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Rwanda payroll, hiring, talent management, and compliance requirements for your employees and independent contractors.
Workforce Africa simplifies hiring, payroll, talent management as well as your compliance needs for employees and independent contractors in Rwanda. 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 Rwanda, will help you focus on growth for greater levels of success.
Kigali
In Rwanda, employment contracts are required. They can be entered into for a fixed term or an indefinite duration and can be written or oral. However, the duration of an oral employment contract cannot exceed 90 consecutive days.
Yes
Rwandan Franc (RWF)
There is no mandated minimum wage; instead, rates are determined by local industries.
Kinyarwanda, English, French
Workforce Africa makes it hassle free to hire and manage your remote staff in Rwanda without having to first set up a subsidiary or entity in the country. We handle staff contract management and onboarding, payroll, compliance, taxes, and other administrative matters. With Workforce Africa, you can now focus more on strategic activities and growing your business. These items include >>
In Rwanda, there is no legal obligation to provide a 13th or 14th month salary/bonus.
In most cases, employees are granted annual leave at the standard rate. However, in the health sector, a bonus scheme is implemented to recognize and reward health professionals.
There is a limit on the number of hours employees can work each week
The probation period is capped at three months, with the possibility of extension for an additional three months under specific circumstances.
A successful probation period leads to an immediate written employment offer. In the case of an unsuccessful probation, termination without terminal benefits occurs promptly.
Re-employment does not necessitate undergoing another probation period.
Unless specified otherwise in an employment contract, the maximum allowable overtime is 30 days.
In Rwanda, the standard payroll cycle is on a monthly basis.
Part-Time: Rwandan law does not provide for any special arrangements for part-time workers.
The working hours in Rwanda are 40 hours per week. The Rwandan Labour Code does not impose daily working time limits, but a communication from the prime minister's 0ffice puts official working hours from 9:00 am to 5:00 pm.
There are the official public holidays in Rwanda:
New Year’s Day: January 1
Day after New Year’s Day: January 2
National Heroes Day: February 3
Good Friday
Genocide against the Tutsi Memorial Day: April 7
Labour Day: May 1
Independence Day: June 1
Liberation Day: July 6
Umuganura Day: August 7
Assumption Day: August 17
Christmas Day: December 25
Boxing Day: December 26
Eid-ul Fitr
Eid-ul-Adha
The work permit duration depends on the requested period and is determined by immigration. A Rwanda PEO/EoR offers this service to help businesses expand with or without an entity set up.
Annual Leave: After completing one year of service, employees are entitled to 18 days of paid annual leave. Additionally, an extra paid leave is granted for every three years of consecutive service, capped at a maximum of 21 days.
Sick Leave: Sick leave can be taken for up to six months, contingent upon providing evidence. The first three months are paid, while the last three are unpaid.
Maternal Leave: This is at least 14 weeks (over 3 months), including a mandatory two-week period to be taken before the due date.
Paternal Leave: For paternity leave, employees are entitled to four working days immediately after the delivery or miscarriage.
Compassionate Leave: Employees are entitled to four days of compassionate leave, and the total duration cannot exceed 10 working days within a calendar year.
The employee is also entitled to circumstantial leave for the following reasons:
Two working days in the case of their civil wedding;
Four working days if their wife gives birth, five working days in case of complications, and one month if their wife dies, leaving an infant aged less than three months;
Seven working days in the case of the death of their spouse;
Five working days in the case of the death of their child;
Four working days in the case of death of their father, mother, father-in-law or mother-in-law;
Four working days in the case of death of their brother or sister;
Three working days in the case of death of their grandfather or grandmother, and
Three working days in the case of their transfer over a distance of more than 30 km from their usual place of work.
Social Security Contribution:
The contributions payable shall be based on the salary of the employee of the private organization in Ethiopia, and the calculation is as follows:
Employer’s contribution – 5%;
Employee’s contribution – 3%
Tax: Personal Income Tax
A Rwanda employer of record can help employers make provision of health insurance policy for their employees. In Rwanda, there is a compulsory healthcare system in operation.
These are mandatory benefits stipulated by law, covering aspects such as probationary periods, annual leave, public holidays, sick leave, maternity leave, paternity leave, overtime pay, notice periods, severance pay, and social security benefits Other common benefits in Rwanda includes a phone allowance, housing allowance, loans, car allowance, and more.
Termination Process: Termination of an employment contract for gross misconduct can occur without notice. In such instances, the employer must notify the employee within 48 hours of the evidence of gross misconduct, specifying the grounds for termination.
Notice Period: The notice must be in writing and include all relevant information. An employee who has worked for less than 1 year is given 15 days (about 2 weeks) notice period, while an employee who has worked for more than 1 year is given 1 month notice. Notice cannot be issued for employees in a probationary period.
Severance Pay: The termination of employment contract due to economic reasons, technological transfer, or sickness for an employee having served for at least 1 year of employment entails the employee’s right to terminal benefits.
Two (2) times the average monthly salary for an employee having less than five (5) years of service with the same company.
Three (3) times the average monthly salary for the employee having between five (5) and ten (10) years of service with the same company;
Four (4) times the average monthly salary for the employee having between ten (10) and fifteen (15) years of service with the same company;
Five (5) times the average monthly salary for the employee having between fifteen (15) and twenty (20) years of service with the same company;
Six (6) times the average monthly salary for the employee having between twenty (20) and twenty-five (25) years of service with the same enterprise; 6. Seven (7) times the average monthly salary for an employee having over twenty-five (25) years of service with the same company.
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