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Payroll and Benefits Guide Rwanda

Last updated: May 16, 2023

Currency
Rwandan franc (RWF)
Employer Taxes
12.80%
Payroll Frequency
Monthly
Employee Costs
11.3%
Capital
Kigali
Date Format
dd/mm/yyyy
Fiscal Year
1 January - 31 December
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Contribution

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 60,000 RWF
20.00%
60,000,01 – 100,000 RWF
30.00%
100,001 RWF and above

Employer taxes

Highest
Lowest

Employee taxes

Highest
Lowest

Minimum Wage

General

There is no national minimum wage, though the daily minimum wage is 100 RWF as stipulated in a 1973 law. In practice, employees get much higher wages. The salary applicable to each professional category is determined under a collective labor convention/agreement.

MINIMUM WAGE (PER MONTH)

Highest
Lowest

Payroll

Payroll Cycle

The typical payroll cycle in Rwanda is a monthly basis.

13th Salary

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

Working Hours

General

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

Annual Leave (vacation)

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 lieu, with an exception of April 7th (Genocide against the Tutsi Memorial Day).

Religious holidays determined by the lunar cycle will show as ‘tentative’ until they are confirmed nearer the date of the holiday.

Date Day Holiday Note
1 Jan 2024 Monday New Year
2 Jan 2024 Tuesday Day After New Year’s Day
1 Feb 2024 Thursday National Heroes’ Day
29 Mar 2024 Friday Good Friday
1 Apr 2024 Monday Easter Monday
7 Apr 2024 Sunday Tutsi Genocide Memorial Day
10 Apr 2024 Wednesday Eid al-Fitr Tentative
1 May 2024 Wednesday Labor Day
17 Jun 2024 Monday Eid al-Adha Tentative
1 Jul 2024 Monday Independence Day
4 Jul 2024 Thursday Liberation Day
2 Aug 2024 Friday Umuganura Day
15 Aug 2024 Thursday Assumption of Mary
25 Dec 2024 Wednesday Christmas Day
26 Dec 2024 Thursday Boxing Day

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.

Other Leave

There are no provisions in the law regarding other types of leave.

Vacation Days
Public Holidays
Highest
Lowest

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

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
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 labour if Rwandans are not available. The enterprise will be required to prove that it has conducted a labour 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 in 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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Payroll and Benefits Guide
in Rwanda

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

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All questions are answered by our in-house compliance department working in conjunction with our local in-country partner for this specific country

Public Holidays Calendar

Rwanda
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CSV
PDF
ICS
Date Day Holiday Note
1 Jan 2024 Monday New Year
2 Jan 2024 Tuesday Day After New Year’s Day
1 Feb 2024 Thursday National Heroes’ Day
29 Mar 2024 Friday Good Friday
1 Apr 2024 Monday Easter Monday
7 Apr 2024 Sunday Tutsi Genocide Memorial Day
10 Apr 2024 Wednesday Eid al-Fitr Tentative
1 May 2024 Wednesday Labor Day
17 Jun 2024 Monday Eid al-Adha Tentative
1 Jul 2024 Monday Independence Day
4 Jul 2024 Thursday Liberation Day
2 Aug 2024 Friday Umuganura Day
15 Aug 2024 Thursday Assumption of Mary
25 Dec 2024 Wednesday Christmas Day
26 Dec 2024 Thursday Boxing Day