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$249/month
$49/month
2% of gross salary / month
Rwanda is a small land-locked country in East Africa’s Great Rift Valley, surrounded by Uganda, Tanzania, Burundi, and the Democratic Republic of the Congo. It’s economy is currently strong, with GDP increasing tenfold from 1994 to the present total of $13.7 billion. The IMF expects an incredible 6.9% growth in 2024. For the 13.857 million inhabitants of this small country, this growth has brought development and a reduction in poverty.
With a young, skilled labor market and strong economic position, there has never been a better time to hire in Rwanda with the Horizons Rwanda Employer of Record (EOR) solution.
Hire in Rwanda, and pay employees through our platform or app.
Our Rwanda EOR solution is the most affordable on the market.
Fast Rwanda onboarding, hire in as little as 12 hours.
We draft compliant Rwanda labor contracts.
We manage all Rwanda mandatory benefits.
It doesn’t stop with Rwanda — we hire employees globally.
An EOR or Employer of record in Rwanda is a service provider that helps other companies hire Rwandan workers. The EOR is able to hire local workers on behalf of foreign-based companies, allowing them to avoid the need to own entities in the country. Rwandan EORs can provide several services for their client companies, including recruitment, contracting, payroll, benefits administration, and leave schedule management, among others. Their clients pay EORs to outsource their human resources (HR) functions and maintain compliance with all of Rwanda’s relevant employment tax and employment laws.
An EOR is also often referred to as a Rwanda PEO or professional employment organization.
Any company that has worked with an EOR in Rwanda knows that their services are highly valuable. The expertise and knowledge of the EOR’s staff allow their clients to gain the following advantages:
Horizons stands out as a Rwana EOR through:
Your company can work with an EOR by hiring it to find your Rwandan employees. You’ll pay a fee for each employee the EOR manages while it typically provides the following services:
Rwanda’s laws have developed over the decades, and the country now has numerous legal protections for both employers and employees. These laws, however, are spread across many legal instruments like the Constitution of Rwanda of 2003, the Law Regulating Labour in Rwanda of 2018, and several other laws, orders, and international conventions. These laws can be hard to find and follow and are best left up to the expert staff of an EOR to manage. At the same time, it’s useful for you to be familiar with some of the main points of law so you know what Rwandan employees are entitled to.
While oral contracts are allowed, they must be in writing for periods over three months. Contracts have to be written in one of Rwanda’s official languages, including Kinyarwanda, Swahili, English, and French. Permanent and fixed-term contracts can both be used without limit. Contracts must include the names and addresses of the parties, place of work, duration of contract; notice period; salary and benefits; payment method and schedule; overtime rate; job title and description; working hours; leave allowance; and any relevant collective agreements.
No probationary period.
At completion of the project.
Not applicable
Up to 6 months
15 to 30 days
Not applicable
Up to 6 months
Less than 1 year is 15 days
1 to 5 years is 30 days
5 to 10 days is 60 days
More than 10 years is 90 days
1 to 5 years is 1 month's salary
5 to 10 years is 2 month's salary
More than 10 years is 3 month's salary
Rwandans normally work 45 hours a week. These hours can be extended with overtime
135% of the standard hourly rate
200% of the standard hourly rate
200% of the standard hourly rate
Rwanda has 12 paid public holidays each year. These are a mixture of national days and religious observances.
Date | Holiday name |
---|---|
1 Jan 2025 | New Year’s Day |
1 Feb 2025 | National Heroes Day |
7 Apr 2025 | Genocide Against the Tutsi Memorial Day |
18 Apr 2025 | Good Friday |
21 Apr 2025 | Easter Monday |
1 May 2025 | Labor Day |
1 Jul 2025 | Independence Day |
4 Jul 2025 | Liberation Day |
1 Aug 2025 | Umaganura Day |
15 Aug 2025 | Assumption Day |
25 Dec 2025 | Christmas Day |
26 Dec 2025 | Boxing Day |
The amount of paid time off employees are eligible to receive is based on how long they have been employed at their current company:
no leave entitlement
18 days of paid leave annually
18 days of paid leave annually
18 days of paid leave annually
Employees are entitled to short sick leaves of up to 15 days. If they exceed this, long sick leave can be allowed up to six months. The first three months are fully paid, and the next three are unpaid.
no leave entitlement
15 days of paid leave annually
15 days of paid leave annually
15 days of paid leave annually
Unpaid (unless specified in the employment contract or collective bargaining agreement)
Unpaid (unless specified in the employment contract or collective bargaining agreement)
Unpaid (unless specified in the employment contract or collective bargaining agreement)
In order for employees to receive the full wages due to them, workers must present a valid medical certificate from a certified doctor to their employer.
Expecting mothers are entitled to 12 weeks of fully paid maternity leave, two of which should be prenatal. In case of complications, this leave can be extended for up to one more month with a medical certificate.
Fathers are entitled to four days of paid circumstantial leave, which can be used for the birth of a child.
Workers are entitled to 18 days of annual leave. After each three-year period of service, employees gain one more day of annual leave to a maximum of 21 days.
Except for cases of gross misconduct, the employer should give 15 days’ notice to a worker who has worked less than a year and one month’s notice for service over a year. Severance pay depends on seniority according to this schedule:
Compulsory social security contributions in Rwanda cover pensions, maternity leave benefits, medical insurance, and occupational hazards insurance and are managed by the Rwanda Social Security Board (RSSB).
Compulsory social security contributions generally apply to all employees working within the country, including foreigners. However, there may be specific conditions and agreements that can influence the applicability of these contributions to foreign workers.
Individual income tax in Rwanda is structured with progressive tax rates for employment income, ranging from 0% to 30%. Other types of income, such as business and rental income, are typically taxed at a flat rate of 30%. Investment income is subject to withholding tax rates. Tax residency status determines the scope of taxable income, and residents are taxed on worldwide income, while non-residents are taxed only on Rwandan-sourced income.
Rwanda’s health insurance system comprises community-based health insurance (Mutuelle de Santé), the Rwanda Social Security Board (RSSB) medical scheme for public sector employees, and private health insurance options. Mutuelle de Santé provides affordable healthcare to the majority of the population, while the RSSB scheme offers comprehensive coverage for public sector employees. Private health insurance plans offer additional services and flexibility, catering to both locals and expatriates.
The minimum wage in Rwanda was mandated in 1974 at 100 RWF (Rwandan francs)/day (about 0.76 USD). This works out to about 2,580 RWF/month or just $2/month. However, this wage is too low to be meaningful. Employers and employees can agree on wages independently or follow collective agreements. Overtime rates are determined by collective agreements and must be updated annually. There are also no set rates for work performed on rest days, weekends, or public holidays.
A 13th-month annual bonus is not mandatory in Rwanda. Some employers may choose to incentivize employees with this bonus.
Employers in Rwanda only have to pay contributions equal to 5.3% of a worker’s salary for old age, invalidity, and survivor’s benefits (3%), sickness and maternity (0.3%), and accident and disease insurance (2%). Employees are deducted 3.3% of their salaries toward these same benefits.
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The EOR enters into contracts with the employees and acts as their legal employer. Its staff must have a thorough knowledge of all applicable labor and tax laws to ensure that its contracts are legal and sound. They must monitor the employees’ working conditions continually to make sure they are in line with the law. They also need to pay the appropriate taxes and social security contributions on your behalf.
The ability to hire workers without the need to register an entity is the biggest advantage of working with an EOR in Rwanda. Working with an EOR can also help you to get Rwandan workers on your payroll quickly and with little effort. You can also be assured that the EOR will take care of the workers’ long-term HR needs and ensure compliance with all applicable laws.