Severance Pay in Guinea 2026: The 33/35/40% Progressive Scale Explained

The essentials in three bullets

• Any employee dismissed in Guinea with at least 12 months of seniority is entitled to severance pay (Art. 172.27 of the Labour Code)
• The official scale is progressive across three seniority brackets: 33% per year for the first 5 years, 35% between years 6 and 10, 40% per year beyond year 10 (Art. 172.30)
• The calculation base is not the bare gross salary but the average global monthly salary — bonuses included. Willful misconduct is the only ground that completely deprives the employee of this indemnity

For an HR manager at Vista Bank Guinée or an SME director in Kaloum, calculating severance pay often remains a point of uncertainty. A persistent rumour has been circulating in Guinean HR firms for years: "the scale is 25/30/40% per bracket". That is false. The official scale set out in Article 172.30 of Law L/2014/072/CNT is 33/35/40%.

This article explains the exact calculation bracket by bracket, with three worked Guinean examples, the seven common errors we observe in payroll audits, and the risks in case of miscalculation.

The legal framework — Article 172.27 and Article 172.30

Guinean severance pay is governed by Title VII of Book I of the Labour Code (Law L/2014/072/CNT of 10 January 2014), in its section devoted to the termination of the employment relationship.

Article 172.27 — eligibility conditions

"An employee who has effectively worked at least twelve months on behalf of the company under the contract being terminated is entitled to a severance pay. An employee dismissed for willful misconduct is not entitled to this indemnity."

Two cumulative conditions:

1. 12 months minimum seniority — the employee must have effectively worked at least one year in the company under the contract being terminated. Successive fixed-term contracts do not automatically add up (unless converted to a permanent contract).
2. Absence of willful misconduct — willful misconduct is more serious than gross misconduct and implies a manifest intent to harm the employer. It deprives the employee of any severance pay (but not of due salary or accrued paid leave).

Article 172.30 — progressive scale

"In the event of individual dismissal, the rate of severance pay is thirty-three per cent (33%) of the average global monthly salary per year of service for the first five years; thirty-five per cent (35%) of the average global monthly salary per year between years 6 and 10 inclusive; forty per cent (40%) of the average global monthly salary per year beyond year 10."

⚠️ Important: the rumour of a "25/30/40%" scale circulating in some Guinean HR firms is erroneous. The official text published in the Official Journal and available on the Guinean Supreme Court website sets the scale at 33/35/40%.

How to calculate step by step

Step 1 — Determine the average global monthly salary (AGMS)

The AGMS is the average of gross compensation received by the employee over the last 12 months (or the full period if seniority is shorter). It includes:

• Base salary
• Bonuses and gratuities (seniority bonus, performance bonus, smoothed 13th month, etc.)
• Benefits in kind valued in GNF
• Indemnities that constitute salary supplements

Excluded: reimbursement of professional expenses, non-recurring exceptional bonuses.

Step 2 — Calculate seniority

Seniority is expressed in years (and year fractions). A fraction of a year counts pro rata. Example: 7 years and 6 months = 7.5 years.

Step 3 — Apply the scale bracket by bracket

Like ITS, severance pay is computed bracket by bracket, not at a single rate.

For 8 years of seniority:

• First 5 years: 5 × 33% of AGMS = 165% of AGMS
• Years 6 to 8 (3 years): 3 × 35% of AGMS = 105% of AGMS
• Total: 270% of AGMS = 2.7 times the average global monthly salary

For 12 years:

• 5 × 33% = 165%
• 5 × 35% = 175%
• 2 × 40% = 80%
• Total: 420% = 4.2 times the AGMS

Three concrete examples in Guinea

Example 1 — Mamadou Camara, delivery driver at SOBRAGUI (4 years of seniority)

• Average global monthly salary: 2,500,000 GNF
• Seniority: 4 years (single 33% bracket)
• Calculation: 2,500,000 × 33% × 4 = 3,300,000 GNF

Mamadou receives a severance pay of 3.3 million GNF, i.e. roughly 1.32 months of salary at the time of termination.

