Severance pay Senegal: how to calculate it in 2026

Severance pay Senegal is due to any employee on a permanent contract who is dismissed after at least twelve months of service, except for gross misconduct (faute lourde), under article 151 of the 2026 Labour Code. The amount follows the national inter-professional collective agreement (CCNI) of 30 December 2019: for each year of service, 25% of the average total monthly pay over the last twelve months for the first five years, 30% from the sixth to the tenth year and 40% beyond. Here are the conditions, the formula, a worked example and the cases where the amount changes.

Who is entitled to severance pay Senegal?

Law n° 2026-18 of 3 September 2026 on the Labour Code (Official Journal n° 7931 of 17 September 2026) sets three conditions (art. 151):

• A dismissal initiated by the employer, for personal or economic reasons. Resignation or the expiry of a fixed-term contract does not give rise to it.
• Service at least equal to the reference period that opens the right to paid leave, i.e. twelve months of actual service (art. 248).
• No gross misconduct. Serious misconduct (faute grave) does not remove the entitlement.

An employee rehired several times by the same company after departures caused by economic difficulties or reorganisation adds up the periods; amounts already received are then deducted. The amount is calculated “according to the terms of the collective agreements”: the CCNI provides the scale, unless a more favourable sector agreement applies.

The severance pay Senegal formula

Severance = reference pay × (25% × years 1 to 5 + 30% × years 6 to 10 + 40% × years beyond 10). Fractions of a year count (CCNI, art. 80): eight months are two thirds of a year.

Reference pay

This is the average total monthly pay over the last twelve months of activity before dismissal, meaning everything paid in return for work: base salary, bonuses, commissions, overtime and benefits in kind. Expense reimbursements are excluded (transport, meals, travel). The Code confirms that commissions, bonuses and variable benefits are included, at their monthly average over twelve months (art. 197).

Worked severance pay Senegal example

Illustration: an executive dismissed for personal reasons, with 12 years and 4 months of service and average total monthly pay of 500,000 FCFA over the last twelve months.

Where applicable, add pay in lieu of notice if the employer waives the notice period (three months for an executive under the CCNI, or 1,500,000 FCFA here) and pay in lieu of untaken leave (art. 255), explained in our guide to leave management in Senegal. For an economic dismissal, add a special allowance of one month’s gross pay, about 500,000 FCFA more.

Severance pay Senegal by reason for termination

Retirement and death follow other scales: the CCNI retirement allowance (art. 84) applies 25%, 30%, then 45% from the 11th to the 20th year and 50% beyond; on death, the heirs of an employee with at least one year of service receive an allowance calculated under the agreements (art. 136 of the Code, art. 83 of the CCNI).

Notice and severance pay Senegal: what adds up

Where there is no agreement, a decree sets the notice period (art. 144). The CCNI (art. 75) provides one month for workers and clerical staff, two months for supervisors and three months for executives. During notice, the employee has two working days off per week, on full pay, to look for a job (art. 145). Pay in lieu covers the remuneration and benefits for the unworked period (art. 146); it is doubled if termination occurs during the employee’s leave (art. 147).

Tax treatment and payment of severance pay Senegal

Severance, retirement and death allowances determined in line with labour law are exempt from income tax, as are negotiated departure payments under a redundancy plan (art. 167 of the General Tax Code). Any amount paid beyond what the law and agreements provide is treated separately: have it checked by your adviser. All sums due are paid as soon as service ends (art. 200), with the final payslip and the certificate of employment (art. 140).

Common severance pay Senegal mistakes

• Using base salary only: bonuses, commissions and benefits in kind over the last twelve months are part of the base.
• Applying 40% to every year for an employee with over ten years: the scale is progressive by band.
• Rounding service down to the full year instead of counting months.
• Confusing serious and gross misconduct: only the latter removes the entitlement.
• Using the retirement scale (45% and 50%) for a dismissal, or the reverse.
• Forgetting the special allowance of one month for economic dismissal or business closure.
• Ignoring a sector agreement more favourable than the CCNI.

Securing the final settlement

Before paying, check the file contains:

1. the dismissal letter, sent by registered mail with acknowledgement of receipt or handed over against receipt, stating the reasons, the effective date and, except for gross misconduct, the notice period (art. 149);
2. the calculation of reference pay over twelve months and of exact length of service;
3. the final payslip and proof of payment;
4. the certificate of employment (art. 140).

A final settlement draws on twelve months of payroll history, exact length of service and accrued leave, data a spreadsheet reconstructs poorly. Socium’s payroll software for Senegal calculates severance pay Senegal from actual payroll totals, issues the final payslip and archives the documents. Socium’s payroll simulators help estimate an exit cost, and our guides to net salary calculation and social security contributions in Senegal cover the rest of payroll; our article on the minimum wage in Senegal sets out the pay floor, and our guide to payroll software in Senegal helps you choose a tool.

Frequently asked questions

How is severance pay Senegal calculated for under five years?

Multiply average total monthly pay by 25% and by service in years and fractions of a year. For 3 years and 6 months on 300,000 FCFA: 3.5 × 25% × 300,000 = 262,500 FCFA.

Is severance pay Senegal due during a trial period?

No: the twelve-month minimum is not met, and the trial period has its own termination rules.

Is severance pay taxable?

No, within what labour law and the agreements provide (art. 167 CGI).

Did the new Code change the scale?

The 2026 Code still refers to collective agreements for the calculation; the 25%, 30% and 40% scale is that of the 2019 CCNI.

Key takeaways

• Conditions: dismissal, at least twelve months of service, no gross misconduct.
• CCNI scale per year: 25% up to 5 years, 30% from 6 to 10 years, 40% beyond, fractions included.
• Base: average total pay over the last twelve months, expenses excluded.
• Severance pay Senegal comes on top of notice and leave, plus one month’s gross pay for economic reasons.

Official texts: 2026 Labour Code, Official Journal n° 7931 and national inter-professional collective agreement, Ministry of Labour.