Rwanda, officially the Republic of Rwanda, is a country in East Africa bordered by Uganda, Tanzania, Burundi, and the Democratic Republic of the Congo. With recent economic growth and a heavy reliance on agriculture, many companies are choosing Rwanda as their next route for expansion, particularly with its fast-growing GDP of 14.25 billion US dollars (2024).

The workforce of Rwanda is made up of 5.6 million people (2024), and is known for being young and often fluent in many languages. Rwanda is known for its regulatory reforms and ease of doing business, plus it offers lower labor costs than other developed countries.

This help guide is designed to provide employers hiring in Rwanda with a comprehensive list of mandatory employee benefits that workers are entitled to. We’ll explain the local labor laws that dictate these entitled benefits, and some details on how RemotePeople can help optimize doing business in Rwanda.

Rwanda Labor Law

The main labor law in Rwanda is Law No. 66/2018 of 30/08/2018: Regulating Labour in Rwanda. This law provides a legal framework for those employing and working in the private and public sectors, outlining rights and obligations such as leave entitlements, termination rules, working hours, and overtime compensation.

Other relevant acts that further inform on Rwanda’s labor laws include the following:

  • Income Tax Law
  • Law/amendments to Maternity Leave (Law No. 049/2024).
  • Social Security Law/Rwanda Social Security Board (RSSB)
  • Acts/Decrees around leave types (sick leave, public holidays, circumstantial leave)

When employing workers in Rwanda, it’s important to consult legal experts for detailed compliance to ensure that your employment practices adhere to the latest legislation set by local labor laws. This will ultimately simplify the process of hiring in Rwanda by ensuring efficiency and compliance at all times.

Mandatory Employee Benefits in Rwanda

The mandatory employee benefits in Rwanda are detailed in the following sections:

Social Security Contributions

The Rwanda Social Security Board (RSSB) is the system responsible for administering social benefits in Rwanda, including pensions, sickness/maternity leave, work injury, and unemployment.

The social security rates in Rwanda are as follows:

Contributor
Contribution Rate
Employees
3% of monthly covered earnings, or 6% for voluntarily insured
Self-Employed Workers
6% of declared income
Employers
3% of gross monthly covered payroll

Annual Paid Leave

Employees in Rwanda are entitled to a minimum of 21 days of consecutive paid leave each year.

Annual leave is determined on a pro rata basis if an employee works less than 45 hours per week. This does not include national or religious holidays.

Working Hours

Typical working hours in Rwanda are 40 hours per week, with a maximum of 45 hours per week.

Most office staff members work 40 hours a week, and night hours consist of any work completed between the hours of 10 pm – 5 am. Night hours usually incur additional wages; however, the exact amount must be clearly stipulated in an employee’s contract.

Workers are entitled to a rest period of a minimum of 24 hours in each 7 days.

Overtime Pay

Hours worked beyond an employee’s normal contracted hours count as overtime.

Overtime can only be agreed upon by mutual consensus between the employer and employee. There is no set rate for overtime pay, but it must be compensated at a higher rate than an employee’s normal hourly wage.

​​Public Holiday Leave

Rwanda celebrates various public holidays, which provide employees with a paid day off if they fall on a working day. The public holidays in Rwanda are as follows:

  • New Year (January 1)
  • Day After New Year’s Day (January 2)
  • National Heroes’ Day (February 1)
  • Eid al‑Fitr (March 20) (movable date)
  • Good Friday (April 3) (movable date)
  • Easter Monday (April 6) (movable date)
  • Genocide Against the Tutsi Memorial Day (April 7)
  • Labor Day (May 1)
  • Eid al‑Adha (May 27) (movable date)
  • Independence Day (July 1)
  • Liberation Day (July 4)
  • Umuganura Day (August 7)
  • Assumption of Mary (August 15)
  • Christmas Day (December 25)
  • Boxing Day (December 26)

Sick Leave

If employees are too sick to attend work, they are entitled to an income during their first 6 months of sickness, provided that they can provide an authorised medical certificate.

The first 3 days of sickness are unpaid; however, employees must be paid at least 45% of the minimum wage after this period.

Workers must be entitled to health care at no cost during sick leave, and a worker’s job must be protected while they are on sick leave.

If sick leave exceeds 15 days, their illness must be assessed by a medical committee made up of three recognized medical doctors.

Maternity Leave

Female employees in Rwanda are entitled to 12 weeks of paid maternity leave if they have a baby. This is usually taken as 2 weeks prenatal and 10 weeks after the baby is born.

Maternity leave must be paid at a minimum of 2/3rds of an employee’s normal salary, and their job should be protected during this period.

Women must be permitted to take paid nursing breaks once they return to work.

Paternity Leave

Male employees are entitled to paternity leave if their partner has a baby.

This usually consists of 4 fully paid days of paternity leave, which can be extended by 5 days in the event of complications involving the delivery of the child.

Severance Pay

Workers in Rwanda are entitled to severance pay if they have completed one year of service and have been dismissed due to economic reasons, technological transfer, or illness. Severance pay is usually calculated as per the following:

Years of Service
Severance Pay
Less than 5 years
2 months’ salary
5 – 10 years
3 months’ salary
10 – 15 years
4 months’ salary
15 – 20 years
5 months’ salary
20 – 25 years
6 months’ salary
Over 25 years
7 months’ salary

Pensions

The pension system in Rwanda is made up of the mandatory RSSB pension scheme, voluntary occupational pension schemes, and private pensions.

Private and occupational pension plans must be registered and regulated, and provide additional savings for workers upon retirement age. 

Supplementary Employee Benefits in Rwanda

Employers in Rwanda are encouraged to offer their workers supplementary benefits. This can help improve employment and staff retention rates.

Some examples of typical supplementary benefits offered in Rwanda include:

  • Private health insurance
  • Transport/commuting expenses
  • Housing allowances
  • Meal allowances
  • Performance bonuses
  • Additional training courses
  • Non-cash benefits/perks such as internet subsidies, remote working, flexible hours, phone allowances, etc.

Optimize Employee Benefits with RemotePeople

RemotePeople can help companies hiring in Rwanda by offering Employer of Record (EOR) services.

An EOR offers additional support to companies hiring abroad by acting as the legal employer of workers in Rwanda. This involves handling payroll processing, administering employee benefits, and often taking on responsibilities around HR and tax contributions.

Contact RemotePeople to see how we can connect you with an EOR provider that suits your business and can help optimize the process of hiring in Rwanda.