Globalization Partners provides employer of record services for customers that want to hire employees and run payroll without first establishing a branch office or subsidiary in Rwanda. Your candidate is hired via Globalization Partners’ Rwanda PEO in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. The individual is assigned to work on your team, working on your company’s behalf exactly as if he or she were your employee to fulfill your in-country requirements.
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Our comprehensive solution and Global PEO service enable customers to run payroll in Rwanda while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As a Global PEO expert, we manage employment contract best practices, statutory and market norm benefits, and employee expenses, as well as severance and termination if required. We also keep you apprised of changes to local employment laws in Rwanda.
Your new employee is productive sooner, has a better hiring experience and is 100% dedicated to your team. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. Globalization Partners allows you to harness the talent of the brightest people in more than 185 countries around the world, quickly and painlessly.
Rwanda, one of the smallest countries in Africa, is located in the central part of the continent. The country has many lakes, a savannah region, and mountains in the west. It is one of the most densely populated countries in Africa, with more than 11 million people, most of whom live in rural areas. Most Rwandans 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:
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
Bonus in Rwanda
Some employers offer performance-based bonuses.
Working Hours in Rwanda
In general, the Rwandan work week is 45 hours.
Vacation in Rwanda
In general, employees are entitled to 18 days of paid annual leave.
An additional day of leave is given for every three years of continuous service, up to a maximum of 21 days.
Sick Leave in Rwanda
Employees are generally entitled to sick leave of up to six months, with medical certification. The first three months are paid and the last three months are unpaid.
Maternity/Paternity Leave in Rwanda
Female employees are generally entitled to 12 weeks of paid maternity leave. Leave may be taken up to two weeks before the due date.
Fathers are entitled to four consecutive days of paternity leave.
Termination/Severance in Rwanda
Probation periods of up to six 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 one year of service: 15 days notice
- Greater than one year of service: one month notice
Employees are generally entitled to severance pay after one year of service. Severance pay is given as follows:
- Less than five years of service: one month’s salary
- Five to 10 years of service: two months’ salary
- 10-15 years’ service: three months’ salary
- 15-20 years’ service: four months’ salary
- 20-25 years’ service: five months’ salary
- 25+ years’ service: six months’ salary
Employers and employees must each contribute 3% of gross salaries to the national pension fund and 0.3% of salaries to the Mother’s Insurance Fund.
Employers are also required to contribute 2% of gross salaries to an occupational hazards fund.
Health Insurance in Rwanda
Rwanda has a public/private healthcare system with funding from the government, payroll taxes, and out-pocket expenses. The majority of the population pays into the Community-Based Health Insurance Scheme which provides access to all public and non-profit health centers with a 10% co-pay. Access to private clinics is not included.
Additional Benefits in Rwanda
Some common employee benefits in Rwanda include:
- Car allowance
- Housing allowance
- Phone allowance
Employment Contracts in Rwanda
Fixed term contracts are permitted.
It is 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. An offer letter and employment contract in Rwanda should always state the salary and any compensation amounts in Rwandan francs rather than a foreign currency.
This information is provided as generally accepted information and is not intended as advisory services.
Why Globalization Partners
Establishing a branch office or subsidiary in Rwanda to engage a small team is time-consuming, expensive and complex. Rwandan labor law has strong worker protections, requiring great attention to detail and an understanding of local best practices. Globalization Partners makes it painless and easy to expand into Rwanda. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws, without the burden of setting up a foreign branch office or subsidiary. Our Rwanda PEO and Global Employer of Record solution provides you peace of mind so that you can focus on running your company.
If you would like to discuss how Globalization Partners can provide a seamless employee leasing or PEO solution for hiring employees in Rwanda, please contact us.