Mali has just raised the retirement age for employees covered by the Labor Code.

Eligibility for old-age retirement benefits is determined by two factors:

• The insured person’s age, which must reach the legal limit set according to their status,
• The required period of insurance coverage to build up the funds needed to provide social benefits.

In Mali, an old-age pension is guaranteed to insured individuals who are 58 years old and have made contributions for 13 years.

In accordance with the provisions of Law No. 2019-025 of July 5, 2019, the retirement age is set as follows

For employees of public administrative institutions (EPA), public scientific, technological, or cultural institutions (EPSTC), public hospitals (EPH), public social institutions (EPS), and public industrial and commercial institutions (EPIC)

• Category A: 65 years old,
• Category B: 62 years old
• Categories C, D, and E: 58 years old
• For contract workers of the State and local governments
• Category A or equivalent: 60 years of age
• Categories B, C, D, and E or equivalent: 58 years old.

For employees or contract workers in the private sector

• Category A or equivalent: 60 years old
• Categories B, C, D, and E: 58 years old.

For private-sector employees classified in Category A or equivalent, the employment relationship may continue, by mutual agreement, for a period not to exceed the employee’s 62nd birthday.

For private-sector employees classified in Categories B, C, D, and E, the employment relationship may continue, by mutual agreement, for a period not exceeding the employee’s 60th birthday.

However, this voluntary extension does not entitle the employee to the accumulation of years of pension insurance.

** Retiring an Employee **

An employer may wish to retire an employee who has reached the age limit. This action does not constitute a termination.

However, on the date the employee leaves the company, the employer is required to pay the employee a retirement severance payment calculated in the same manner as a termination severance payment, as well as compensation for unused paid leave.

The employer must also notify the INPS, which will take the necessary steps to process the employee’s pension.

**Eligibility for a Retirement Pension **

Eligibility for a retirement pension is contingent upon having made contributions to the INPS for at least 13 years, whether continuous or not. Beyond 13 years of contributions, a 2% increase is granted to the beneficiary for each additional year. The pension is paid monthly.

However, employees of EPAs and EPICs who have reached the ages of 59, 56, and 55, respectively, for categories A, B, C, D, and E may request the payment of their retirement pension (early retirement).

In such cases, the retirement pension will be subject to a 5% reduction for each year of early retirement.

Private-sector employees and contract workers of the State and local governments who have reached the age of 57 for Category A, and 55 for the other categories (B, C, D, E), may also apply for their retirement pension (early retirement).

Note: Retirement at ages 62, 59, 57, 56, or 55, as applicable, at the employee’s initiative, does not constitute resignation.

**Hiring a Retiree **

It is prohibited to hire as an employee a worker who has legally retired, as the pension cannot legally be combined with earned income subject to INPS contributions.

Terminology

Employee contribution: This is the contribution the employee pays from their monthly salary, which entitles them to their pension. The rate is 3.6% of their gross salary.

Employer’s contribution: This is the contribution paid by the employer to cover the risks of workplace accidents or occupational diseases, family benefits, and a portion of the pension plan.

The rate ranges from 15.4% to 18.4% of the employee’s gross salary, as the contribution rate for the workers’ compensation and occupational disease program varies from 1% to 4% depending on the employer’s industry.