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Cabo Verde

Salary and Compensation Insights

Explore salary structures and compensation details in Cabo Verde

Market competitive salaries

Understanding market competitive salaries in Cabo Verde requires considering several factors specific to the island nation's developing economy.

Factors Influencing Market Rates

Market competitive salaries typically exceed the government-mandated minimum wage. For salary negotiations and attracting top talent, it's crucial to look beyond this baseline. Market rates consider factors like:

  • Skill and experience: Professionals with specialized skills or extensive experience often command higher salaries.
  • Industry: Certain industries, like tourism or finance, may offer higher wages compared to others.
  • Location: Working in Praia, the capital city, might come with a higher salary expectation compared to rural areas.
  • Education: Educational qualifications can significantly impact earning potential.

Determining Market Competitive Salaries

Several resources can help you determine market competitive salaries in Cabo Verde:

  • Cabo Verdean Job Boards: Websites often list job postings with advertised salaries, providing a general idea of market rates for specific positions.
  • Salary Surveys: International HR consulting firms or Cabo Verdean recruitment agencies may conduct and publish salary surveys. These surveys provide valuable insights into average salaries for various positions and experience levels.
  • Government Statistics: Cabo Verde's National Institute of Statistics might publish data on average wages by industry or occupation.

Minimum wage

Cabo Verde's minimum wage framework is established through its Labour Code (Law No. 53/2003), with consultations playing a crucial role.

Authority for Setting Minimum Wage

The national minimum wage rate is set by the government, as per Article 159 (1) of the Labour Code. However, the specific rate is not directly mentioned in the code. The government decides the minimum wage after consulting with "social partners", typically representatives of employer organizations and worker unions. This consultation process ensures various perspectives are considered before establishing the minimum wage.

Levels and Variations of Minimum Wage

There isn't readily available information regarding a single, nationally mandated minimum wage in Cabo Verde. Some sources suggest a historical minimum wage existed, but the most recent data points to a different system.

  • Contributory Minimum Wage: Cabo Verde might have a "contributory minimum wage" used for social security calculations. This wage could be a percentage of the actual minimum wage established through collective bargaining. A source suggests this contributory minimum wage was around 11,000 CVE (Cabo Verdian Escudos) in 2014, which could be 80% of the actual minimum wage at that time.

  • Minimum Wage by Collective Bargaining: The Labour Code allows for minimum wages to be set through collective agreements negotiated at the enterprise, sectoral, or national level (Article 159). This suggests minimum wage variations might exist across different sectors or regions based on negotiated agreements.

Bonuses and allowances

In Cabo Verdean employment, beyond the base salary, employers offer a variety of bonuses and allowances to attract and retain talent. Understanding these perks can be helpful when considering a job offer in Cabo Verde.

Performance-Based Bonuses

Performance bonuses are common in many companies. These bonuses are tied to individual or company performance metrics and can be annual, quarterly, or project-specific.

Industry-Specific Allowances

In sales roles, commissions on top of base salary are a common incentive. Additionally, night shifts, weekends, and holidays may come with additional pay, known as shift differentials.

Standard Allowances

To help with commuting costs, some companies offer a transportation allowance. There's also a meal allowance that helps cover the cost of meals during work hours. In some cases, employers, especially in the hospitality industry, may offer housing allowances or subsidized housing.

These are just some of the common bonuses and allowances offered in Cabo Verde. The specific benefits package will vary depending on the employer, industry, and position. When evaluating a job offer, be sure to ask about the full compensation and benefits package.

Payroll cycle

In Cabo Verde, the typical payroll practice is to pay employees on a monthly basis. The Cabo Verde Labor Code provides guidelines for employers on payroll practices.

Payroll Schedule Guidelines

The law in Cabo Verde stipulates that the interval between payments should not exceed 31 days from the date of the last payment. This ensures that employees receive their salaries within a reasonable timeframe. For instance, if an employee's last paycheck was issued on January 31st, their next salary should be paid no later than February 28th. However, this is the maximum allowable timeframe. Companies can opt for a more frequent payment schedule, such as bi-weekly, if they prefer.

Other Payroll Considerations

The standard workweek in Cabo Verde is 38 hours, with a maximum of 7 hours per day. Any work performed beyond these designated hours qualifies as overtime. Employees are entitled to overtime compensation of at least 50% on top of their regular pay rate.

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