Employer of Record (EOR) Services in Rwanda

 Companies look to Employer of Record (EOR)/HR Outsourcing services when they want to expand into a new country or market but have no legal entity/location there.

Companies also choose an Employer of Records (EOR) when;

• Testing the market before establishing a legal entity
• Hiring a small number of employees
• There’s a need to hire competent staff abroad quickly
• Looking to establish representation in the country

At Cedar Africa Group, our EOR services can handle many aspects of your business. From finding and hiring talent to managing payroll and ensuring compliance with labour and tax laws, we get you ready to open for business.

How Employer of Record (EOR) services in Rwanda work

1. Employment contracts: The EOR service handles the creation and management of employment contracts following Rwandan labour laws.
2. Payroll and benefits: The EOR manages payroll, benefits, and taxes, ensuring that all employee compensation and statutory obligations are handled accurately and on time.
3. Compliance: The EOR ensures that all local labour laws, including employment regulations and health and safety standards, are adhered to, reducing the risk of legal issues.
4. HR functions: The EOR handles HR administrative tasks, such as onboarding, employee records, and terminations, while you focus on managing the employees’ work and performance.
5. Liability: The EOR assumes legal responsibility for employment-related matters, providing you with peace of mind and allowing you to focus on your core business activities.

What our Employer of Record (EOR) services entail

Talent acquisition and staff outsourcing

As an EOR service provider, we assist in identifying and hiring the right talent for your organization. We leverage our extensive network and recruitment expertise to source candidates that match your specific requirements. Our services include job postings, screening, interviewing, and presenting qualified candidates. Additionally, we manage staff outsourcing by handling the administrative aspects of employment, allowing you to focus on integrating new hires into your team without the complexities of direct employment management.

Offer negotiation and contract management

We facilitate offer negotiations to ensure competitive and attractive employment terms that align with industry standards and your company’s compensation strategy. Our team drafts, reviews, and manages employment contracts to comply with Rwandan labour laws and regulations. We handle contract renewals, amendments, and terminations, ensuring all agreements are legally sound and reflect the agreed terms.

Employee onboarding

Our onboarding process ensures that new employees are seamlessly integrated into your organization. We manage all necessary administrative tasks, including the completion of required documentation, orientation, and initial training. Our goal is to provide a smooth transition for new hires and equip them with the tools and information they need to succeed in their roles.

Payroll processing

We handle all aspects of payroll processing to ensure employees are paid accurately and on time. This includes calculating salaries, overtime, bonuses, and deductions. We manage the entire payroll cycle, from data collection and processing to disbursement, while ensuring that the Rwandan payroll regulations and standards are being followed.

Tax administration – statutory remittance

We take responsibility for the administration and remittance of statutory taxes and contributions, including income tax, social security, and other mandatory deductions. Our team ensures that all tax obligations are met by following Rwandan tax laws, minimizing the risk of penalties and ensuring you comply with local tax regulations.

Workstation and admin support

We provide comprehensive support for setting up and maintaining workstations for your employees. This includes managing office supplies, equipment, and administrative services required for day-to-day operations. Our goal is to create an efficient and productive work environment for your team.

Immigration support – visa, special pass, and work permit processing (for expatriates)

For expatriate employees, we offer immigration support to facilitate the acquisition of necessary work visas, special passes, and work permits. Our services include guiding you through the application process, making sure you follow the Rwandan immigration regulations, and handling all documentation and procedural requirements.

Travel support – (on a need basis)

We provide travel support for employees as needed, including arranging transportation, accommodations, and itinerary planning. This service is designed to assist with travel logistics to ensure a smooth experience for employees traveling for business purposes.

Relocation support (for expatriates)

Our relocation support services assist expatriate employees with moving to Rwanda. We help with various aspects of relocation like finding housing, coordinating moving services, and providing information about living in Rwanda. Our goal is to ensure a smooth transition and help expatriates settle into their new environment comfortably.

Benefits and insurance management

We manage employee benefits and insurance programs, including health insurance, retirement plans, and other employee perks. Our services include selecting and administering appropriate benefits packages, handling enrollments, and ensuring that all benefits comply with Rwandan regulations and meet the needs of your employees.

Company and employee registration

We handle the registration of both your company and employees with relevant Rwandan authorities. This includes obtaining necessary business licenses and registering employees for statutory benefits according to the requirements of our local regulations. Our services see to it that your company and its employees are properly documented and compliant with Rwandan laws.

Why should you use an Employer of Record (EOR) service in Rwanda?

1. Compliance with Rwandan Labor Laws: Navigating Rwanda’s specific and evolving labor laws can be complex. An EOR possesses the local expertise to ensure full compliance with regulations regarding employment contracts, working hours, the mandated minimum wage per industry, leave entitlements, termination procedures, and mandatory contributions to the Rwanda Social Security Board (RSSB). This reduces the risk of legal missteps and penalties.

