The individual income tax ranges from 0% to 30%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.

The employer cost rate is 5.55% of the employee's salary.

Standard working hours are 9 hours per day, 45 hours per week. The standard workweek is from Monday to Friday.

Overtime payment is not mandatory.

Employees are entitled to paid sick leave for up to 6.5 months. This leave is paid at different rates and by different payers depending upon length:

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in Rwanda can be complex. There is no at-will termination in Rwanda for employers and termination must be done for just cause.

Compliant terminations include:

• Voluntarily by the employee
• By mutual agreement
• Unilaterally by the employer based on:
  • Probation period
  • Objective grounds
  • Disciplinary dismissal
  • Performance due to unsuitability for the job
• By the expiration of the contract

The minimum notice period is 15 days and increases according to the length of employment.

• 15 days notice if the length of service is less than 1 year.
• 30 days notice if the length of service is more than 1 year.

In Rwanda, all employees who are terminated are entitled to severance pay unless terminated for disciplinary reasons or if they have been working for less than 1 year. Severance pay is 1 month of salary per 5 years of service up to 6 months of base compensation.

To protect you from unforeseen financial risks arising from terminations, Deel applies a Severance Accrual to all employment agreements in this country.  Deel has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.

Rwanda celebrates 15 national holidays. National public holidays include:

• New Year's Day
• Day after New Year’s Day
• National Heroes' Day
• Good Friday
• Easter Monday
• Tutsi Genocide Memorial Day
• Labour Day
• Eid al-Adha
• Umuganura
• Assumption of Mary
• Christmas Day
• Boxing Day

Contracts can be in English. They must be in writing and signed by both parties.

A contract must include:

• Name
• Start date
• Length of the employment
• Job description
• Termination conditions
• Name of employer
• Name of employee
• Agreed working hours
• Probation period
• Notice period
• Paid time off