Burkina-Faso: Authorities shed light on 1% and 25% salary deductions

In a statement regarding the mandatory application of salary deductions and incentives, the Ministry of Economy, Finance, and Prospective emphasizes the mandatory nature of deductions from the salaries of public servants and private sector workers.

Following the decision taken by the Cabinet meeting in its meeting on January 5, 2024, authorities inform employers in the public and private sectors that the deduction must be implemented «from this month of January 2024 and for the entire duration of the general mobilization».

For the 1% deduction from the net salary, the government’s measure applies to state public servants (including those in diplomatic missions and consular posts of Burkina Faso abroad, parliamentary public service, hospital public service, state public institutions, state-owned companies, development projects and programs, territorial communities, and all state branches), as well as salaried workers in the private sector.

Regarding the net salary, authorities clarify that it is «the sum of monthly earnings, less the deduction for social security contributions and the single tax on salaries (IUTS)».

Concerning the 25% deduction on incentives, the deduction applies “exclusively” to personnel and institutions, including employees of state-owned companies and state public institutions.

«Incentives refer to bonuses and other benefits not included in the monthly salary and paid periodically to public servants», the statement adds.

Employers in the private sector are also required to «declare and remit» the deductions made on the salaries paid to the General Tax Directorate within the same deadlines as the IUTS, using a form in accordance with the tax administration model.

«For employers in the public sector, deductions must be remitted to the Treasury accounts of the Patriotic Support Fund no later than the 5th of the month following the month for which they were made», the government note further specifies.

Papa IBRAHIMA