Basic

Contracts in Cape Verde can either be verbal or written according to the Labour Code. The minimum age to sign a contract is 15 years old. If the employee is less than 18 years old then parents or legal guardians can demand the cancellation of the contract. The most common type of contract used by employers in Cape Verde is a written contract. Cape Verde uses two languages, Portuguese and Cape Verdean Creole. They can use either language in writing contracts but in practice, they use Portuguese the most. Therefore, it’s recommended that they use Portuguese; however, by law, they can use either.

Probation Period

The probationary period for employees ranges from 15 days to 2 months.

13th Month Pay

The 13th-month pay is not mandatory in Cape Verde but is customary.

Employee Benefits

Full-time employees in Cape Verde are ensured to have insurance benefits such as

• Old-Age Pension
• Disability Pension
• Survivor Pension
• Temporary Disability Benefit
• Permanent Disability Benefit
• Worker’s Medical Benefit
• Sickness and Maternity Benefi

Employer Payroll Cost:

Employee Payroll Cost:

Employee Income Tax

Employees who earn up to a net of CVE 220,000 annually are exempted from taxation.

VAT

The standard VAT in Cape Verde is 15% (8% for electricity and water for end-users).