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Africa

Rwanda

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Employer of Record (EOR) in Rwanda

What you'll learn

  • Country Introduction
  • Tax Breakdown for Employers
  • Statutory Leave Laws
  • Minimum Wage and Working Hours
  • Termination Process
  • Additional Information
Rwanda Introduction

Rwanda is a landlocked country in central Africa bordered by Uganda, Tanzania, Burundi, and the Democratic Republic of the Congo. The country’s population is young and predominantly rural, and most Rwandans come from just one cultural and linguistic group, the Banyarwanda. Music and dance are an integral part of Rwandan culture, particularly drums and the highly choreographed intore dance.

Paid Leave and Statutory Leave

Parental Leave

Pregnant employees are entitled to 12 weeks of paid maternity leave, of which at least 14 days need to be taken before the due date. Fathers are entitled to 4 days of unpaid paternity leave.

Sick Leave

Employee can receive up to 6 months of sick leave per year, where 3 months paid and 3 months are unpaid.

Paid Leave

There are 19 national holidays, and employees are entitled to at least 18 days of paid time off each year. The number of days increase with the length of service.

Wage Requirements and Working Hours

Process

Employers can terminate a contract with just cause, as long as there is written notice and explanation for the termination.

Notice Period

The standard notice period is 15 days notice for employees in the first year of service, and up to 1 month of notice following 1 year of service.

Severance Pay

Severance pay is calculated depending on the length of service at the company:

  • 0-5 years = 1 month of salary
  • 5-10 years = 2 months of salary
  • 10-15 years = 3 months of salary
  • 15-20 years = 4 months of salary
  • 20-25 years = 5 months of salary
  • 25+ years = 6 months of salary

Termination Process

The minimum wage is RWF 100 as stated in a 1973 law, however in practice employees earn a much higher wage (depending on the role and company). A standard workweek is 45 hours at 7.5 hours per day across 6 days. Overtime work is regulated by collective agreements.

Additional Information

N/A

OVERVIEW
Language(s):
English, French
Currency:
Rwandan Franc (RWF)
Capital City:
Kigali
Population:
13.7 Million
Cost of Living Rank:
110th
VAT (Valued Added Tax):
18%
Employer TaxES
12.8%
(estimated)

★  9.8% - Social Security

★  3% - Pension Fund

Simplified Global HR and Payroll.
Let’s work on it together.

We've made the process really simple
with only 3 steps.

1

Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.

2

Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.

3

Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

Same-day onboarding
Best Pricing
Available in 150+ countries
How Remofirst employs in Rwanda

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Rwanda get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Rwanda are paid on time in Rwandan Franc (RWF). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Rwanda, they can use our platform's chat function to get answers from our team of experts. Every client of Remofirst also receives a dedicated account manager that will serve as a point of contact for global HR support.