Salaries, contributions and employment cost in Cape Verde in 2026
Salaries, contributions, taxation, and top roles. Kernel data.
Employment cost in Cape Verde in 2026
In Cape Verde, employer cost is gross salary plus employer contributions, estimated at around 16% before ceilings. Net salary is gross pay less employee contributions and income tax, whose top bracket reaches 28%. Currency: Cape Verdean Escudo (CVE).
Understanding a payslip in Cape Verde
A payslip moves from gross salary to net pay by applying contributions, taxable income and income tax. Ceilings, benefits, dependants and sector rules can change the result.
- 1
Gross salary
Pay before mandatory deductions in CVE.
- 2
Employee contributions
Pension, health and other applicable deductions, including any contribution ceilings.
- 3
Taxable income
The base after locally permitted deductions and allowances.
- 4
Income tax
The amount calculated under current brackets, credits and local tax rules.
- 5
Net salary
Pay after employee contributions and income tax, excluding contract-specific benefits or deductions.
Essential guide
Employing in Cape Verde
The Labour Code adopted by Legislative Decree 5/2007, as amended, governs contracts and working conditions. Cost data comes from active IRPS and INPS records.
Decision brief
High confidenceRelatively well documented Portuguese-speaking framework. Update templates for amendments and check contract duration, probation, leave and INPS registration.
Complete guide
Contracts and hiring+
Permanent and fixed-term contracts fall under the Labour Code. Clear Portuguese or bilingual writing is recommended for duration, role, pay, hours and termination.
Working time+
The dataset uses 44 hours per week. Daily schedules, rest and overtime are governed by the Code.
Leave and absences+
The dataset uses 22 working days of annual leave. Protected leave and related pay should be checked separately.
Termination+
Procedure depends on the ground and contract type. Notice, right to respond and payments should be documented.
Payroll and obligations+
Payroll combines CVE pay, IRPS, INPS and benefits. The CVE peg to EUR does not replace the actual rate stored by the platform.
International hiring+
Check visa, residence and work authorisation before employment starts, as well as the language of employee documents.
Employment law, verified sources
Reviewed on 16/09/2026. Official sources take priority.
- Official sourceMinistério das Finanças, Código Laboral de Cabo Verde
- Official sourceDireção Geral do Trabalho, amendment to the Labour Code
Always consult the amended Code rather than only the original 2007 text.
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Income tax in Cape Verde
| Bracket | Lower bound | Upper bound | Rate |
|---|---|---|---|
| 1 | 0 | 220,000 | 0.0% |
| 2 | 220,000 | 960,000 | 16.5% |
| 3 | 960,000 | 1,800,000 | 23.1% |
| 4 | 1,800,000 | and above | 27.5% |
FAQ
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