Definitive Guide to Hiring in Cape Verde

Hiring in Cape Verde

Hiring employees compliantly in Cape Verde means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Cape Verde so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Cape Verde or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Labor Laws in Cape Verde

Employee Probation Period

• In case of a non-fixed term employment agreement, the probation period can be extend up to six months if the functions to be performed imply technical complexity and responsibility and if such larger period of time is deemed necessary to evaluate the employee’s capacity to carry out the job.
• With employees performing management and/or senior functions a probation period up to twelve months can be agreed upon.

Annual Leave in Cape Verde

• In general, all employees are entitled to a minimum of 22 working days paid holiday per year, though there are some exceptions to this general rule depending on the type of employment agreement.

Holidays in Cape Verde

Maternity Leave Cape Verde

• Female employees are entitled to take up to 60 consecutive days of initial parental leave where they are entitled to a subsidy equal to 80% of their remuneration.

Paternity Leave Cape Verde

• Male parents are entitled to parental leave equal to the mother in the event of the death of the mother or mental and physical incapacity of the mother and as long it remains.

Sick Leave in Cape Verde

• Employees are entitled to a maximum of 30 days of absence from work due to illness, subject to issuance of a medical certificate.
• If illness lasts for more than 30 days, the employee shall be subject to an examination by the Health Board.

Working Hours in Cape Verde

• The regular working time cannot exceed 8 hours per day or 44 hours per week.

Overtime in Cape Verde

• A worker cannot perform more than 2 hours of overtime per day, and no more than 160 hours of overtime per year.
• In the case there is written consent from the worker, the annual limit can be increased to 300 hours per year.
• Overtime work shall be paid with a compensation not less than 50% than the regular remuneration.

Termination of Employment in Cape Verde

• Depending on the length of service and on the type of agreement in force, prior notice should be given by the employee,
• The minimum notice period is 15 days and maximum is of 2 months
• Only fixed term employment agreements can be terminated by the employer on notice.
• Termination can be mutually agreed upon between employer and employee at will and under the correct conditions.
• Severance payments are calculated according to the seniority of the employee, the ground for dismissal and, if more favorable, the terms of the agreement.
• It should be noted that termination with just cause does not entitle the employee to a severance payment.

Notice Period in Cape Verde

• Depending on the length of service and on the type of agreement in force, prior notice should be given by the employee,
• The minimum notice period is 15 days and maximum is of 2 months

Severance in Cape Verde

• Severance payments are calculated according to the seniority of the employee, the ground for dismissal and, if more favorable, the terms of the agreement.
• Severance pay equals 1 month pay for each year of service
• It should be noted that termination with just cause does not entitle the employee to a severance payment.

Cape Verde Salary and Wages

13th Month Salary in Cape Verde

• No
• There is no evidence that there is a requirement to pay the 13th or the 14th month.

• Individuals are subject to social security contributions on their gross income at 8%.
• The rate applies on the monthly earnings of all employees (excluding civil servants and public officials).
• Social security contribution due by the employer is 15%.

Immigration Cape Verde

• There are different types of visa for the following scenarios:
• Tourist-visa:
  • For travelers, staying in Cape Verde for a few days or weeks.
  • Usually valid up to one month, maximum validity up to three months.
• Temporary visa:
  • For foreigners, coming because of a cultural, scientific or business travel and having a contract with a public or private organization in Cape Verde.
  • For example: technicians, students, artists, scientists, athletes, professors, etc.
  • The maximum duration of stay is 3 months (with a multiple entry) or 6 months (with a single entry).
• Residence-visa:
  • with an extended validity up to six months for those, who want to settle in Cape Verde.
  • Everyone, who files for an application, gets a permit of residence for 5 years.

Value Added Tax (VAT) in Cape Verde

• The VAT system in Cabo Verde closely follows the European Union (EU) VAT system and is assessed at the standard rate of 15%.
• A special consumption tax is imposed at rates ranging from 10% to 150% on goods that are deemed superfluous, luxurious, or undesirable for economic, social, or environmental policy reasons.

Mandatory Benefits in Cape Verde

• These are mandatory benefits as postulated by law
• These include probationary period, annual leave, public holidays, sick leave, maternity leave, paternity leave, overtime pay, notice period, and severance pay
• Statutory benefits also include social security benefits

Accrued Benefits in Cape Verde

Payroll Accrual in Cape Verde

Country Accruals Additional Information

Description

Coverage

Private- and public-sector employees (including civil servants first employed after December 31, 2005); and certain business owners, cooperative employees, and self-employed persons.Special systems for civil servants (first employed before January 1, 2006), central bank employees, and municipal agents (first employed before January 1, 2008); and certain business own.

Payroll Accruals Additional Information

Why use Global Expansion to hire in Cape Verde

Establishing a branch office or subsidiary in Cape Verde can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Cape Verde labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Cape Verde law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Cape Verde. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Cape Verde Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.