Example 2 — Fatoumata Bah, accountant at Vista Bank Guinée (8 years of seniority)

• Average global monthly salary: 5,500,000 GNF (including seniority bonus and smoothed 13th month)
• Seniority: 8 years (first 5 years at 33%, next 3 at 35%)
• Bracket 1 calculation: 5,500,000 × 33% × 5 = 9,075,000 GNF
• Bracket 2 calculation: 5,500,000 × 35% × 3 = 5,775,000 GNF
• Total: 9,075,000 + 5,775,000 = 14,850,000 GNF

Fatoumata receives a severance pay of 14.85 million GNF, i.e. around 2.7 months of AGMS.

Example 3 — Ibrahima Diallo, geologist engineer at Société Minière de Boké (15 years of seniority)

• Average global monthly salary: 12,000,000 GNF (including mining risk bonus, remoteness allowance, 13th month)
• Seniority: 15 years (all 3 brackets activated)
• Bracket 1 (years 1-5): 12,000,000 × 33% × 5 = 19,800,000 GNF
• Bracket 2 (years 6-10): 12,000,000 × 35% × 5 = 21,000,000 GNF
• Bracket 3 (years 11-15): 12,000,000 × 40% × 5 = 24,000,000 GNF
• Total: 19,800,000 + 21,000,000 + 24,000,000 = 64,800,000 GNF

Ibrahima receives a severance pay of 64.8 million GNF, i.e. 5.4 months of AGMS.

💡 CFO insight: for senior executives in mining/banking with long tenure, severance pay can easily reach 4 to 6 months of global salary. A headcount reduction plan affecting 50 senior executives therefore exposes the company to several billion GNF in social cost.

The seven common errors in Guinean payroll

Error 1 — Applying a single rate over the entire seniority. Many firms apply 33% or 40% over the whole period, forgetting the progressive mechanic. Result: underpayment (if uniform 33%) or employer overpayment (if uniform 40%).

Error 2 — Confusing the "average global monthly salary" with the bare gross salary. AGMS includes bonuses and benefits in kind. Forgetting that underestimates the indemnity by 10 to 30% depending on compensation structures.

Error 3 — Confusing gross misconduct with willful misconduct. Gross misconduct (minor theft, serious insubordination, serious negligence) deprives the employee of notice but preserves entitlement to severance pay. Only willful misconduct (manifest intent to harm the employer) deprives the employee of the indemnity. This distinction is the subject of many disputes at Guinean Labour Tribunals.

Error 4 — Calculating the indemnity for an employee with less than 12 months. No indemnity is due until the 12 effective months threshold is reached (Art. 172.27).

Error 5 — Confusing severance pay with notice indemnity. These are two separate indemnities that add up. Notice (Art. 172.23) is 1 month for workers/employees, 2 months for supervisors/foremen, 3 months for executives. The severance pay (Art. 172.30) adds to it.

Error 6 — Confusing severance pay with retirement indemnity. Retirement is governed by Article 172.34 and its own modalities, not by the 33/35/40% scale.

Error 7 — Forgetting year fractions. An employee at 7 years and 6 months does not compute at full 7 years. The calculation includes the additional 6 months pro rata on the current bracket (here 35%).

Risks in case of error

Litigation at the Labour Tribunal

An employee who considers their indemnity underpaid can refer the matter to the Labour Inspectorate for conciliation, then the Labour Tribunal of Conakry or the competent jurisdiction. The applicable limitation period is set by the Labour Code — your lawyer will specify the duration applicable to your situation.

Damages for wrongful dismissal

If the Tribunal qualifies the dismissal as wrongful (no real or serious cause), it may rule on top of the legal indemnity damages the amount of which is set by the judge depending on seniority, age, family situation and difficulty in finding a new job.

Indirect cost — employer reputation

Conakry is a small HR market. A widely publicised tribunal dispute can affect the employer brand, especially in sectors where the war for talent is intense (banks, telecom, premium mining).

Internal social risk

An underestimated indemnity for a senior executive sends a negative signal to other staff, who anticipate unfavourable treatment at their own departure. Effect: demotivation and proactive turnover.

