Payroll costs
Social Security Contributions
1. Definition
Social security contributions are taxes paid in the form of social security contributions to joint-commissioned organizations to fund social benefits for workers.
Three terms in this definition warrant further explanation:
| The term | What it means |
|---|---|
| Tax | A levy that entitles the payer to a benefit in return, in this case social benefits. This is what distinguishes it from a tax, which is levied without a direct benefit in return |
| Joint bodies | Organizations jointly managed by the parties concerned, rather than administered by the government alone |
| Social benefits | Entitlements provided in exchange for contributions: retirement, health care, family benefits, and accident coverage |
What the definition implies. Contributions do not go into a general budget: they establish entitlements. And because these entitlements belong to the contributors, they are the ones who participate in the management of the agencies, hence the joint nature of these bodies.
2. The Three Social Security Agencies in Mali
| Organization | Acronym | Who it covers |
|---|---|---|
| National Social Security Institute | INPS | Workers covered by the Labor Code |
| Malian Social Security Fund (formerly CRM) | CMSS | Civil and military officials, members of parliament, former presidents, and former prime ministers |
| National Health Insurance Fund | CANAM | Both sectors |
How to read this table. The first two organizations divide the population based on status: the private sector covered by collective bargaining agreements on one side, and the public sector on the other.
The third is cross-sectoral: CANAM covers both. Since illness does not depend on the insured person’s status, health coverage is pooled on a national scale.
3. Rates Applicable to Contracted Providers
For workers covered by the Labor Code.
3.1 Employee contributions
Paid by the employee and deducted from their wages.
| Plan | Rate |
|---|---|
| Pensions | 3.60% |
| AMO: Mandatory Health Insurance | 3.06% |
| Total | 6.66% |
3.2 Employer Contributions
Paid by the employer, in addition to the salary.
| Plan | Rate |
|---|---|
| Family benefits | 8% |
| Pensions | 5.40% |
| Work-Related Accidents and Occupational Diseases | 1–4% |
| AMO: Mandatory Health Insurance | 3.50% |
| Total | 17.90% to 20.90% |
(The totals are calculated by adding the rates above.)
4. What the Rate Structure Reveals
4.1 Two pension plans are funded from two sources
| Plan | Employee contribution | Employer contribution | Total |
|---|---|---|---|
| Pensions | 3.60% | 5.40% | 9% |
| AMO | 3.06% | 3.50% | 6.56% |
These two plans directly benefit the employee: his or her pension and health care. It therefore makes sense for the employee to contribute to them, alongside the employer.
4.2 Two plans are funded exclusively by the employer
| Plan | Employee’s share | Employer’s share |
|---|---|---|
| Family benefits | 8% | |
| Work-Related Accidents and Occupational Diseases | 1–4% |
Why these two are not shared. The workers’ compensation system covers risks arising from working conditions—that is, from the organizational structure established by the employer. It would be contradictory to require the employee, who has no control over this risk, to finance this coverage.
4.3 The Only Variable Rate in the System
Of the six contribution categories, only one is not a fixed figure: that for workplace accidents and occupational diseases (1 to 4%).
This rate is adjusted according to the actual risk level of the activity: a construction site or mining operation poses different risks than an office.
This is an important management consideration. While other contributions are simply incurred, this one is tied to prevention: it is the only one whose rate depends on how the company organizes safety for its teams.
The Essentials in 6 Points
- Social security contributions are taxes: they fund specific benefits for workers and therefore establish entitlements.
- They are paid to joint-management organizations, co-administered by the relevant parties.
- There are three such organizations in Mali: the INPS (for workers covered by the Labor Code), the CMSS (public sector), and the CANAM (both sectors).
- Employee contributions for those covered by collective bargaining agreements: 3.60% for pensions + 3.06% for AMO = 6.66%.
- Employer contributions: 8% family benefits + 5.40% pensions + 1–4% work-related accidents + 3.50% AMO = 17.90% to 20.90%.
- Pensions and AMO are co-financed; family benefits and workers’ compensation are paid exclusively by the employer, and the workers’ compensation rate is the only variable—and therefore the only one affected by preventive measures.