Cape Verde
Cape Verde is gorgeous, Portuguese-speaking, a home to some great remote talent. Want to hire someone there, but not sure how to do it—maybe because your company’s HQ is located somewhere else? Then, welcome: You’re in the right place. In the next few minutes, you’ll learn how to hire remote talent in Cape Verde, quickly, without wading into months and thousands of dollars of legal red tape.
Country snapshot
CURRENCY
Cape Verdean Escudo (CVE)
EMPLOYER TAXES
15%
PAYROLL FREQUENCY
Monthly
OFFICIAL LANGUAGE
Portuguese
It’s the fastest way to hire globally
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It’s a lot cheaper
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
It’s more flexible for you & your team
Can be less risky than hiring employees
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
Some people want to be employees
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
You might not have as much control over your talent
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
Hiring abroad is difficult: New labor laws, entities, a lot of words you’d rather not hear again. But we’ve got good news. It doesn’t need to be that way. Below, we’ll break down your two main options for hiring in Cape Verde (and the one we prefer).
Hire talent as contractors
Hire talent as employees
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Cape Verde than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Cape Verde.
Employer tax
Social security Fund
Paid Time Off (PTO)
Fixed-term contract employees are eligible for annual leave, which is proportional to the length of service once the period contracted is halfway complete.
Employees receive 22 days of paid annual leave.
This leave must be taken in the year it was given unless there was a specific agreement between the employee and employer regarding transferring unused annual leave.
Public Holidays
There are 9 public holidays.
Sick Days
Employees in Cape Verde must have made at least four months of contributions, including 30 days in the three months before leave.
Employees receive up to 1,095 days of paid sick leave.
The first three days are paid at 100% by the employers. Starting on the fourth day, pay is provided to eligible employees through Cape Verde’s social security program.
Maternity Leave
Employees are eligible for maternity benefits through social security if they have made at least four months of contributions, including 30 days in the three months before leave.
Female employees in Cape Verde are entitled to 60 days of paid maternity leave. If the employee is not eligible for social security benefits, the employer pays the employee’s entire amount.
Paternity Leave
A male employee is entitled to paternity leave only if, within 120 days of the birth, the mother is unable to take care of the child due to physical or mental incapacity or the mother dies.
A minimum of 30 days’ leave is provided to the father if the mother dies.
Parental Leave
There are no statutory provisions for parental leave.
Other Leave
No Info.
Marriage Leave
No Info.
Bereavement Leave
No Info.
Termination Process
The termination of employment in Cape Verde is different for each case. an employer has the right to terminate the employee’s contract due to acts of misconduct, such as:
- Bad behavior
- Intoxication during working hours
- Frequent disobedience
- Repeated conflict
- Not fulfilling duties
- Lack of proper hygiene
- Being irregular to work
Notice Period
In case of termination due to misconduct, the employer must send 40 days of notice before terminating the employee.
The employee has five days to respond to the notice.
The reason for termination must be provided if the employer still wants to terminate the employee.
Employees must provide notice to employers prior to terminating an employment contract. The notice period is 15 days, increasing by an additional 15 days per year of service up to two months.
Severance Pay
The expiry of a fixed-term contract, severance pay is not provided.
Employees are entitled to receive severance pay (pay in lieu of notice) if the notice is late.
Probation Period
The probation period is 6 months.
Working Hours
The standard working hours in Cape Verde is 44 hours.
Overtime
In Burkina Faso, employees are allowed overtime work of up to two hours a day. Overtime is provided only at the cost of not hiring new employees or if there’s urgent work.
The standard overtime limit is 160 hours per annum, but if employees agree, it can be extended up to 300 hours.
The annual limit is increased to 300 if there is written consent from the employee.
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