2. Cost and Time Efficiency: Setting up a legal entity in Rwanda can be long and expensive. An EOR allows for a much faster and more cost-effective entry into the Rwandan market, enabling you to hire employees quickly without needing local incorporation, office setup, and associated legal and administrative costs.

3. Access to Local HR Expertise: EOR providers often have in-depth knowledge of the Rwandan labor market, including local hiring practices, compensation norms, and benefits expectations. This expertise can be invaluable in attracting and retaining talent in Rwanda.

4. Streamlined Payroll and Tax Management: Managing payroll in a foreign country involves understanding local tax regulations and social security contributions. An EOR handles all aspects of payroll processing in Rwandan Francs (RWF)​.

Why choose our EOR services in Rwanda?

Expert knowledge of Rwandan labour laws

Rwanda labour laws are subject to frequent changes, and non-compliance can lead to fines or legal complications. Our team stays updated with the latest employment regulations to ensure your business remains compliant.

Customized solutions for your business

Whether you are hiring your first employee or managing a large team in Rwanda, our EOR services are tailored to meet your specific needs. We understand that every business is unique, and we offer customized solutions to ensure smooth operations.

Scalable services

If you need to onboard one employee or manage a growing team, our EOR services are scalable to match your business needs. As your business grows, we ensure that your HR and payroll operations run efficiently, without the hassle of expanding your legal footprint.

Dedicated support

You will have a dedicated point of contact for all HR and administrative matters. This ensures that your queries are resolved quickly, and you can focus on driving your business growth without worrying about your employee management.

Saves your business time and resources

Employing our services as your EOR service provider ensures you are free from issues that might hold back or delay your expansion into the Rwandan market, saving you time and resources and making sure you work within your business timelines.

What you need for an Employer of Record (EOR) service in Rwanda

To effectively use an Employer of Record (EOR) service in Rwanda, here’s what you generally need to provide:

1. Details of Your Company: We will need information about your business, including its legal name, address, and primary contact person. This helps us understand your needs and ensure proper contractual agreements.
2. Information About the Employees You Wish to Hire: For each employee you want to hire, you’ll need to provide their details (name, address, contact information), the specific job title and responsibilities, the agreed-upon salary and compensation package, the intended start date, and details of any benefits you wish to offer in addition to the mandatory ones.
3. Payroll Information and Instructions: Agree on the payroll cycle, provide details for salary payments, and clarify how expenses and other reimbursements should be handled. We will then manage the payroll in compliance with Rwandan tax laws and social security contributions (RSSB).
4. Confirmation of Compliance Requirements: You’ll need to clearly communicate any specific compliance requirements your company adheres to or any internal policies that must be followed to ensure we can accommodate these within Rwanda’s local legal framework.
5. Work Permit and Visa Information (If Applicable): For expatriate employees who are not Rwandan citizens, you must provide all necessary documentation to facilitate the work permit and visa application process. We will guide you on the documents required by the Rwandan Directorate General of Immigration and Emigration (DGIE), such as passport copies, application forms, proof of qualifications, employment contracts, and other supporting materials.

What you need to know about Rwandan labour laws & compliance

1. The Labour Law (Law No. 66/2018): This is Rwanda’s primary legislation regulating employment, repealing the 2009 law. It covers employment contracts, working conditions, wages, termination, and more, and it applies to the private sector and contractual staff in the public sector.

2. Employment Contracts: These can be for a fixed term or indefinite duration and can be written or oral, though oral contracts cannot exceed 90 days. Written agreements are mandatory for fixed terms longer than 90 days. Key details include the nature of work, duration, and terms of employment.

3. Working Hours and Rest: The standard maximum working hours are 40 per week. Employees are entitled to a daily break of one hour and a weekly rest of 24 consecutive hours. With specific compensation rules, overtime is permitted for urgent, exceptional, special, or seasonal work.

4. Minimum Wage: While the 2018 Labour Code authorized the Minister of Labor to set a minimum wage, it has not yet been universally implemented. As determined by the Ministerial Order, sector-specific minimum wages exist in some small formal sectors. 

5. Wages and Payment: Salaries must be paid regularly in Rwandan Francs. The wage period should not exceed one day for daily/hourly workers, one week/fortnight for weekly/fortnightly workers, and one month for monthly workers. Payment is typically made through bank accounts. Pay slips detailing earnings and deductions must be provided upon request. Deductions are limited.

