Workforce Africa simplifies hiring, payroll, and talent management, as well as your compliance needs for employees and independent contractors in Cabo Verde. No need for a subsidiary or entity setup. From contracts and onboarding to taxes, payroll, and admin tasks, partnering with us — the Employer of Record in Cabo Verde — will help you focus on growth for greater levels of success.

How Employer of Record (EoR) in Cabo Verde Works

Workforce Africa allows you to build a compliant team in Cabo Verde without registering a company there. We become the legal employer in Cabo Verde, while you direct what the employee does on a daily basis.

Our Cabo Verde EoR service usually includes:

• Drafting and issuing compliant employment contracts in Portuguese and, if needed, English
• Registering staff with tax and social security bodies
• Running monthly payroll in CVE and issuing payslips
• Calculating and paying income tax and social security on time
• Managing leave, benefits and day to day HR administration
• Supporting disciplinary issues and terminations in line with the Labour Code

Using an EoR in Cabo Verde cuts set up time, saves fixed costs and reduces the risk of breaching local labour or tax rules.

1. Employment Contracts in Cabo Verde

Types of Contracts

Employment in Cabo Verde can be based on different contract types, such as:

• Indefinite (open-ended) contracts for ongoing roles
• Fixed-term contracts for projects or temporary needs
• Part-time contracts where weekly hours are below full time
• Seasonal contracts, common in tourism and agriculture
• Casual or intermittent work for occasional tasks

Written contracts are strongly preferred and standard in professional roles.

Key Contractual Elements

A Cabo Verde employment contract should, at a minimum, state:

• Details of the employer (EoR) and the employee
• Job title, key duties and reporting line
• Place of work and any remote work arrangement
• Start date (and end date for fixed term contracts)
• Normal working hours and weekly pattern
• Salary in CVE, pay cycle and any allowances or benefits in kind
• Overtime rules and how it is paid
• Entitlement to annual leave, sick leave, maternity leave and public holidays
• Length of probation, if used
• Notice periods and termination conditions
• Any collective agreement that applies
• Basic clauses on confidentiality, intellectual property and data protection

Clear written terms reduce disputes and show good faith compliance.

2. Working Hours in Cabo Verde

Standard full time working hours in Cabo Verde are:

• Up to 8 hours per day, and
• Up to 44 hours per week on average.

Work is usually spread over five or six days. Employees must have at least 24 consecutive hours of weekly rest, commonly on Sunday, unless the sector or shift pattern is different.

Overtime

Overtime is work done beyond the agreed daily or weekly hours. Key points:

• Overtime should be occasional, not permanent.
• It is paid at a premium above the normal hourly rate.
• Work on weekly rest days and public holidays is paid at higher rates (often close to double pay) or is compensated with time off plus a premium, depending on policy and any agreement.

Employers should record hours worked, track overtime separately and reflect it clearly on pay slips.

3. Observed National Holidays and Vacation 

These public holidays are commonly observed in Cabo Verde and are normally treated as paid days off:

• 1 January – New Year’s Day
• 13 January – Democracy / Freedom and Democracy Day
• 20 January – National Heroes’ Day
• Carnival Tuesday – Carnival (date varies)
• Good Friday – Christian holiday (date varies)
• 1 May – Labour Day
• 1 June – Children’s Day
• 5 July – Independence Day
• 15 August – Assumption / Our Lady of Grace Day
• 1 November – All Saints’ Day
• 25 December – Christmas Day

If employees work on a public holiday, they are usually entitled to premium pay or a paid day off in lieu, depending on the law, contract and company policy.

Annual leave is separate from public holidays. If a public holiday falls during annual leave, it is normally not deducted from the annual leave balance.

4. Expats, Visas & Work Permits

Visa and Work Permit Requirement

Foreign nationals who want to work in Cabo Verde must have:

• The correct entry visa (where required), and
• A valid work and residence authorisation issued by the local authorities.

Carrying out regular work in Cabo Verde on a simple tourist or short visit visa is not compliant.

Common Visa and Permit Types

• Short term business visa – for meetings and short visits, not for continuous work
• Work visa and residence permit – for foreign employees engaged by a local employer or EoR
• Special permits – for staff of international organisations and similar bodies

Employer Role and Process

The Cabo Verde employer or EoR normally acts as sponsor and will usually:

• Provide a signed employment contract or job offer
• Supply company registration and tax details
• Confirm the role, salary and duration of the assignment
• Explain why the foreign hire is needed for the role

The employee is often required to provide:

• A valid passport and recent photographs
• Completed application forms
• Police clearance from the country of residence
• Medical certificate, where requested
• Copies of academic and professional qualifications

Applications are made through Cabo Verde consulates or local immigration offices. Processing times vary, so employers should plan early. An EoR partner can support with documentation and tracking.

An Cabo Verde EoR offers this service to help businesses manage their clients

5. Paid Leaves

Annual Leave

Under the Cabo Verde Labour Code:

• Full time employees are generally entitled to 22 working days of paid annual leave per year.
• For service of less than a full year, leave is granted on a pro rata basis.
• Employees normally start to build up leave from the start of employment and gain the full entitlement after a qualifying period.

The timing of annual leave is agreed between employer and employee, taking into account business needs. Unused leave above the allowed carry-over may be lost if not taken in time, so planning is important.

Sick Leave

Sick leave in Cabo Verde is shared between the employer and social security:

• The employer usually covers the first few days of sickness (often the first three days) at full pay.
• From day four onwards, if contribution conditions are met, the social security fund (INPS) pays sickness benefit at a percentage of the reference wage, typically close to 70%.
• The employee must present a medical certificate from a recognised doctor or health centre.

