4. Types of leave

There is no information about the types of leave for this country.
Learn more about types of leave >

Paid time off

After a year of employment, employees are entitled to 18 days of paid annual leave. Employees under the age of 18 are entitled to 24 paid vacation days per year. In addition, paid leave entitlements for adult employees rise with duration of service. For every three years of service, an additional day of leave is granted, up to a maximum of 21 earned paid annual leave days each year.

Public holidays

There are many holidays

New Year’s Day

New Year’s Holiday

National Heroes Day

Tutsi Genocide Memorial Day

Good Friday

Easter Monday

Labor Day

Eid-al Fitr

Independence Day

Liberation Day

Eid-al Adha

Umuganura

Assumption Day

Christmas Day

Boxing Day

Sick days

Employees can take up to 15 days of sick leave per year if they provide a medical certificate. A committee of three authorized medical practitioners determines long-term illness, which is allowed for no more than three months with pay and three months without pay.

Maternity leave

Female employees are entitled to 12 weeks of paid maternity leave, which begins two weeks prior to the scheduled birth date and can be extended by a month if the mother or the child experience problems. Before beginning maternity leave, a certificate of delivery must be provided.

Paternity leave

Employees can take up to 15 days of sick leave per year if they provide a medical certificate. A committee of three authorized medical practitioners determines long-term illness, which is allowed for no more than three months with pay and three months without pay.

Parental leave

Apart from maternity leave, there are no other provisions in the Rwandan law regarding parental leave.

Other leave

5. Employment termination

There is no information about employment information for this country.

Termination process

Unless there is mutual permission, termination must be in writing. If an employee is terminated for egregious misconduct, he or she must be told within 48 hours after the occurrence of evidence of the same.

Unlawful termination can result in damages ranging from three to six months' salary for the injured person, but can reach nine months' compensation if the employment relationship lasted at least ten years.

Discipline may take the form of an oral warning, a written warning, a brief suspension, or termination.

Notice period

Contracts with an indefinite duration may be terminated for cause, and written notice should be provided to the employee, except in the case of serious misconduct. The following are the notice requirements. A 15-day notice period is required for employees with less than one year of service. A one-month notice period is required for service of more than one year.

Probation period

Six-month probationary periods are permitted. During the probationary period, no notice of termination is required.

Severance pay

After one year of service, employees are generally entitled to severance pay. Severance pay is paid in the following manner. Severance pay is equivalent to one month's salary for employees with less than five years of service. Severance pay for five to ten years of service is equivalent to two months' salary. Severance pay for 10-15 years of service is equivalent to three months' salary. Severance pay for 15-20 years of service is equivalent to four months' salary. Severance pay for 20-25 years of service is equivalent to five months' salary. Severance pay is equivalent to six months' salary for employees with more than 25 years of service.

6. Working hours

There is no information about the working hours for this country.

General working schedule

There is a cap on the number of hours employees can work each week and a set working day of seven and a half hours, six days per week.

Overtime

Overtime pay is set in the employment contract.

7. Minimum wage

There is no information about the working hours for this country.

Rwanda's compensation regulations include industry-specific minimum salaries. Individuals working in the tea business, for example, earn $0.83 a day, while workers in the construction industry earn anywhere from $2.50 to $8.30 per day.

8. Employee benefits

There is no information about the working hours for this country.

Rwanda features a public/private healthcare system supported by government funds, payroll taxes, and out-of-pocket expenditures. The vast majority of the population contributes to the Community-Based Health Insurance Scheme, which gives access to all public and non-profit health facilities for a 10% co-pay. Private clinic access is not provided.

Car allowance, loans, housing allowance, and phone allowance are some of the most popular employment perks in Rwanda.

9. Taxes

There is no information about the working hours for this country.

Corporate tax

Rwanda has both a source and a residence-based taxes system in place. This implies that any income considered to be derived from Rwandan sources will be subject to Rwandan taxation. Furthermore, resident entities are taxed on their global revenue. However, if such income is taxed in another country, a tax credit is given that does not exceed the tax due on the identical income in Rwanda.

Non-resident entities are taxed on revenue generated in Rwanda through a permanent establishment (PE). The usual rate of corporate income tax (CIT) is 30%. However, micro-enterprise firms (with less than 12 million Rwanda francs [RWF] in revenue in a tax period) pay flat tax amounts, while small businesses (with RWF 12 million to RWF 20 million in sales in a tax period) pay a lump sum tax at the rate of 3% of turnover.

Individual income tax

Rwandan residents are taxed on their global earnings. Non-residents are taxed on income earned in Rwanda. Residents and non-residents are subject to the same tax rates.

A person's taxable income for any year is the sum of that person's income for the year minus the entire amount of deductions that person is permitted. Employment income, company earnings, and investment income are all examples of taxable income.

The current monthly personal income tax (PIT) rates are as follows.

