Employment in Rwanda is governed by Law No. 66/2018 regulating labour and its implementing orders. Social security is run by the Rwanda Social Security Board (RSSB), and pension contribution rates are rising each year until 2030. Here is what employers need to know about leave, pay, tax and ending employment.
The labour law sets minimum leave for all employees with an employment contract. Contracts and collective agreements can be more generous, but not less.
1.5 working days per month worked, plus 1 extra day for every 3 years with the same employer, up to 21 days. Taken after 12 months of service, including probation.
At least 12 consecutive weeks, including up to 2 weeks before the birth. Paid at full salary through the RSSB maternity leave benefits scheme. Up to 1 more month for complications.
Paid leave on a certificate from a recognised doctor. Longer illness is treated as long-term sick leave.
Confirmed by a panel of 3 doctors. Full salary for the first 3 months, then up to 3 months of unpaid suspension.
Set up each Rwandan leave type in IceHrm with its own accrual, carry forward and approval rules, including a monthly accrual of 1.5 days that grows with service. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
Under the labour law, minimum wages are determined by an order of the Minister in charge of labour, which can set them by category of occupation. Check the current ministerial order for the sector before setting pay.
Extra hours can be worked by agreement between the employer and employee. Daily breaks do not count as working time.
At least 24 hours of rest a week, which is not counted in working hours.
Capture attendance and extra hours in IceHrm and feed them straight into payroll, so overtime paid under your contracts reflects what was actually worked. Time & attendance →
Employment income is taxed through Pay-As-You-Earn (PAYE). Employers withhold tax from each monthly salary and pay it to the Rwanda Revenue Authority (RRA) by the 15th day of the following month. The same rates apply to residents and non-residents.
| Monthly taxable income | Rate |
|---|---|
| RWF 0 – RWF 60,000 | 0% |
| RWF 60,001 – RWF 100,000 | 10% |
| RWF 100,001 – RWF 200,000 | 20% |
| Over RWF 200,000 | 30% |
All employees, national and foreign, must contribute to RSSB schemes. The employer withholds the employee share, adds its own and pays both to RSSB by the 15th day of the following month.
| Scheme | Employer | Employee |
|---|---|---|
| Pension | 6% | 6% |
| Occupational hazards | 2% | – |
| Maternity leave benefits | 0.3% | 0.3% |
| Community-based health insurance (CBHI) | – | 0.5% of net pay |
The combined pension rate rises every 1 January, split equally between employer and employee: 14% (7% each) in 2027, 16% in 2028, 18% in 2029 and 20% (10% each) from 2030.
Build Rwandan pay the way you already structure it, with your own salary components, deductions and formula columns, such as RSSB pension, maternity and CBHI columns that you update as rates rise. Want to know how well IceHrm handles payroll calculations for Rwanda? Contact us or see Payroll →
Either party can end an indefinite contract with written notice stating the reason. The employer can dismiss without notice for gross misconduct. A dismissal without valid grounds is unfair and gives rise to damages.
| Length of service | Notice |
|---|---|
| Less than 1 year | 15 days |
| More than 1 year | 30 days |
When employment ends for economic reasons, technological change or sickness after at least 12 consecutive months of service, the employee is entitled to terminal benefits based on average monthly salary over the last 12 months.
| Service with the same employer | Terminal benefit |
|---|---|
| Less than 5 years | 2 months’ average salary |
| 5 to 10 years | 3 months’ average salary |
| 10 to 15 years | 4 months’ average salary |
| 15 to 20 years | 5 months’ average salary |
| 20 to 25 years | 6 months’ average salary |
| More than 25 years | 7 months’ average salary |
Damages for unfair dismissal are between 3 and 6 months’ salary, or up to 9 months’ net salary for employees with more than 10 years with the same employer.
Official public holidays are set by Presidential Order and are paid. An employee who works on a public holiday is entitled to an equivalent day of rest within 30 days.
Leave groups give each office its own holiday calendar, so you can add the Eid dates once they are announced and every employee in Rwanda sees them automatically. Holiday calendars →
Employment contracts can be fixed-term or indefinite, and written or unwritten. A ministerial order sets the core elements a written contract must contain, so a written contract is strongly recommended.
Probation may not exceed 3 months. After a written performance evaluation, the employer can extend it once for up to another 3 months for valid reasons. An employee re-hired for the same job does not serve probation again. A fixed-term contract ends on its expiry date; if the employee keeps working without a written renewal, they are paid for the days worked.
Send contracts for e-signing, store them on the employee’s record, and track onboarding with task lists so RSSB registration and probation evaluations are not missed. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Rwanda, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Rwanda? Talk to us.
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