In Togo, labor law mandates a specific set of benefits that employers must provide to their employees. These benefits aim to ensure social protection and financial security for workers.

Social Security Contributions

Togo operates under a mandatory social security system. Both employers and employees contribute a portion of the employee's salary towards social security. Employers contribute 17.5% of the employee's gross monthly salary, while employees contribute 4% of their gross remuneration.

Benefits Covered by Social Security

Social security contributions in Togo provide benefits such as retirement pensions, family allowances, and maternity benefits.

Paid Time Off

Togolese employees are entitled to a minimum of 30 days of paid annual leave per year, which translates to two and a half days of paid leave per month. Togo recognizes several national holidays throughout the year, and employees are entitled to paid time off on these public holidays.

Togolese labor law grants employees a minimum of 5 days of paid sick leave per year. Togo offers working mothers 14 weeks (98 days) of maternity leave, which includes six weeks of compulsory prenatal leave and eight weeks of postnatal leave. In case of complications arising from pregnancy or childbirth, the leave can be extended for up to three weeks upon a doctor's recommendation. Currently, Togolese law does not mandate paid paternity leave.

Severance Pay

In cases of termination due to economic reasons, employers in Togo are required to provide severance pay to their employees. The amount of severance pay depends on the employee's length of service: 1 to 5 years equates to 35% of the average annual salary, 6 to 9 years equates to 40% of the average annual salary, and 10 or more years equates to 45% of the average annual salary.

In Togo, many companies go beyond the mandated benefits for employees, offering additional perks to attract and retain top talent.

Health and Wellness

Private health insurance is often provided to supplement the national social security healthcare coverage. This offers wider coverage for medical services, hospitalization, and medication. Additionally, wellness programs are common, with companies offering on-site fitness facilities, gym memberships, or sponsoring employee participation in sporting events to promote a healthy lifestyle.

Financial Security

Some employers provide group life insurance plans to offer financial security to employees' families in case of their passing. Additionally, some companies offer private pension plans to provide a more comfortable retirement for employees.

Work-Life Balance and Family Support

Flexible work arrangements are often provided, including telecommuting options, compressed workweeks, or flextime to allow employees to better manage their work-life balance. Childcare assistance is another optional benefit, with employers providing on-site childcare facilities, childcare subsidies, or partnering with daycare centers to ease the burden of childcare on working parents.

Personal and Professional Development

Investing in employee skills development through training and development programs can enhance employee performance and loyalty. These programs may include courses, conferences, or workshops. In a globalized world, companies may also offer language courses, particularly French and English, to enhance employees' communication and career prospects.

In Togo, certain employees are required to have health insurance under the social security system.

Compulsory Universal Health Insurance Scheme (RAMO)

Starting from January 1, 2024, the Compulsory Universal Health Insurance Scheme (RAMO) was implemented in Togo. This scheme is applicable to formal sector employees, including employees of private companies, public institutions, and self-employed individuals. Ministers of religion are also included under RAMO.

Employer and Employee Contributions

The total contribution rate for RAMO is 10% of the monthly salary subject to contribution. At least 50% of this is borne by the employer, with the remaining amount payable by the employee.

Benefits Covered by RAMO

RAMO aims to provide financial protection and access to quality healthcare for its beneficiaries. It generally covers risks related to illness, non-occupational accidents, and maternity.

Management of RAMO

The National Health Insurance Institute (INAM) is responsible for managing health insurance for public and civil servants. The National Security Fund (CNSS) administers health insurance for private sector employees, self-employed individuals, and ministers of religion.

Health Insurance for Informal Sector Workers

Currently, informal sector workers in Togo are not included in the mandatory RAMO scheme. However, the government is exploring ways to extend health insurance coverage to this significant portion of the workforce.

Togo has a two-tiered retirement system for employees, which includes a mandatory public plan and optional private options.

Mandatory Public Pension (CNSS)

The National Social Security Fund (CNSS) manages the mandatory public pension plan in Togo. Here's a breakdown of key points:

• Eligibility: All formal sector employees, including private companies, public institutions, and salaried agricultural workers, contribute to CNSS.
• Contributions: Both employers and employees contribute a portion of the employee's gross monthly salary:
  • Employer contribution: 17.5% of the salary, with 12.5% specifically allocated towards the employee's old-age pension.
  • Employee contribution: 4% of gross salary.
• Benefits:
  • Retirement pension: Upon reaching retirement age (60 years old, or 55 with exceptions) and meeting minimum contribution requirements (15 years), employees qualify for a monthly pension. The pension amount is calculated based on average earnings during the last five years of employment and the total contribution period.
  • Early retirement: Early retirement with a reduced pension is possible under certain circumstances.
  • Old-age allowance: For those with at least 12 but less than 15 years of contributions, a one-time old-age allowance is provided upon reaching retirement age.

Optional Private Pension Plans

Some employers in Togo offer private pension plans as a supplementary benefit to their employees. These plans can be established through:

• Collective bargaining agreements: Negotiated between employee unions and employers.
• Individual employer initiatives: Companies might offer their own private pension plans to attract and retain talent.

Benefits of Private Pension Plans:

• Increased retirement income: Provides additional income on top of the public pension, potentially leading to a more financially secure retirement.
• Investment opportunities: Private plans may offer investment options allowing employees to grow their retirement savings.

Who Manages Private Pension Plans?

Private pension plans can be managed by:

• Insurance companies: Offering various investment options and professional management of retirement funds.
• Specialized financial institutions: Focused on managing retirement savings plans.