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How To Hire New Remote Employees | Cape Verde

Hire employees in

Cape Verde

, easily

Whether you're looking for an independent contractor, a remote team member, or a full-time employee in

Cape Verde

, Workpay can help. Say goodbye to worrying about local laws, complex tax systems or managing international payroll. We take care of it all in over 50 countries.

Book a discovery call
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Country flag

How To Hire New Remote Employees | Cape Verde

Hire employees in

Cape Verde

, easily

   Whether you're looking for an independent contractor, a remote team member, or a full-time employee in

Cape Verde

, Workpay can help. Say goodbye to worrying about local laws, complex tax systems or managing international payroll. We take care of it all in over 50 countries.

Book a discovery call
Hire employees in
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, hassle-free

With Workpay, your business can easily hire employees in

Cape Verde

.
No more worrying about local laws, complex tax systems or
managing international payroll. Workpay takes care of everything
in 150+ countries.

Book a discovery call
capital city
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currency
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language spoken
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payroll frequency
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employer taxes
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vat - standard rate
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cost of living index
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gdp - real growth rate
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termination process
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employee protections
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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.

capital city
Praia
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

Public Holidays

DATE
HOLIDAY NAME

1 January

13 January

20 January

07 April

1 May

1 June

5 July

15 August

1 November

25 December

New Year's Day

Democracy Day

Heroes' Day (in Cape Verde)

Good Friday

Labour Day

Youth Day

Cape Verde Independence Day

Assumption of Mary

All Saints' Day

Christmas Day

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Minimum wage

The current minimum wage in Cape Verde is CVE17,000.00 per month. It became valid on January 1, 2025. This is a government-mandated minimum wage. No worker in Cabo Verde can be paid less than this mandatory minimum rate of pay. Employers in Cabo Verde who fail to pay the Minimum Wage may be subject to punishment by the government of Cabo Verde.

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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. 

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Taxation

Income Tax Rates
Taxable Income (CVE) Tax Rate %
Exceeding CVE Not Exceeding CVE
0 960,000 16.5
960,000 1,800,000 23.1
1,800,000 _ 27.5

Taxable income up to CVE220,000 is exempt from tax. The CVE220,000 is subtracted from the amount taxable. As a result, the 16.5% rate applies to income between CVE220,000 and CVE960,000.

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Leaves

Cape Verde’s labor law mandates key employee leave entitlements that employers must comply with to remain legally compliant and support workforce well-being.

Maternity Leave

Female employees are entitled to 60 consecutive days of paid maternity leave. Those contributing to the National Social Security Institute (INPS) for at least 4 months, including 30 days pre-leave, receive 80% salary from social security. If ineligible, the employer must cover full pay. Job protection applies throughout.

Paternity Leave

Fathers receive 5 paid days after childbirth. In the event of the mother’s death or incapacity, they may take up to 60 days, adjusted for any leave already used by the mother (minimum 30 days). Employers must provide this leave with full pay.

Annual Leave

Employees are entitled to 22 working days of paid annual leave after six months of service. Unused leave may be carried forward (up to 44 days) with approval. Payout of unused leave is required on termination.

Sick Leave

Employees are allowed 30 days per year. The employer covers the first 3 days; INPS covers 70% from day 4 onwards. Medical certification is mandatory for all sick days.

Other Leave Types

  • Bereavement: Up to 5 paid days for loss of an immediate family member.
  • Marriage: 3 paid days for the employee's own wedding.
  • Adoption: Up to 60 days, similar to maternity leave terms.
  • Public Holidays: 12 official paid holidays annually. Work during holidays must be compensated or given time off in lieu.

Severance Pay

Employees are eligible for severance pay when dismissed due to economic, technological, or structural reasons within a company or when an employer terminates their contract without a valid justification. Pay is equal to one month’s salary for each year of service.

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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.

Streamline the growth of remote and
international teams

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Businesses using Workpay
30+
Country presence
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Employee payroll run
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Country flag

Heading

Hire employees in

Cape Verde

, hassle-free

With Workpay, your business can easily hire employees in

Cape Verde

. No more worrying about local laws, complex tax systems or managing international payroll. Workpay takes care of everything in 50+ countries.

Book a discovery call
country featured image
capital city
Praia
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

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.

Employer of Record (EOR) for

Cape Verde
Benefits

Understanding the statutory employee benefits in Cape Verde is crucial for companies aiming to manage payroll effectively, whether through in-house systems or by leveraging payroll outsourcing solutions.

Paid Leave Entitlements

  • Annual Leave: Employees are entitled to a minimum of 22 working days of paid annual leave.
  • Sick leave: Employees are entitled to up to 30 days of 30 days of sick leave with a valid medical certificate. If the illness extends beyond 30 days, an examination by the health board may be required.
  • Maternity Leave: Female employees are entitled to 90 days of paid maternity leave.
  • Paternity Leave: Male employees are entitled to 10 days of paid paternity leave, an increase form previous 2 days.

