About Us
Workforce Guide in Rwanda
Rwanda’s economy experienced significant growth over the years and the real GDP grew by 8.2%(World Bank) in the year 2022, despite a challenging economic year. This was observed after the 10.1 percent growth year over year in the third quarter of 2021. This followed a record of 20.6 percent expansion in the third quarter of the latter year. The service sector played a critical role in driving growth, with notable growth in the hotels and restaurants (62%), transportation (19%), repair and maintenance of motor vehicles (6%), information and communication (14%), and financial service(11%). The industrial sector also contributed positively with strong performance in mining and quarrying (30%), infrastructure (15% and manufacturing (7%) Agriculture, forestry and fisheries saw a steady growth at 6% and & 7% respectively. Notably, this translates to a consistent quarterly increase of 1.2%, exceeding the initial projection of 4.6% expansion in the previous quarter.
Minimum Wage
Rwanda’s Ministry of Public Service and Labour sets the minimum wage, currently at 130,000 RwF per month as of 2023. This applies to all workers including those in the private sector.
Payroll Cycle
In Rwanda, payment is flexible and is determined by the individual employee and employer agreement. Depending on the mutual agreement between the two parties, payment can be daily for hourly workers, weekly and monthly.
However, wages must be paid within seven days of the designated pay period, with the sole exception of the daily workers who receive their pay daily. The employers are obligated to deposit the salaries into bank or financial institution accounts designated by the employee in writing.
Taxation
Income Tax Rates
|
Monthly Taxable Income Exceeding (RWF) |
Monthly Taxable Income Not Exceeding (RWF) |
Rate on Excess % |
|---|---|---|
|
0 |
360,000 |
0 |
|
360,000 |
1,200,000 |
20 |
|
1,200,000 |
- |
30 |
Annual Leave
Under the Rwandan labor code, all employees who complete one year of service are eligible for yearly leave. Here is a breakdown:
● Full-time employees:18 paid days per year (1.5 days per month)
● Part-time employees (less than 45 hours weekly): Prorated based on work hours
● Young workers (under 18):24 days per year/2 days per month.
Additionally, employees can accrue an extra day of leave for every three years of continuous services, but annual leave is capped at a maximum of 21 days annually.
Sick Leave
Employees can generally access up to six months of sick leave with medical documentation as proof of illness. The first three months are paid, while the following three months are unpaid.
Maternity Leave
Rwandan law grants employees 12 weeks of paid leave for maternity purposes. This allows them to take up to two weeks of leave before giving birth. During this entire period, their full salary is covered, with Social Security handling the payment for the last six weeks.
Parental Leave
This is not permitted in Rwanda. Maternity leave is offered and regulated by the law in Rwanda as the sole form of parental leave, this means that fathers or any other parental figures are not entitled to any legally mandated leave upon the birth of a child.
Paternity Leave
While not legally mandated in Rwanda, employers commonly grant partners of mothers three business days of leave following childbirth. This reflects a customary practice rather than a legal practice.
1 May
Labor Day
25 December
Christmas Day
17 June
Eid al-Adha
26 December
Boxing Day
1 July
Independence Day
4 July
Liberation Day
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
Either party can terminate a contract with notice or penalty in; lieu of notice. Employers can only terminate an employee's contract for valid reasons.
Notice period:
This varies for different types of contracts i.e. Fixed-term contracts expire at their designated end date or can be canceled by either party for specific reasons, like voluntary termination or gross negligence, and the canceling party must notify the other
within 48 hours. Indefinite-term contracts have notice periods that vary based on employee service’s duration e.g.
● Less than 1 year:15 days’ notice
● More than 1 year:1 months’ notice
Severance Pay
Employees with at least one year of continuous service are eligible for severance pay under the labor code.
The amount of severance pay is based on the employee’s length of service:
● Less than 5 years: One month’s salary
● 5-10 years: Two months’ salary
● 10-15 years: Three months’ salary
● 15-2- years: Four months’ salary
● 20-25 years: Five months’ salary
● Over 25 years: Six months’ salary
Probation period
The Rwandan labor law limits probation periods to a maximum of six months. Both the initial probation period and any extensions must be documented in writing.