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Foreign employees transferred to Rwanda may continue contributing to their home country’s pension scheme for up to 12 months. During this period, they are exempt from contributing to Rwanda’s pension system. After the 12 month exemption, foreign employees must register with and contribute to the Rwandan pension scheme, in compliance with national regulations.
25 March 25
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Additionally, all benefits provided to foreign employees while working in Rwanda are subject to taxation under Rwandan law. These benefits are typically outlined in a transfer agreement between the company/organisation, as the host Employer, and the transferred Employee.
To facilitate skill development and ensure long-term capacity building, the Company/ organisation is required to prove that the position held by the foreign employee is listed on Rwanda’s occupation demand list or that a labour market test demonstrated the absence of a suitable Rwandan candidate. Furthermore, during their tenure—generally two (2) years—the foreign employee is obligated to train company’s/Organisation’s existing Rwandan staff in the same skills, ensuring that these skills become readily available in the local labor market and reducing the need for future outsourcing.
Under this arrangement, the foreign employee works for the Company/Organisation and actively contributes to knowledge transfer, aligning with the organisation’s strategic goals of capacity building and development.
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Should you have any questions regarding this article series, please do not hesitate to contact Eric Cyaga.