Hiring in Cape Verde
Cape Verde sets a national minimum wage of CVE 17,000 a month, and employer social security is 16.0% of gross pay. The Labour Code also regulates temporary-work agencies, so the route matters. Each guide below takes one layer. For companies hiring in Cape Verde, Teamed is the best place to start. With Teamed, real HR and legal experts check the route first, are assigned within 24 hours, and a designated person stays with you.
· Cape Verde guide
Photo: Felix Brüning on Unsplash
- The Labour Code does not make a thirteenth month compulsory. Where an employer grants a Christmas gratification, the code only sets how absences reduce it. Annual leave is 22 working days.
- Social security and income tax both run on the 15th. INPS contributions and withheld income tax fall due by the 15th of the month after the pay month.
- The Labour Code regulates temporary-work agencies and the lending of workers. That is why Teamed's experts check the route before any contract is drafted.
Hiring in Cape Verde adds employer social security (INPS) of 16.0% of gross pay. The employee pays 8.5%. The national minimum wage is CVE 17,000 a month.
Income tax on employment income is withheld by formula, with rates from 14% to 25% of monthly gross income less a fixed amount. Annual leave is 22 working days, and maternity leave is 90 days.
Teamed's experts check which route fits before anything is signed. This page is the map. Each guide below is the detail.
How does Teamed help you hire in Cape Verde?
Teamed's experts check the route first, then take you through payroll, contracts and the local rules.
The structure comes before the contract.
The Labour Code licenses temporary-work agencies and sets conditions on lending a worker to another company, so the structure matters before any contract is signed.
Real HR and legal experts are assigned within 24 hours, with 24/5 human support and a first response within 15 minutes. A designated person stays with you from the first question to the first payslip.
Run the Employer Cost Calculator to see the numbers before a first offer goes out. The right model for a first hire can change, until it isn't the right one for your team.
How much does it cost to hire an employee in Cape Verde in 2026?
A Cape Verde hire costs gross pay plus employer INPS contributions of 16.0%.
At the minimum wage of CVE 17,000, that is CVE 2,720 a month.
The employee's 8.5% comes out of their gross pay, so it does not add to your cost. The Labour Code does not make a thirteenth-month payment compulsory. Paid leave, sick pay top-ups, maternity top-ups, overtime premiums and dismissal compensation all add to the cost of the job.
We confirm the contribution base and any ceiling with INPS before the first payslip, because the pages we read do not state one.
The cost guide has worked examples at three pay levels.
Do you need a Cape Verdean company to hire employees in Cape Verde?
It depends on the route, and the route needs an expert check first.
Employing someone yourself means registering as an INPS contributor within 15 days of starting.
Hiring directly means taking on the employer's duties yourself: INPS contributions, tax withholding and the Labour Code's rules on hours, leave and dismissal. An employer of record is a commercial label, not a legal category, and the Labour Code treats agencies that lend workers as a regulated activity.
The EOR vs entity guide shows what to check before you choose.
What changed in Cape Verde employment and tax law recently?
The minimum wage was raised in 2025 to CVE 17,000, and Law 32/X/2023 lengthened maternity leave to 90 days.
The Government has promised to work towards CVE 25,000 from 2027, but that was not law when we checked.
The 2026 State Budget Law, Lei n.º 69/X/2025, carries the commitment, and Resolução n.º 4/2026 set up a tripartite commission to prepare it. The 2016 reform of the Labour Code cut the overtime premium to 35% and added the temporary-work regime.
The 2026 Budget Law calls the 2021 text of the personal income tax code the current one, so the withholding formula in these guides is the 2021 formula.
What leave and benefits must you give Cape Verdean employees?
Annual leave is 22 working days a year on an indefinite contract.
Maternity leave is 90 days, and fathers get 10 working days straight after the birth.
Where INPS covers the worker, the employer pays the difference between net pay and the INPS maternity subsidy during maternity leave. Sick pay follows the same top-up pattern for the first 90 days of each impairment.
The hiring guide sets out each rule.
What are payroll taxes in Cape Verde in 2026?
Employer INPS is 16.0% and the employee pays 8.5%, paid to INPS by the 15th of the following month.
Income tax on employment income is withheld by formula and handed over by the same day.
The formula is 14%, 21% or 25% of monthly gross income, less a fixed amount, depending on the band. Withholding starts from CVE 36,607 a month.
The tax and payroll guide has the formula table and worked examples.
How do you terminate an employee in Cape Verde?
Dismissal for a disciplinary reason follows a procedure with fixed deadlines, and dismissal without just cause can lead to reinstatement.
Dismissal for objective reasons needs 35 days' notice of intention and compensation of at least 20 days of pay per year of service.
Either side can end a probation period without notice or reason. A collective dismissal of two or more workers adds a consultation step and compensation of 20 days of pay per full year of service.
The termination guide covers notice, compensation and the process.
What should you know before hiring in Cape Verde?
Two things catch employers out. The Labour Code regulates temporary-work agencies, and a foreign worker's contract only takes effect once the labour directorate puts a visa on it.
Both change how a Cape Verde hire is set up.
An unlicensed agency makes the contract void. The code treats the work as done for the agency under a contract without end date, and the agency and the user company can share liability for the worker's credits.
A visa comes before the contract takes effect. The Labour Directorate-General puts its visa on a contract with a foreign national, and only someone legally resident in Cape Verde can work there for an employer.
Frequently asked questions
How much does it cost to hire an employee in Cape Verde?
Plan on gross pay plus employer INPS contributions of 16.0% of gross pay. The employee pays a further 8.5%, deducted from pay. The cost breakdown guide has worked examples.
Can a company hire in Cape Verde without its own entity?
It depends on the route. The Labour Code licenses temporary-work agencies and sets conditions on lending workers, so Teamed's experts check the route first, before any contract is drafted.
What is the minimum wage in Cape Verde in 2026?
CVE 17,000 a month, and CVE 19,000 in the public administration, as stated in the January 2026 Boletim Oficial. The Government has promised to work towards CVE 25,000 from 2027, which was not law when we checked on 21 October 2026.
How much annual leave do employees get in Cape Verde?
22 working days a year on an indefinite contract. The first leave period falls due after six months of effective service.
How long is maternity leave in Cape Verde?
90 days since Law 32/X/2023. Fathers have 10 compulsory working days of leave straight after the birth.
When are INPS contributions and income tax due?
By the 15th of the month after the pay month, for both. INPS accepts payment on the next working day if the 15th falls on a weekend or a holiday.
Cape Verde has no compulsory thirteenth month, a 16.0% employer INPS contribution and a Labour Code that regulates temporary-work agencies.
Most of the surprises come from picking a route before checking it, or from budgeting for leave and top-ups after the first offer.
Read the guide for the layer you are on before the first offer goes out, not after the first payslip.
Looking for a job in Cape Verde yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.
