Rwanda Employer of Record (EOR) & Payroll
Rwanda Employer of Record & Payroll
Africa Deployments Rwanda offers our clients Employer of Record (EOR) services covering all of the regions within. We offer full-time employment or fixed terms contracts based on your requirements in Rwanda for locals or expatriates. ADS will take care of the work permit under our umbrella and will issue local work contracts to your contractors. We will also advise our client’s on best Human Resource (HR) practices when setting up the employee’s locally in Rwanda Employer of Record.
ADS takes care of the local tax & PAYE remittances to the Revenue Services on a monthly basis ensuring that they are fully compliant with the law. We will also ensure that their salaries are paid on time monthly and issue them with their pay slips. In addition to our services, we can offer you the employee in Rwanda, Medical, Disability, Life, and Workmen’s Compensation Insurances.
ADS takes care of the local tax & PAYE remittances to the Revenue Services on a monthly basis ensuring that they are fully compliant with the law. We will also ensure that their salaries are paid on time monthly and issue them with their pay slips.
Rwanda, officially the Republic of Rwanda, is a landlocked country in the Great Rift Valley of Central Africa, where the African Great Lakes region and Southeast Africa converge.
It is the most densely populated mainland African country with a population of ±14 million, of whom ±1.7 million call its capital and largest city Kigali home.
Located a few degrees south of the Equator, Rwanda is highly elevated, giving it the soubriquet “land of a thousand hills” and making the volcanic range perfect to house the famous endangered mountain gorillas.
The climate is temperate to subtropical, as evident in the shiny coffee fields and shimmering lakes. Two major African rivers, the Nile and the Congo, flow through Rwanda.
Kigali has a Parisian-inspired food scene, and Rwandans take care of their country – Kigali hosts monthly Car Free Days and Rwandans have monthly community clean-ups called Umuganda.
Sustainable eco-tourism is helping Rwanda’s economy along with its main exports of gold, petroleum, tin ores, tea and coffee.
What is the main language spoken in Rwanda:
Kinyarwanda a Bantu language, is the national language of Rwanda, and the first language of almost the entire population of the country.
French, English, and Swahili are the country’s other 3 official languages.
What type of employment contracts can you offer in Rwanda:
- Fixed Term
- Indefinite term
- Be in writing
- Be in the official local language and the local currency
- Include salary/compensation, benefits and termination requirements
- Have specific working terms and conditions
- Can be eligible for organizational perks and/or other benefits
- Tend to be more focused [as only one employer] and familiar with the specific business – due to e.g. ongoing company training etc.
- Probationary period is 3 months [maximum]
WHAT INCOME IS TAXABLE IN Rwanda:
Any income earned in the form of cash, wages, salary, overtime, leave pay or payment in lieu of leave, commissions, gratuity, bonus, or any amount that has benefited the employee. All income will be taxed in accordance with the law and the final payroll issued monthly.
What income is exempt from taxes in Rwanda:
Under the repealed tax law, only the amount below FRW30,000 was exempted from personal income tax. The ITL 2022 exempts income accruing from savings in collective investment schemes and Rwanda’s employees’ shares within a company from income tax.
Obligations of the concerned tax payers of income tax A resident taxpayer is liable to income tax per the tax period from all domestic source and foreign source. A nonresident taxpayer is only liable to income tax which has a source in Rwanda.
Taxable employment income includes all payments to an employee in cash or in kind such as: Wages, salary, leave pay, sick pay and medical allowance, payment in lieu of leave, fees, commissions, bonuses including gratuity and incentives.
Standard working hours: Number Overtime to be paid?
General
- There is a cap on the number of hours employees can work each week and a set working day of seven and a half hours, six days per week.
Overtime
- Overtime pay is set in the employment contract.
Mandatory contributions?
Employee
| Contribution Type | Contribution Rate |
|---|---|
|
National Pension Fund |
5% of gross salaries |
|
Mother's Insurance Fund |
0.3% of gross salaries |
Employer
| Contribution Type | Contribution Rate |
|---|---|
|
National Pension Fund |
5% of gross salaries |
|
Mother's Insurance Fund |
2% of gross salaries |
|
Occupational Hazards Fund |
2% of gross salaries |
What is the Maternity and Paternity policy within Rwanda:
- leave be at least 12 weeks of which a period of two weeks should be taken before the due date.
- Immediately after delivery or miscarriage entitled to 4 working days leave from work.
What type of leave is allowed in Rwanda:
- 18 days, full pay per annum
- Sick leave entitlement is up to six months (subject to evidence). The first three months are paid, and the last three months are unpaid.
Do I need to pay a mandatory bonus annually OR is it discretionary in Rwanda:
There is no statutory requirement to pay a 13th or 14th month salary / bonus in Rwanda.
Generally employees receive annual leave at the standard rate, other than in the health sector where a bonus scheme has been introduced to reward health professionals.
What Gratuity / Severance payments do you need to provide for Rwanda:
- 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
CAN YOU GIVE FRINGE BENEFITS IN Rwanda:
Yes you can but keep in mind that Fringe Benefits will be subject to employee PAYE tax. Only benefits that cannot be converted to cash will not be subject to tax. If the employer covers some of the employees expenses i.e. mobile phone then it must be subject to PAYE tax and either the employer will cover this portion for the employee or the employee will bear the PAYE tax.
Mandatory Probation period of Rwanda:
- Probation period cannot exceed three months.
- Extension of the probation period by another three months is possible based on certain factors.
- Successful probation leads to immediate employment offer (in writing).
- Unsuccessful probation results in immediate termination without terminal benefits.
- Re-employment does not involve another probation period.
Is 13th month pay (Bonus) mandatory?
Not mandatory, applicable as per contract.
What are the Corporate and VAT / Sales tax rates in Rwanda:
Corporate Tax Rates: 30% [in general]
VAT / Sales Tax Rates: 18% [on most goods and services]
Public Holidays in Rwanda:
- January 1 - New Year's Day
- January 2 - Yennayer
- February 01 - Heroes' Day
- April 07 - Good Friday
- April 07 - Genocide against the Tutsi Memorial Day
- April 10 - Easter Monday
- April 22 - Eid Ul Fitr
- May 01 - Worker's Day
- June 29 - Eid El Haj
- July 01 - Independence Day
- July 04 - Liberation Day
- August 04 - Umuganura Day
- August 15 - Assumption Day
- December 25 - Christmas Day
- December 26 - Boxing Day
What Industries we support in Rwanda:
- Non-Governmental Organization’s (NGO) / Non- profit
- Engineering & Construction
- Government / Development Agencies
- Oil & Gas
- FMCG & Manufacturing
- Private Equality, Finance, Insurance & Banking
- Mining
- Agriculture
The information provided above is for an “informative decision” and may change at any given time without prior notice. We always suggest speaking to one of our Sales Consultants before engaging in country.
