In Cabo Verde, employers are legally obliged to provide certain benefits to their employees.

Paid Time Off

Every worker in Cabo Verde is entitled to a minimum of 22 days of paid annual leave per year, regardless of the type of employment contract. This excludes national and religious holidays. Employees are also entitled to paid leave on all national and officially recognized public holidays.

Parental Leave

Female employees are entitled to take up to 60 consecutive days of initial parental leave. During this period, they are entitled to a subsidy equal to 80% of their remuneration. While there is no specific statutory entitlement to paternity leave in Cabo Verde, collective bargaining agreements may provide such benefits.

Sick Leave

Employees are entitled to a maximum of 30 days of absence from work due to illness, subject to a medical certificate. If the illness lasts for more than 30 days, the employee may be subject to an examination by the Health Board.

Social Security

Cabo Verde has a mandatory social security system that provides benefits such as Old-Age Pension, Disability Pension, Survivor Pension, Temporary Disability Benefit, Permanent Disability Benefit, Worker's Medical Benefit, and Sickness and Maternity Benefit. Employers are required to contribute a percentage of their employees' salaries towards social security.

Other Mandatory Benefits

The maximum probation period for an employment contract (except domestic workers) is 12 months. Overtime work is subject to additional compensation, with a minimum payment of 50% more than the regular remuneration. The annual limit for overtime work is 160 hours, which can be extended to 300 hours with written consent from the employee. In case of termination, employees are entitled to severance payments based on their seniority and the reason for dismissal.

In Cabo Verde, employers often provide a range of optional benefits to attract and retain talent. These perks can vary significantly, but here are some commonly offered ones:

Health and Wellness Benefits

• Private Health Insurance: Some employers offer health insurance plans that cover a wider range of medical services than those provided by the national social security system.
• Wellness Programs: Companies may offer on-site wellness programs or gym memberships to promote employee health and well-being.

Financial Benefits

• Meal Vouchers or Subsidized Meals: Employers might provide meal vouchers or offer subsidized meals at cafeterias to reduce employee lunch expenses.
• Performance Bonuses: Companies may offer bonuses based on individual or company performance to incentivize employees.
• Profit Sharing: Some employers might share a portion of the company's profits with their employees.

Family-Friendly Benefits

• Childcare Assistance: Employers may offer childcare subsidies or partner with childcare facilities to support employees with young children.
• Flexible Work Arrangements: Some companies may offer flexible work arrangements such as remote work options or compressed workweeks to help employees achieve a better work-life balance.

Additional Benefits

• Transportation Allowances: Employers might provide transportation allowances to help employees cover commuting costs.
• Language Training: Companies in certain industries may offer language training programs to help employees develop their professional skills.
• Professional Development: Employers may invest in employee development by providing opportunities for training and conferences to enhance their skillset.
• Discounts on Products or Services: Some companies may offer discounts on their products or services to their employees.

The specific optional benefits offered by employers in Cabo Verde will vary depending on the company size, industry, and overall benefit strategy. It's always recommended to inquire about the specific benefits package offered by a potential employer during the job application process.

In Cabo Verde, the health insurance landscape for employees is a two-pronged system.

Public Social Security System

All employers and employees contribute to the national social security system, which includes some health coverage as a benefit. However, it's important to note that the public system's health coverage might be limited. It may not encompass all medical services or medications an employee might require.

Private Health Insurance

Unlike social security contributions, employers are not legally obligated to provide private health insurance to their employees. However, it's a prevalent practice, particularly for larger companies or those in specific industries, to offer private health insurance plans as part of their employee benefits package.

Private health insurance offers a broader range of medical services and coverage compared to the public system. This can include consultations with specialists, hospital stays, and a wider selection of medications.

Key Points to Remember

There's no mandated requirement for employers to provide health insurance to employees in Cabo Verde. The public social security system offers some health coverage, but its scope might be limited. Private health insurance is an optional benefit many employers offer. To ensure comprehensive healthcare coverage, inquire about private health insurance during the job application process. This will help you understand the specific plan offered by the potential employer.

In Cabo Verde, employees have a two-pronged approach to retirement planning: public and private options.

Public Social Security Pension

All Cabo Verdean workers contribute to the national social security system, which provides a pension upon retirement. To qualify for a full pension, individuals must reach the official retirement age (60 years old for women and 65 years old for men) and contribute for a minimum number of years (currently 15 years, rising to 20 years in the future). Partial pensions are available for those who don't meet the full contribution requirements. The Cabo Verdean social security pension is designed to provide a basic level of income security for retirees. The exact benefit amount is calculated based on salary contributions and years of contribution.

Private Pension Plans

Private pension plans offer an additional way for employees to save for retirement beyond the public system. These plans are typically offered by banks or insurance companies. These plans offer various investment options, allowing individuals to potentially grow their retirement savings at a higher rate than the public system. In some cases, contributions to private pension plans may be tax-deductible, offering additional financial incentive.

Employer-Sponsored Plans

Employer-sponsored pension plans are less prevalent in Cabo Verde compared to some other countries. However, some larger companies or multinational corporations might offer such plans as part of their employee benefits package.

Choosing a Retirement Plan

The best retirement plan option for an employee will depend on individual circumstances and long-term financial goals. Here are some factors to consider:

• Expected Retirement Age: How long do you plan to work before retiring?
• Desired Retirement Lifestyle: What kind of lifestyle do you hope to maintain in retirement?
• Risk Tolerance: Are you comfortable with some investment risk for potentially higher returns in a private plan?