Company policy may top up the social security benefit so that the employee receives a higher share of their normal wage during illness.

Maternity Leave

Female employees are entitled to maternity protection, which includes:

• At least 90 consecutive days of maternity leave, usually split before and after childbirth.
• Cash maternity benefit paid mainly through social security, normally at a large share of previous earnings.
• Protection from dismissal on grounds of pregnancy or maternity leave, except in limited circumstances allowed by law.

The exact split of costs between employer and social security depends on the scheme and current rules. An EoR ensures contributions are up to date so staff qualify for benefits.

Paternity Leave

Cabo Verde does not yet grant long statutory paternity leave for all fathers, but:

• Short paternity or family leave of a few days may be available under company policy or collective agreements.
• In situations where the mother cannot care for the child, the father may be able to use the remaining maternity leave in her place, subject to legal conditions.

It is good practice to set a clear internal paternity leave policy for staff.

Compassionate and Family Leave

Employees may be granted short periods of paid or unpaid leave for:

• Death or serious illness of a close family member
• Own marriage or other important personal events
• Urgent family responsibilities

Whether these days are paid depends on the Labour Code, any applicable agreement and company policy.

Paid Public Holidays

Employees are entitled to paid time off on recognised public holidays. Where staff must work on a public holiday, they are usually entitled to higher pay or compensatory rest.

6. Statutory Deductions

A. Social Security Contributions

Cabo Verde runs a mandatory social security system through INPS. Contributions are shared by employer and employee. Typical rates for standard employees are roughly:

• Employee: about 8–8.5% of gross salary
• Employer: about 15–16% of gross salary

These contributions support pensions, sickness, maternity, unemployment and other benefits. The employer (or EoR) withholds the employee share from payroll, adds the employer share and pays both to INPS each month.

B. Tax Brackets and Rates

Personal Income Tax (PIT)

Personal income tax in Cabo Verde is progressive. A common structure for annual taxable income is:

Taxable Annual Income (CVE)	Tax Rate
Up to 220,000	0%
220,001 – 960,000	16.5%
960,001 – 1,800,000	23.1%
Above 1,800,000	27.5%

Other Main Taxes

Corporate Income Tax: standard rates apply on company profits, with some incentives for priority sectors.

Value Added Tax (VAT): a standard VAT rate (around 15%) applies to many goods and services. VAT is not deducted from salaries but affects the cost of the EoR service fee and other business expenses.

7. Health Insurance

Cabo Verde’s main health protection for employees comes from the social security system:

• Insured workers and their dependants can access public healthcare services.
• Cash benefits are paid during sickness and maternity, if eligibility rules are met.

Many employers, especially those hiring professionals and expatriates, offer additional cover such as:

• Private medical insurance plans
• Direct reimbursement of medical costs up to a set limit
• Access to private clinics and hospitals

Any extra cover should be clearly explained in the employment contract or staff handbook.

8. Additional Compensation and Benefits

Beyond statutory requirements, employers in Cabo Verde often provide extra benefits to attract and retain staff, such as:

• Transport or fuel allowance
• Meal allowance or subsidised canteen
• Housing support for relocations or roles in high-cost areas
• Performance or profit-related bonuses
• Training and development support, including language and technical courses
• Voluntary pension savings or group life insurance on top of social security

There is no legal obligation to pay a 13th month salary, but some companies choose to pay an annual bonus at year end or during festive periods. Where bonuses are offered, the conditions should be written down and applied fairly.

9. Termination/Severance in Cabo Verde

Probationary Period

The Cabo Verde Labour Code allows a probation period (trial period), which must be stated in the contract. In practice:

• For many roles, probation is up to 3 months.
• For more senior or complex roles, it can be longer, but there are legal caps and it must still be reasonable.

During probation, either party can usually end the contract on shorter notice, while still respecting basic legal rights and dignity.

Termination of Employment

After probation, employment can end on several lawful grounds, including:

• Natural expiry of a fixed term contract
• Resignation by the employee with proper notice
• Mutual agreement recorded in writing
• Dismissal for just cause, for example serious misconduct or repeated failure to perform
• Dismissal for objective reasons, such as economic difficulties, restructuring or closure

Termination should never be based on discriminatory reasons such as sex, race, pregnancy, union activity or religion. Employers must follow the proper process, give the employee a chance to be heard and keep records of the decision.

Notice Periods

Notice periods in Cabo Verde usually depend on length of service. A typical approach is:

• Up to 1 year of service – 15 days’ notice
• More than 1 year and up to 5 years – 30 days’ notice
• More than 5 years – 60 days’ notice

Notice must normally be in writing. Instead of giving notice, an employer may pay salary in lieu of notice if the law and contract allow. In cases of serious misconduct proven under a fair process, dismissal without notice may be possible.

Severance Pay

Severance is usually owed when:

• An employee is dismissed without just cause, or
• Employment ends for economic or organisational reasons covered by law.

A common standard is at least one month of base salary per completed year of service, subject to the rules in the Labour Code and any more generous collective agreement.

Severance is not normally due when:

• The employee resigns voluntarily,
• A fixed term contract ends at the agreed date, or
• The employer ends the contract for serious misconduct that meets the legal test for just cause.

On termination, the employer or EoR must pay:

• Final salary up to the last day worked
• Pay in lieu of unused annual leave
• Any severance owed
• Any earned variable pay that is due under the rules

A work certificate should be issued on request, confirming dates of service and the role held.