Social security contributions in Togo

Social security contributions are financial contributions, based on and deducted from salaries, payable by the worker and the employer and remitted to the National Social Security Fund by the employer. Social contributions are used to finance the social security system, in particular the benefits of the three branches of which it is composed, namely family benefits, occupational risks and old-age pensions.

I/ Rates of social contributions

Social security contribution rates are set by decree. The social contribution rate is 21.5%. This rate is divided according to the category of employer or employee.

For example:

a) for the employee

– the employer contributes 17.50% of the worker’s salary,

– the worker contributes 4% of his salary,

or a total of 21.50% of the worker’s salary.

The 17.50% to be paid by the employer, known as employer’s contributions, is used to finance :

• the family benefits branch for 3%,
• the occupational hazards branch (occupational accidents and diseases), and
• professionals) for 2%,
• a 12.50% share of the old-age pension branch.

The 4% to be paid by the employee, called workers’ contributions, contributes to the financing of the old-age pension branch. The employee therefore only participates in the old-age pension branch.

N.B.: All employers (in the Customs Bonded and Free Trade Zones) are subject to contributions for all branches of social security benefits.

b) the self-employed person contributes 21.50% of his/her income.

The 21.50% payable by the self-employed worker is used to finance :

• the family benefits branch for 3%,
• the occupational hazards branch (occupational accidents and diseases), and
• professionals) for 2%,
• the Old Age Pensions branch for 16.50%.

c) the worker in the informal economy contributes 19.50% of his income.

The 19.50% to be paid by the worker in the informal economy is used to finance :

• the Family Benefits branch for 3%,
• the Old Age Pensions branch for 16.50%.

II/ Calculation of social contributions

Contributions are calculated on the employee’s total remuneration, including allowances, bonuses, gratuities, commissions and all other benefits in kind, but excluding reimbursements of expenses and family benefits.

The monthly remuneration used as a basis for calculating contributions must not be less than the guaranteed inter professional minimum wage (SMIG).

For the self-employed person subject to IRPP (personal income tax), social security contributions are calculated on the basis of the income declared for IRPP; for the self-employed person subject to IS (corporate income tax), contributions are calculated on the basis of the average monthly income declared to the CNSS; this income may in no case be less than the SMIG (guaranteed inter professional minimum wage).

For workers in the informal economy, contributions are calculated on the basis of the income declared to the CNSS. This income can also in no case be less than the SMIG (guaranteed minimum wage).

III/ Collection of social contributions

According to article 17 paragraph 1 of the law N° 2011- 006 relating to the social security code: “the employer is required to pay the totality of the contributions due notably the employer’s share and the worker’s share within the time limits and according to the methods fixed by order of the supervising minister”.

It is, therefore, the employer, the self-employed worker or the worker in the informal economy who must pay the totality of the contributions due to the national social security fund.

Social security contributions are collected by sending the employer three (03) monthly calls for contributions (ADC) at the beginning of each quarter. The employer completes the CDA for the corresponding month and returns it to the national social security fund with payment no later than the 15th of the month following the month to which the CDA relates.

IV/ Penal provisions

Employers who do not pay their social security contributions within the legal deadlines are subject to forced recovery. The legal provisions in this matter are: article 21 of law n°2011-006 of February 21, 2011 on the social security code and articles 50 and 51 of order n°002/2012/MTESS/CAB/DGTLS of February 13, 2012 setting the terms of application of the social security code.

With regard to sanctions, the employer is liable for late payment increases for late payment of social security contributions. It is also liable to penalties for failure to return the nominative declaration of remuneration within the time limit.

Learn more: https://employerofrecord-africa.com/togo-employer-of-record-services/