Compensation and benefits are vital features in any company structure. When you take your business to a different country, you’ll encounter new regulations. Globalization Partners provides the legal expertise and benefits management you need to handle these new laws and ensure your employees get the compensation they deserve.
Cabo Verde Compensation Laws
In early 2020, Cabo Verde’s Prime Minister announced an increased minimum wage from CVE 13,000 a month to CVE 15,000 a month. This regulation change came into effect in 2021.
Employers should provide compensation in the national currency unless otherwise agreed upon. If internal regulations or collective bargaining agreements (CBAs) determine another form of payment, it must be equal or greater to the minimum wage requirements. If compensation is both currency and items or services, non-cash compensation cannot be greater in value than cash compensation.
Overtime hours or any work over prescribed hours must include compensation of at least 50 percent of standard wages. If an employee works on their weekly rest day, they must earn 100 percent of their regular pay.
While the country has compensation regulations, employers are also responsible for providing benefits to their employees. These benefits include annual leave, sick days, maternity leave, and public holidays.
Every employee earns 22 days of annual leave for each year of service. While the National Social Insurance Institute covers most sick days, employers must pay the first three sick days in full. Social security also covers the majority of maternity leave, but employers must cover the difference. If an employer is uninsured and needs maternity leave, the employer must cover all wages. Employees are also entitled to nine public holidays off.
With CBAs and internal regulations, employers may have different rules within the company. However, these company-specific laws must always meet or exceed national benefits requirements.
Cabo Verde Benefits Management
As an employer, it’s your responsibility to meet national minimums when providing for your employees — but offering more can benefit you and your workforce. When you provide additional benefits, you help employees feel represented and incentivize them to put in their best effort. Extra provisions can also make your open positions more competitive in the job market.
Extra benefits you could provide include:
- Telecommuting opportunities
- Education reimbursement
- Holiday bonuses
- Transportation stipends
Benefits management can be a challenge for employers in any country. It requires strategically using company resources while representing your employees’ needs. If you’re not careful with your provisions, you may overextend your business or fail to support your workforce adequately.
Globalization Partners takes the complications out of benefits management. We design a series of benefits packages according to national labor laws, and each option includes additional provisions. With this tiered system, you’ll always meet the minimum requirements, and you can provide more for employees as your company grows.
As your Employer of Record, we simplify benefits management and take on the risk of compliance so you can focus on other aspects of your company’s growth.
With CBAs and internal regulations, many compensation and benefits restrictions are up to you, your employees, and your company. Law decree number 5 enacting labor code details the minimum requirements, while your individual regulations include your minimums or maximums.
Follow labor laws closely and maintain your internal regulations through employment contracts and workplace practices.
Benefit From Compensation Outsourcing With Globalization Partners
Take the guesswork out of compensation and benefits with Globalization Partners. Our legal professionals ensure your business is compliant while your employees receive the wages and provisions they deserve. Get in touch with us today to learn more about our compensation and benefits outsourcing.