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Rwanda

Payroll and Benefits Guide

Last updated:
Dec 8, 2022

Table of contents

Overview Contributions Minimum Wage Payroll Working Hours Leave Termination Common Benefits VISA VAT

Overview

Capital
Rwanda
Currency
Rwandan Franc (RWF)
Date Format
dd/mm/yyyy
Fiscal Year
1 January- 31 December
Payroll Frequency
Monthly
Employer Taxes
12.80%

Contributions

Employer

Employer Payroll Contributions

7.50% Social Security (RSSB) medical insurance
2.00% Social Security (RSSB) occupational hazards
3.00% Pension scheme
0.30% Social Security (RSSB) maternity leave benefits
12.80% Total Employment Cost

Employee

Employee Payroll Contributions

7.50% Social Security (RSSB) medical insurance (this is not compulsory, and the employer may subscribe for medical insurance with a private insurance company)
3.00% Pension scheme
0.30% Social Security (RSSB) maternity leave benefits
0.50% Community-based Health Insurance Scheme: Local and expatriate employees are obliged to contribute 0.5% of their net salaries
11.30% Total Employee Cost

Employee Income Tax

0% Up to 360,000 RWF
20.00% 360,000,01 RWF – 1,200,000,000 RWF
30.00% 1,200,001 RWF and above

Minimum Wage

General

The daily minimum wage is 100 RWF as stipulated in a 1973 law. In practice, employees earn a much higher wage. The salary applicable to each professional category is determined under a collective labor convention/agreement.

 

Payroll

Payroll Cycle

The typical payroll cycle in Rwanda is on a monthly basis.

13th Salary

There is no statutory requirement to provide a 13th salary in Rwanda.

 

Working Hours

General

The standard workweek consists of 45 hours per week, with 7.5 hours across six days.

Overtime

All work exceeding the standard working hours a week is to be paid as overtime and is regulated by a collective labor agreement.

Working Week

Monday-Friday

 

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

There are 19 national holidays.

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 an unpaid leave of up to four working days in one calendar year.

Parental Leave

There are no provisions in the law regarding parental leave.

Other Leave

There are no provisions in the law regarding other types of 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 1 month following 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

In Rwanda, probationary periods must be no longer than six months.

 

VISA

VISA

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

General

The standard rate of VAT in Rwanda is 18%.

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