Capital: Kigali

Population: (2023 est.) 14,482,000

Monetary Unit: Rwandan franc (RWF)

Language(s): Kinyarwanda; French; English; Swahili

The Republic of Rwanda is a country in East Africa and between the Great Rift Valley of Central Africa.  Rwanda, one of the smallest countries in Africa, has many lakes, a savannah region, and mountains in the west. It is one of the most densely populated countries in Africa, with an estimated 14,482,000 people, most of whom live in rural areas.  The capital of Rwanda is Kigali, located in the centre of the country on the Ruganwa River.

The public holidays in Rwanda are as follows;

  • 1 Jan          New Year’s Day
  • 2 Jan          New Year Holiday
  • 3 Jan          New Year Holiday
  • 1 Feb          National Heroes Day
  • 7 Apr         Good Friday
  • 7 Apr         Tutsi Genocide Memorial Day
  • 10 Apr       Easter Monday
  • 21 Apr       Eid al-Fitr
  • 1 May        Labour Day
  • 28 Jun        Eid al-Adha
  • 1 Jul           Independence Day
  • 3 Jul           Independence Day Holiday
  • 4 Jul           Liberation Day
  • 4 Aug         Umuganura
  • 15 Aug       Assumption Day
  • 25 Dec       Christmas Day
  • 26 Dec       Boxing Day

Probation periods of up to six months are permitted.

Employees are generally entitled to 18 days of paid yearly leave. Every three years of continuous service earns you an extra day of vacation, up to a total of 21 days.

Female employees are generally entitled to 12 weeks of paid maternity leave. Leave may be taken up to two weeks before the due date.

Fathers are entitled to four consecutive days of paternity leave

Employees are generally entitled to sick leave of up to six months, with medical certification. The first three months are paid, and the last three months are unpaid.

Employees are generally entitled to severance pay after one year of service. Severance pay is given as follows:

  • Less than five years of service: one month’s salary
  • Five to 10 years of service: two months’ salary
  • 10-15 years’ service: three months’ salary
  • 15-20 years’ service: four months’ salary
  • 20-25 years’ service: five months’ salary
  • 25+ years’ service: six months’ salary

13th / 14th Month Pay: The payment of the 13th or 14th month’s wage is not mandated by law. Annual leave is granted to workers at the usual rate. Intriguingly, a bonus system was used in the healthcare industry. Pay for Performance is given to medical personnel who make a difference in people’s health, regardless of their seniority.

Except for citizens of the East African Community (EAC) member countries and a select few additional nations, all international travellers, must have a valid entrance visa in order to enter Rwanda. Citizens of EAC members are given visitor’s permits at the border station. They can be renewed once, for a period of 72 hours. Before starting a job in Rwanda, foreign people must get a work permit. The following documents must be submitted with the application for a work permit to the Director General of Immigration and Emigration:

  • An application letter from the employer 
  • Notified diploma or degree 
  • Original police clearance from the country in which the applicant has lived for the last six months 
  • The applicant’s curriculum vitae (CV) and a copy of his or her passport 
  • Completed application form 
  • One color passport-size photo with white background 
  • An employment contract signed by the applicant and employer 
  • Payment of RWF100,000 (approximately USD113) to the government treasury

Indefinite term contracts may be terminated for just cause, and written notice should be given to the employee except if dismissal is due to serious misconduct. The notice requirements are as follows:

  • Less than one year of service: 15 days’ notice
  • Greater than one year of service: one-month notice
  • Employees are generally entitled to severance pay after one year of service. 

Severance pay is given as follows:

  • Less than five years of service: one month’s salary
  • Five to 10 years of service: two months’ salary
  • 10-15 years’ service: three months’ salary
  • 15-20 years’ service: four months’ salary
  • 20-25 years’ service: five months’ salary
  • 25+ years’ service: six months’ salary

According to the legislation, these benefits are required. These consist of the probationary term, yearly leave, federal holidays, sick leave, maternity leave, overtime pay, notice period, and severance compensation. Statutory benefits also include social security payouts like: car allowance, loans, housing allowance, phone allowance

The standard working hours for Rwanda nationals is 45 hours a weeks.

Hours above the weekly legal or contractual working hours (45 hours) are considered overtime (if agreed as less than 45 hours per week). When calculating overtime premium pay, the basic wage is used; allowances and other perks are not included. A collective labor agreement specifies the terms for overtime pay and the rate at which it is paid. Each year, it needs to be updated.

Rwandan resident individuals are taxed on their worldwide income. Non-residents are taxed on their Rwandan-sourced income. The same rates of tax are applicable to both residents and non-residents. The taxable income of a person for any year is the total of that person’s income for the year less the total amount of deductions allowed to that person. Taxable income in Rwanda comprises, employment income, business profits, investment income.

The current monthly personal income tax (PIT) rates are as follows:

Bands of Income (RWF*)                         Taxable Income (RWF)                      PIT Rate (%)

0 to 30,000                                                             30,000                                                 0

30,001 to 100,000                                                   70,000                                                 20

100,001 and above                                                                                                             30

The Rwanda Social Security Fund is the nation’s social security system in Rwanda (commonly known as Caisse Social du Rwanda or CSR). The program requires contributions from all paid employees, both domestic and international, who work in Rwanda. The employee’s contribution to the plan is only needed to be 3%, but the employer must pay 5% of the employee’s gross salary. Employee social security contributions must be withheld by the employer each month by law.

The complete payment must be paid by the employer, nevertheless, once every three months, in the month that follows the conclusion of the quarter. The authority responsible for the task of collecting social security contributions is the Rwanda Revenue Authority (RRA).

Any cost made totally and exclusively for the purpose of producing revenue from work may be deducted by the individual. There are no legal provisions for personal tax deductions. In Rwanda, there are no set standard deductions. The Rwandan legislation does not include any specific personal allowances.


The tax is designed to be paid mainly by the ultimate consumer or purchaser in Rwanda. Goods and services are either exempt from VAT, or are levied at two rates, namely a standard 18% rate and a zero rate.


The WHT rates on various types of payments are as follows (the tax is a final tax for non-residents and the rate may be reduced under an applicable tax treaty):

Payment                 Residents                     Non-Residents

Dividends              0%/5%/15%                 5%/15%

Interest                   15%                             15%

Royalties                15%                             15%

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