One of Praxima’s clients recently asked:
How should leave pay-out be calculated in Senegal?
The client currently applies an annual average salary, including bonuses, but wanted to confirm whether this aligns with statutory requirements.
Article 153 of the Senegal Labour Code governs the calculation of leave allowances, which also applies when calculating leave pay-outs.
The law requires that employees receive an allowance equal to:
The calculation is based on gross earnings, which include:
However, the following must be excluded:
In practice, the calculation requires employers to:
An alternative method sometimes used is applying 8.33% (100/12).
If this article raised questions or highlighted areas you’d like to understand better, let’s talk.Our team can walk through the details, implications, and practical considerations for your business.
