Rwanda Employer of Record & Payroll

Africa Deployments Rwanda offers comprehensive Employer of Record (EOR) services throughout the entire country, providing tailored solutions for full-time employment or fixed-term contracts based on client requirements for both local and expatriate employees.

Key Services:

• Work Permits & Local Contracts: Full management of work permits under our umbrella and issuance of local employment contracts.
• HR Advisory: Expert advice on best Human Resource practices.
• Payroll Management: Handling local tax & PAYE remittances, ensuring compliance with the law, timely salary payments, and issuance of payslips.
• Employee Benefits: Optional offerings include Medical, Disability, Life, and Workmen’s Compensation Insurances.

About Rwanda

Rwanda, officially the Republic of Rwanda, is a landlocked country in the Great Rift Valley of Central Africa, known as the “Land of a Thousand Hills.” With a population of approximately 14 million, Kigali serves as its bustling capital. Rwanda’s elevated terrain is home to iconic mountain gorillas and supports a temperate to subtropical climate, perfect for coffee fields and shimmering lakes.

Key Highlights:

• Population: 13.46 million (2021)
• Currency: Rwandan Franc (RWF)
• Capital: Kigali
• Languages: Kinyarwanda, Swahili, French, English
• GDP: 11.07 billion USD (2021)
• Industries: Energy, Agriculture, Financial Services

Employment Contracts in Rwanda

Through our EOR solutions, we offer:

• Fixed-Term Contracts
• Indefinite-Term Contracts

Contracts must:

• Be in writing.
• Be in the official local language and local currency.
• Include salary, compensation, benefits, and termination requirements.

Full-Time Employees:

• Have specific terms and conditions.
• May be eligible for perks and benefits.
• Benefit from continuous training and development.
• Maximum probationary period: 3 months.

Taxable & Exempt Income

Taxable income includes wages, salary, overtime, commissions, bonuses, and other employee benefits. Income from collective investment schemes and employee shares within a company may be exempt.

Working Hours & Overtime

• Standard: 7.5 hours per day, 6 days per week.
• Overtime: As stipulated in the employment contract.

Mandatory Contributions

Employees and employers contribute to national funds as follows:

• National Pension Fund: 5% from both employee and employer.
• Mother’s Insurance Fund: 0.3% employee contribution, 2% employer contribution.
• Occupational Hazards Fund: 2% employer contribution.

Leave Policies

• Annual Leave: 18 days of paid leave per annum.
• Sick Leave: Up to 6 months (first 3 months paid, last 3 months unpaid).
• Maternity Leave: 12 weeks, including 2 weeks pre-delivery.
• Paternity Leave: 4 working days post-delivery.

Bonuses & Gratuity

• Mandatory Bonuses: Not required.
• Severance Pay based on years of service:
  • Less than 5 years: 1 month’s salary.
  • 5 to 10 years: 2 months’ salary.
  • 10 to 15 years: 3 months’ salary.
  • 15 to 20 years: 4 months’ salary.
  • 20 to 25 years: 5 months’ salary.
  • 25+ years: 6 months’ salary.

Fringe Benefits

Permissible but subject to PAYE tax unless non-convertible to cash. Employer-covered expenses, such as mobile phone reimbursements, must account for PAYE tax.

Corporate & VAT Tax Rates

• Corporate Tax: 30% (general)
• VAT/Sales Tax: 18% (on most goods and services)

Public Holidays

• January 1: New Year’s Day
• January 2: Yennayer
• February 1: Heroes’ Day
• April 7: Good Friday & Genocide Memorial Day
• April 10: Easter Monday
• April 22: Eid Ul Fitr
• May 1: Workers’ Day
• June 29: Eid El Haj
• July 1: Independence Day
• July 4: Liberation Day
• August 4: Umuganura Day
• August 15: Assumption Day
• December 25: Christmas Day
• December 26: Boxing Day

Industries Supported in Rwanda

We provide EOR services across a diverse range of industries, including:

• Non-Governmental Organizations (NGOs) / Non-profits
• Engineering & Construction
• Government / Development Agencies
• Oil & Gas
• FMCG & Manufacturing
• Private Equity, Finance, Insurance & Banking
• Mining
• Agriculture

Contact Us
For detailed assistance with Employer of Record (EOR) services in Rwanda, including specific payroll and employment solutions tailored to your needs, contact our team at Africa Deployments.