Employment law
The category minimum wage: classify, pay, calculate seniority
Sahel Logistique opens a new warehouse in Sénou and hires six forklift drivers. The manager sets their pay “a little above the SMIG”, as he always has. Nobody has opened the collective agreement’s grid. Two years later, one driver looks it up, finds he is paid below the minimum for his job, and claims two years of arrears for himself and his colleagues.
Sahel Logistique (transport and warehousing, 42 employees) and its employees Moussa and Awa are fictitious. They are used for illustration only.
1. The legal framework: which texts set the minimum wages by category?
The category minimum wage sits where the law, decrees and collective agreements meet. It is governed mainly by the following texts:
- Law No. 92-020 of 23 September 1992 on the Labour Code, as amended. Article L.96 provides that decrees set the SMIG and, where there is no collective agreement or collective accord, the minimum wages by occupational category (Labour Code, article L.96). Article L.77 makes the collective agreement’s clauses binding on the contracts of the employers it covers. Articles L.97 (seniority bonus), L.99 (posting of minimum rates) and L.105 (category shown on the payslip) complete the system.
- Collective agreements, which define the job categories and set their minimum wages. Their joint committees may take decisions that apply to all employers within their scope (Labour Code, article L.85).
- Decree No. 2015-363/P-RM of 19 May 2015, which sets the SMIG at 40,000 XOF a month since 1 January 2016: no category minimum can fall below it.
- Decree No. 96-178/P-RM of 13 June 1996 implementing the Labour Code, amended by Decree No. 2022-0125/PT-RM of 4 March 2022. Its articles D.86-9 to D.86-11 classify domestic workers into seven categories and set their minimums and the base for their seniority bonus.
- Articles L.316, L.320 and L.321 of the Labour Code, which punish breaches of the collective agreement, of the seniority bonus and of minimums set by decree, and articles L.118 to L.120, which set a three-year limitation period for back-pay claims.
Company or establishment agreements may also adapt the salary clauses of collective agreements to the company’s conditions (Labour Code, article L.88). To identify the agreement that binds you, read Which collective agreement applies to my company?
The most common mistake
Looking for the category minimum in the Labour Code. The Code sets none: it refers to the collective agreement, and only failing that to a decree. Without your agreement’s grid, you do not know your floor.
The Code says there is a minimum. The agreement says how much.
2. What exactly are we talking about?
Take Moussa, a storekeeper, and Awa, a team leader, in the same warehouse. They do not do the same work or carry the same responsibilities. The agreement places them in two different categories, and each has its own minimum wage.
An occupational category is a group of jobs of comparable level, defined by the collective agreement according to tasks, qualification or experience. The category minimum wage is the lowest wage the employer may agree for a job in that category.
Why this rule? The SMIG protects the least qualified worker. The category minimum protects qualification: it prevents an experienced forklift driver from being paid like a labourer.
| SMIG | Category minimum | |
|---|---|---|
| Who sets it | A decree | The collective agreement, otherwise a decree |
| Who it protects | Every employee | Employees in that category |
| Amount | 40,000 XOF a month | Varies with the grid |
| Base for | Floor for INPS contributions | Statutory seniority bonus |
To place this minimum in relation to base salary, gross and net pay, read SMIG, base salary, gross, net, payroll: eight amounts you should no longer confuse.
What you need to do
- Obtain the latest version of the classification and minimum wage grid of the applicable agreement.
- List the company’s jobs and assign each one to a category.
3. Who sets the minimum, and which one prevails?
There are two possible sources, in this order. First, the collective agreement: when it binds the employer, its clauses apply to employment contracts, unless the contract is more favourable (Labour Code, article L.77). Second, a decree, only if there is no collective agreement or accord (Labour Code, article L.96, 4°).
Above everything, the SMIG remains the floor. An old agreement grid that has never been revalued may show minimums below 40,000 XOF. In that case, the SMIG applies. See What is the minimum wage in Mali?
Example. Domestic workers show how a grid ages.
1996 grid (Decree No. 96-178, article D.86-10): from 21,936 XOF (category I) to 35,049 XOF (category VII)
SMIG since 2016: 40,000 XOF, above the entire 1996 grid
2022 grid (Decree No. 2022-0125, new article D.86-10): from 40,000 XOF (category I) to 49,000 XOF (category VII)
For the details of this regime, read Domestic worker: contract, hours, pay, leave.
The most common mistake
Applying the agreement’s grid without checking its date. A grid that has not been revalued may be overtaken by the SMIG, or by a joint committee decision you have not followed.
The highest floor prevails: SMIG, agreement, then contract.
What you need to do
- Compare each minimum in the grid with the SMIG and use the higher one.
