UPDATED 2 June 2022 – Senegal – IPRES ceiling increase
On the 25th of February 2022, a notice was issued by Institution de Prévoyance Retraite du Sénégal (IPRES) announcing the increase of the monthly ceiling on which IPRES is based. An increase of FCFA 360 000.00 to FCFA 432 000.00 for the Regime General and FCFA 1 080 000.00 to FCFA 1 296 000.00 for the Regime Des Cadre was announced. The effective date was originally published as 1 April 2022 which was later postponed to 1 June 2022. This is a friendly reminder that the ceiling amounts on the system have been changed effective 1 June 2022.
Click here for the official document.
UPDATE: Senegal – IPRES celling increase postponed
Following the notice that was issued by the Institution de Prevoyance Retraite du Senegal (IPRES) on the 25th of February 2022, announcing the increase of the monthly ceiling on which IPRES is based from FCFA 360,000 to FCFA 432,000 for the Regime General and from FCFA 1,080,000 to FCFA 1,296,000 for the Regime Des Cadre. The new ceiling was effective 1 April 2022. IPRES further issued another notice on the 14th of April 2022 postponing the effective date of the monthly ceiling to 1 June 2022.
Click here for the official document.
PaySpace Impact
- The IPRES limit has been reverted to the old limit on the system.
- All companies have been recalculated.
- If the April payrolls are closed, and the employees have not been paid, the April payroll can be re-opened and re-calculated for the changes to take effect. If the employees have been paid, process adjustments on the May payroll using the IPRES Adjustment components.
- No other statutory changes have been announced.
ORIGINAL RELEASE
The Institution de Prévoyance Retraite du Sénégal announced an increase in the ceiling on which IPRES contributions are based. The increase is effective 1 April 2022:
| Regime General | Regime des Cadres | ||
| 1 April 2022 – 31 December 2022 | Monthly ceiling | FCFA 432,000 | FCFA 1,296,000 |
| Annual ceiling | FCFA 4,968,000 | FCFA 14,904,000 |
The contribution rate remains the same.
Click here for the official document.
How does this work?
Note that the new annual ceiling cannot simply be divided by 12 to get the monthly equivalent, the ceiling is calculated as follows:
| Regime General | Regime des Cadres | ||
| 1 January 2022 -31 March 2022 | Monthly ceiling | FCFA 360,000 *3 = FCFA 1,080,000 | FCFA 1,080,000 *3 = FCFA 3,240,000 |
| 1 April 2022 – 31 December 2022 | Monthly ceiling | FCFA 432,000 * 9 = FCFA 3,888,000 | FCFA 1,296,000 * 9 = FCFA 11,664,000 |
| Total | Annual Ceiling | FCFA 4,968,000 | FCFA 14,904,000 |
Impact of Senegal IPRES Ceiling Increase on PaySpace
- The new ceiling amounts have been implemented on the system effective 1 April 2022.
- The IPRES calculations are now based on the MTD or YTD Averaging Tax method, depending on which tax method is selected on the Basic Company Information screen
- If the YTD Averaging method is selected, the new annual limit will be apportioned into a monthly figure and used to compare to the new monthly limit of 432 000.00. The result between the 432 000.00 and the monthly apportioned figure is then compared to the monthly income on which the contributions for the month will be calculated.
- If on the MTD Tax method, the system will use the monthly income to compare to the new monthly limit of 432 000.00.
- If the April payroll is closed and the employees have not been paid yet, reopen the April payroll and recalculate the company to see the effects of the change. If the payroll can not be reopened, the IPRES will need to be manually calculated and posted on the IPRES Adjustment components on the May payroll.
- Customer payrolls have been recalculated.
- No other statutory changes have been announced.
Should you have any questions regarding this change, please feel free to visit our Support page for more ways to get in touch, or email us at [email protected].
The PaySpace Team