Seven years after Rwanda adopted a law providing for the establishment of a minimum wage, the country is still waiting for the ministerial order required to determine and implement it.
Law No. 66/2018 of August 30, 2018, governing labor in Rwanda, stipulates that a minimum wage should be set through a ministerial order issued by the minister responsible for labor. However, despite growing calls from workers and labor advocates, the regulation has yet to be enacted.
The delay has fueled public debate, particularly as many employees in the private sector continue to raise concerns about low wages amid rising living costs.
Government Cites Need for Caution
In December 2024, then-Prime Minister Dr. Edouard Ngirente explained that determining a national minimum wage requires careful consideration due to its potential impact on businesses, households, and the broader economy.
He noted that while discussions on the issue were ongoing, any decision would need consensus among relevant stakeholders before being submitted to the Cabinet for approval.
Ngirente emphasized that introducing a minimum wage is not as straightforward as simply setting a figure, as it could affect employers ranging from large companies to households employing domestic workers.
Calls for Dialogue Between Employers and Workers
The issue resurfaced in February 2026 during discussions between Rwanda’s Parliamentary Commission on National Unity, Human Rights and the Fight Against Genocide and the Ministry of Public Service and Labour (MIFOTRA).
Lawmakers highlighted concerns that many private-sector workers continue to earn salaries that struggle to meet basic living expenses. They questioned why the minimum wage framework had not yet been finalized.
Responding to the concerns, Minister of Public Service and Labour Ambassador Christine Nkulikiyinka said the government remains engaged in consultations because setting a minimum wage is a significant policy decision that requires input from multiple institutions.
In the meantime, she encouraged employers and employees to negotiate wages through Collective Bargaining Agreements (CBAs), which allow both parties to agree on salaries and working conditions based on the realities of their respective sectors.
According to MIFOTRA, such agreements have already proven effective in industries including mining and tea production, where workers and employers have successfully negotiated compensation packages.
Productivity Before Wage Mandates
Prime Minister Dr. Justin Nsengiyumva also weighed in on the matter during a press briefing on June 5, 2026, stressing that the government’s priority is ensuring that workers earn wages that reflect the value of their work.
However, he warned that imposing a minimum wage without considering employers’ capacity could have unintended consequences, including job losses.
Using the example of a business employing ten workers, Nsengiyumva explained that a mandatory wage increase could force some employers to reduce their workforce if they are unable to absorb higher labor costs.
He argued that increasing productivity remains the most sustainable path to improving workers’ incomes, suggesting that higher output and business growth would naturally create room for salary increases.
An Outdated Benchmark
Rwanda’s current minimum wage framework dates back to 1974, when the daily minimum wage was set at 100 Rwandan francs. While the figure remains legally recognized, many observers argue that it no longer reflects current economic realities.
As consultations continue, the question remains whether Rwanda will eventually introduce a modern minimum wage or continue relying on sector-based negotiations and productivity-driven wage growth as the preferred approach.
SOURCE: UMUSEKE