How to Hire Remote Employees In 

Mali

The Basics

Currency
Cfa Franc Bceao
Employer Taxes
19.9%
Payroll Frequency
Monthly
Official Language
French

Employment in 

Mali

Hire Independent Contractors

Independent contractors or freelancers are self-employed individuals who provide services to companies as a non-employee. This is one of the most common ways companies tend to hire non-local designers, engineers, support reps, etc.

For legal and tax purposes, independent contractors are not classified as employees. They may work for multiple clients, set their own work hours, negotiate their pay rate, and decide how a job gets done.

For example, the IRS says that if an independent contractor or freelancer does work that can be controlled (what will be done and how it will be done) by an employer then they are, in fact, classified as an employee.

As you can imagine, hiring someone as an independent contractor versus an employee is a fine line to tread.

While there are benefits when you choose the contractor route, there are quite a few drawbacks to consider and you’ll need to weigh them carefully to determine the best fit for your company.

Benefits of Hiring Independent Contractors
Reduced overhead: Lower cost in expenses, payroll, benefits, and more.
Greater flexibility: Contractors can be brought on as-needed. If not a good fit, you simply don’t have to move forward with the contract.
Reduced legal risk: Contractors aren’t usually protected by employment anti-discrimination and workplace safety laws.
Disadvantages of Hiring Independent Contractors
Risk of Misclassification: Not only does this deny workers their proper protections, it can also result in steep penalties and damage to your company. If the IRS determines that employee misclassification has occurred, you will be liable for a percentage of the employees wages, FICA contributions, penalty fines, unpaid taxes, up to a year in prison, and more.
Lack of Control: Contractors are drawn to being independent because it gives them greater control over the work they perform and who they work with. Because they’re not employees, you can’t tell them what to work on and how it should be done.
Lack of Loyalty: Contractors come and go as-needed. Many companies hire contractors for short-term work, which makes it difficult to cultivate loyalty.
Increased Scrutiny: Using Independent Contractors typically leads to an increased risk of being audited.

Set up a subsidiary in 

Mali

A foreign subsidiary is a company that operates overseas as part of a larger company who’s HQ is in another country.

Establishing a foreign entity is great for having an international presence and accessing new markets. Though, setting up a subsidiary in Mali can be expensive, stressful, and time-consuming. It's not for the faint of heart.

To set up a subsidiary in Mali, you have to:

  1. Register your business name and file articles of incorporation
  2. File for local bank accounts
  3. Learn and keep track of the local employment laws
  4. Set up local payroll
  5. Hire local accounting, legal, and HR people

If you're lucky, this process can take months. If you're not so lucky, it can take up to a year. And on average, it costs about $50k-$80k, all-in-all, to get setup. And that's just for Mali.

Use an Employer-of-Record (EOR)

An employer-of-record (EOR) is a company that hires and pays an employee on behalf of another company.

An EOR is typically used to overcome the financial and regulatory hurdles that often come with employing remote workers.

Each country has its own payroll, employment, and work permit requirements for non-resident companies doing business in their jurisdiction. Meeting those demands can be a huge obstacle when it comes to hiring remotely.

At Panther, we help companies employ and pay people in over 160 countries, without having to set up a foreign subsidiary. Payroll, benefits, taxes, compliance, and more are all handled by us, at a fraction of the cost.

Outside of saving you months and tens of thousands of dollars, other advantages of using Panther are:

  • Ability to attract talented and motivated employees from all over the world.
  • Full legal compliance: There is no risk of violating local employment laws.
  • Transparency: Employees are still your employees. All the work, processes, operations and day-to-day business belong to you, the company, just like with any other employee. Panther just takes on all of the responsibilities, obligations and admin work related to your team's employment.
  • No risk of misclassification

Because you no longer have to set up your own subsidiary, you’ll save a ton of time and tens of thousands of dollars using Panther.

Paying Remote Employees

Paying employees in Mali is not the same as paying workers in your own country. Employees have to be paid using Mali’s employment and payroll standards.

