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How To Hire New Remote Employees | Cape Verde

Hire employees in

Cape Verde

, easily

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Cape Verde

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Cape Verde

.
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capital city
Cape Verde
currency
Cape Verdean escudo (CVE)
language spoken
Kabuverdianu
payroll frequency
Monthly
employer taxes
15%
vat - standard rate
15%
cost of living index
Moderate ($796)
gdp - real growth rate
per capita- $ 3,890
termination process
Difficult
employee protections
Moderate
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Overview

Cape Verde has a population of 565, 799 people and is ranked number 50 in Africa according to the nominal GDP ($1.89 Billion). Cape Verde is a service-oriented economy that is focused on trade, commerce, public services, and transport.

Public Holidays

1 January- New Year's Day

13 January- Democracy Day

20 January- Heroes' Day (in Cape Verde)

2 March- Ash Wednesday

1 May- Labour Day

1 June- Children's Day

5 July- Cape Verde Independence Day

15 August- Assumption of Mary

1 November- All Saints' Day

25 December- Christmas Day

Minimum wage

Cape Verde’s minimum wage is 13,000 Cape Verdean escudos per month as of 2020 with the plan to increase it by 15,000 escudos by 2022.

Payroll cycle

A worker in Cape Verde makes roughly 204,000 CVE per month on average. Salaries range from 51,700 CVE (the lowest average) to 912,000 CVE (the highest average) (highest average, the actual maximum salary is higher).

This is the monthly average pay, which includes housing, transportation, and other benefits. Salaries for various occupations fluctuate dramatically. 

Taxation

The resident individual tax rates vary depending on annual income as follows; 

16.5% - for CVE 0-960,000

23.1% - for CVE 960,001- 1,800,000

27.5% - for CVE above 1,800,000

Cape Verde’s personal income tax ranges from 16.5% and 27. 5%. 

The income tax is paid through the Pay As You Earn (PAYE) system computed using the personal income tax rates. 

Leaves

Cape Verde’s female employees are entitled to 60 days of paid maternity leave. The employee pays the whole amount if the employee is not eligible for social security benefits. Eligibility for social security maternity benefits depends on the commitment to contribute for at least four months including 30 days before the leave. For male employees, they are entitled to 120 days paternity leave in case within the 120 days of birth the mother is unable to take care of the newborn due to physical or mental in capacity or in case the mother loses a life. The leave is 60 days less than the period already taken by the mother but not less than 30 days if the mother dies.

Termination process

An employment contract can be terminated when the contract period ends if fixed for a certain period by the employer or the employee. In the case of gross misconduct, an employment contract can be terminated without notice. The employer must give a 40-day notice prior to any contract termination.

Notice Period

Cape Verde notice period follows the following guidelines:  

  • The notice period is 15 days to 2 months based on the level of seniority.

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