- Keep informed of the revaluations decided by your agreement’s joint committee.
4. Classifying the employee: the job actually held
The minimum is read from the grid, but you still need to know which box the employee goes in. Classification depends on the job held, as the agreement defines it. The decree on domestic workers illustrates this: it describes each category by tasks and experience, from assistant cook to butler, and prohibits agreeing a wage below the minimum “for the job held” (Decree No. 96-178/P-RM, articles D.86-9 and D.86-10).
The payslip must show the job and the category (Labour Code, article L.105). Minimum wage rates must be posted in the offices and at places of payment (article L.99).
The most common mistake
Keeping an employee in the hiring category when their tasks have changed. Awa was hired as a forklift driver, then given responsibility for a team. If the agreement places team leaders higher, that category’s minimum applies as soon as she holds the job. On the difference between a change of category and progression, read Reclassification and promotion.
What you need to do
- Classify each employee according to their actual tasks, not their job title or diploma alone.
- Review the classification at each change of duties, through a written amendment.
- Post the grid of minimums at the place of payment and show the category on each payslip.
5. Seniority is calculated on the minimum, not on the base salary
Any employee with at least three years’ continuous service in the company is entitled to a seniority bonus. It is calculated as a percentage of the minimum wage of their category (Labour Code, article L.97), unless the agreement or the contract is more favourable. For domestic workers, the base is the category wage (Decree No. 96-178/P-RM, article D.86-11).
| Seniority | Minimum statutory rate |
|---|---|
| 3 years | 3% |
| 5 years | 5% |
| Each year beyond 5 years | + 1% |
| Cap | 15% |
Example. Suppose the agreement sets the minimum for Moussa’s category at 75,000 XOF (fictitious amount). His base salary is 120,000 XOF and he has six years’ seniority.
Rate: 5% + 1% = 6%
Statutory bonus: 75,000 × 6% = 4,500 XOF a month
If calculated on the base salary: 120,000 × 6% = 7,200 XOF
Difference: 7,200 − 4,500 = 2,700 XOF a month, i.e. 32,400 XOF a year
Calculating on the base salary is not illegal: it favours the employee. But it is a costly choice which, repeated every month, becomes hard to reverse. Make it knowingly, not through a payroll setting error. See also the seniority bonus.
Certain absences do not reduce seniority, including paid leave, maternity leave, sickness up to six months and work accidents (article L.97).
The minimum sets the floor, and it sets the bonus too.
What you need to do
- Set up the seniority bonus base on the category minimum, unless a more favourable clause applies.
- Update the bonus at each revaluation of the grid, and every year on the anniversary of hiring.
6. What a mistake costs
Paying below the category minimum exposes the employer to two separate risks: the fine and the back pay.
| Failure | Fine | Text |
|---|---|---|
| Salary clause of the agreement not applied | 10,000 to 50,000 XOF; 20,000 to 100,000 XOF for a repeat offence | L.77, L.316 |
| Minimum set by decree not respected | 10,000 to 18,000 XOF; for a repeat offence, 20,000 to 50,000 XOF and 6 to 10 days’ imprisonment, or either penalty | L.96, L.321 |
| Seniority bonus not paid | 5,000 to 18,000 XOF; 20,000 to 50,000 XOF for a repeat offence | L.97, L.320 |
The fine does not settle the debt. The employee can claim the sums due for three years from the date they fell due (Labour Code, article L.118).
Example. The six Sénou forklift drivers are paid 65,000 XOF. Their category minimum is 70,000 XOF (fictitious amount). The error lasts two years.
Monthly gap per driver: 70,000 − 65,000 = 5,000 XOF
Over two years: 5,000 × 24 = 120,000 XOF per driver
For six drivers: 120,000 × 6 = 720,000 XOF of back pay, before charges
Back pay is salary: it bears the contributions and ITS of the period, which makes the bill heavier still.
The most common mistake
Believing that a salary accepted in writing amounts to a waiver. The contract cannot go below the agreement (article L.77): the employee’s signature does not validate a wage below the minimum.
What you need to do
- Check each base salary against the category minimum once a year.
- Correct any gap found without delay, covering the last three years at most.
Key takeaways in 6 points
- Identify the collective agreement that binds you and obtain its up-to-date wage grid.
- Classify each employee according to the job actually held, and review the classification at each change of duties.
- Pay at least the higher of the two floors: the category minimum or the SMIG.
- Show the category on each payslip and post the minimum rates at the place of payment.
- Calculate the statutory seniority bonus on the category minimum: 3% at three years, 5% at five years, then 1% a year up to 15%.
- Correct any gap without delay: the employee can claim three years of arrears, on top of the fine.