Remuneration
Base Salary
Base pay is the primary compensation paid to an employee in exchange for the work they perform for their employer.
It serves as the starting point for calculating total compensation. Various components may then be added to this salary, including:
- contractual pay increases, if the pay scale is not based on job category;
- mandatory bonuses and allowances, including the seniority bonus;
- optional bonuses and allowances;
- overtime;
- overtime pay.
All compensation components owed to the employee are used to determine their gross pay, before tax and social security deductions are applied.
1. How is the base salary determined?
The base salary must not be set arbitrarily. It must normally be tied to a pay scale applicable within the company or its industry.
This scale allows each employee to be classified based on several factors, including:
- their job category;
- their grade;
- their pay step;
- their level of qualification;
- their professional experience;
- the nature of their job;
- the responsibilities assigned to them.
Each position must therefore be properly classified in order to determine the corresponding minimum wage. The goal is to ensure consistency between the duties performed, the qualifications required, the responsibilities assigned, and the compensation provided.
This approach is consistent with the principle set forth in Article L.95 of the Labor Code:
“Equal pay for equal work.”
In other words, two employees in comparable professional situations who perform work of equivalent value must, in principle, receive equal pay.
This does not mean that all employees must necessarily receive the same pay. Differences in pay may be justified by objective criteria, such as:
- seniority;
- experience;
- qualifications;
- responsibilities;
- job performance;
- special working conditions.
2. What should a pay scale be based on?
To serve as a reference and be enforceable, the salary scale applied must have a legal, regulatory, or contractual basis. It may derive, in particular, from:
- the current Guaranteed Interprofessional Minimum Wage (SMIG);
- an establishment- or company-level agreement;
- a collective bargaining agreement applicable to the industry;
- an internal pay scale that has been duly adopted, provided it complies with legal and collective bargaining minimums.
The employer must therefore identify the applicable laws and regulations for its business before determining the compensation for a position. In particular, the employer must verify:
- the company’s industry;
- the applicable collective bargaining agreement;
- the position’s classification;
- the employee’s category, grade, and step;
- the corresponding minimum wage;
- mandatory supplements, bonuses, and allowances.
An internal pay scale may not provide for a wage lower than the minimum required by law, regulations, the applicable collective bargaining agreement, or the applicable company-wide agreement.
3. Category-Based Wage vs. Collective Bargaining Wage: What’s the Difference?
Category-based pay is the base pay corresponding to the employee’s job category, grade, or step within a category-based pay scale. It constitutes the minimum compensation associated with the employee’s job classification.
The collective bargaining wage is the base wage determined by the pay scale set forth in a collective bargaining agreement applicable to the company or its industry. When the collective bargaining pay scale provides for bonuses, these are added to the base wage for the category.
Depending on the applicable pay scale, an employee’s minimum compensation may therefore include:
- the base salary corresponding to their category;
- the increases provided for in the collective bargaining agreement, when the pay scale is not category-based;
- mandatory bonuses and allowances;
- a seniority bonus, when the conditions are met.
In addition to these components, optional bonuses and allowances, overtime pay, and premium pay may also be included.
4. What is a salary supplement?
A salary supplement is additional compensation paid by the employer in excess of the minimum wage set by the category-based or collective bargaining pay scale. It can, in particular, be used to:
- to adjust compensation to the job market;
- to take the employee’s experience into account;
- to recognize a specific qualification or skill;
- to attract a sought-after candidate;
- retain employees;
- to offer compensation above the applicable minimum.
The pay premium must be distinguished from:
- the base salary for the job category;
- contractual pay increases;
- bonuses and allowances;
- overtime pay.
It is recommended that this be clearly stated in the employment contract and on the pay stub.
5. How is gross pay calculated?
Gross pay is calculated by adding up the various components of compensation owed to the employee before tax and social security deductions are applied.
Practical example
An employee is classified in a job category with a base salary set at 150,000 FCFA. The collective bargaining agreement provides for increases of 25,000 FCFA. The employee also receives mandatory bonuses and allowances, optional bonuses and allowances, and a salary supplement.
His compensation breaks down as follows:
| Compensation Components | Amount |
|---|---|
| Category-based base salary, if the pay scale is not collectively agreed upon | 150,000 FCFA |
| Sum of contractual allowances, if the pay scale is not category-based | 25,000 FCFA |
| Sum of mandatory bonuses and allowances, including the seniority bonus | 75,000 CFA francs |
| Total of optional bonuses and allowances | 15,000 FCFA |
| Overtime | 100,000 CFA francs |
| Overtime pay | 100,000 FCFA |
| Gross salary | 465,000 FCFA |
Simplified Formula
Gross salary = base salary for the category (based on the category scale or collective bargaining agreement) + sum of contractual allowances + sum of mandatory bonuses and allowances + sum of optional bonuses and allowances + overtime + salary supplement.
Key Points
The base salary corresponds to the employee’s position and professional classification. It is determined based on the category, grade, and step specified in the applicable category-based or collective bargaining pay scale.
The category-based salary is determined by a classification scale based on professional categories. The collective bargaining agreement-based salary results from the application of a collective bargaining agreement and may be supplemented by contractual allowances. The salary supplement is an additional payment granted by the employer above the applicable minimum.
Finally, gross pay corresponds to all compensation components owed to the employee before the application of tax and social security deductions.
A clear job classification system and a well-defined pay scale promote fairness, transparency, and consistency in the company’s compensation policy.