The population of Rwanda is over 12 million people, with thriving tourism, agriculture, fishing, and mining industries. Many types of businesses can be established in Rwanda, and corporate tax rates vary depending on the industry and size of the company.

Payroll and Tax Considerations in Rwanda:

  • There is no statutory national minimum wage
  • Employees who are paid weekly are entitled to an additional rest period within one month equal to the overtime worked
  • Overtime hours must be registered in a recognized book by the employer to track the overtime worked
  • Severance benefits range from 2 – 7 months depending on the length of service
  • Tax rates range from 0-30%
  • Rwanda uses a Pay As You Earn (PAYE) system

HR and Statutory Requirements

  • Employees are entitled to paid leave for 1.5 working days per month after 12 months of service
  • Employees are entitled to 1 additional day of leave for every 3 years of service. An employee’s total cannot exceed 21 days
  • Employees are entitled to 15 days short term paid sick leave with the submission of a doctor’s note
  • Female employees receive 12 weeks of maternity leave, 2 weeks before delivery and the remaining after delivery
  • New fathers receive 4 paid working days of paternity leave. This must be taken at one time
  • To receive a monthly pension, employees must be at least 60 years old and have contributed for at least 15 years
  • The monthly old-age pension is equal to 30% of the insured’s average monthly earnings. The pension benefits will be increased by 2% for every 12 months of contribution exceeding 180 months

Holidays in Rwanda

  • January 1 – New Year’s Day
  • January 2 – Day after New Year’s Day
  • January 3 – Day after New Year’s Day observed
  • February 1 – National Heroes Day
  • April 7 – Tutsi Genocide Memorial Day
  • April 15 – Good Friday
  • April 18 – Easter Monday
  • May 1 – Labor Day
  • May 2 – Labor Day observed
  • May 3 – Eid al-Fitr
  • July 1 – Independence Day
  • July 4 – Liberation Day
  • July 10 – Eid ul Adha
  • August 5 – Umuganura Day
  • August 15 – Assumption of Mary
  • December 25 – Christmas Day
  • December 26 – Christmas Day observed / Boxing Day

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