Navigating the complex labour laws governing employment practices is essential when running Mali payroll. However, building an in-house compliance team may not be the most efficient way to manage your remote team’s payroll in Mali.

Regardless of size, global companies need help to secure in-country expertise for localised payroll service. This is where a partner like Workforce Africa provides significant value in supporting global firms to maintain compliance when handling payroll in Mali, addressing every intricate detail, including;

• Salary computation requirements,
• Taxation legislation specifics (social security, employee income tax, corporate tax, VAT and other employee deductions.
• Benefits administration, and more (health insurance, pension, paid leaves, holiday compensation.

Workforce Africa simplifies hiring and payroll compliance for offshore talent management in Mali. No need for a subsidiary or entity setup. From contracts and onboarding to taxes, payroll, and admin tasks, partnering with us – a payroll firm in Mali will help you focus on growth for greater levels of success.

Employment Contract Termination

Under Malian law, employment contracts may be terminated by either party with written notice, ranging from 8 days to 3 months, depending on the terms outlined in the employment contract. Termination may result from redundancy, misconduct, or mutual agreement. Adhering to the proper legal procedures is crucial to avoid potential disputes or penalties.

Mali Country Overview

The Republic of Mali is a landlocked country in West Africa and predominantly French-speaking. Key cities include Bamako, the capital and main economic center, and Sikasso. These urban areas serve as important transit hubs, including access to ecotourism destinations. With a population of over 24.7 million, Mali has a significant demographic footprint and is among the most urbanized nations in Africa.

Mali’s economy is driven by gold mining and agriculture, with growing interest in renewable energy. Gold makes up about 80% of exports, while agriculture employs most of the population. Though not yet fully diversified, sectors like energy and services are developing. Low labor costs and rich natural resources make Mali attractive for investment, despite some infrastructure and political challenges.

Although Mali possesses a highly skilled workforce, hiring and establishing a team can be time-consuming and challenging. However, partnering with an Employer of Record (EOR) or Professional Employer Organisation (PEO) in Mali facilitates swift market entry. It manages all legal complexities associated with operations in the country.

Payroll Processing in Mali

Local labour laws in Mali govern payroll processing, with each employee’s salary potentially calculated differently. Due to compliance concerns, processing payroll at scale can become complex, cumbersome, and risky. Here are the phases of payroll processes global businesses should understand-:

• Pre-payroll Phase: Your organisation’s unique approach to payroll compliance shapes its policies and processes, including payroll preparation. Global firms must prioritise essential business elements in the pre-payroll phase, such as accurate business profile documentation and tailored work location policies, which is crucial. Customise leave and work policies to align with local standards in Mali to ensure compliance and transparency while collaborating closely with compliance teams or partners to help adhere to statutory requirements throughout the payroll management process for your remote team.
• In this phase also, standardising compensation packages to conform with local payment norms, such as payment cycles, which enhance compliance and meet employee expectations, is necessary.
• Payroll Calculation Phase: Streamlining input collection and validation processes ensures accurate wage calculations in this phase of payroll processing. This phase involves the actual calculation of wages, with a primary focus on this task. Utilising software automation and digital document submission tools makes payroll calculations efficient and reduces the risk of human error in this process.
• Post-payroll Phase: The post-payroll phase in Mali refers to the period after payroll processing, where employers review and settle any outstanding issues related to employee compensation, benefits, and taxes. This phase typically includes: salary payment, compliance reporting, benefit administration, audit and reconciliation. The post-payroll phase is crucial in Mali as it ensures that employers comply with regulatory requirements, maintain a good employer-employee relationship, and reduce the risk of penalties or fines associated with non-compliance.

Payroll Components in Mali

Here are some aspects comprehensively needed to navigate Mali’s payroll compliance:

• Salary/Wages
• Overtime benefits
• Social security contribution
• Paid leaves
• Paid holidays
• Payroll taxes
• Other laws

Navigating Mali Payroll Compliance

Mali’s employment regulations are primarily outlined in the Law No. 92-020 of September 1992, which covers critical aspects of payroll processing and compliance:

Salary/Minimum Wage

The government of Mali sets a legally mandated minimum wage to ensure that no worker earns less than the established rate. As of now, the minimum wage in Mali is 28,465 CFA francs per month.

Working Hours

Mali’s standard workweek is 40 hours, though it may extend up to 48 hours for certain roles, such as those in managerial and medical positions. Overtime pay applies to employees working more than 40 hours per week. A 10% premium is paid for hours worked between the 41st and 48th hour, 25% for hours beyond 48, and 50% for any night work.

Social Security Contribution

Employer contribute 35% while the employee contributes 19.9%.

Health Insurance

In Mali, employee health benefits are supported by a state-funded universal healthcare system. However, many employers supplement this with private medical insurance to ensure access to higher-quality healthcare services.

Corporate Tax Rate: 35%

VAT Rate: 18%

Personal Income Tax

• Income up to 300,000 CFA francs: Exempt from tax
• Income from 300,001 to 900,000 CFA francs: Taxed at 5%
• Income from 900,001 to 1,900,000 CFA francs: Taxed at 10%
• Income from 1,900,001 to 3,900,000 CFA francs: Taxed at 20%
• Income from 3,900,001 to 6,900,000 CFA francs: Taxed at 30%
• Income above 6,900,000 CFA francs: Taxed at 35%

Payroll Taxes

Paid Leaves

• Annual Leave: Employees are entitled to 24 days of paid annual leave.
• Sick Leave: To qualify for sick leave, employees must complete one month of continuous service. They are entitled to full pay for the first month of illness or injury. If the employee’s absence due to illness extends beyond a certain period, typically into the second month, the employer may terminate the contract.
• Maternity Leave: Mali requires a minimum of 14 weeks of maternity leave, covering both prenatal and postnatal periods, with full pay equal to the mother’s regular salary. Additionally, nursing mothers are entitled to one-hour breaks each day for up to 15 months to support breastfeeding and maternal health.
• Paternal Leave: In Mali, fathers are entitled to paid birth leave. They may take three days off at full pay within the first 15 days following the birth of their child.
• Parental Leave: After completing maternity leave, a female employee may be granted an additional four weeks of unpaid leave for childcare, at the discretion of the employer.
• Family Support Leave: Employees who have completed at least six months of service are entitled to seven working days of paid leave to care for a sick child, spouse, or dependent.
• Paid Public Holidays: In Mali, the paid holidays are as follows:
  • New Year’s Day: January 01
  • Army Day: January 20
  • Martyr’s Day: March 26
  • Easter Monday
  • Korité: The date varies
  • Worker’s Day: May 1
  • Africa Day: May 25
  • Tabaski: The date varies
  • Independence Day: September 22
  • Prophet Mohammed’s Birthday: The date varies
  • Christmas Day: December 25

Payroll Outsourcing in Mali

Payroll in Mali also encompasses termination and probationary periods law. Employees are not generally eligible for severance pay, except the termination is unjustified, or the employer voluntarily decides to make severance payment.

Collaborate with an Africa employer of record and payroll solutions provider such as Workforce Africa to strategically outsource your payroll operations while ensuring compliance with local labour regulations. Additionally, leverage our flexible service offerings to expand your international teams as needed.