Rwanda's GDP grew by 10.1 percent year over year in the third quarter of 2021, following a record 20.6 percent expansion in the third quarter. The services sector was the key driver of the growth, particularly hotels and restaurants grew at 62 percent, transportation 19 percent, repair and maintenance of motor vehicles six percent, information and communication 14 percent, and financial services 11 percent. Mining and quarrying 30%, infrastructure 15%, and manufacturing 7% all contributed positively to the industrial sector. Agriculture, forestry, and fisheries grew at six and seven percent respectively. The GDP increased by 1.2 percent every quarter, following an initial estimate of 4.6 percent expansion in the preceding quarter.

Rwanda has no official minimum wage but the minimum wage of RwF 100 was set down in the Labour Laws of 1974, 1973, or 1972 and has never been revised. (The site shared had a different amount).

The payroll cycle in Rwanda depends on the agreement between the employer and the employee. Thus, an employee can be paid daily (for workers hired hourly), weekly and monthly. 

Wages must also be paid within seven days of the end of the wage period, except for daily workers, who must be paid every day. The employer pays the employees’ salary into a bank or financial institution account that the employee has specified in writing.

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Statutory Deductions

‍Annual Leave 

All employees are entitled to yearly leave after one year of working, according to the Labour Code. A full-time employee is entitled to 18 days of paid yearly leave (one and a half days for every month of employment). If an employee works less than 45 hours per week, his or her yearly leave is calculated on a pro-rata basis. A young worker under the age of 18 is entitled to two working days of yearly leave every month (24 working days per year). Annual leave is increased by one day for every three years of continuous service but annual leave cannot exceed 21 working days.

Parental Leave

Parental leave is not granted in Rwanda, only maternity leave is currently regulated by law.

Maternity Leave 

Employees are entitled to a paid leave of 12 weeks, it is possible to take two weeks off before the birth of the child. During this time, the employee will be paid in full, and social security will be accountable for the payment.

Paternity Leave 

In Rwanda, paternity leave is not mandated by law but it is usual practice for the employer to give the partner of the mother three business days off. 

Sick Leave

Employees are usually entitled to up to 6 months of sick leave with medical confirmation. The first three months are remunerated while the other three months are unremunerated.

A contract can be canceled by either party by serving notice or paying a penalty instead of notice. An employee’s contract can only be terminated for a valid reason. 

Notice Period 

A fixed-term contract expires at the end of its term or when canceled by one of the parties. The cancellation is either voluntary or due to extreme negligence. The party canceling the contract on gross negligence must notify the other party within forty-eight hours.

The required notice period for ending an indefinite term contract is determined by the worker's duration of service as follows:

1. 15 days for those who have been with the company for less than a year;
2.  1 month for those who have been with the company for more than a year.

Severance pay 

A worker is eligible to severance pay under the Labour Code if they have worked for the employer for at least one year and have completed at least one year of continuous service. 

• One-month salary for less than 5 years of service; 
• Two-month salary for 5 to 10 years of service; 
• Three-month salary for 10 to 15 years of service; 
• Four-month salary for 15-20 years of service; 
• Five-month salary for 20-25 years of service; 
• Six-month salary for more than 25 years of service.

Probation Period 

Probation/trial periods are limited to six months under the Labour Code. The Labour Code further stipulates that the first probation period and any subsequent extensions must be documented in writing.