Employment law
Pensions: Retirement of foreign workers in Mali
A bridge construction site in Kayes, end of the day. Kwame, a foreign engineer, puts away his plans and tells the director of Bâtiments du Sahel that he will return to his country on retirement, in two years’ time. Seven years of INPS contributions appear on his payslips. He asks a simple question: “Do I lose everything?”.
Bâtiments du Sahel and the people mentioned in this article are fictitious: they are used as examples only.
1. What exactly are we talking about?
Bâtiments du Sahel employs 150 people, including six foreign executives. They are employees within the meaning of the Labour Code, which applies to anyone working under the authority of an employer, whatever their sex and nationality (Labour Code, article L.1). The Social Security Code applies to the same workers (article 2), and the pension scheme to all these employees (Social Security Code, article 142).
As a result, a foreign worker employed in Mali contributes to the National Social Security Institute (INPS) exactly like a Malian employee. The question is therefore not whether they contribute, but what happens to their rights if they leave Mali.
Why this rule? It prevents unfair competition between employees: an employer cannot cut its costs by hiring foreigners without declaring them.
The most common mistake
Exempting a foreign executive from contributions because they “will not stay”. No text provides for such an exemption for an employee subject to the Malian Labour Code.
In Mali, nationality changes nothing in the obligation to contribute. It only changes what happens on departure.
2. Three situations, three answers
The Social Security Code treats foreign workers according to whether they stay in Mali or leave it when they retire (Social Security Code, article 160).
| Situation on retirement | What the Code provides |
|---|---|
| They stay in Mali and meet the pension conditions | They receive the pension under the same conditions as any insured person (articles 142 and 143) |
| They stop residing in Mali and their country has similar provisions for Malians | They are entitled to reimbursement of the personal contributions they paid (article 160) |
| Their country has signed reciprocity agreements with Mali | They may receive a pension proportional to their contributions (article 160) |
Reimbursement of personal contributions means returning to the employee their employee share, the only one they paid themselves. The employer share is not covered. Reciprocity is the condition under which the employee’s country grants the same rights to Malians working there.
What the text says, and does not say
Article 160 covers the foreign worker who stops residing in Mali “at the time of retirement”. It does not provide for reimbursement at any time, for example when leaving after a two-year contract. Nor does it list the countries concerned: this depends on the agreements in force, to be checked with the INPS at the time of departure.
What you need to do
- Declare every foreign employee and have them contribute from the date of hiring, like a Malian employee.
- Ask the INPS, before the employee leaves, whether their country is bound to Mali by a reciprocity agreement.
- Give the employee a statement of their wages subject to contributions and of their deductions.
3. How much can they recover?
The employee share represents 40% of the pension contribution rate, set by decree (Social Security Code, article 197). According to the scale published by the INPS, this rate is 9%: the employee share is therefore 3.6% of salary.
Example. Kwame earns XOF 800,000 per month. When he retires, in two years’ time, he will have nine years of contributions. His country has similar provisions for Malians.
Monthly employee share: 800,000 × 3.6% = XOF 28,800
Number of months contributed on departure: 9 × 12 = 108
Reimbursable personal contributions: 28,800 × 108 = XOF 3,110,400
This amount does not include the employer share. It also assumes that every month was actually declared and paid: the INPS only reimburses what it has collected.
Staying until thirteen years: the other option
A foreign employee who reaches thirteen years of insurance and stays in Mali meets the conditions for a retirement pension (article 143). They then receive it under the same conditions as a Malian employee. For an executive hired young, this is often the most favourable option. See our article Retirement: standard pension.
Leaving before thirteen years means, at best, recovering your share. Staying means opening a pension.
What you need to do
- Calculate for the foreign employee the amount of their personal contributions before they decide to leave.
- Check that all their periods of work appear on the INPS statement.
- Send their application to the INPS with proof of their departure from Mali.
4. Obligations specific to hiring a foreigner
A foreign worker’s contract must always be in writing and submitted for approval to the National Labour Directorate, together with a work permit (Labour Code, article L.26). During their first two years of permanent residence in Mali, a foreigner may only work on a fixed-term contract, unless there is a reciprocity agreement with their country (same article).
The work permit file includes the contract in four copies, drawn up after the pre-employment medical examination (Order No. 2024-4363/MTFPDS-SG of 27 December 2024, article A.26-3). The employer also sends a nominative statement of its foreign staff to the National Labour Directorate every year, before 31 December (article A.26-16).
What a foreigner without a permit costs
Work permit fees are set by salary bands; where a foreigner is employed without a permit, the applicable rate is multiplied by five (Order No. 2024-4363/MTFPDS-SG, article A.26-6).
What you need to do
- Have every foreign worker’s contract approved and obtain their permit before they start work.
- Send the annual nominative statement of foreign staff before 31 December.
- Declare the foreign employee to the INPS within eight days of hiring.
5. A closer look: family benefits
Foreign employees lawfully admitted to Mali are also entitled to family benefits (Social Security Code, article 8). If their children live abroad, these benefits require an agreement between the INPS and the competent body in the children’s country of residence (article 10).
Key takeaways in 5 points
- Have every foreign employee contribute to the INPS from the date of hiring, like a Malian employee.
- Remember that reimbursement covers only the employee share, on leaving Mali at the time of retirement.
- Check with the INPS whether the employee’s country grants reciprocity or has signed an agreement with Mali.
- Remind the employee that with thirteen years of insurance, they are entitled to the pension under the same conditions as a Malian.
- Comply with the formalities specific to foreigners: written approved contract, work permit, annual nominative statement.