Social Security Contributions

  • Employee Contribution: Employees contribute 8.5% of their gross remuneration to social security.
  • Employer Contribution: Employers contribute 16% of the employee's gross remuneration to social security.

Health and Insurance Benefits

Full-time employees are entitled to various insurance benefits, such as:

  • Old-Age Pension
  • Disability Pension
  • Survivor Pension
  • Temporary and Permanent Disability Benefits
  • Workers Medical Benefits
  • Sickness and Maternity Benefit

Employer of Record (EOR) Services

For companies looking to hire in Cape Verde without establishing a local entity, utilizing an Employer of Record (EOR), can be a strategic move. An EOR handles all aspects of employment, including payroll, taxes, employee benefits, and compliance with local labor laws.

Cost

Hiring in Cape Verde involves several statutory obligations and costs that employers must consider.

Employer Contributions

  • Social Security: Employers contribute 15% of an employee's gross salary to the National Institute of Social Security (INPS).
  • Occupational Accident Insurance: An additional 1% of the employee's salary is contributed towards this insurance.

Income Tax Withholding

Cape Verde employs a progressive income tax system

  • Up     =to CVE 220,000: Exempt
  • CVE 220,001 – CVE 960,000: 16.5%
  • Above CVE 960,000 and above: 30%

Employers are responsible for withholding and remitting these taxes.

Average Salary

The average monthly salary in Cape Verde is approximately 205,000 CVE, with a range from 51,700 CVE to 912,000CVE, depending on the role and experience.

Minimum Wage

As of January 1, 2025, the minimum wage is set at 17,000CVE per month.

For businesses looking to expand into Cape Verde without establishing a local entity, leveraging Employer of Record (EOR)services or Payroll outsourcing services can simplify compliance with local labor laws and tax regulations.

Contacts

Employers hiring employees in Cape Verde must issue clear, compliant employment contracts that meet local labor laws. Whether hiring for short or long-term roles, getting the contract right is important to avoid future disputes and ensure compliance.

Contract Requirement

  • Written contracts are required by law and must be in Portuguese
  • Contracts should clearly state:
    1. Job title and responsibilities
    2. Start date (and end date for fixed-term contracts)
    3. Work hours and location
    4. Salary, benefits, and allowance
    5. Terms of termination and probation

Types of Employment Contracts

  • Indefinite     contracts are most common.
  • Fixed-term     contracts are allowed but must include a valid reason and cannot     exceed five years. They typically expire automatically unless renewed in     writing.

Probation and Notice Periods

  • Standard     probation period is up to 2 months, extendable for senior roles.
  • Notice     periods range from 15 to 60 days depending on the employee's role and     duration of employment.

Termination Conditions

  • Termination     must follow Cape Verde’s labor code.
  • Early     termination of fixed-term contracts may require compensation unless for     just cause.
  • Final     pay must include all outstanding wages and benefits, with statutory     documentation provided.

Workpay’s Employer of Record and payroll outsourcing services take the guesswork out of drafting and managing compliant contracts. We handle the legal and HR complexities, so you can focus on building your team across Africa, without setting up a local entity.

Legal Entity

Setting up a legal entity in Cape Verde can be time-consuming and complex, especially for foreign businesses. The process typically involves multiple registrations; including with the Commercial Registry, tax authority, and social security, and it requires in-depth knowledge of local regulations. Most companies expanding into Cape Verde prefer to avoid the administrative burden and compliance risks by partnering with an Employerof Record (EOR) to hire quickly and compliantly, without establishing a local entity.

Labor Law
  • Working Hours: The workweek is 44 hours, spread over 5.5 days. Overtime is regulated and must be compensated.
  • Employment  Contracts: Must be written and can be fixed-term or open-ended. All contracts must specify job role, salary, benefits, and duration (if fixed-term).
  • Minimum Wage: Cape Verde’s national minimum wage is CVE 17,000/month (as of Jan 2025). Employers must comply to avoid penalties.
  • Probation  Period: Up to 6 months, depending on job level. During this time, termination rules are more flexible.
  • Termination Notice: Notice periods vary between 15 to 60 days based on tenure and  contract type. Severance pay applies in certain cases.
  • Paid Leave: Employees are entitled to 22 working days of paid annual leave, plus public holidays.
  • Sick Leave: Employees must present a medical slip. The employer or social security covers part of the payment, depending on duration.
  • Maternity Leave: 60 days of paid maternity leave. The employer may be partially reimbursed by the social security system.
  • Social Security: Employers must contribute 15% of the employee’s gross salary, while employees contribute 8%.

Hiring in Cape Verde without an entity? Skip the legal complexity and stay compliant with Workpay as your Employer of Record (EOR).

Harness the power of Workpay

Our innovative cloud based solution makes managing your teams more seamless than ever before, streamline your processes and take your business to the next level.

