Cabo Verde Social Contributions Guide 2026

Overview — Social Security in Cabo Verde

Cabo Verde's social security system is a contributory social insurance scheme providing retirement pensions, health insurance, disability benefits, and occupational injury coverage. The system is funded by mandatory contributions from both employees and employers. The main institution is INPS (Instituto Nacional de Previdência Social), which administers the general social security regime. All employees in the formal sector must be registered with INPS and make monthly contributions. Self-employed individuals may contribute voluntarily to the system. The contribution rates and caps are set by legislation and may be adjusted periodically.

INPS Contribution Rates — 7% EE + 11% ER

INPS contribution rates for employed workers are:

• Employee contribution — 7% of gross monthly salary
• Employer contribution — 11% of gross monthly salary
• Total INPS rate — 18% of gross monthly salary

INPS contributions are capped at a monthly salary ceiling of CVE 250,000. This means contributions are calculated on the lower of actual gross salary or CVE 250,000. For an employee earning the maximum cap, the monthly contribution is CVE 17,500 employee and CVE 27,500 employer, totalling CVE 45,000 per month. The cap limits the maximum pension benefit but also provides cost predictability for employers.

Health Insurance Coverage

A portion of the INPS contributions funds health insurance coverage for employees and their dependants. The health insurance component provides access to public and private healthcare services including:

• Primary care — doctor consultations at INPS-affiliated clinics
• Hospitalisation — coverage for inpatient treatment
• Medications — partial reimbursement for prescribed medicines
• Maternity care — prenatal, delivery, and postnatal coverage
• Dental care — basic dental services

The INPS health system operates alongside private health insurance, which many employers provide as a supplementary benefit, particularly in the tourism and services sectors.

Occupational Hazards — 0% EE, Covered by ER

Occupational hazard coverage (acidentes de trabalho e doenças profissionais) is funded entirely by the employer through the general INPS contribution. No separate employee contribution is required for this coverage. The system covers:

• Medical expenses related to workplace accidents
• Temporary disability benefits during recovery
• Permanent disability pensions
• Survivor benefits in case of fatal accidents

FAQs

Are social security contributions deductible for tax purposes?

Yes, both employee and employer social security contributions are deductible. Employee contributions are deductible from gross salary before IRS calculation. Employer contributions are deductible as business expenses for IRC purposes.

Can I contribute to INPS if I am self-employed?

Yes, self-employed individuals may join the INPS voluntary scheme. Contributions are based on declared income, subject to the same minimum and maximum thresholds. Voluntary membership is recommended to build retirement savings and access health coverage.

What happens to my INPS contributions if I leave Cabo Verde?

Cabo Verde has social security agreements with certain countries including Portugal and other CPLP (Community of Portuguese Language Countries) members. Under these agreements, contribution periods may be aggregated for pension eligibility. If no agreement exists, you may withdraw your personal contributions in certain circumstances.

Disclaimer

This guide provides general information about Cabo Verdean social security contributions for the 2026 tax year. Contribution rates and caps may change. Always consult with INPS or a qualified Cabo Verdean financial advisor for advice specific to your situation. InvestmentKit does not provide tax or pension advice.