Rwanda is one of the smallest countries in Africa.
Payroll and Benefits Guide - Rwanda
Fun Facts
In Rwanda, cows hold great cultural significance and are often used as symbols of wealth and status.
The government of Rwanda has prioritized education, resulting in a high literacy rate in the country
Rwanda is home to the endangered mountain gorillas.
The official languages of Rwanda are Kinyarwanda, French, and English.
Rwanda has a strong focus on renewable energy, aiming to become a green and sustainable nation.
Contributions
Employee Payroll Tax
| Contribution Type | Rate |
| Social Security | 7.50% |
| Pension scheme | 3.00% |
| Social Security (RSSB) maternity leave benefits | 0.30% |
| Community-based Health Insurance Scheme: | 0.50% |
Employer Payroll Tax
| Contribution Type | Rate |
| Social Security (RSSB) medical insurance | 7.50% |
| Social Security (RSSB) occupational hazards | 2.00% |
| Pension scheme | 3.00% |
| Social Security (RSSB) maternity leave benefits | 0.30% |
Payroll
Payroll Cycle
The payroll cycle is typically on a monthly basis.
13th Salary
There are no statutory requirements to provide a 13th salary in Rwanda.
Work Hours and Week
With effect from January 2023, official working hours will be eight hours – from 9:00 am to 5:00 pm (excluding a one-hour lunch break). These eight working hours include a flexible hour between 8:00 am and 9:00 am, where an employee may work remotely.
Overtime
All work exceeding the standard working hours per week is to be paid as overtime and is regulated by a collective labor convention/agreement.
Leave
Paid Time Off
Employees are entitled to a minimum of 18 days of paid annual leave (increasing to 24 days for employees under the age of 18). The number of days increases in accordance with the length of service as stipulated in the employment contract and labor law.
Public Holidays
Public Holidays falling on weekends are usually moved to the next working as a day off in exchange.
Religious holidays determined by the lunar cycle will show as ‘tentative’ until they are confirmed nearer the date of the holiday.
Sick Days
An employee is entitled to up to six months of sickness absence per year, with three months paid and three months unpaid (evidence will need to be provided).
Maternity Leave
Female employees are entitled to 12 weeks of paid maternity leave in Rwanda with no less than 14 days of leave prior to the due date. Maternity confirmation certificates must be provided before any maternity leave can commence.
Paternity Leave
In Rwanda a father is entitled to unpaid leave of up to four working days in one calendar year.
Parental Leave
There are no provisions in the law regarding parental leave.
Termination
Termination Process
Employers can terminate a fix term contract by giving the following reasons – business, personal, or employee misconduct. It requires notice and a written explanation for the termination.
Notice Period
The statutory notice period in Rwanda is 15 days’ notice for employees within the first year of service, increasing to one month following the completion of one year of service.
Severance Pay
Severance pay in Rwanda is calculated in accordance with the completed length of service as follows:
- 1 month’s salary for employees that have been in service for less than five years of service
- 2 months’ salary for employees that have been in service for between 5 and 10 years of service
- 3 months’ salary for employees that have been in service for between 10 and 15 years of service
- 4 months’ salary for employees that have been in service for between 15 and 20 years of service
- 5 months’ salary for employees that have been in service for between 20 and 25 years of service
- 6 months’ salary for employees that have been in service for greater than 25 years of service
Probation Period
Probation Period
In Rwanda, probationary periods must be no longer than six months.
Immigration
Expatriates may work in Rwanda, provided they have a work permit issued by the Directorate General of Immigration and Emigration. The work permits are usually granted to foreign enterprises approved to operate in Rwanda if the applicants are key personnel. However, any enterprise may recruit any category of expatriate skilled labor if Rwandans are not available. The enterprise will be required to prove that it has conducted a labor market test and failed to get local candidates who meet the requirements.
A foreigner with a contract of employment for longer than 90 days must apply for a work permit within 15 working days from the day of entry to Rwanda. The employee may also be allowed to change employers and renew his/her work permit by informing the Directorate General of Immigration and Emigration in writing.
VAT
The standard rate of VAT in Rwanda is 18%.