Rwanda’s compensation and benefits laws are vital to both your company and your team. Employees expect to receive the right level of compensation and benefits, and you’ll need to provide both to stay compliant.
However, this process can turn into a challenge when you’re also setting up payroll, hiring employees, and running your company in a new location.
Rwanda compensation laws
Rwanda’s compensation laws include minimum wages that vary by industry. For example, individuals working in the tea industry make USD 0.83 (RWF 1,073.73) a day, while employees in the construction industry make anywhere from USD 2.50 (RWF 3,234.13) to USD 8.30 (RWF 10,737.32) a day.
You should research the rate for your industry and check for any Collective Bargaining Agreements (CBAs) before drafting an employment contract.
Guaranteed benefits in Rwanda
Your Rwanda benefits management plan must provide statutory benefits required by law. For example, Rwanda has 14 national holidays for which employees get the day off, and they should also receive 18 days of paid annual leave. Employees should get an additional day of vacation for every 3 years of employment up to a maximum of 21 days.
Maternity leave is another important benefit. The statutory minimum is 12 weeks of paid maternity leave, which employees can take up to 2 weeks before their due date. Fathers should also receive 4 consecutive days of paternity leave after the birth of a child.
Rwanda benefits management
We recommend giving out supplemental benefits that are not required by law but may be expected by employees. For example, many employers choose to give performance-based bonuses even though Rwanda’s compensation laws do not require them.
Other common benefits include a phone allowance, a housing allowance, loans, a car allowance, and more. Adding these benefits to your Rwanda benefits management plan will help you attract skilled employees to your open positions and encourage longevity.
Restrictions for benefits and compensation
If you decide to expand on your own, you’ll have to establish a subsidiary before you can work in Rwanda legally. Unfortunately, entity setup can take a significant amount of time, and that’s before you can hire employees and dole out compensation and benefits.
G-P can cut this time down to a few days. We can help you source the best benefits for your teams and make sure they get paid the right amount at the right time. Our experts understand Rwanda’s compensation laws, so we’ll help you stay compliant every step of the way.
Partner with G-P to build your everywhere workforce.
As your partner in global expansion, G-P will handle payroll and compliance, so you can focus on growing your team and scaling your business. Our market-leading Global Growth Platform™ is powered by the first fully customizable suite of global employment products and backed by the industry’s largest team of in-country HR and legal experts to streamline payroll management and help you offer competitive, compliant local benefits.
Learn more about our platform and request a proposal today.