For an income from RWF 0 to RWF 30,000, the tax rate is 0.

For an income between RWF 30,001 to RWF 100,000, the tax rate is 20 percent.

For an income beyond RWF 100,000, the tax rate is 30 percent.

VAT, GST and sales tax

VAT is imposed on both the supply of taxable goods and services in Rwanda and the importation of taxable goods and services into Rwanda.

The taxable turnover criteria for VAT registration is RWF 20 million in any relevant year or RWF 5 million in a calendar quarter. The normal VAT rate is 18% and applies to products and services that are neither exempt nor zero-rated from VAT.

VAT is levied at 0% on exports of goods and services. Supplies to privileged individuals, such as items imported for official diplomatic missions, supplies made under specific arrangements between the Rwandan government and donors, and supplies or imports made under special technical assistance agreements, are exempt from VAT. Persons eligible to zero rating on goods or supplies obtained must pay VAT at the time of receipt and then request for a refund of the VAT paid.

Some supplies are exempt from VAT, including water supply, health-related goods and services, educational materials and services, transportation services, books and newspapers, financial and insurance services, lending or leasing interests in land or buildings for residential purposes, funeral services, energy supplies, and all unprocessed agricultural and livestock products.

Suppliers that offer zero-rated services or products are allowed to reclaim the input VAT they paid in order to make the provision. In contrast, input VAT recovery is not permitted for exempt suppliers. As a result, a zero rating is preferable to exemption.

Monthly VAT returns and payments are required to the Rwanda Revenue Authority (RRA) by the 15th of the following month. Taxpayers with a yearly turnover of RWF 200 million or less, on the other hand, may choose to submit VAT returns or make payments on a quarterly or monthly basis.

10. VISA and work permits

There is no information about the working hours for this country.

Foreign citizens who have received an Entry Visa through the electronic visa system must enter Rwanda through one of the following authorized checkpoints: Kigali International Airport, Kagitumba, Buziba, Gatuna, Cyanika, Kabuhanga, Poids Lourds, Lacorniche, Kamembe International Airport, Ruzizi I, Ruzizi II, Bugarama, Ruhwa, Bweyeye, Nshili, Kanyaru Bas, Kanyar

Your visa's validity period and maximum length of stay are both 30 days per entry.

Applicants' passports must be valid for at least six months from the date of scheduled arrival in Rwanda.

To receive the travel document, you must provide evidence of accommodation. The dates in this document MUST correspond to the trip dates chosen in the application. This is a condition imposed by the government in order for the travel document to be issued.

It is strongly advised that visa applications be submitted at least three days before the projected date of travel.

11. Employer Of Record service terms

There is no information about the working hours for this country.

Employment contracts

Employers are not required by law to conduct pre-employment background checks. However, if an employer chooses to do a background check, it must adhere to Rwanda's data privacy rules.

Minimum assignment length

Employment contracts may be for a set period of time or for an unlimited period of time. They may be written or oral, but they cannot be longer than 90 days.

Payment currency

Rwandan Franc

13.Opening a subsidiary in Rwanda

There is no information about the working hours for this country.

How to set up a subsidiary

Before you begin the Rwanda subsidiary formation procedure, you should think about where you want to incorporate and how you want to operate in the nation. Separate towns or areas in Rwanda may have their own legislation that make incorporation simple or difficult. We propose studying different sites around the nation and choosing an office space in a region that is welcoming to incorporation.

Your company objectives will also influence the sort of corporation you select to incorporate as. Rwanda recognizes multiple subsidiary forms, including a public limited company, a limited liability company (LLC), and a representative business. Many corporations opt to establish up their subsidiary as an LLC since it gives them greater flexibility to operate in Rwanda and protects both the parent company and the subsidiary.

The following stages are included in the Rwanda subsidiary establishment process:

1. Registering your company using a copy of your ID or passport

2. Completing two copies of the Memorandum of Association Art 14

3. Opening an in-country bank account and depositing your paid-up capital

4. Paying corporate taxes on all firm earnings

5. Accounts are filed with the Registrar of Companies.

6. Going through audits if you earn more than 400 million Rwandan francs every year

Subsidiary laws

Rwanda's subsidiary laws are determined by the entity you choose throughout the formation procedure. LLCs must have at least one shareholder and one director, both of whom may be of any nationality. To complete the procedure, you must also deposit at least $850 in paid-up capital into a bank.

Certain paperwork are required for all businesses in order to comply with Rwanda's subsidiary legislation. Your LLC will need a firm name, a description of business operations, information about shareholders and directors, an address, and other details. To properly establish a subsidiary, you must compile these documents and information ahead of time.

13. Why choose Rivermate as your Employer of Record / PEO in Rwanda

Establishing an entity in

Rwanda

to hire a team takes time, money, and effort. The labor law in

Rwanda

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Rwanda

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Rwanda

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Rwanda

via our Employer of Record / PEO solution.

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