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COST OF LABOUR |
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THE COST OF LABOUR The minimum wage is defined in accordance with the grades specified in the professional collective agreements. For most professions the minimum wage is : US$ 0.3/hour The monthly wage is : 68.25 US $ for a month of 173,33 working hours.
WELFARE CONTRIBUTION DEDUCTABLE FROM SALARIES1. Fixing the contributions a) Base The Board of Directors of the Social Security Fund (CSS) determines the base for the calculation of contributions. (Ref. Law n° 97.05 of 10 March 1997 modifying the Social Security Code). However, a ceiling will be fixed by a joint decision to be taken by the Ministers in charge of Social Security and of Finance. N.B . : It should be recalled that the salary limit is 1,028 US $ per annum, i.e. 85.71 US $ per month.
b) Rate The revised article 142 of Law 97-05 dated 10 March 1995 modifying the Social Security Code stipulates that: "The rates of contributions for the family benefits branch and that of industrial accidents and occupational diseases managed by the Social Security Fund are determined by the Board of Directors within the limits of the maximum rate fixed by a joint decision of by the Ministers in charge of Social Security and of Finance N.B. : The scale for the calculation of contributions should be fixed by a joint decision by the Ministers in charge' of Social Security and of finance
SCALE OF APPLICABLE RATES
Contributions to Family Benefits and Social Security Funds- Employer's contribution rate: 7 % - Annual limit of salaries subjected to contributions: 1,028 US$. Contributions for victims of industrial accidents- Employer's contribution rate: 1.3 to 5 % (depending ion the nature of the activity and the risks of industrial accidents and occupational diseases - Annual limit for salaries subjected to contributions: 1,028 US $.
Contributions to pension scheme, Pensions Institute of Senegal (lPRES) a) General scheme - Employer's rate: 8.4 % - Employee's rate: 5.6 % - Annual limit for salaries subjected to contributions: 3,428.50 US $ b) Private pension scheme for management - Employer's rate 3.6 % - Employee's rate: 2.4 % - Annual limit for salaries subjected to contributions: 10,285.50 US $
Strengthening contribution collection mechanisms (CSS and IPRES) a) Restricting the effects of objection to restraint Legal actions taken in relation to the collection of contributions due to the Social Security and Pensions Schemes are preceded by a formal notice. In the event the latter remains ineffective, the concerned institution issues a restraint order which is stamped and enforceable, within five days by the President of the competent court. The employer-debtor is then notified of the restraint which is enforced in the same conditions as a judgement.
- For the objection to be admissible, it should raise a serious contention; - Even where the debtor raises a serious contention, his objection will not be admissible and the enforcement will not be interrupted unless if he pays to IPRES or the CSS a deposit amounting to at least half of the debt owed; ; - Despite the objection, the judicial proceedings may continue unless the judge makes a ruling to the contrary.
b) Contribution guarantees These guarantees are reinforced by the possibilities to take out a legal mortgage on the debtor's immovables. The Director General of the CSS or IPRES also have the possibility to issue notice to a third-party holder. (Ref Law 97-05 of 10 March 1997) modifying the Social Security Code.
SOCIAL SECURITY CONTRIBUTIONS AND INCOME TAX(Costs in US$ out of taxes, VATT 20% to be added – 1 US$ = 700 FCFA)
MINIMUM WAGE CLASSIFICATION SCALE FOR MAIDS AND HOUSEHOLD EMPLOYEES (Ref: Decision No 1609/MTE of 07/02/2000 )
MINIMUM WAGE PER GRADE & SENIORITY FOR WORKERS IN THE AGRICULTURAL PROFESSION (Ref: Decision No 1610/DTSS of 07/02/2000 ) (Costs in US$ out of taxes, VATT 20% to be added – 1 US$ = 700 FCFA) Labourers
Drivers
Employees
Management, supervisors and technicians in same category
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