Definitive Guide to Hiring in Rwanda

Hiring in Rwanda

Hiring employees compliantly in Rwanda means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Rwanda 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 Rwanda; or

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

Labor Laws in Rwanda

Employee Probation Period

• Probation periods of up to six months are permitted.

Annual Leave in Rwanda

• In general, employees are entitled to 18 days of paid annual leave.
• An additional day of leave is given for every three years of continuous service, up to a maximum of 21 days.

Holidays in Rwanda

Maternity Leave Rwanda

• Female employees are generally entitled to 12 weeks of paid maternity leave.
• Leave may be taken up to two weeks before the due date.

Paternity Leave Rwanda

• Fathers are entitled to four consecutive days of paternity leave

Sick Leave in Rwanda

• Employees are generally entitled to sick leave of up to six months, with medical certification.
• The first three months are paid and the last three months are unpaid.

Working Hours in Rwanda

• In general, the Rwandan work week is 45 hours.

Overtime in Rwanda

• Overtime is calculated as hours exceeding the weekly legal working hours (45 hours) or contractual working hours (if agreed as less than 45 hours per week).
• Overtime premium pay is calculated on the basis of basic salary, excluding allowances and other benefits.
• The modalities for extra hours and the rate of remuneration of overtime are determined under a collective labor convention. It must be revised annually.

Termination of Employment in Rwanda

• Indefinite term contracts may be terminated for just cause, and written notice should be given to the employee except if dismissal is due to serious misconduct.
• The notice requirements are as follows:
  • Less than one year of service: 15 days’ notice
  • Greater than one year of service: one-month notice
• Employees are generally entitled to severance pay after one year of service.
• Severance pay is given as follows:
  • Less than five years of service: one month’s salary
  • Five to 10 years of service: two months’ salary
  • 10-15 years’ service: three months’ salary
  • 15-20 years’ service: four months’ salary
  • 20-25 years’ service: five months’ salary
  • 25+ years’ service: six months’ salary

Notice Period in Rwanda

• Indefinite term contracts may be terminated for just cause, and written notice should be given to the employee except if dismissal is due to serious misconduct.
• The notice requirements are as follows:
  • Less than one year of service: 15 days’ notice
  • Greater than one year of service: one-month notice

Severance in Rwanda

• Employees are generally entitled to severance pay after one year of service.
• Severance pay is given as follows:
  • Less than five years of service: one month’s salary
  • Five to 10 years of service: two months’ salary
  • 10-15 years’ service: three months’ salary
  • 15-20 years’ service: four months’ salary
  • 20-25 years’ service: five months’ salary
  • 25+ years’ service: six months’ salary

Rwanda Salary and Wages

13th / 14th Month Salary in Rwanda

• No
• There is no statutory requirement to pay the 13th or 14th month salary.
• Employees receive annual leave at the standard rate.
• Curiously a bonus scheme was introduced in the health sector.
• Pay for Performance and it is paid out regardless of seniority to health professionals that contribute in improving health.

• Rwanda has a national social security fund known as the Rwanda Social Security Fund (commonly known as Caisse Social du Rwanda or CSR).
• All salaried workers, both nationals and foreigners, working in Rwanda are required to contribute to the scheme.
• The employer is required to contribute 5% of the employee's gross salary to the scheme, while employee's contribution is 3%.
• The employer is mandated to deduct social security contribution from employees every month.
• However, the employer is required to remit total contribution on a quarterly basis, during the month following the end of the quarter.
• The mandate of collecting social security contribution is with the Rwanda Revenue Authority (RRA).

Immigration Rwanda

• All foreign visitors must obtain valid entry visas to enter Rwanda, with the exception of nationals of member countries of the East African Community (EAC) and nationals of a few other countries.
• Visitors’ passes are issued to citizens of EAC member countries at the border post.
• They are valid for 72 hours and renewable once.
• Foreign nationals must obtain a work permit before undertaking employment in Rwanda.
• The application for a work permit is made to the Director General of Immigration and Emigration and consists of:
  • An application letter from the employer
  • Notified diploma or degree
  • Original police clearance from the country in which the applicant has lived for the last six months
  • The applicant’s curriculum vitae (CV) and a copy of his or her passport
  • Completed application form
  • One color passport-size photo with white background
  • An employment contract signed by the applicant and employer
  • Payment of RWF100,000 (approximately USD113) to the government treasury

Value Added Tax (VAT) in Rwanda

• The tax is designed to be paid mainly by the ultimate consumer or purchaser in Rwanda. 
• Goods and services are either exempt from VAT, or are levied at two rates, namely a standard 18% rate and a zero rate.

Mandatory Benefits in Rwanda

• 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

Payroll Accrual in Rwanda

Country Accruals Additional Information

Description

Rwanda has a national social security fund known as the Rwanda Social Security Fund (commonly known as Caisse Social du Rwanda or CSR). All salaried workers, both nationals and foreigners, working in Rwanda are required to contribute to the scheme. The employer is required to contribute 5% of the employee's gross salary to the scheme, while the employee's contribution is 3%. The employer is mandated to deduct social security contributions from employees every month. However, the employer is required to remit total contributions on a quarterly basis, during the month following the end of the quarter. The mandate of collecting social security contribution is with the Rwanda Revenue Authority (RRA).

Payroll Accruals Additional Information

Accrued Benefits in Rwanda

Why use Global Expansion to hire in Rwanda

Establishing a branch office or subsidiary in Rwanda 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 Rwanda labor laws are complex.

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

Global Expansion makes it easy for you to expand into Rwanda. 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 Rwanda 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.