Payroll and Benefits Guide - Rwanda

Rwanda
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Currency

Rwandan Franc (RWF)

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Capital

Kigali
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Employer Taxes

12.80%
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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

Rwanda is one of the smallest countries in Africa.

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.

Rwanda

Contributions

Employee Payroll Tax

Contribution TypeRate
Social Security7.50%
Pension scheme3.00%
Social Security (RSSB) maternity leave benefits0.30%
Community-based Health Insurance Scheme:0.50%

Employer Payroll Tax

Contribution TypeRate
Social Security (RSSB) medical insurance7.50%
Social Security (RSSB) occupational hazards2.00%
Pension scheme3.00%
Social Security (RSSB) maternity leave benefits0.30%

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.
Rwanda

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%.