6. Leave Entitlements: Annual Leave, Sick Leave. Maternity Leave  Paternity Leave: Public Holidays. 

7. Termination of Employment: Termination must be for legitimate reasons, which employers must be able to prove. Notice periods are required: 15 days for employees with less than one year of service and 30 days for those with one year or more. No notice is needed during probation or for gross misconduct (with 48-hour notification).

8. Social Security (RSSB): Employers must contribute to the Rwanda Social Security Board (RSSB) for their employees, which covers areas like pensions and occupational hazards.  
9. Workplace Safety and Health: Employers must ensure safe and healthy working conditions, provide necessary protective equipment, and take measures to prevent occupational diseases and accidents. Establishing an occupational health and safety committee may be required.

10. Overtime Compensation: The Rwandan Labour Law stipulates that any hours worked beyond the standard legal working week of 40 hours are considered overtime. Overtime compensation is calculated based on the employee’s basic salary, excluding allowances and benefits.

For overtime work, the compensation is generally 1.5 times (150%) the hourly rate for hours worked beyond the standard 40 hours per week. Some sources mention this applies to a certain threshold of monthly overtime hours (e.g., the first 30 hours).

Employment contracts in Rwanda 

In Rwanda, employment contracts can be verbal or written, though written contracts are strongly advised, especially for engagements lasting longer than 90 days. The Labour Law (Law No. 66/2018) governs these agreements, which can be for a fixed term or an indefinite period.

Written contracts, or statements of employment particulars if a written contract doesn’t exist, should include details such as the employer’s and employee’s names, the job description, the start date, the place of work, the working hours, the salary and how it’s paid, any benefits, and the duration of the contract.

Types of Contracts:

1. Indefinite Period: These contracts do not have a specific end date and continue until terminated by either party according to the law.
2. Fixed-Term: These contracts have a pre-defined duration and automatically end when that period is over.

Minimum Wage

While a national minimum wage is authorized, Sector-specific minimum wages exist in some small formal sectors.

Working Hours

Regular working hours are a maximum of 40 hours per week. Overtime is permitted with specific compensation rules.

Leave Entitlements

Employees are entitled to annual leave (1.5 days per month of service), sick leave (up to 15 days with a medical certificate), and maternity leave (14 consecutive weeks at full pay). Paternity leave is also a common labor standard, though the exact duration needs specific verification. Public holidays are also paid days off.

Termination

Termination must be for legitimate reasons, and notice periods are required (15 days for under 1 year of service, 30 days for 1 year or more).

Severance Pay

Severance pay is payable for termination due to economic or technical reasons or the employee’s illness, rendering them unfit for work.

Mandatory benefits that employers must provide for employees

Remuneration

Employers are legally obligated to pay employees their agreed-upon wages at regular intervals, typically in Rwandan Francs (RWF). Pay slips detailing earnings and deductions must be provided upon request.

Working Hours and Overtime

The standard working week is capped at 40 hours. Any work exceeding these hours is considered overtime and must be compensated, generally at 1.5 times the normal hourly rate.  

Annual Leave

Employees are entitled to at least 18 working days of paid annual leave after completing one year of service. This increases by one additional day for every three years of continuous service, up to a maximum of 21 working days. 

Sick Leave

Employees are entitled to at least 15 days of paid sick leave per year, provided they submit a medical certificate for absences exceeding a specific duration. More extended periods of sick leave may be granted, with the initial months typically being paid.

Maternity Leave

Female employees are entitled to 12 weeks of paid maternity leave, with a portion mandated before the expected delivery date. The Rwanda Social Security Board (RSSB) often partially covers maternity benefits.

Paternity Leave

Male employees are entitled to four working days of unpaid paternity leave within one calendar year. Some sources indicate this might be paid leave; clarification of the current law is advisable. 

Public Holidays

Employees are entitled to paid time off for officially recognized public holidays in Rwanda (approximately 13-14 per year).

Social Security Contributions (RSSB)

Employers are legally required to register their employees with the Rwanda Social Security Board (RSSB) and contribute on their behalf. As of January 2025, the total contribution rate is 14% of the employee’s gross salary, with the employer contributing 8% and the employee contributing 6%. These contributions cover pension, medical insurance, occupational hazards, and maternity benefits.  

Severance Pay

Employees who are terminated due to redundancy or other authorized causes are entitled to severance pay based on their length of service. The amount typically varies from one to six months’ salary, depending on the duration of employment.

Workplace Safety and Health

Employers are legally obligated to ensure a safe and healthy working environment for their employees and to take necessary measures to prevent workplace accidents and occupational diseases.

It’s important to note that while a national minimum wage is authorized in Rwanda, its universal implementation is still pending, with some sector-specific minimum wages existing. Employers should adhere to any applicable minimum wage regulations for their specific industry. Additionally, health insurance is a significant component of the social security contributions managed by the RSSB, providing employees with access to medical coverage.