Payroll and Benefits Guide Rwanda
Last updated: Mar 27, 2025
Contribution
|
Employer Payroll Contributions
|
|
|
2.00%
|
Social Security (RSSB) – Occupational Hazards
|
|
6.00%
|
Pension Scheme
|
|
0.30%
|
Social Security (RSSB) – Maternity Fund
|
|
7.50%
|
Social Security (RSSB) – Medical Insurance. Private companies must subscribe to medical insurance via the RSSB or alternatively provide medical insurance through a private company.
|
|
8.3% – 15.80%
|
Total Employment Cost
|
|
Employee Payroll Contributions
|
|
|
6.00%
|
Pension Scheme
|
|
0.30%
|
Social Security (RSSB) – Maternity Fund
|
|
0.50%
|
Community Based Health Insurance (CBHI)
|
|
7.50%
|
Social Security (RSSB) – Medical Insurance. Private companies must subscribe to medical insurance via the RSSB or alternatively provide medical insurance through a private company.
|
|
6.8% – 14.30%
|
Total Employee Cost
|
|
Employee Income Tax
|
Monthly |
|
0%
|
Up to 60,000 RWF
|
|
10.00%
|
60,000,01 – 100,000 RWF
|
|
20.00%
|
100,001 – 200,000 RWF
|
|
30.00%
|
200,001 RWF and above
|
Employer taxes
Employee taxes
Minimum Wage
General
Rwanda does not have a universally applied national minimum wage but some sectors might apply a specific minimum wage.
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
The typical payroll cycle in Rwanda is a monthly basis.
13th Salary
There is no statutory requirement to provide a 13th salary in Rwanda.
Working Hours
General
The maximum working hours are 45 hours per week, Monday to Friday.
Overtime
| Aspect | Regulation Details | Notes |
| Maximum Ordinary Hours | 40 hours per week (reduced from 45 hours in 2023). Overtime is any work performed beyond this limit. | Typically distributed over 5 days (8 hours/day). |
| Absolute Maximum Weekly Hours | Total working hours (ordinary + overtime) generally should not exceed 60 hours per week. | This implies a maximum of 20 hours of overtime per week. |
| Overtime Justification | Overtime can only be requested for work that is urgent, exceptional, seasonal, or necessary to preserve/increase production. | Overtime requires prior authorization from the employer. |
| Rest Period | Employees are entitled to a daily break of at least one hour for shifts exceeding six hours, and a minimum continuous rest period of 24 hours per week. | |
| Exemptions | Certain managerial or supervisory employees may be exempt from statutory working hour limits and overtime compensation. |
Mandatory Overtime Compensation (Priority System)
Compensation for overtime is mandatory, but the Labour Law sets a clear priority for compensatory rest over monetary payment.
| Condition | Compensation Method Priority | Notes |
| Standard Overtime | First Priority: Compensatory paid time off (TOIL) equivalent to the hours worked (1:1). | The employer is required to provide the equivalent rest hours within the period of one month following the overtime work. |
| Monetary Backup | Second Priority: Monetary Pay. | If the rest period cannot be provided within 30 days, the worker is entitled to premium monetary pay. |
Minimum Monetary Premium Rates (If TOIL is not granted):
| Time of Overtime Work | Minimum Premium Rate (Supplement) | Total Pay Rate |
| Weekdays | +30% of the regular hourly wage. | 130% |
| Weekends (Saturday/Sunday) | +50% of the regular hourly wage. | 150% |
| Public Holidays | +100% of the regular hourly wage (Double Pay). | 200% |
Note on Tiered Rates: Some sources indicate a high-hour tiered monetary rate (e.g., 150% for the first 30 hours per month, then 175% thereafter), but the rates above represent the more commonly cited statutory minimums based on the day of work.
Leave
Annual Leave (vacation)
Employees are entitled to a minimum of 18 working days of paid annual leave after completing 1 year of service (24 workings days for employees under the age of 18).
For every three years of continuous service, employees gain an additional day of leave, capped at a maximum annual leave entitlement of 21 working days.
PTO carryover
In Rwanda, statutory annual leave cannot be forfeited. Leave is meant to be taken when due, but unused leave may be carried over by agreement (commonly up to two years).
Public Holidays
Public Holidays falling on weekends are usually moved to the next working as a day off in lieu, with an exception of April 7th (Genocide against the Tutsi Memorial Day).
Religious holidays determined by the lunar cycle will show as ‘tentative’ until they are confirmed nearer the date of the holiday.
