What to Know Before Employing in Rwanda

1. Legal Requirements

All employment in Rwanda must comply with the Labour Law of 2018. Key requirements include:

Legal Requirement

All employment in Rwanda must comply with Labour Law No. 66/2018. Written contracts are mandatory, and foreign nationals require work permits before starting employment.

Written employment contracts are mandatory for all employees
Contracts must be in Kinyarwanda, French, or English
Both employer and employee must sign and keep copies
Foreign nationals require work permits before starting employment

2. Working Hours and Overtime

Rwanda has specific regulations regarding working hours:

Standard working week: 45 hours (typically 8 hours per day, 5.5 days per week)
Maximum working hours: 56 hours per week including overtime
Overtime pay: 1.5x regular rate for hours worked beyond 45 hours
Sunday work: 1.75x regular rate
Night work (10pm-6am): Additional compensation required

3. Mandatory Benefits and Leave

Employers must provide the following statutory benefits:

Annual Leave: Minimum 18 working days per year (+1 day per 3 years of service, up to 21 days)
Public Holidays: 15 paid public holidays annually
Sick Leave: Full pay for first 30 days, 75% pay for next 60 days
Maternity Leave: 14 weeks, with implementation administered through applicable labour and RSSB maternity frameworks
Paternity Leave: 4 working days fully paid
Compassionate Leave: 7 days for immediate family bereavement

4. Social Security & Health Contributions (RSSB & RAMA)

All employees must be registered with the Rwanda Social Security Board (RSSB). Based on the referenced official pages (as of March 2026), statutory contributions shown on RRA/RSSB are:

Employee RSSB pension: 6% of gross salary
Employee RSSB medical scheme: 7.5% of basic salary
Employee maternity fund: 0.3% of gross salary
Total employee statutory contribution shown: 13.8%
Employer RSSB pension: 6% of gross salary
Employer RAMA medical insurance: 7.5% of gross salary
Employer occupational hazards: 2% of gross salary
Employer maternity fund: 0.3% of gross salary
Total employer statutory cost: 15.8% of gross salary
RRA RSSB declaration page indicates monthly declaration/remittance by the 15th of the following month
RSSB medical scheme page separately references payment by the 10th for that scheme; confirm your active setup in iShema

5. Taxation

Rwanda uses a progressive PAYE (Pay As You Earn) tax system:

Monthly Income (RWF)	Tax Rate	Visual
0 – 60,000	0%
60,001 – 100,000	10%
100,001 – 200,000	20%
200,001+	30%

0% on monthly income from RWF 0 to 60,000
10% on monthly income from RWF 60,001 to 100,000
20% on monthly income from RWF 100,001 to 200,000
30% on monthly income above RWF 200,000
Annual brackets published by RRA: 0–720,000 (0%), 720,001–1,200,000 (10%), 1,200,001–2,400,000 (20%), above 2,400,000 (30%)
RRA PAYE calculator note: monthly PAYE is derived from progressive annual tax and then divided by 12 (rounded up)
Employers must withhold and remit PAYE monthly
Taxpayers below RWF 200,000,000 annual turnover may opt for quarterly PAYE filing, still due by the 15th after each quarter

6. Probation Period

Employment contracts can include a probation period:

Standard probation is commonly set up to 3 months and may be extended once by written agreement (up to 6 months)
Terms for probation assessment and termination must be clearly stated in the contract
Termination procedures during probation should follow current labour law and due process requirements
After probation, standard notice periods apply

7. Notice Periods and Termination

Terminating employment requires adherence to specific notice periods:

For employees with less than 1 year service: 15 days
For employees with more than 1 year service: 30 days
Severance pay required based on length of service
Termination for serious misconduct follows specific legal process and shortened notification timelines

For current filing and contribution operations, verify details directly on RRA Tax Calculator, RSSB portals, and RDB One Stop Centre.

8. Work Permits for Foreign Nationals

Foreign employees require appropriate work authorization:

Work permits must be obtained before employment begins
Various categories: skilled worker, investor, volunteer, etc.
Processing time: typically 2-4 weeks
Valid for 1-2 years, renewable
Employer typically sponsors the work permit application

9. Minimum Wage

While Rwanda doesn't have a statutory national minimum wage, there are sector-specific minimums and market standards to consider. It's important to offer competitive compensation to attract and retain quality talent.

10. Employment Contracts

Two main types of employment contracts are recognized:

Permanent (Indefinite) Contracts: No end date specified
Fixed-Term Contracts: Specific end date, renewable up to twice (maximum 6 years total)