Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
CVE Esc (Cape Verdean Escudo)
Employer contributions
~16% employer INPS (pension 9% + occupational risk 1% + unemployment 4% + health 2%)
Minimum wage
CVE 14,447/month (2024)
Payment frequency
Monthly
Calendar year (Jan 1 - Dec 31)
Capital
Praia
Timezone
CVT (GMT-1)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~CVE 92,800 total
/month
For a gross salary of
CVE 80,000 gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
~16% employer INPS (pension 9% + occupational risk 1% + unemployment 4% + health 2%)
Mandatory extras
13th Month
Monthly admin
Monthly payroll - INPS by month-end - IUR withholding - annual April return
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
+
A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~CVE 92,800 total
Example gross salary
CVE 80,000 gross/month
~CVE 52,800 net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~CVE 12,800 INPS
Employer contributions on that salary
Employer contributions
~16% employer INPS (pension 9% + occupational risk 1% + unemployment 4% + health 2%)
Employee contributions
~8% employee INPS + income tax (IUR)
Total cost above gross
~16% above gross (INPS)
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~CVE 50,000
Per month
Praia
CVE 60,000 - 200,000
~40%
Mindelo
CVE 50,000 - 160,000
~15%
Monthly gross. National average salary per year:
~CVE 600,000
Minimum wage
CVE 14,447/month (2024)
Paid:
Monthly
Extra pay
13th Month
Common in formal sector
December
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
16.5% flat rate (simplified)
Tax year:
Calendar year (Jan 1 - Dec 31)
Filing calendar
Monthly by last day
Social security payments
April 30
Income tax
By January 31
Employee tax certificate
Certificado de rendimentos
April 30
Annual return
Annual IUR Declaration
Late payment penalties
Late INPS: 1.5% monthly; late IUR: 10% + interest
Who collects what
DNRE
Income tax (IUR)
INPS
Social security
Direcao Geral do Trabalho
Labour law
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Ferias anuais
22 working days/year
Public holidays
~13 public holidays
Sick leave
Doenca
INPS pays from day 4
Maternity leave
13 weeks (90 days) maternity + 5 days paternity
Full pay employer; INPS reimburses
The contracts you can use, and what ending an employment relationship costs.
Permanent
Contrato de Trabalho por Tempo Indeterminado
Fixed term
Contrato de Trabalho a Termo Certo
Independent contractor
Prestacao de Servicos
Collective agreements
Acordo Colectivo
Ending employment
Compensacao por rescisao
How it is calculated
Per Labour Code
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
Island-Based Employment Complexity
Risk Level: MEDIUM
Cape Verde's archipelago structure means employees may work across different islands with varying transport and accommodation cost of living. Structuring fair compensation that meets legal minimums across islands requires attention to local conditions.
INPS Unemployment Fund Registration
Risk Level: MEDIUM
Cape Verde's unemployment insurance fund requires separate employer registration from the general INPS pension. Many employers inadvertently omit the unemployment component. INPS audits assess the full retroactive unemployment contribution.
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Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
150+
countries
$49
per contractor per month
1 run
to pay your whole team
USD
Global Account for every contractor
FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.