This means that you have to know, understand, and keep up with 1) fluctuating currency changes, and 2) local payroll and tax laws in the countries you’re looking to hire in.

Outside of the laws and regulations around payroll, there may be different conditions surrounding leave, overtime, termination, and more. As you can imagine, maintaining this kind of regulatory knowledge can be challenging. But it is crucial and necessary to follow local legislation.

After, you’ll have to determine the best way to pay your international employees. This can be done in a number of ways, including but not limited to:

Pay through a local entity

One of the most challenging (and expensive) parts of paying international employees is setting up the infrastructure to do so.

Before you start to run payroll, you have to register your company as the local employer in the country the worker resides in. As you can see in the “Set up a subsidiary” section, this is a multi-step process that can take up to a year and put you on your way to bankruptcy.

Work with an EOR

Outside of EORs acting as the full admin employer, many also provide remote payroll.

For example, at Panther, in just 1-click, you’re able to pay your entire global team, anywhere in the world. We send you an invoice each month, charge you in US Dollars, and pay your employees the same amount in their local currency.

We factor in currency fluctuations and use the mid-market rate plus any applicable fee passed on by our provider at cost at the time of billing.

Mali

 Specific Information

Working Hours

The standard working hours in Mali is 40 hours a week and eight hours a day.

Overtime

In Mali, overtime is allowed for up to 18 hours per week, although the labor inspector can authorize a maximum of 60 hours per week. Night working hours are from 9 p.m. to 5 a.m.

Payroll Tax

Employer

Employer

  • INPS (Institut Nationale de Prévoyance Sociale) -Malian social security agency.

Minimum Wage

The minimum wage in Mali is 28,465 CFA francs per month ($57),plus a mandatory benefits package including social security and health care.

Payroll

Pay Cycle

In Mali, employees expect to be paid monthly.

13th Salary

An employee is entitled to a seniority bonus, which is 3% of their annual salary after three years of service, 5% after five years of service, and an additional 1% per year up to 15 years of service.

Leave

Paid Time Off (PTO)

Employees receive two additional days after 15 years of service, four additional days after 20 years of service and six additional days after 25 years of service.

Leave of less than 15 days should be taken continuously. If an employee has more than 15 days of annual leave, one leave period must be 15 days and the remaining can be taken as agreed upon by the employer and employee.

Female employees are entitled to one additional day of leave for each child they have under the age of 15 years.

Public Holidays

There are 12 public holidays.

Sick Days

Employees are entitled to sick leave provided they have a medical certificate.

Maternity Leave

Female employees in Mali with at least nine months’ service is entitled to up to 14 weeks of unpaid maternity leave.

This is limited to a maximum of six weeks before birth and eight weeks after birth.  

If the delivery takes place before the expected due date, the rest period after the birth is extended so that the full 14 weeks is taken.

This period can be extended by three weeks if there are medical complications. To be eligible, employees must reside in Mali and have at least nine consecutive months of covered employment.

Paternity Leave

Male employees in Mali are entitled to paternity leave up to 15 days of the child’s birth.

Parental Leave

There are no statutory provisions for parental leave.

Other Leave

No Info.

Marriage Leave

No Info.

Bereavement Leave

No Info.

Termination

Termination Process

Termination of the employment contract can be terminated at the end of the contract term (if for a fixed period), by the employer (with or without cause) or the employee.

  • Eight days for a weekly worker;
  • One month for monthly workers;
  • Two months for supervisors; and
  • Three months for executives and those in managerial positions.

Notice Period

Notice period in Mali of terminations for reasons other than misconduct:

  • One month of notice, for a lower-level contract employee whose salary is paid on a monthly basis.
  • Two months for a mid-level contract employee.  
  • Three months for Executive/managerial level (cadré) and equivalent high employees

Severance Pay

In Mali, the average monthly salary earned during the past 12 months and applying the following percentages:

  • 20% of the average monthly salary for each of the first five years of employment.
  • 25% of the average monthly salary for each of the years between 6th - 10th year of employment.
  • 30% of the average monthly salary for each year after the 10th year of employment.

Probation Period

Probation period is 3 months.