Globalpedia

PEO & Employer of Record (EOR) in RwRwanda.

Population

13,400,541

Languages

1.

Kinyarwanda

2.

French

3.

English

Country Capital

Kigali

Currency

Rwandan franc (RWF)

G-P 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 G-P’ 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.

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. G-P 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 13 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:

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.

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 three years of continuous service, up to a maximum of 21 days.

Rwanda Sick Leave

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.

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.

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 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

Paying Taxes in Rwanda

Employers and employees must contribute 5% and  3% of gross salaries to the national pension fund respectively and 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.

This information is provided as generally accepted information and is not intended as advisory services.

Why G-P

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. G-P 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 G-P can provide a seamless employee leasing or PEO solution for hiring employees in Rwanda, please contact us.

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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