Africa employer of record

Employer of record in Rwanda

Countries

Rwanda

Employer of record in Rwanda

Rwanda

Rwanda

Rwanda, located in East Africa, is a small but remarkable nation known for its stunning landscapes, including lush green hills and serene lakes. It has made impressive strides in economic development and social reconciliation since the tragic 1994 genocide. Kigali, the capital, is a vibrant hub of innovation and governance in the region.

Capital: Kigali

Population: (2023 est.) 14,482,000

Language(s): Kinyarwanda; French; English; Swahili

Currency: Franc

Employer of record in Rwanda

Employee Benefits

The public holidays in Rwanda are as follows;

  • 1 Jan          New Year’s Day
  • 2 Jan          New Year Holiday
  • 3 Jan          New Year Holiday
  • 1 Feb          National Heroes Day
  • 7 Apr         Good Friday
  • 7 Apr         Tutsi Genocide Memorial Day
  • 10 Apr       Easter Monday
  • 21 Apr       Eid al-Fitr
  • 1 May        Labour Day
  • 28 Jun        Eid al-Adha
  • 1 Jul           Independence Day
  • 3 Jul           Independence Day Holiday
  • 4 Jul           Liberation Day
  • 4 Aug         Umuganura
  • 15 Aug       Assumption Day
  • 25 Dec       Christmas Day
  • 26 Dec       Boxing Day

Many employment policies offer employees 18 days of paid annual leave, providing much-needed time for relaxation and personal pursuits. A rewarding feature is the accumulation of additional vacation days, with one extra day granted for every three years of uninterrupted service, up to a maximum of 21 days. This progressive system promotes long-term commitment and well-deserved breaks.

Female employees typically enjoy the right to a generous 12-week period of paid maternity leave, offering essential support during the postpartum period and for bonding with their newborn. Additionally, the flexibility to start this leave up to two weeks prior to the due date acknowledges the diverse needs and circumstances of expectant mothers, ensuring their well-being and that of their infants.

Fathers are generally granted a four-day paternity leave, allowing them to spend crucial time with their newborns and support their partners during the early days of parenthood. This policy encourages shared parenting responsibilities and strengthens family bonds.

Probation periods of up to six months are legally permissible in many employment agreements. During this time, employers evaluate an employee’s performance and suitability for a job, with the option to terminate the employment without extensive notice or compensation if necessary. The specific terms and conditions may vary by jurisdiction and contract.

Employees typically have the right to sick leave for a substantial period of up to six months, contingent on the provision of medical certification. During the first three months, they receive paid sick leave to aid recovery, after which, for the subsequent three months, the leave is generally unpaid. This approach prioritizes employees’ health while considering the financial implications of extended absences.

The disbursement of a 13th or 14th-month salary is not a legal requirement, while standard annual leave is provided to employees. Interestingly, the healthcare sector employs a bonus system, rewarding medical professionals based on their impact on patients’ well-being, irrespective of their tenure.

With the exception of individuals hailing from East African Community (EAC) member nations and a limited set of other countries, all international travelers are required to possess a valid entry visa to enter Rwanda. EAC member citizens are issued visitor’s permits at the border posts, which can be extended once for a duration of 72 hours. Foreign individuals planning to work in Rwanda are obliged to obtain a work permit before commencing their employment. To apply for a work permit, the following documents must be submitted to the Director General of Immigration and Emigration:

  1. An application letter from the employer.
  2. A verified diploma or degree.
  3. An original police clearance certificate from the country where the applicant has resided for the past six months.
  4. The applicant’s curriculum vitae (CV) and a copy of their passport.
  5. A completed application form.
  6. One passport-size color photograph with a white background.
  7. An employment contract signed by both the applicant and the employer.
  8. Payment of RWF100,000 (approximately USD113) to the government treasury.
  1. Less than five years of service: One month’s salary
  2. Five to 10 years of service: Two months’ salary
  3. 10-15 years of service: Three months’ salary
  4. 15-20 years of service: Four months’ salary
  5. 20-25 years of service: Five months’ salary
  6. 25+ years of service: Six months’ salary

In accordance with the law, a range of mandatory benefits are prescribed, which encompass aspects such as the probationary period, annual leave, federal holidays, sick leave, maternity leave, overtime compensation, notice requirements, and severance pay. Additionally, statutory benefits encompass social security benefits, such as car allowances, loans, housing allowances, and phone allowances.

Hours worked beyond the legally or contractually established weekly working hours (set at 45 hours) are categorized as overtime, particularly if the agreed standard workweek is shorter than 45 hours. When computing the additional compensation for overtime, the base wage is the reference, and this calculation excludes allowances and other benefits. The specific conditions and the rate of payment for overtime are outlined in a collective labor agreement, which requires annual updates to remain current.

TaxableIncome

Exceeding RWF

Not Exceeding RWF

Rate %

0

360,000

0

360,000

1,200,000

20

1,200,000

_

30



The social security system in Rwanda, commonly referred to as Caisse Social du Rwanda (CSR), is administered by the Rwanda Social Security Fund. This program mandates contributions from all employees, whether they are Rwandan citizens or international workers employed within Rwanda. Employees are required to contribute 3% of their income, while employers are obligated to contribute 5% of their employees’ gross salaries. By law, it is the employer’s responsibility to deduct and withhold the employee’s social security contributions each month.

The employer is responsible for remitting the entire contribution, and this payment should be made once every quarter, in the month following the conclusion of that quarter. The Rwanda Revenue Authority (RRA) is the authorized body tasked with collecting social security contributions.

The tax system in Rwanda is structured in a way that places the primary burden on the end consumer or buyer. In Rwanda, goods and services fall into different categories for Value Added Tax (VAT) purposes. They can either be exempt from VAT, subject to a standard rate of 18%, or subject to a zero rate.

Indefinite term employment contracts can be terminated for justifiable reasons, and written notice must be provided to the employee, unless the dismissal is a result of serious misconduct. The notification requirements are as outlined below:

  • For employees with less than one year of service: A 15-day notice period.
  • For employees with more than one year of service: A one-month notice period.

In general, employees become eligible for severance pay after completing one year of service. Severance pay is disbursed as follows:

  • For employees with less than five years of service: One month’s salary.
  • For employees with five to 10 years of service: Two months’ salary.
  • For employees with 10 to 15 years of service: Three months’ salary.
  • For employees with 15 to 20 years of service: Four months’ salary.
  • For employees with 20 to 25 years of service: Five months’ salary.
  • For employees with 25 or more years of service: Six months’ salary.

13th/14th Month Pay: In many countries, especially in some European and Asian nations, it’s common for employees to receive an extra month’s salary (13th-month pay) or even two extra months’ salaries (14th-month pay) as a bonus or year-end incentive. However, these payments are typically not mandated by law, and it’s at the discretion of the employer whether to provide them. The decision to pay a 13th or 14th-month salary is often made as part of employment contracts or collective agreements. It’s a way for employers to reward employees and boost employee morale.

Annual Leave: The provision of annual leave (paid time off) is a standard employment benefit. The rate at which annual leave is granted can vary by country, industry, and company. It’s typically based on factors like an employee’s length of service and the local labor laws.

Pay for Performance: This is a compensation system where employees are rewarded based on their performance and contributions to the company or, in your context, the healthcare industry. It is often used as a way to incentivize and motivate employees to excel in their roles. Pay for Performance may be tied to specific metrics or achievements, and it can be a way to recognize and compensate individuals who make a significant positive impact on people’s health, regardless of their seniority.