Rwanda Minimum Wages - Frequently Asked Questions 2014

Find out details on labour law and minimum wage Act.
Frequently Asked Questions
 Is there a separate legislation relating to minimum wages in your country?  How often is poverty line updated?
 On what basis is minimum wage calculated?  When was poverty line last updated? 
 Are governmental bodies, employer and/or trade union representatives involved in minimum wages setting ? What is the percentage of minimum wage relative to the current poverty line?
How are upratings (adjustments) of minimum wage/S decided upon?  What is the incidence of minimum wages(s) in the national labour force (wage earners only)?
Which are the components of minimum wage in your country?  How is minimum wages compliance regulated? 
How frequently is the fixed component of minimum wage updated?  Which legal sanctions can be applied in compliance is lacking?   
How frequently are the variable components of minimum wage updated?   Are sanctions often being applied? 
What is/are the yardstick/s on which minimum wage upratings are based? To whom/Where can individuals complain, if they think they are earning less than minimum wage?
What is the national poverty line? (In national currency)   

 

Frequently Asked Question Minimum Wage Implemented as Per Law
Is there a separate legislation relating to minimum wages in your country?  Officially there is no minimum wage in Rwanda. However, in most cases it is the minimum wage contained in the 1974, 1973 or 1972 Labour Law which is being used. By then, the minimum wage was RwF 100. There is a high concern about the standard of living and the minimum wage as per now. Last year a consulting firm was assigned to conduct a survey and determine a minimum wage, but they failed to carry the study. Another Firm is contracted for the same.
On what basis is minimum wage calculated?  All four options - daily wage, hourly wage, weekly wage, monthly wage -  can be considered depending on the sector, the type of work to be performed and probably the location.
Are governmental bodies, employer and/or trade union representatives involved in minimum wages setting  NA
How are upratings (adjustments) of minimum wage/S decided upon?  NA
Which are the components of minimum wage in your country?  NA
How frequently is the fixed component of minimum wage updated?  NA
How frequently are the variable components of minimum wage updated?  NA
What is/are the yardstick/s on which minimum wage upratings are based? NA
What is the national poverty line? (In national currency)  For the year 2001 national poverty line is  RwF 64,000 and that for 2011 is RwF 118,000. Between 2001 and 2011, three census were carried to estimate the poverty line in Rwanda. The first was in 2001, the second in 2005 and the third in 2011. In 2001 the national poverty line was RwF 64,000 and the extreme poverty line was RwF 45,000. In the 2011 census, the national poverty line was revised to RwF 118,000 and the extreme poverty line to RwF 83,000.
How often is poverty line updated? Between 2001 and 2011 two were determined. One in 2001 and the second in 2011.
When was poverty line last updated?  The survey was conducted between October 2010 and November 2011.
What is the percentage of minimum wage relative to the current poverty line? NA
What is the incidence of minimum wages(s) in the national labour force (wage earners only)? NA
How is minimum wages compliance regulated?  NA
Which legal sanctions can be applied in compliance is lacking?    NA
 Are sanctions often being applied?  NA
To whom/Where can individuals complain, if they think they are earning less than minimum wage.  In every district there is a labour inspector. An unsatisfied employee is allowed to talk to the inspector, and if not satisfied, he or she can be referred to MIFOTRA.