Employer of Record in Cape Verde

Hiring independent contractors has boomed in popularity because of the cost savings and flexibility they offer. It can be a great option if you require niche skills or short-term project support. Contractors allow businesses to access specialized skills quickly, without the time and cost of setting up a local entity.

However, it’s important to know the limits of this model: contractors are not a substitute for full-time employees. Relying on them for ongoing, long-term roles can create serious compliance risks, including employee misclassification, which can lead to fines, back taxes, and reputational damage.

Playroll’s contractor management solutions make it simple to compliantly engage, onboard, and pay contractors around the world. We provide clear visibility into agreements, streamline payments, and reduce compliance risks – so you can focus on getting the work done. And when you’re ready to take the next step, we can help seamlessly convert contractors into full-time employees through our global Employer of Record service.

Businesses can only operate smoothly in Cape Verde if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Cape Verde below, to avoid any compliance issues.

Onboarding Process

We can help you get a new employee started in Cape Verde quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment.

In Cape Verde, you should keep schedules predictable, require written approval before any extra hours, and ensure your time records clearly distinguish ordinary time, overtime, and work performed on rest days. In 2026, enforcement attention is likely to increase on whether overtime is being used routinely, whether premiums are applied correctly, and whether rest is protected in practice.

• Standard Working Hours: 44 hours per week, with daily working time not exceeding 8 hours and commonly spread across up to 6 days.
• Overtime Thresholds: Hours worked beyond the normal working day qualify as overtime.
• Overtime Pay Rates: Overtime is paid at +50% on top of the normal hourly rate.
• Daily And Weekly Rest Requirements: Weekly rest is at least 24 consecutive hours.
• Night Work Restrictions: Night work premium is commonly +25%.
• Penalties For Non Compliance: Exposure typically includes administrative enforcement and back pay for unpaid overtime premiums.

Global expansion shouldn't mean losing time to paperwork or dealing with complicated, country-specific HR systems. An Employer of Record helps you keep your focus on talent by handling the operational side of employment in Cape Verde. That includes onboarding, contract management, payroll processing, and statutory compliance, all aligned with local laws and best practices. The EOR guarantees that employees are legally employed and properly supported from day one.

This streamlined setup allows you to prioritize recruiting the best people and integrating them into your company culture. Your team stays lean, and you avoid getting caught up in the details of local processes or shifting regulations. For founders, global hiring managers, or HR teams working across borders, an EOR multiplies your impact, reducing admin time, preventing errors, and helping ensure that new hires have a smooth experience from the get-go.

Payroll Cycle in Cape Verde

The payroll cycle in Cape Verde is usually Monthly, with employees being paid as stipulated in employment contract. The payroll schedule must not exceed more than 31 days from the last payment.

Hiring in Cape Verde means taking on local payroll obligations, which often include unique tax rates, contribution rules, and strict documentation. If you're not familiar with the system, or don't have a local entity, it’s easy to make mistakes. That’s where an Employer of Record ccomes in. The EOR manages payroll for your team on your behalf, ensuring every process is accurate, timely, and legally compliant.

Key Ways an EOR Supports Payroll in Cape Verde:

• Full Legal Compliance: Ensures all payments, deductions, and filings meet country-specific requirements.
• Payroll Setup & Processing: Handles salary calculations, tax withholdings, and local reporting obligations.
• Statutory Benefit Contributions: Pays into required social programs and manages country-mandated benefits.
• Employee Documentation: Generates compliant contracts and manages hiring and termination paperwork.
• Local Currency Payouts: Delivers salaries in local currency, avoiding delays or exchange rate issues for employees.

Cape Verde (Cabo Verde) requires most foreign nationals who want to work in the country to hold both the correct entry visa and an appropriate residence or work authorization, such as a Temporary Residence Permit for Work or a specific Work Permit issued by the immigration authorities. Short-term business visitors may enter on a Short-Stay Visa or visa exemption (for eligible nationalities), but this does not usually allow full employment in the local labor market.

For longer-term employment, your company typically sponsors the employee for a Temporary Residence Permit for Work, sometimes combined with a Work Visa issued by a Cape Verdean consulate before travel. Authorities will review the employment contract, employer registration, and proof that the role cannot easily be filled by a local worker. Processing times and exact requirements can vary, so employers should always confirm the latest rules with Cape Verde’s immigration and labor authorities or a qualified local advisor.

Mandatory Leave Entitlement in Cape Verde

The annual leave entitlement in Cape Verde is 22 days for a full time worker, which can accumulate to a maximum of 44 days with unused leave carried over with employer consent. Public holidays are separate from annual leave entitlement, and employees who work on public holidays are entitled to 100% additional compensation.

An Employer of Record (EOR) helps businesses manage annual leave, paid time off (PTO), and local holidays across the globe, including in Cape Verde. By partnering with an EOR, companies ensure full compliance with local labor laws in Cape Verde when it comes to annual leave and time-off management. EOR providers like Playroll offer platforms that simplify tracking and managing employee time off in Cape Verde. By outsourcing this responsibility to Playroll, you can streamline leave management, ensure compliance, and free up time to focus on other business priorities.

Employee benefits in Cape Verde are built around a strong framework of social protection, with mandatory social security, paid leave, and occupational safety at the core. As an international employer, you will need to plug into the public systems for social insurance and respect the relatively protective leave rules, especially for maternity and sickness.

To be competitive, your company should go beyond the legal minimum by adding private health coverage, flexible leave, and development opportunities. These extras are not only attractive in the local talent market, but also help you manage absenteeism, retention, and overall engagement across your Cape Verde workforce.

• Key mandatory benefits include: social security contributions (covering pensions, sickness, maternity, disability, unemployment, and family benefits), paid annual leave, public holidays with pay, and maternity protection and leave.
• Other important mandatory protections include: paid sick leave (through a mix of employer and social security support) and occupational health and safety obligations.
• Valuable supplemental benefits include: private health and dental insurance, meal or transport allowances, performance bonuses, training and education support, and enhanced life or disability insurance.
• From a legal and tax perspective, you must: register employees with the National Institute of Social Security, calculate and remit social contributions on time, maintain accurate payroll and benefits records, and correctly classify taxable versus non-taxable benefits for Cape Verde tax purposes.

When hiring across multiple countries, maintaining consistency in how you deliver employee benefits quickly gets tricky. Each country, including Cape Verde, has its own legal rules, cultural norms, and contribution systems. An Employer of Record helps you strike the right balance between global structure and local compliance. They take over the complexity of delivering benefits that are aligned with Cape Verde’s legal requirements and competitive with local market expectations.

From ensuring statutory benefits are in place to managing local onboarding timelines and enrollment systems, the EOR provides a seamless experience for both employer and employee. This makes it easier to grow your team across borders without reinventing your benefits process in each new location. You stay in control of your overall benefits strategy, while the EOR takes care of executing it in a way that works legally and culturally in Cape Verde. It’s a smarter way to scale benefits globally without losing local relevance.