Employment in Cabo Verde

From the perspective of the working person, employment includes looking for a job, entering into and carrying out the employment relationship, as well as changes to and termination of that relationship. In Cabo Verde, this includes formally employed workers, self-employment and informal employment. Labour statistics for quarter 2 of 2025 recorded 226,360 people in the labour force, 215,317 employed people, an employment rate of 57.4 percent and an unemployment rate of 4.9 percent. Labour underutilisation stood at 23.3 percent. In the first quarter of 2025, 68.9 percent of employment was in the tertiary sector, 23.0 percent in the secondary sector and 8.1 percent in the primary sector. 45.6 percent worked in private companies, 21.6 percent were self-employed and 18.6 percent worked in public administration. Jobseekers can register through the online employment platform (PEPE) or in person at local employment and vocational training centres (CEFP). PEPE provides digital job placement; CEFP are local centres for employment and vocational training. The IEFP, the Institute for Employment and Vocational Training (Instituto do Emprego e Formação Profissional), provides employment and training services. IEFP registration generally requires a minimum age of 18. Its services include job placement, vocational training, support for starting businesses and the PAC employment promotion programme (PAC), established in 2023. Companies can also offer vocational internships through PEPE. No IEFP service fee is specified in the available information. Access to these services is organised on a decentralised basis across the islands; no different rule for individual municipalities is documented. The Labour Code under Legislative Decree 5/2007 (Decreto-Legislativo 5/2007), as amended by 5/2010 and 1/2016, recognises open-ended, fixed-term and contracts for an undetermined duration, as well as temporary agency work, part-time work and telework. A general employment contract generally does not require a specific form. Written form may be requested and is mandatory for fixed-term contracts, special conditions or a non-compete clause. The contract should state at least the parties, the start date, the place of work, the occupational category and the remuneration. A fixed-term contract requires a temporary business need; the reason and duration must be recorded in writing. Including extensions, the fixed term may last no more than five years; otherwise, the employment relationship becomes open-ended. A change of workplace generally requires the working person's consent; the company bears the resulting costs. Normal working hours may not exceed eight hours per day and 44 hours per week. Including overtime, the average upper limit is 48 hours. A collectively agreed adjustment may provide for up to 60 hours per week, but the average over two months may not exceed 50 hours. After no more than five consecutive hours of work, a daily break of at least one hour is required. Daily uninterrupted rest is at least twelve hours, and weekly rest is at least 24 hours and normally falls on Sunday. Night work is paid with a supplement of at least 25 percent of the basic wage, overtime with 35 percent, and work during weekly rest periods or public holidays with 100 percent. For open-ended contracts and fixed-term contracts lasting at least one year, there are 22 working days of annual leave. For shorter contracts, the entitlement is calculated pro rata. The first leave entitlement under an open-ended contract arises after six months of actual service. Leave generally cannot be permanently excluded by a mere agreement; up to 44 days may be accumulated by agreement or for serious operational reasons. In 2026, the statutory minimum wage is 17,000 CVE per month in the private sector and 19,000 CVE per month in the public sector. An amount of 25,000 CVE from 2027 is planned, but must not be treated as an amount already in force. The company must document remuneration and deductions for social security. No general statutory entitlement to a salary for month 13 is established. Social security through the social security system (INPS) is generally mandatory for workers. The company must register no later than 15 days after work begins; the working person's registration is completed through the company or via the portal or a service counter, with a stated deadline of 30 days. Monthly contributions are due by the 15th day of the following month. For dependent employment, the total contribution is 24.5 percent of the relevant wage, of which 16 percent is paid by the company and 8.5 percent by the working person. For domestic workers, the total rate is 23 percent, divided into 15 percent and 8 percent. Non-registration or unpaid contributions may result in arrears and sanctions. Workers must perform the agreed work, follow lawful instructions and comply with attendance, confidentiality and safety rules. Companies must pay wages, register the employment, pay social contributions and comply with working-time, rest-period and leave rules. Collective agreements are deposited with the General Directorate of Labour (Direcção-Geral do Trabalho). Trade-union and strike rights exist. The General Directorate of Labour and the General Labour Inspectorate (Inspecção Geral do Trabalho) are responsible for administering and monitoring working conditions; the employment-policy body (DGE) shapes employment policy and the statistics institute (INE) publishes labour-market statistics. An employment relationship may end by agreement, expiry of a fixed-term contract, termination by the working person, termination by the company or disciplinary termination. When a fixed-term contract expires, compensation may arise: after one year, 21 daily basic wages; thereafter, 15 daily basic wages for each fully completed year; and for periods of up to one year, 1.75 daily basic wages per month on a pro-rata basis. The company must notify the non-renewal of a fixed-term contract at least ten days in advance. An unlawful dismissal may result in reinstatement or compensation. Unpaid and pro-rata accrued leave must be paid out when the employment relationship ends. Formal employment exists alongside a large informal labour market. In the first quarter of 2025, 98,069 employed people, or 46.5 percent, were informally employed; for 2023, an informal rate of 48.7 percent was reported under a protection criterion. Informal work is much more common in rural areas than in cities and often provides weaker access to registration, social protection and enforceable rights. Unemployment insurance and unemployment benefits are outside the employment scope of this post.