cost significant upfront investment plus the cost of maintaining human resources (HR), legal assistance, accountants and more. It can also become highly administrative. By partnering with an EOR, you can avoid these setup costs and enter the market faster, avoiding the overhead of a physical office. This is especially beneficial for startups, SMEs, and businesses testing new markets, who need to act quickly and comply with complex local regulations including Senegal's Labor Code requirements.

Disclaimer: The contents of this article is not legal advice and should be used for reference only. If in doubt, please seek independent legal advice from a lawyer in the relevant jurisdiction.

What You'll Learn

  • Looking to hire in Senegal without the hassle and administrative burden of setting up a local entity? An EOR helps you onboard employees while maintaining compliance with payroll and local labor laws.

  • With a Direct EOR, you gain control, faster onboarding, and stronger compliance. It is ideal for businesses aiming to scale quickly.

  • On the other hand, an Indirect EOR may be more cost-effective but comes with slower processes and added complexity.

  • EOR service fees typically range from USD 300 to USD 800 per employee per month.

  • Atlas HXM offers a robust Direct EOR solution, providing smooth market entry, compliance, and seamless employee management: all in one platform.

How an EOR Works

At Atlas HXM, we provide EOR services that ensure your business remains compliant with Senegal's labor laws while you focus on growing your operations, free from administrative and legal burdens.

Candidate Selection

Atlas HXM does not recruit candidates, but will check the employment setup for compliance around new hires like validating right-to-work, reviewing contract terms against Senegalese Labor Code rules, and configuring payroll and statutory obligations correctly. EOR providers in Senegal, including Atlas HXM, handle work permit applications for foreign nationals through the Director of Labor and Social Security when required.

Employment Contracts

Atlas HXM drafts and administers employment contracts in compliance with the Senegalese Labor Code. Clearly outlines Key Employment Terms to reduce risk of future disputes, such as:

  • Job title and responsibilities

  • Salary, benefits, and working hours (maximum 40 hours per week)

  • Leave entitlements and notice periods

Payroll & Benefits Management

Payroll is processed in West African CFA francs (XOF), including:

  • Accurate tax withholdings and social security contributions

  • Statutory benefits such as IPRES pension contributions

The EOR also helps maintain compliance with mandatory benefits, so employees are protected under Senegal's laws.

Work Permit Compliance

In Senegal, Atlas HXM manages work permit applications for foreign nationals through the Director of Labor and Social Security, ensuring compliance with local immigration requirements and maintaining valid work authorization.

Ongoing HR Support

Provides HR support, including: Leave management and performance tracking and employee relations and regulatory updates throughout the employee's tenure. This allows businesses to focus on core operations, while Atlas HXM handles ongoing compliance.

Costs & Pricing

EOR services in Senegal are typically billed as a platform/service fee in the range of USD 300–800 per employee per month. This fee covers administration such as compliant contracts, payroll processing, statutory filings, and HR administration for workers. This service fee is separate from the employee's salary, benefits, taxes, and work permit-related costs, which vary by role and jurisdiction. By using an EOR, companies avoid the cost and overhead of setting up a Senegalese entity, which can require significant upfront investment before any operational spend.

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What to Choose: EOR vs PEO

EOR

Employer of Record

An EOR becomes the legal employer for your talent in a country where you do not have an entity. The EOR carries employer liability and handles compliant contracts, payroll, statutory benefits, tax filings, and labour-law adherence. You still direct the employee's work. This model suits companies expanding into Senegal without wanting to form a local entity or take on compliance risk.

PEO

Professional Employer Organization

A PEO provides outsourced HR services like payroll, benefits, HR admin, but only when you already have a local entity. You remain the legal employer, and the PEO shares administrative tasks without taking on employer liability. Suitable when you are already established in the country and are only looking to offload HR administration.

What’s Best for You?

  • Choose an EOR when you want to hire in Senegal without setting up an entity and want a partner who absorbs employer risk.

  • Choose a PEO when you already operate locally and just want HR support.

Work Life in Senegal

Senegal's employment framework is designed to balance operational needs with employee protections. Here's what you need to know:

Employment Types:

  • Permanent: Ongoing employment for indefinite duration with full statutory benefits.

  • Fixed-Term: Hired for a specific project or defined duration (maximum 2 years including renewals).

  • Temporary: Through temporary employment companies for maximum 2 years; entitled to statutory benefits.

Probation Periods: Maximum 6 months including renewals, varying by employee category: 8 days for hourly workers, 1 month for monthly employees, 2 months for supervisors, and 3 months for executives. These periods allow employers to assess employee suitability before offering permanent employment. Employees can be dismissed without notice during probation, and the EOR ensures that all terms comply with the Labor Code.

Working Hours & Overtime: In Senegal, the standard workweek is 40 hours maximum, typically spread over 6 days with one 24-hour rest period. Agricultural workers are limited to 2,352 hours annually. For eligible employees, overtime is paid at varying rates: 110% for first 8 hours, 135% for additional hours, 150% for night work, and up to 200% for holiday night work. The EOR ensures that all overtime is calculated correctly and that employee work hours comply with local regulations.

