Work and Wages

Minimum Wage

Ministry of Public Service and Labour (MIFOTRA) sets industry-specific minimum wages in the small formal sector. The minimum guaranteed wage (MGW) for different categories of work is determined by an Order of Minster for Labour. However, consultations with relevant social actors (employers and employees) are necessary before issuance of an order.

Monthly salary is determined by taking into account commissions, allowances or various benefits or representative allowances of these benefits. Payment for annual leave, notice period and damages is calculated on the basis of this salary by making the average of the last twelve months the worker worked for.

If a worker has to travel professionally, outside his/her workplace, he/she is entitled to the transport, per diem and accommodation fees prior to travelling.

Compliance with the provisions of Labour Code including minimum wages is ensured by the Labour Inspectorate. There are labour inspectors in every district. An employee can consult a labour inspector if he/she is paid less than the required minimum wage, and if unsatisfied, he or she can be referred to MIFOTRA.

Source: §66, 68, 71 & 113 of the Law regulating Labour in Rwanda, 2018 (No. 66/2018)

For updated minimum wage rates, please refer to the section on minimum wage.

Regular Pay

In accordance with the Labour Code, the salary is the price for the work done. Salary is not paid in the event of absence from work, unless agreed upon between the concerned parties or for cases provided under the law. The Labour Law obliges employers to pay workers their due salaries in a timely manner.

Wages must be paid regularly and in legal tender (Rwandan franc). Wage period or interval must not exceed:

• one day for a worker hired on hourly or daily basis;
• a week or fortnight for a worker hired on weekly or fortnightly basis; and
• a month for a worker hired on monthly basis.

The 2009 law required that wages must be paid within 7 days of the end of wage period, except daily worker who must be paid every day. However, the 2018 law does not include such provisions which might be added to the forthcoming ministerial orders. Instead of being paid in cash, salaries are paid through accounts maintained by the worker in bank or any other financial institution. On termination, employers pay the salary and other indemnities soon after the expiry of notice period.

An employer should provide pay slips on worker's request, showing the calculation of wages along with items including basic salary, other various allowances and bonuses, withholding taxes and the net salary.

An employer is not allowed to deduct or seize the worker's salary or fine a worker except in case of suspension as a disciplinary measure. The worker receives the salary for the number of days he/she has worked. Salary can be deducted according to the provisions of collective agreement or work contract between employer and the worker. Salary may also be deducted by attachment, execution of a court order, for payment of advance (loan) given by the employer, or voluntary transfer but the total deductions may not exceed half (50%) of the worker's salary. Under 2009 law, the overall deductions could not exceed one-third (33%) of the worker's salary. In case of illegal deduction, worker is entitled to the interest for his/her benefit at the average rate as determined by the Central Bank of Rwanda. Interest is computed from the date the worker should have been paid the illegally deducted salary.

When there is a deduction from the employee’s salary in contravention of the law, he is entitled to interests in accordance with the law, starting on the date on which the employee was supposed to be paid.

Source: §39, 66-76 of the Law regulating Labour in Rwanda, 2018 (No. 66/2018)