How to Hire Remote Employees In 

Cape Verde

The Basics

Cape Verdean Escudo (CVE)
Employer Taxes
Payroll Frequency
Official Language

Employment in 

Cape Verde

Hire Independent Contractors

Independent contractors or freelancers are self-employed individuals who provide services to companies as a non-employee. This is one of the most common ways companies tend to hire non-local designers, engineers, support reps, etc.

For legal and tax purposes, independent contractors are not classified as employees. They may work for multiple clients, set their own work hours, negotiate their pay rate, and decide how a job gets done.

For example, the IRS says that if an independent contractor or freelancer does work that can be controlled (what will be done and how it will be done) by an employer then they are, in fact, classified as an employee.

As you can imagine, hiring someone as an independent contractor versus an employee is a fine line to tread.

While there are benefits when you choose the contractor route, there are quite a few drawbacks to consider and you’ll need to weigh them carefully to determine the best fit for your company.

Benefits of Hiring Independent Contractors
Time savings: Hiring through a subsidiary or EOR can take months of onerous paperwork and legal wrangling. This is only multiplied if you want to hire in multiple countries.
Reduced overhead: You can save tens of thousands of dollars in onboarding costs by hiring through a company like Panther. You also have fewer responsibilities to provide benefits, further reducing overhead.
Greater flexibility: Contractors can be brought on as-needed. If they are not a good fit, you can choose not to renew them without incurring significant additional termination costs.
Reduced legal risk: Contractors generally don't have the host of legal protections that typically cover full-time employees.
Disadvantages of Hiring Independent Contractors
Risk of Misclassification: While it's important to understand local contractor law, for most firms, misclassification risk is minimal.
Lack of Control: For a worker to be classified as a contractor, they should be allowed to work independently on their assigned tasks. Hiring full-time employees offers a wider range of management options.
Lack of Loyalty: Contractors come and go as-needed. Many companies hire contractors for short-term work, which makes it difficult to cultivate loyalty.

Set up a subsidiary in 

Cape Verde

A foreign subsidiary is a company that operates overseas as part of a larger company who’s HQ is in another country.

Establishing a foreign entity is great for having an international presence and accessing new markets. Though, setting up a subsidiary in Cape Verde can be expensive, stressful, and time-consuming. It's not for the faint of heart.

To set up a subsidiary in Cape Verde, you have to:

  1. Register your business name and file articles of incorporation
  2. File for local bank accounts
  3. Learn and keep track of the local employment laws
  4. Set up local payroll
  5. Hire local accounting, legal, and HR people

If you're lucky, this process can take months. If you're not so lucky, it can take up to a year. And on average, it costs about $50k-$80k, all-in-all, to get setup. And that's just for Cape Verde.

Use an Employer-of-Record (EOR)

An employer-of-record (EOR) is a company that hires and pays an employee on behalf of another company.

An EOR is typically used to overcome the financial and regulatory hurdles that often come with employing remote workers.

Each country has its own payroll, employment, and work permit requirements for non-resident companies doing business in their jurisdiction. Meeting those demands can be a huge obstacle when it comes to hiring remotely.

At Panther, we help companies employ and pay people in over 160 countries, without having to set up a foreign subsidiary. Payroll, benefits, taxes, compliance, and more are all handled by us, at a fraction of the cost.

Outside of saving you months and tens of thousands of dollars, other advantages of using Panther are:

  • Ability to attract talented and motivated employees from all over the world.
  • Full legal compliance: There is no risk of violating local employment laws.
  • Transparency: Employees are still your employees. All the work, processes, operations and day-to-day business belong to you, the company, just like with any other employee. Panther just takes on all of the responsibilities, obligations and admin work related to your team's employment.
  • No risk of misclassification

Because you no longer have to set up your own subsidiary, you’ll save a ton of time and tens of thousands of dollars using Panther.

Paying Remote Employees

Paying employees in Cape Verde is not the same as paying workers in your own country. Employees have to be paid using Cape Verde’s employment and payroll standards.

This means that you have to know, understand, and keep up with 1) fluctuating currency changes, and 2) local payroll and tax laws in the countries you’re looking to hire in.

Outside of the laws and regulations around payroll, there may be different conditions surrounding leave, overtime, termination, and more. As you can imagine, maintaining this kind of regulatory knowledge can be challenging. But it is crucial and necessary to follow local legislation.

After, you’ll have to determine the best way to pay your international employees. This can be done in a number of ways, including but not limited to:

Pay through a local entity

One of the most challenging (and expensive) parts of paying international employees is setting up the infrastructure to do so.

Before you start to run payroll, you have to register your company as the local employer in the country the worker resides in. As you can see in the “Set up a subsidiary” section, this is a multi-step process that can take up to a year and put you on your way to bankruptcy.

Work with an EOR

Outside of EORs acting as the full admin employer, many also provide remote payroll.

For example, at Panther, in just 1-click, you’re able to pay your entire global team, anywhere in the world. We send you an invoice each month, charge you in US Dollars, and pay your employees the same amount in their local currency.

We factor in currency fluctuations and use the mid-market rate plus any applicable fee passed on by our provider at cost at the time of billing.

Cape Verde

 Specific Information

Working Hours

The standard working hours in Cape Verde is 44 hours.


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.

Payroll Tax



  • Social security Fund

Minimum Wage

The Cape Verde minimum wage is 11,000 Cape Verdean escudos per month in the private sector. 12,000 Cape Verdean escudos per month for an entry-level worker in the public sector.


Pay Cycle

In Cape Verde, employees are typically paid on a monthly basis.

13th Salary

Employers in Cape Verde bonuses are not required but are a common.


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.