Employer of Record in Cape Verde

Guide to Hiring Employees in Cape Verde

Your guide to hiring employees in Cape Verde, covering the employment landscape, employer of record responsibilities, working customs, and local labor laws.

Hiring Employees In Cape Verde
Employer Of Record In Cape Verde

Capital City

Praia

Currency

Cape Verde Escudo

 (

Esc

)

Timezone

GMT -1

Payroll Frequency

Tax Year

Employer Tax

Languages

Portuguese

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How to Hire Employees In Cape Verde

Hiring in Cape Verde for the first time can be overwhelming, especially when navigating unfamiliar employment laws.  Whether you hire independent contractors, set up a legal entity, or use an EOR service, understanding the local employment landscape is crucial for success.  Playroll’s comprehensive guide can help you get started if you're hiring locally or relocating a team member.

Companies can hire employees in Cape Verde in the following three ways:

  • Setting up a local entity. Entity establishment reduces risk exposure and enables direct hiring, but can be costly and time-consuming – making it less practical for companies seeking quick and flexible solutions for hiring in Cape Verde.
  • Partnering with an Employer Of Record. An EOR, like Playroll, is a third-party entity that serves as the legal employer of your international workforce which hires, pays, and manages compliance with Cape Verde’s labor laws and tax regulations.
  • Hiring independent contractors. Hiring contractors gives companies a flexible, affordable alternative to hiring local employees, though it involves unique misclassification risks.

Good To Know

Cape Verde's location in the Atlantic Ocean, off the coast of West Africa, provides a strategic gateway for businesses aiming to access both African and international markets.

While the official language is Portuguese, English is widely spoken, facilitating communication for businesses operating in English-speaking markets.

Cape Verde has a strong talent pool in technology, particularly in software development. The number of digital skills training programs has increased significantly in recent years, further strengthening the talent pool.

Cape Verde has implemented economic reforms to improve the business environment, including efforts to streamline processes and reduce bureaucratic hurdles.

Employment and Labor Laws in Cape Verde

Businesses can only operate smoothly in Cape Verde if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Cape Verde below, to avoid any compliance issues.

Onboarding Process

We can help you get a new employee started in Cape Verde quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment.

Working Hours in Cape Verde

Minimum Wage in Cape Verde

Employer of Record in Cape Verde

An Employer of Record (EOR) acts as the legal employer for workers in Cape Verde, taking on key responsibilities to ensure compliance with local labor laws and regulations. The EOR facilitates the hiring process for businesses that want to employ workers without establishing a legal entity in the country.

The employer of record in Cape Verde is responsible for:

  • Employment Compliance: Ensure all employment contracts comply with Cape Verde's labor laws and regulations, including proper classification of employees.
  • Payroll Management: Calculate, process, and distribute employee salaries in accordance with Cape Verde's payroll laws, including deductions for taxes and social security contributions.
  • Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
  • Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with Cape Verde's legal requirements.
  • Benefits Administration: Provide mandatory employee benefits as required by Cape Verde's labor laws, such as health insurance, pension contributions, and statutory leave.

Why work with Playroll’s Employer of Record Solution?

With decades of experience in global compliance and deep local knowledge, we ensure smooth adherence to local laws and regulations across borders.

Unmatched coverage for employment across 180 countries.

An employee portal paired with dedicated, human support.

Reliable, cost-effective services with no annual commitments.

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Payroll Management in Cape Verde

Payroll Cycle in Cape Verde

The payroll cycle in Cape Verde is usually Monthly, with employees being paid as stipulated in employment contract.

Employment Taxes in Cape Verde

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The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Cape Verde tailored to your needs.

Payroll and Employment Taxes in Cape Verde

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Work Permits & Visas in Cape Verde

In Cape Verde, work permits and visas are crucial for employers hiring foreign workers. The process involves submitting applications, meeting specific eligibility criteria, and ensuring compliance with local labor laws. The key visa types include the Temporary Work Visa, Long-Term Work Visa, Highly Skilled Worker Visa, and Intra-Company Transfer Visa. Employers must navigate these requirements and sponsor foreign employees through the appropriate channels to ensure legal employment in the country.

Annual Leave & Company Policies In Cape Verde

Mandatory Leave Entitlement in Cape Verde

The annual leave entitlement in Cape Verde is 22 - 44 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

An Employer of Record (EOR) helps businesses manage annual leave, paid time off (PTO), and local holidays across the globe, including in Cape Verde. By partnering with an EOR, companies ensure full compliance with local labor laws in Cape Verde when it comes to annual leave and time-off management. EOR providers like Playroll offer platforms that simplify tracking and managing employee time off in Cape Verde. By outsourcing this responsibility to Playroll, you can streamline leave management, ensure compliance, and free up time to focus on other business priorities.

Annual Leave and Company Policies In Cape Verde

Employee Benefits in Cape Verde

Termination and Severance Policies in Cape Verde

Employment Termination and Severance Policies in Cape Verde

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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ABOUT THE AUTHOR

Jesse Weisz

Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).

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FAQS

FAQs About Hiring In Cape Verde

Questions and Answers

What are the standard employment terms in Cape Verde?

Standard employment terms in Cape Verde include working hours, leave entitlements, and conditions outlined in employment contracts, governed by labor laws and regulations.

How is income taxed in Cape Verde, and what are the rates?

Cape Verde's income tax system may apply progressive rates to different income levels. Social security contributions also fund benefits such as health care and pensions.

Are there any mandatory benefits that employers must provide?

Employers in Cape Verde are required to contribute to social security, covering benefits such as health care and pensions. Some benefits, like health insurance, may be mandatory, while others may be negotiated.

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Cape Verde