Known as the “Land of a Thousand Hills,” Rwanda offers more than just natural beauty. From the lush green hills of Kigali to the serene shores of Lake Kivu, the country presents a diverse array of stunning scenery and vibrant culture.
With progressive policies and substantial investments in technology and education, Rwanda is positioning itself as a digital innovation and entrepreneurship hub.
These factors have helped to cultivate a skilled and dynamic workforce while maintaining labor cost savings compared to other regions.
In this article we’ll explore the benefits of hiring remote workers from Rwanda, diving into the country’s burgeoning remote talent pool and the legal considerations businesses need to know while building a remote workforce.
Advantages of Hiring in Rwanda
Rwanda has been making impressive educational strides, particularly by boosting investments in STEM education. This is part of the country’s new competency-based curriculum, which aims to equip students with essential skills for the modern workforce.
Partnerships with tech giants like Microsoft have further enhanced learning through information and communication technology (ICT).
Let’s take a look at some key stats about Rwanda:
- Languages: English, French
- Currency: Rwandan Franc (RWF)
- Capital City: Kigali
- Population: 13.7 million
- Cost of Living Rank: 110th
A Business-Friendly Environment, Competitive Costs
Rwanda, ranked among Africa’s best on the World Bank’s Ease of Doing Business Index, offers a stable, pro-business environment ideal for global hiring and remote work.
Thanks to its Vision 2020 plan, Rwanda has reliable high-speed internet. Vision 2050 is on track to further digitalize the economy, with Kigali Innovation City (KIC) playing a pivotal role.
Often referred to as Africa’s Silicon Valley, Kigali is developing a vibrant tech hub that brings together top talent, startups, tech companies, investors, and universities in an innovative, eco-friendly development.
The country’s strong English proficiency, alignment with European, Middle Eastern, and Asian time zones, and a workforce with a strong IT skill set seeking remote jobs further enhance its appeal.
Common job sectors for international companies hiring remote Rwandan talent include:
- Software engineer
- IT services
- Data analysis and AI
- Customer support
- Project management
- Accounting and finance
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Hiring Compliantly in Rwanda
Employment Contracts
Employment contracts are required in Rwanda and can be either fixed-term or indefinite, written or oral. However, contracts must be in writing if the employment term exceeds 90 days.
Additionally, employers can include confidentiality and non-disparagement clauses in contracts, although these are not mandatory under Rwandan law.
Employment contracts must include the following provisions:
- Identification of parties
- Contract purpose and duration
- Job description and workplace
- Compensation and benefits
- Working hours and leave
- Termination clauses
- Dispute resolution
Working Hours & Pay
In June 2023, Rwanda shortened its standard work week from 45 to 40 hours to improve citizens’ work-life balance.
Public sector employees now work five days a week, from 9:00 a.m. to 5:00 p.m. While the labor code doesn’t specifically address part-time work, any work beyond 40 hours is considered overtime.
Rwanda doesn’t have an official legal minimum wage. Many use the rate from the 1970s labor laws as reference, which has been RWF 100 for decades. The ministry is currently discussing potentially establishing a new minimum wage.
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Probation Periods
In Rwanda, the law sets a maximum duration of three months for the probationary period in an employment contract. This timeframe is crucial for both parties to evaluate job fit and performance.
If necessary, the employer can extend the probation period by another three months and provide the employee with a written performance review to support the extension.
The total probationary period, including extensions, cannot exceed six months. Employers must also demonstrate valid reasons for the extension to ensure transparency should the employee contest it.
Employer Taxes
Employer payroll contributions are estimated to be 12.8% in Rwanda. This includes:
- Social Security Medical Insurance: 7.5%
- Social Security Occupational Hazards: 2%
- Pension scheme: 3%
- Maternity leave benefits: 0.3%
Termination Process & Severance Pay
In Rwanda, employers must provide a valid reason for terminating an employee, such as economic reasons, technological changes, prolonged illness, mutual agreement, or gross misconduct. Besides gross misconduct, companies must also provide a written notice prior to termination.
Notice Periods
- Less than one year of service: Minimum of 15 days’ notice.
- More than one year of service: Minimum of 30 days’ notice.
- Gross Misconduct: Employees can be terminated immediately without notice but must be informed about the reason for termination within 48 hours.
Exceptions:
- Mutual Agreement: No notice period is required if both parties agree to terminate the contract.
- Probation Period: Either party can terminate without notice unless stated otherwise in the contract.
Employers can also pay the employee a lump sum equivalent to their salary and benefits during the notice period.
Severance pay is another critical aspect of termination in Rwanda. Employees are eligible for severance pay if they have completed at least one year of continuous service. The amount owed is calculated based on the employee’s average monthly salary and length of service.
- 0-5 years: 1 month of salary
- 5-10 years: 2 months of salary
- 10-15 years: 3 months of salary
- 15-20 years: 4 months of salary
- 20-25 years: 5 months of salary
- 25+ years: 6 months of salary
Paid Leave Laws in Rwanda
Vacation and Holiday Leave
Rwandan employees are entitled to 18 days of paid annual leave after completing one year of service.
They gain an additional day of leave every three years of continuous service with the same employer. However, the maximum annual leave entitlement is capped at 21 days.
Employees also enjoy several paid days off for public holidays, including:
- New Year’s Day
- National Heroes’ Day
- Easter Monday
- Rwandan Independence Day
- Umuganura Day
Sick Leave
Sick leave in Rwanda is categorized into short-term and long-term. Short-term sick leave can last up to 15 days and requires a doctor’s certification.
Long-term sick leave can extend up to six months but must be validated by a medical committee. Employees receive full pay for the first three months, while the remaining period is unpaid unless otherwise stated.
Maternity & Paternity Leave
In Rwanda, pregnant employees are entitled to 14 weeks of paid maternity leave, and least 14 days must be taken prior to the due date.
Fathers receive seven days of unpaid paternity leave to support their partners during childbirth and early childcare.
Why Digital Nomads Love Rwanda
There are many compelling reasons why digital nomads are flocking to Rwanda. The country boasts pleasant weather year-round, a low cost of living, and stunning landscapes. The digital infrastructure is rapidly improving, making it common to spot freelancers working from cafes and co-working spaces around the city.
Despite growing popularity among expats and remote workers, Rwanda doesn’t offer digital nomad visas.
Visitors receive a 30-day visa upon arrival, which is ideal for short-term work or leisure visits. For more extended stays, options include a 90-day tourist visa, a diplomat visa, and a six-month visa for citizens of East African Community Member States.
Hire in Rwanda with Remofirst
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Book a demo now to discover how we can support your business by managing the hiring process for a remote team, ensuring compliance with labor laws, managing payroll for your remote employees, and streamlining the onboarding process for your team members.