Leave Entitlements

Leave Type

Eligibility / Duration

Payment / Notes

Annual Leave

2 days per month after 1 year of service (24 days annually)

Paid by employer; one-twelfth of annual remuneration

Maternity Leave

14 weeks

100% wages; includes 8 weeks post-natal leave

Paternity Leave

1 day

Paid leave for working fathers after 6 months service

Sick Leave

After employment start

Varies by service length; full salary then half salary

Public Holidays

All statutory holidays

Paid; handled by Atlas HXM

Vacation Leave

As per statutory minimum

Paid; unused leave paid out upon termination

Payroll & Benefits: Wages must meet minimum wage requirements (XOF 370.526 per hour for non-agricultural workers, XOF 236.865 for agricultural workers as of August 2023). Atlas HXM manages payroll in XOF, social security contributions, IPRES pension contributions, statutory benefits, and end-of-contract indemnities. Supplemental benefits can include health insurance, transportation allowances, and professional development options.

Atlas HXM can help you manage these aspects and can help ensure that employees are supported and compliant with Senegal's labor laws while businesses can focus on operations without administrative burdens.

More Reading

10 Best Employers of Record in Senegal in 2026

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What to Choose: Indirect vs Direct EOR

Direct EOR

The EOR owns the legal entities in the target country, coordinating all employment-related tasks directly. It offers faster onboarding, better compliance, and more control.

Best for: Businesses looking to scale quickly, expand long-term, or enter Senegal with compliance.

Indirect EOR

The EOR provider acts as an intermediary between the business and a third-party local entity. While it can be cheaper, it may result in delays and compliance complexity.

Best for: Small teams or short-term hires with less urgent compliance needs.

What’s Best for You?

  • For Small Teams or Contractors: Indirect EOR could work, especially for temporary hires or testing a market.

  • For Scaling and Compliance: Direct EOR is the best choice. With Atlas HXM, you'll have control, faster entry, and streamlined compliance.

Taxes & Compliance

Senegal operates on a calendar-year tax system, running from January 1 to December 31. Employers must submit monthly payroll taxes and social security contributions by the 15th of the following month, quarterly business tax filings, and annual personal income tax returns typically due by March 31st. Proper documentation and timely filing are crucial to avoid penalties and interest charges.

Category

Details

Employer Payroll Tax

Social security contributions to IPRES, professional training tax, housing development tax, work accident insurance

Employee Payroll Tax

Residents: progressive income tax 0%–40%, Non-residents: taxed on Senegal-sourced income only, Minimum tax: XOF 900–36,000 depending on income, Employee social security contributions to IPRES

Pension System (IPRES)

Mandatory retirement scheme with general and complementary components, Retirement age: 60 (55 for arduous work), early retirement at 53, Point-based calculation system, Both employer and employee contributions required

VAT & EOR Costs: EOR services may be subject to VAT depending on service structure and delivery method. Cross-border arrangements may have specific VAT treatment, and proper documentation is required for compliance.

Atlas HXM handles tax compliance, including progressive income tax calculations, social security contributions, IPRES enrollment, year-end filings, and regulatory updates, ensuring businesses remain compliant with local laws while minimizing administrative burden.

Termination

Employees must give written notice for termination, with statutory notice periods varying by employee category: 1 month for hourly/daily workers, 2 months for monthly non-management employees, and 3 months for managers and executives. Severance pay is required for employees with at least 1 year of service: 25% of monthly salary per year for first 5 years, 30% for years 6-10, and 40% for years 11+. Economic dismissals require additional 1 month's gross wages plus standard severance. The EOR helps ensure proper handling of terminations, including notice periods, severance calculations, final wages, and required documentation.

5 Things to Look for in an EOR Provider in Senegal

  1. Local expertise and knowledge of Senegalese Labor Code, social security requirements, and IPRES pension system.

  2. Advanced technology for payroll processing in XOF, reporting, and HR system integration.

  3. Experience in your industry and handling work permit management through local authorities.

  4. Strong compliance track record and relationships with government agencies and legal advisors.

  5. Global presence to support multi-country expansion, with verified security and compliance standards (ISO 27001/27017/27018, GDPR).

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Atlas HXM provides direct EOR services, managing payroll, compliance and benefits efficiently. Our unified platform automates HR, payroll, and compliance tasks, while offering premium employee support, global benefits, and access to 9,000+ learning courses. Recognized by Everest Group PEAK Matrix 2025 and NelsonHall NEAT Assessment 2025, Atlas HXM combines compliance, technology, and global expertise.

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FAQs

How long does it take to hire an employee through an EOR in Senegal?

Typically 5-10 business days once all required documentation is provided, including employment contracts and work permits if needed.

What is the minimum wage in Senegal?

As of August 2023: XOF 370.526 per hour for non-agricultural workers, XOF 236.865 for agricultural workers.

Are written employment contracts required?

Fixed-term contracts must be in writing. Indefinite contracts can be oral but written contracts are recommended.

What are the standard working hours?

Maximum 40 hours per week, typically spread over 6 days with one 24-hour rest period.

What are the CPF contribution rates for employers?

Employers contribute to IPRES pension scheme, professional training tax, and housing development fund as required by law.

Can employees work overtime without limits in Senegal?

Overtime is regulated with specific payment requirements: 110% for first 8 hours, 135% for additional hours, 150% for night work, up to 200% for holiday night work.

         

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