EOR vs AOR in

Cape Verde

Agent of Record (AOR) in Cape Verde: An AOR usually manages contractor payments and handles local tax obligations on  your behalf. However, they do not establish a legal employment relationship, as there are no statutory benefits or labor protections provided. AOR is best for short-term, project-based engagements where local employment laws don’t require full compliance.

Employer of Record (EOR) in Cape Verde: An EOR legally employs talent on your behalf, handling everything from compliant payroll and tax contributions to employee benefits and contracts. It’s the best solution for companies looking to hire full-time employees in Cape Verde without setting up a local entity, ensuring end-to-end compliance with Cape Verdean labor laws.

PEO

Professional Employer Organization (PEO) in Cape Verde: A PEO offers a payroll outsourcing service for companies with a registered entity in Cape Verde. It allows employers to retain control of their workforce while outsourcing critical functions like payroll processing, statutory compliance, and benefits administration. This is ideal for businesses looking to simplify HR operations without giving up legal responsibility.

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

Employee Onboarding and 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.
What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

Global Payroll for Africa

With different models to fit your growth:
Payroll Software for in-house teams needing automation and accuracy.
Outsourced Payroll for stress-free processing, filings, and compliance.
Employer of Record (EOR) to hire full-time talent without setting up a local entity.

Minimum wage

The current minimum wage in Cape Verde is CVE17,000.00 per month. It became valid on January 1, 2025. This is a government-mandated minimum wage. No worker in Cabo Verde can be paid less than this mandatory minimum rate of pay. Employers in Cabo Verde who fail to pay the Minimum Wage may be subject to punishment by the government of Cabo Verde.

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. 

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

Taxation

Income Tax Rates
Taxable Income (CVE) Tax Rate %
Exceeding CVE Not Exceeding CVE
0 960,000 16.5
960,000 1,800,000 23.1
1,800,000 _ 27.5

Taxable income up to CVE220,000 is exempt from tax. The CVE220,000 is subtracted from the amount taxable. As a result, the 16.5% rate applies to income between CVE220,000 and CVE960,000.

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

Leaves

Cape Verde’s labor law mandates key employee leave entitlements that employers must comply with to remain legally compliant and support workforce well-being.

Maternity Leave

Female employees are entitled to 60 consecutive days of paid maternity leave. Those contributing to the National Social Security Institute (INPS) for at least 4 months, including 30 days pre-leave, receive 80% salary from social security. If ineligible, the employer must cover full pay. Job protection applies throughout.

Paternity Leave

Fathers receive 5 paid days after childbirth. In the event of the mother’s death or incapacity, they may take up to 60 days, adjusted for any leave already used by the mother (minimum 30 days). Employers must provide this leave with full pay.

Annual Leave

Employees are entitled to 22 working days of paid annual leave after six months of service. Unused leave may be carried forward (up to 44 days) with approval. Payout of unused leave is required on termination.

Sick Leave

Employees are allowed 30 days per year. The employer covers the first 3 days; INPS covers 70% from day 4 onwards. Medical certification is mandatory for all sick days.

Other Leave Types

  • Bereavement: Up to 5 paid days for loss of an immediate family member.
  • Marriage: 3 paid days for the employee's own wedding.
  • Adoption: Up to 60 days, similar to maternity leave terms.
  • Public Holidays: 12 official paid holidays annually. Work during holidays must be compensated or given time off in lieu.

Severance Pay

Employees are eligible for severance pay when dismissed due to economic, technological, or structural reasons within a company or when an employer terminates their contract without a valid justification. Pay is equal to one month’s salary for each year of service.

Why we are Africa's preferred Employer of Record

We make it easy for companies expanding across or into Africa. With our Employer of Record (EOR) solution, you can hire and manage talent across 35+ countries with no local entities needed. We handle contracts, payroll, taxes, and compliance, so you can focus on growing your business.

What makes us different? Our local expertise, deep knowledge of labor laws, and a proven track record supporting global companies makes us different.  

  • We stay ahead of evolving labor laws in 35+ African countries with our in-country experts who manage employment contracts, statutory benefits, tax filings, and terminations to keep your team fully compliant.
  • We deliver accurate, timely payroll in local currencies, and help you offer region-specific benefits like health insurance and pensions.
  • We handle onboarding, payroll, and legal documentation, fully aligned with local employment laws so that you can hire employees across borders in just a few days.

Grow your team with confidence, knowing you're always compliant.

Frequently Asked Questions

What is Workpay?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

What is Workpay?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

What is Workpay?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

Public Holidays

1 January

13 January

20 January

07 April

1 May

1 June

5 July

15 August

1 November

25 December

New Year's Day

Democracy Day

Heroes' Day (in Cape Verde)

Good Friday

Labour Day

Youth Day

Cape Verde Independence Day

Assumption of Mary

All Saints' Day

Christmas Day

Harness the power of Workpay

Our innovative cloud based solution makes managing your teams more seamless than ever before, streamline your processes and take your business to the next level.