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How To Hire New Remote Employees | Rwanda

Hire employees in

Rwanda

, easily

Whether you're looking for an independent contractor, a remote team member, or a full-time employee in

Rwanda

, Workpay can help. Say goodbye to worrying about local laws, complex tax systems or managing international payroll. We take care of it all in over 50 countries.

Book a discovery call
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Country flag

How To Hire New Remote Employees | Rwanda

Hire employees in

Rwanda

, easily

   Whether you're looking for an independent contractor, a remote team member, or a full-time employee in

Rwanda

, Workpay can help. Say goodbye to worrying about local laws, complex tax systems or managing international payroll. We take care of it all in over 50 countries.

Book a discovery call
Hire employees in
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, hassle-free

With Workpay, your business can easily hire employees in

Rwanda

.
No more worrying about local laws, complex tax systems or
managing international payroll. Workpay takes care of everything
in 150+ countries.

Book a discovery call
capital city
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currency
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language spoken
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payroll frequency
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employer taxes
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vat - standard rate
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cost of living index
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gdp - real growth rate
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termination process
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employee protections
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Overview

Rwanda's GDP grew by 10.1 percent year over year in the third quarter of 2021, following a record 20.6 percent expansion in the third quarter. The services sector was the key driver of the growth, particularly hotels and restaurants grew at 62 percent, transportation 19 percent, repair and maintenance of motor vehicles six percent, information and communication 14 percent, and financial services 11 percent. Mining and quarrying 30%, infrastructure 15%, and manufacturing 7% all contributed positively to the industrial sector. Agriculture, forestry, and fisheries grew at six and seven percent respectively. The GDP increased by 1.2 percent every quarter, following an initial estimate of 4.6 percent expansion in the preceding quarter.

capital city
Kigali
currency
Rwandan franc (FRw, RF, R₣)
language spoken
Kinyarwanda, French, English
payroll frequency
Daily, weekly and monthly
employer taxes
2%-5%
vat - standard rate
18%
cost of living index
443,538RF
gdp - real growth rate
-3.4%
termination process
Varies
employee protections
Moderate

Public Holidays

DATE
HOLIDAY NAME

DATE

01 Jan

02 Jan 

01 Feb

07 April

07 April

10 April

22 April

01 May

01 May

29 June

01 July

04 July

04 Aug

15 Aug

25 Aug

26 Aug

HOLIDAY

New Years Day

New Year (In Lieu)

Heroes’ Day

Good Friday

Genocide Against Tutsi Memorial Day

Easter Monday

Eid-ul-Fitr

Workers Day

Workers Day (In Lieu)

Eid El Haj

Independence Day

Liberation Day

Umuganura Day

Assumption Day

Christmas Day

Christmas Holiday

This is some text inside of a div block.

Minimum wage

Rwanda has no official minimum wage but the minimum wage of RwF 100 was set down in the Labour Laws of 1974, 1973, or 1972 and has never been revised. (The site shared had a different amount).

This is some text inside of a div block.

Payroll cycle

The payroll cycle in Rwanda depends on the agreement between the employer and the employee. Thus, an employee can be paid daily (for workers hired hourly), weekly and monthly. 

Wages must also be paid within seven days of the end of the wage period, except for daily workers, who must be paid every day. The employer pays the employees’ salary into a bank or financial institution account that the employee has specified in writing.

This is some text inside of a div block.

Taxation

Income Tax Rates

TaxableIncome
Exceeding RWF Not Exceeding RWF Rate %
0 360,000 0
360,000 1,200,000 20
1,200,000 _ 30
This is some text inside of a div block.

Leaves

Annual Leave 

All employees are entitled to yearly leave after one year of working, according to the Labour Code. A full-time employee is entitled to 18 days of paid yearly leave (one and a half days for every month of employment). If an employee works less than 45 hours per week, his or her yearly leave is calculated on a pro-rata basis. A young worker under the age of 18 is entitled to two working days of yearly leave every month (24 working days per year). Annual leave is increased by one day for every three years of continuous service but annual leave cannot exceed 21 working days.

Parental Leave

Parental leave is not granted in Rwanda, only maternity leave is currently regulated by law.

Maternity Leave 

Employees are entitled to a paid leave of 12 weeks, it is possible to take two weeks off before the birth of the child. During this time, the employee will be paid in full, and social security will be accountable for the payment.

Paternity Leave 

In Rwanda, paternity leave is not mandated by law but it is usual practice for the employer to give the partner of the mother three business days off. 

Sick Leave

Employees are usually entitled to up to 6 months of sick leave with medical confirmation. The first three months are remunerated while the other three months are unremunerated.

This is some text inside of a div block.

Termination process

A contract can be canceled by either party by serving notice or paying a penalty instead of notice. An employee’s contract can only be terminated for a valid reason. 

Notice Period 

A fixed-term contract expires at the end of its term or when canceled by one of the parties. The cancellation is either voluntary or due to extreme negligence. The party canceling the contract on gross negligence must notify the other party within forty-eight hours.

The required notice period for ending an indefinite term contract is determined by the worker's duration of service as follows:

  1. 15 days for those who have been with the company for less than a year;
  2.  1 month for those who have been with the company for more than a year.

Severance pay 

A worker is eligible to severance pay under the Labour Code if they have worked for the employer for at least one year and have completed at least one year of continuous service. 