How Wali automates the calculation

Wali's Offboarding module covers the 8 termination types (resignation, dismissal for personal reasons, economic dismissal, end of fixed-term contract, retirement, mutual agreement, force majeure, death) and natively includes:

• Automatic AGMS calculation over the last 12 months (with smoothed recurring bonuses)
• Application of the progressive 33/35/40% scale bracket by bracket per Art. 172.30 of the Labour Code
• Year-fraction handling pro rata of complete months
• Automatic distinction between gross misconduct (indemnity due, no notice) and willful misconduct (neither notice nor indemnity), with legal qualification linked to the associated disciplinary file
• Cumulative final-settlement calculation: notice indemnity (Art. 171) + severance pay (Art. 172.30) + compensation for unused accrued leave (Art. 145) + outstanding salary and prorated bonuses
• Automatic generation of 4 official PDFs: work certificate (Art. 195), final-settlement receipt (Art. 220), detailed calculation sheet signable by both parties, end-of-contract notification letter
• Return checklist (badge, laptop, vehicle, phone, equipment) checked off on effective departure
• Double HR + General Management approval before file closure
• Automatic user-account deactivation upon departure closure, with revocation of SIRH access
• Archived termination file consultable by the Labour Inspectorate in case of dispute

For HR managers in sectors with high average seniority (banks, mining, telecom), Wali computes in seconds what typically takes hours of manual calculation, with near-zero error risk.

To explore Wali's Offboarding module, request a free demo at walirh.com.

FAQ

Which salary should I use for the calculation?

The average global monthly salary (AGMS) over the last 12 months, including base salary, recurring bonuses (seniority, performance, smoothed 13th month), valued benefits in kind. Excluded: reimbursement of professional expenses and non-recurring exceptional bonuses.

If the employee resigns, are they entitled to the indemnity?

No. Severance pay is only due in case of termination at the employer's initiative. Resignation entitles the employee to accrued paid leave and due salary, but not to this indemnity.

What is the difference between gross misconduct and willful misconduct?

• Gross misconduct: behaviour making continued employment impossible (serious insubordination, minor theft, serious negligence). The employee loses their notice but retains their severance pay.
• Willful misconduct: misconduct with manifest intent to harm the employer (sabotage, malicious denunciation, embezzlement). The employee loses both the notice and the severance pay.

This distinction is often disputed and requires a precise legal qualification.

How is seniority calculated for a fixed-term contract converted to permanent?

If the fixed-term contract continues without interruption into a permanent contract, seniority is cumulated. If the fixed-term contract reached its term and the employee is re-hired on a permanent contract after a break, seniority generally restarts from zero (unless a more favourable collective agreement applies).

Is severance pay subject to ITS?

By common practice, severance pay benefits from a more favourable tax regime than ordinary salary. For the exact exempt base and threshold above which tax applies — which may depend on the employee's status and the applicable collective agreement — refer to the 2022 General Tax Code or consult your auditor.

Can collective agreements provide more?

Yes. Article 172.30 sets a legal minimum. A sectoral collective agreement (banking, mining, construction) or an individual contract may provide a more favourable scale for the employee. Check the applicable agreement before any calculation.

And if the company faces economic difficulties?

Economic dismissal follows specific procedural rules (information and consultation of staff representatives, notification to the Labour Inspectorate), but the indemnity scale remains identical: 33/35/40% per seniority bracket. There is no reduction of the indemnity for economic difficulties.

How is this indemnity paid?

The indemnity is paid with the final settlement at the time of contract termination, ideally by bank transfer for traceability. The final settlement must be signed by both parties — the employee has several months to contest certain elements even after signing.

Sources and legal references

• Law L/2014/072/CNT of 10 January 2014 enacting the Labour Code of the Republic of Guinea — confirmed via NATLEX/ILO, the Guinean National Assembly, ECOLEX (UN), Supreme Court of Guinea
• Article 172.23 of the Labour Code — Notice (1 month execution / 2 months supervision / 3 months executives)
• Article 172.27 of the Labour Code — Severance pay eligibility (12 months seniority, willful misconduct exclusion)
• Article 172.30 of the Labour Code — Progressive scale 33% / 35% / 40% per seniority bracket
• Article 172.34 of the Labour Code — Retirement indemnity (separate regime)
• Official Labour Code PDF published by the Supreme Court of Guinea

This article is part of the "Guinean Payroll Compliance" series on the Wali blog. Previous: Social Balance and Annual HR Obligations in Guinea 2026. See also: Calculating Progressive ITS in Guinea 2026 and CNSS Guinea: contributions, lump-sum payment and apprenticeship tax.

Wali is the first 100% Guinean SIRH, developed by RadianNa Solutions in Conakry. Natively compliant with the Labour Code (Law L/2014/072/CNT), the 2022 General Tax Code and the Social Security Code (Law L/94/006/CTRN). Discover the platform at walirh.com.