In West Africa, what is the typical percentage of total compensation delivered in the form of cash allowances and benefits in-kind? The answer depends, of course, on which country you are considering, as there is a wide range of practice.
In Côte D’Ivoire, for example, 45% of the total package is outside of basic salary, while in Liberia, just 9.2% of the package is allowances and in-kind benefits. The chart below summarizes the practices across 14 West African countries, based on data from the latest Birches Group multi-sector surveys:
As you can see, in the majority of countries, the non-base portion of total compensation is between 15% and 20%.
Cash allowances include elements such as fixed cash payments like 13th month and allowances for a variety of purposes such as vacation, housing, transport and leave, as well as seniority payments. In-kind benefits such as subsidized meals, recreation, loans, and cars are also common.
This data illustrates the importance of examining the full total compensation, not just base salary, when determining your compensation and benefits approach.
For more information about Birches Group surveys in West Africa, please contact us.