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As a global EOR expert, we manage payroll, employment contract best practices, statutory and market norm benefits, employee expenses, as well as severance and termination. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. G-P allows you to harness the talent of the brightest people in 180+ countries around the world, quickly and easily.
Hiring in Rwanda
Rwanda, one of the smallest countries in Africa, is located in the central part of the continent. It is one of the most densely populated countries in Africa, with more than 13 million people, most of whom speak Kinyarwanda, but French and English are also official languages.
When negotiating terms of an employment contract and offer letter with an employee in Rwanda, it may be useful to keep the following in mind.
Employment contracts in Rwanda
It’s legally required to put a written employment contract in place in Rwanda, in the local language, which spells out the terms of the employee’s compensation, benefits, and termination requirements. Fixed-term contracts are also permitted.
An offer letter and employment contract in Rwanda should always state the salary and any compensation amounts in Rwandan francs rather than another currency.
Working hours in Rwanda
In general, the Rwandan work week is 45 hours.
Holidays in Rwanda
Rwanda celebrates 14 national holidays:
- New Year’s Day
- Day after New Year’s Day
- National Heroes Day
- Good Friday
- Genocide against the Tutsi Memorial Day
- Labor Day
- Independence Day
- Liberation Day
- Umuganura Day
- Assumption Day
- Christmas Day
- Boxing Day
- Eid El Fitr
- Eid Al-Adha
Vacation days in Rwanda
In general, employees are entitled to 18 days of paid annual leave.
An additional day of leave is given for every 3 years of continuous service, up to a maximum of 21 days.
Rwanda sick leave
Employees are entitled to sick leave of up to 6 months, with medical certification. The first 3 months are paid, and the last 3 months are unpaid.
Maternity/paternity leave in Rwanda
Expecting employees are generally entitled to 12 weeks of paid maternity leave. Leave may be taken up to 2 weeks before the due date.
Fathers are entitled to 4 consecutive days of paternity leave.
Health insurance in Rwanda
Rwanda has a public/private healthcare system with funding from the government, payroll taxes, and out-of-pocket expenses. The majority of the population pays into the Community-Based Health Insurance (CBHI) scheme which provides access to all public and non-profit health centers with a 10% co-pay. Access to private clinics is not included.
Rwanda supplementary benefits
Some common employee benefits in Rwanda include:
- Car allowance
- Loans
- Housing allowance
- Phone allowance
Bonuses
Some employers offer performance-based bonuses.
Termination/severance in Rwanda
Probation periods of up to 6 months are permitted. Notice of termination is not required during the probationary period.
Indefinite-term contracts may be terminated for just cause, and written notice should be given to the employee except if dismissal is due to serious misconduct. The notice requirements are as follows:
- Less than 1 year of service: 15 days’ notice
- 1+ year of service: 1 month’s notice
Employees are generally entitled to severance pay after 1 year of service. Severance pay is given as follows:
- Less than 5 years of service: 1 month’s salary
- 5 to 10 years of service: 2 months’ salary
- 10-15 years of service: 3 months’ salary
- 15-20 years of service: 4 months’ salary
- 20-25 years of service: 5 months’ salary
- 25+ years of service: 6 months’ salary
Paying taxes in Rwanda
Employers and employees must contribute 5% and 3% of gross salaries to the national pension fund respectively, as well as 0.3% of salaries each to the Mother’s Insurance Fund.
Employers are also required to contribute 2% of gross salaries to an occupational hazards fund.
Why G-P?
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