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 2 January 2026 | Friday | New Year Holiday | Standard holiday |
| 1 February 2026 | Sunday | National Heroes’ Day | Standard holiday |
| 2 February 2026 | Monday | National Heroes Holiday | |
| 20 March 2026 | Friday | Eid al-Fitr (End of Ramadan) | |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 7 April 2026 | Tuesday | Genocide Against the Tutsi Memorial Day | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 27 May 2026 | Wednesday | Eid al-Adha (Feast of Sacrifice) | |
| 1 July 2026 | Wednesday | Independence Day | Standard holiday |
| 4 July 2026 | Saturday | Liberation Day (Kwibohora) | Standard holiday |
| 6 July 2026 | Monday | Liberation Day Holiday | |
| 7 August 2026 | Friday | Umuganura Day (Harvest Thanksgiving) | Standard holiday |
| 15 August 2026 | Saturday | Assumption Day | Standard holiday |
| 17 August 2026 | Monday | Assumption Day Holiday | |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 26 December 2026 | Saturday | Boxing Day | Standard holiday |
| 28 December 2026 | Monday | Boxing Day Holiday |
Sick Days
Employees are entitled to 15 days of paid sick leave, providing a medical certificate is provided. If sick leave exceeds 15 days, the employee can apply for long-term sick leave which can last for up to six months. The employee will be entitled to full salary for the first three months of the leave. After three months leave the employee can request another three months of unpaid work suspension.
Employers have the right to terminate an employment contract if an employee remains ill after six months of long-term sick leave.
Maternity Leave
Female employees are entitled to 12 weeks of paid maternity leave in Rwanda with no less than 14 days of leave prior to the due date. Maternity confirmation certificates must be provided before any maternity leave can commence.
Paternity Leave
In Rwanda a father is entitled to unpaid leave of up to four working days in one calendar year.
Parental Leave
There are no provisions in the law regarding parental leave.
Other Leave
There are no provisions in the law regarding other types of leave.
PAID MATERNITY LEAVE (DAYS)
Termination
Termination Process
Employers can terminate a fixed-term contract by giving the following reasons: business, personal, or employee misconduct. It requires notice and a written explanation for the termination. The termination can only be done after following a process – PIP for performance-related termination, Disciplinary procedure for gross misconduct, and redundancy procedure.
| Salary payment interval / date | Final payment on termination | Bank account/payment-method requirement |
|---|---|---|
| Pay periods may not exceed one month for monthly-paid workers; for shorter-term work, intervals accordingly shorter. Some sources state that wages must be paid “within 7 days after the end of the pay period.” | When employment ends, the employer must pay all wages and other amounts due. The law provides for notice periods and severance/compensation (“damages”) if termination is without cause. | Wages must be paid in money (legal tender). |
Notice Period
The statutory notice period in Rwanda is 15 days’ notice for employees within the first year of service, increasing to one month following the completion of one year of service.
It is not permitted to serve notice during the probation period.
Severance Pay
Workers are entitled to severance pay when terminated due to economic reasons, technological transfer or sickness, provided they have completed at least one year of continuous service. Severance is calculated as follows:
- Two times the average salary for less than five years of service
- Three times the average salary for five to 10 years of service
- Four times the average salary for 10 to 15 years of service
- Five times the average salary for 15-20 years of service
- Six times the average salary for 20-25 years of service
- Seven times the average salary for more than 25 years of service
To calculate the average monthly salary, the employee’s total salary for the past twelve months (excluding any allowances given for work-related purposes) is divided by 12. Once an employment contract is terminated, any related benefits must be paid within seven working days.
Probation Period
In Rwanda, the probation period cannot exceed three (3) months. However, after the written evaluation of the employee’s performance notified to the employee, the employer can, for valid reasons related to the nature of work, employee’s performance and conduct, decide that an employee retakes the probation for a period not exceeding three (3) months.
Immigration
Expatriates may work in Rwanda, provided they have a work permit issued by the Directorate General of Immigration and Emigration. The work permits are usually granted to foreign enterprises approved to operate in Rwanda if the applicants are key personnel. However, any enterprise may recruit any category of expatriate skilled labour if Rwandans are not available. The enterprise will be required to prove that it has conducted a labour market test and failed to get local candidates who meet the requirements.
A foreigner with a contract of employment for longer than 90 days must apply for a work permit within 15 working days from the day of entry in Rwanda. The employee may also be allowed to change employers and renew his/her work permit by informing the Directorate General of Immigration and Emigration in writing.
VAT
General
The Standard rate of VAT in Rwanda is 18%.
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Payroll and Benefits Guide
in Rwanda
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 2 January 2026 | Friday | New Year Holiday | Standard holiday |
| 1 February 2026 | Sunday | National Heroes’ Day | Standard holiday |
| 2 February 2026 | Monday | National Heroes Holiday | |
| 20 March 2026 | Friday | Eid al-Fitr (End of Ramadan) | |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 7 April 2026 | Tuesday | Genocide Against the Tutsi Memorial Day | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 27 May 2026 | Wednesday | Eid al-Adha (Feast of Sacrifice) | |
| 1 July 2026 | Wednesday | Independence Day | Standard holiday |
| 4 July 2026 | Saturday | Liberation Day (Kwibohora) | Standard holiday |
| 6 July 2026 | Monday | Liberation Day Holiday | |
| 7 August 2026 | Friday | Umuganura Day (Harvest Thanksgiving) | Standard holiday |
| 15 August 2026 | Saturday | Assumption Day | Standard holiday |
| 17 August 2026 | Monday | Assumption Day Holiday | |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 26 December 2026 | Saturday | Boxing Day | Standard holiday |
| 28 December 2026 | Monday | Boxing Day Holiday |
Does severance pay attract any tax?
Severance pay is usually treated a taxable income.