Employer of Record in Rwanda

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 Rwanda 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 Rwanda below, to avoid any compliance issues.

Employment Contract Requirements

Rwandan employees must receive a written employment contract in the local language, whether it's a fixed-term or indefinite-term agreement. Salaries and compensation must be in Rwandan Francs, not in foreign currency. The contract should include at least the following details:

• Compensation
• Benefits
• Termination requirements

Onboarding Process

We can help you get a new employee started in Rwanda 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. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Rwanda

The official working hours in Rwanda are 8 hours for a 5-day workweek. This includes a flexible hour between 8 am and 9 am to accommodate remote work.

Overtime in Rwanda

Any work exceeding the standard weekly working hours in Rwanda is considered overtime and must be compensated accordingly. The regulations for overtime pay are typically outlined in a collective labour convention or agreement.

Probation Period in Rwanda

In Rwanda, probationary periods cannot exceed 6 months.

Setting up a local legal entity in Rwanda can be time-consuming and expensive. It often involves complex paperwork, local representation, banking, registrations, and ongoing tax filings, which isn't cost-effective if you're simply looking to hire a few employees or test the market. An Employer of Record removes these barriers entirely. Instead of spending months establishing a presence, an EOR lets you hire and onboard employees within days while staying fully compliant.

This enables faster market entry and greater agility. Whether you’re launching a pilot program, supporting a regional client, or adding specialized talent, you don't need to commit to long-term infrastructure to explore new business opportunities. The EOR handles local employment logistics while you retain day-to-day oversight of your hires. This model lets you scale up or down based on business needs, giving you more flexibility with less overhead and risk.

In Rwanda, employers shoulder a significant share of payroll-related contributions, which must be accurately calculated and submitted each month. The main employer obligations fall under the Rwanda Social Security Board (RSSB). Employers contribute:

• 6% of each employee’s salary toward the pension fund
• 7.5% toward medical insurance
• 0.3% toward maternity leave
• 2% to cover occupational hazards.

In total, these contributions typically add up to around 8.8% of an employee’s gross pay. Payments are due monthly — usually by the 15th — and any late remittances attract penalties and interest. Employers must also register with both the Rwanda Revenue Authority (RRA) and RSSB to remain compliant and maintain accurate employee records.

Beyond these contributions, employers are responsible for withholding and remitting employees’ income tax (PAYE), which is calculated on a progressive scale ranging from 10% to 30%, depending on earnings.

Payroll software or an Employer of Record can simplify compliance, automate calculations, and consolidate payroll data for businesses operating in Rwanda.

One of the biggest risks in global hiring is payroll mismanagement. In Rwanda, even small errors in tax reporting or social contribution payments can trigger audits, fines, or reputational damage. For companies without in-country expertise, the risk isn’t worth taking. An Employer of Record removes this burden by owning the legal responsibility of payroll, executing every step with built-in compliance.

Key Ways an EOR Supports Payroll in Rwanda:

• Mitigates Compliance Risk: Oversees all legal obligations for payroll, tax filings, and recordkeeping.
• Local Regulatory Expertise: Interprets and applies Rwanda’s latest labor and tax changes in real time.
• Free Processing: Reduces mistakes in wage calculations and reporting through built
• Payroll Record Management: Maintains compliant payroll audit trails and documentation for each employee.

In Rwanda, employers seeking to hire foreign talent must familiarize themselves with the country's work permit and visa system. Various permits, such as the Skilled Worker Visa (H1) and the Digital Nomad Visa, cater to different employment scenarios. The application process typically involves preparing necessary documentation, paying applicable fees, and adhering to processing times, usually around seven days.

Renewal procedures require timely submissions to maintain legal employment status. Employers should also be aware of common challenges, including navigating immigration procedures and ensuring cultural integration, to effectively manage international hires.

Mandatory Leave Entitlement in Rwanda

The annual leave entitlement in Rwanda is 18 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Rwanda

Rwanda observes 13 mandatory national holidays, in addition to annual leave:

Paid Time Off in Rwanda

In Rwanda, employees are entitled to a minimum of 18 days of paid annual leave, with the provision for 24 days for employees under 18 years old. The employment contract and labour law stipulate that the number of leave days increases based on the length of service. For every three years of continuous service with the same employer, employees gain an additional day of leave, up to a maximum of 21 working days.

Maternity Leave In Rwanda

Pregnant employees in Rwanda are entitled to 12 weeks of paid maternity leave, with a mandatory minimum of 14 days taken before the due date. Before commencing maternity leave, a certificate confirming the pregnancy must be provided to the employer.

Paternity Leave In Rwanda

Rwandan fathers are entitled to unpaid leave for up to 4 working days in one calendar year.

Sick Leave In Rwanda

In Rwanda, an employee is entitled to a sick leave of up to 6 months per year, with the first 3 months being paid and the subsequent 3 months being unpaid. Evidence of illness will need to be provided to avail of this entitlement.

Parental Leave In Rwanda

Rwanda does not have a separate shared parental leave policy.

In Rwanda, benefits play a central role in attracting and retaining top talent. Employees often expect more than just a paycheck – they're looking for stability, healthcare coverage, pension plans, and other perks that show a company is invested in their well-being. If you're not familiar with what’s standard or required, you risk falling short. An Employer of Record helps bridge that gap by administering a locally competitive benefits package that meets both legal requirements and employee expectations.

An EOR doesn't just check boxes, they make sure your employees receive benefits that are timely, properly communicated, and well-managed from the moment they’re onboarded. From managing healthcare contributions to adjusting for regional differences in leave or bonus entitlements, an EOR acts as both a legal and operational partner. The result is a better employee experience, less administrative burden on your internal team, and greater confidence that your offer is aligned with what top candidates in Rwanda actually want and need.

Termination Process in Rwanda

Terminations in Rwanda are not conducted on an at-will basis for employers, and they must be justified with just cause. Compliant terminations may include:

• Voluntary employee resignation
• Mutual agreement
• Unilateral employer decision (based on probation period, objective reasons, disciplinary dismissal, or unsuitability for the job)
• Contract expiration

Notice Period in Rwanda

In Rwanda, the statutory notice period for employees is 15 days' notice during the first year of service, and this period extends to one month after completing one year of service.

Severance in Rwanda

In Rwanda, severance pay is determined based on the duration of employment:

• Less than 5 years of service: 1 month salary
• 5-10 years of service: 2 months salary
• 10-15 years of service: 3 months salary
• 15-20 years of service: 4 months salary
• 20-25 years of service: 5 months salary
• More than 25 years of service: 6 months salary