  • One-month salary for less than 5 years of service; 
  • Two-month salary for 5 to 10 years of service; 
  • Three-month salary for 10 to 15 years of service; 
  • Four-month salary for 15-20 years of service; 
  • Five-month salary for 20-25 years of service; 
  • Six-month salary for more than 25 years of service.

Probation Period 

Probation/trial periods are limited to six months under the Labour Code. The Labour Code further stipulates that the first probation period and any subsequent extensions must be documented in writing.

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Heading

Hire employees in

Rwanda

, hassle-free

With Workpay, your business can easily hire employees in

Rwanda

. No more worrying about local laws, complex tax systems or managing international payroll. Workpay takes care of everything in 50+ countries.

Book a discovery call
country featured image
capital city
Kigali
currency
Rwandan franc (FRw, RF, R₣)
language spoken
Kinyarwanda, French, English
payroll frequency
Daily, weekly and monthly
employer taxes
2%-5%
vat - standard rate
18%
cost of living index
443,538RF
gdp - real growth rate
-3.4%
termination process
Varies
employee protections
Moderate

Overview

Rwanda's GDP grew by 10.1 percent year over year in the third quarter of 2021, following a record 20.6 percent expansion in the third quarter. The services sector was the key driver of the growth, particularly hotels and restaurants grew at 62 percent, transportation 19 percent, repair and maintenance of motor vehicles six percent, information and communication 14 percent, and financial services 11 percent. Mining and quarrying 30%, infrastructure 15%, and manufacturing 7% all contributed positively to the industrial sector. Agriculture, forestry, and fisheries grew at six and seven percent respectively. The GDP increased by 1.2 percent every quarter, following an initial estimate of 4.6 percent expansion in the preceding quarter.

Public Holidays

DATE

01 Jan

02 Jan 

01 Feb

07 April

07 April

10 April

22 April

01 May

01 May

29 June

01 July

04 July

04 Aug

15 Aug

25 Aug

26 Aug

HOLIDAY

New Years Day

New Year (In Lieu)

Heroes’ Day

Good Friday

Genocide Against Tutsi Memorial Day

Easter Monday

Eid-ul-Fitr

Workers Day

Workers Day (In Lieu)

Eid El Haj

Independence Day

Liberation Day

Umuganura Day

Assumption Day

Christmas Day

Christmas Holiday

Minimum wage

Rwanda has no official minimum wage but the minimum wage of RwF 100 was set down in the Labour Laws of 1974, 1973, or 1972 and has never been revised. (The site shared had a different amount).

Payroll cycle

The payroll cycle in Rwanda depends on the agreement between the employer and the employee. Thus, an employee can be paid daily (for workers hired hourly), weekly and monthly. 

Wages must also be paid within seven days of the end of the wage period, except for daily workers, who must be paid every day. The employer pays the employees’ salary into a bank or financial institution account that the employee has specified in writing.

Taxation

Income Tax Rates

TaxableIncome
Exceeding RWF Not Exceeding RWF Rate %
0 360,000 0
360,000 1,200,000 20
1,200,000 _ 30

Leaves

Annual Leave 

All employees are entitled to yearly leave after one year of working, according to the Labour Code. A full-time employee is entitled to 18 days of paid yearly leave (one and a half days for every month of employment). If an employee works less than 45 hours per week, his or her yearly leave is calculated on a pro-rata basis. A young worker under the age of 18 is entitled to two working days of yearly leave every month (24 working days per year). Annual leave is increased by one day for every three years of continuous service but annual leave cannot exceed 21 working days.

Parental Leave

Parental leave is not granted in Rwanda, only maternity leave is currently regulated by law.

Maternity Leave 

Employees are entitled to a paid leave of 12 weeks, it is possible to take two weeks off before the birth of the child. During this time, the employee will be paid in full, and social security will be accountable for the payment.

Paternity Leave 

In Rwanda, paternity leave is not mandated by law but it is usual practice for the employer to give the partner of the mother three business days off. 

Sick Leave

Employees are usually entitled to up to 6 months of sick leave with medical confirmation. The first three months are remunerated while the other three months are unremunerated.

Termination process

A contract can be canceled by either party by serving notice or paying a penalty instead of notice. An employee’s contract can only be terminated for a valid reason. 

Notice Period 

A fixed-term contract expires at the end of its term or when canceled by one of the parties. The cancellation is either voluntary or due to extreme negligence. The party canceling the contract on gross negligence must notify the other party within forty-eight hours.

The required notice period for ending an indefinite term contract is determined by the worker's duration of service as follows:

  1. 15 days for those who have been with the company for less than a year;
  2.  1 month for those who have been with the company for more than a year.

Severance pay 

A worker is eligible to severance pay under the Labour Code if they have worked for the employer for at least one year and have completed at least one year of continuous service. 

  • One-month salary for less than 5 years of service; 
  • Two-month salary for 5 to 10 years of service; 
  • Three-month salary for 10 to 15 years of service; 
  • Four-month salary for 15-20 years of service; 
  • Five-month salary for 20-25 years of service; 
  • Six-month salary for more than 25 years of service.

Probation Period 

Probation/trial periods are limited to six months under the Labour Code. The Labour Code further stipulates that the first probation period and any subsequent extensions must be documented in writing.

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