Payroll costs
The Seniority Bonus
1. Definition
The seniority bonus is a form of compensation that rewards an employee’s length of service with the company.
It is not paid for performance or for enduring any particular hardship; rather, it recognizes loyalty, the fact of having stayed with the company, and the experience gained during that time.
2. Legal Basis
It is payable in accordance with the provisions of Article L.97 of Law 92-020/AN-RM establishing the Labor Code of the Republic of Mali.
An important consequence of this legal basis is that the seniority bonus does not stem from a decision by the employer; it is mandated by law. It is therefore neither optional nor revocable; it is payable as soon as the conditions are met.
3. Eligibility Requirements
It is paid to any employee with three years of service.
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Why a three-year threshold? Before this period, the bond with the company is still developing. The threshold marks the moment when an employee’s tenure ceases to be merely a temporary phase and becomes a lasting commitment—one that deserves to be recognized as such.
4. The Pay Scale
The bonus increases with seniority, according to three consecutive rules.
| The rule | |
|---|---|
| 1. | 3% after 3 years of service |
| 2. | 5% after 5 years of service |
| 3. | +1% per additional year, up to a maximum of 15% |
The increase, year by year
| Years of Service | Bonus Rate |
|---|---|
| 3 years | 3% |
| 5 years | 5% |
| 6 years | 6% |
| 7 years | 7% |
| 10 years | 10% |
| 15 years and older | 15% (cap reached) |
How to read this scale. It combines two tiers followed by a continuous progression:
- a first tier at 3 years, which establishes eligibility;
- a second tier at 5 years, which increases the rate;
- followed by a linear increase of one percentage point per year, up to the 15% cap.
The cap is reached after 15 years of service. Beyond that, the rate no longer changes.
What the scale’s structure reflects: The first years of service are valued the most; the rate doubles between the third and fifth years. Then the progression levels off before coming to a halt.
The cap is not an arbitrary limit: it reflects the idea that beyond a certain threshold, seniority has yielded all it can in terms of experience and commitment to the company.
Key Points in 5 Items
- The seniority bonus is provided under Article L.97 of Law 92-020/AN-RM, the Labor Code: it is statutory and therefore mandatory.
- It is available to any employee with 3 years of service.
- The scale is 3% after 3 years, 5% after 5 years, and then an additional 1% for each subsequent year.
- The cap is 15%, reached after 15 years of service.
- Since it is statutory, it is neither optional nor revocable; it is due as soon as the conditions are met.