Zimbabwe Employer of Record & Payroll
What is the main language spoken in Zimbabwe:
Zimbabwe is the country with the most official languages in the world, totalling 16, and it’s a Guinness World Record!
The lingua franca is English, and since the adoption of its 2013 Constitution, the 16 official languages are: Chewa, Chibarwe, English, Kalanga, Koisan, Nambya, Ndau, Ndebele, Shangani, Shona, sign language, Sotho, Tonga, Tswana, Venda, Xhosa.
The country’s main languages are Shona, spoken by over 70% of the population, and Ndebele, spoken by roughly 20%.
What type of employment contracts can you offer in Zimbabwe:
Through our employer of record (EOR) solutions in Zimbabwe, we can offer the following types of employment contracts:
- Fixed Term
- Indefinite term
Contracts and Offer Letters must be:
- Be in writing
- Be in the official local language and the local currency
- Include salary/compensation, benefits and termination requirements
Full-time Employees:
- Have specific working terms and conditions
- Can be eligible for organizational perks and/or other benefits
- Tend to be more focused [as only one employer] and familiar with the specific business – due to e.g. ongoing company training etc.
- Probationary period is 3 months [standard]
What income is taxable in Zimbabwe:
Any income earned in the form of cash, wages, salary, overtime, leave pay or payment in lieu of leave, commissions, gratuity, bonus, or any amount that has benefited the employee. All income will be taxed in accordance with the law and the final payroll issued monthly.
What income is exempt from taxes in Zimbabwe:
Pension received from a pension fund or the Consolidated Revenue Fund is exempt from Income Tax. Where an employer disposes of a motor vehicle to an employee whether on termination of employment or otherwise, the benefit is exempt from tax.
The tax-free threshold amount for employees bonus and performance awards was increased to ZWL$500,000 with effect from 1 November 2022 from ZWL$100,000. The tax-free threshold for those paid in USD remains at US$700.
Standard working hours: Number Overtime to be paid?
- 8.5 hours per day and 44 hours per week. This is set by collective bargaining agreements or other agreements.
- 150% of the normal wage is the minimum overtime rate.
- When overtime is on a public holiday, a 200% premium over the normal salary must be paid.
Mandatory contributions?
Employee
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
National Social Security Authority (NSSA) |
3% |
ZWL 500 |
|
National Health Insurance (NHIF) |
5% |
ZWL 700 |
|
National Training Fund (NTF) |
0.5% |
ZWL 700 |
|
Funeral Assurance |
1% |
None |
Employer
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
National Social Security Authority (NSSA) |
3% |
ZWL 500 |
|
National Health Insurance (NHIF) |
3% |
ZWL 700 |
|
National Training Fund (NTF) |
1% |
ZWL 700 |
|
Workers Compensation Insurance Fund |
0.5% |
None |
|
Funeral Assurance |
0.5% |
None |
Social
| Contribution Type | Employers | Employees |
|---|---|---|
|
National Social Security Authority (NSSA) |
Yes |
Yes |
|
National Health Insurance (NHIF) |
Yes |
Yes |
|
National Training Fund (NTF) |
Yes |
Yes |
|
Workers Compensation Insurance Fund |
Yes |
No |
|
Funeral Assurance |
Yes |
Yes |
What is the Maternity and Paternity policy within Zimbabwe:
Maternal leave:
- In most cases:
- Once a minimum of 1 year / 12 months employment has been completed
- Paid maternal leave can be taken only once every 2 years
- Maternal leave must not be more than 3 times while working with an employer – thereafter, it is unpaid
- 14 weeks / 98 days [45 days can be taken before birth]
Paternal leave:
- Up to 12 days of unpaid leave
What type of leave is allowed in Zimbabwe:
Annual leave
After completing 1 year of employment, an employee can accrue a month of paid annual leave every year for up to 90 days.
Saturdays, Sundays, and holidays falling during this vacation are also counted as a vacation.
Sick Leave
- Employees in Zimbabwe are entitled to 180 days of sick leave per year. With a medical certificate, an employee can get fully paid for 90 days of medical leave. A written opinion from the doctor is then needed for further extending it to another 90 days.
Do I need to pay a mandatory bonus annually OR is it discretionary in Zimbabwe:
There is no statutory requirement to provide a bonus or 13th salary in Zimbabwe.
However, where possible, bonuses are generally paid, and are relative to seniority and levels of performance.
What Gratuity / Severance payments do you need to provide for Zimbabwe:
Severance:
- In accordance with the Labor Act, severance pay is available only for collective dismissals for economic reasons, i.e., retrenchment.
- Although Retrenchment Board fixed the severance pay differently depending on the ability of the organization to pay, the most usual is 03 months’ pay for one year of service.
CAN YOU GIVE FRINGE BENEFITS IN Zimbabwe:
Yes you can but keep in mind that Fringe Benefits will be subject to employee PAYE tax. Only benefits that cannot be converted to cash will not be subject to tax. If the employer covers some of the employees expenses i.e. mobile phone then it must be subject to PAYE tax and either the employer will cover this portion for the employee or the employee will bear the PAYE tax.
Mandatory Probation period of Zimbabwe:
As per Zimbabwe employment laws, a casual or seasonal worker has a probation period of 1 day. But for other instances of full-time employment, the standard probation period in Zimbabwe is 3 months.
Is 13th month pay (Bonus) mandatory?
Not mandatory, applicable as per contract.
What are the Corporate and VAT / Sales tax rates in Zimbabwe:
Corporate Tax Rates: 24.72% [in general]
VAT / Sales Tax Rates: 15% [on most goods and services]
Public Holidays in Zimbabwe:
What Industries we support in Zimbabwe:
- Non-Governmental Organization’s (NGO) / Non- profit
- Engineering & Construction
- Government / Development Agencies
- Oil & Gas
- FMCG & Manufacturing
- Private Equality, Finance, Insurance & Banking
- Mining
- Agriculture
The information provided above is for an “informative decision” and may change at any given time without prior notice. We always suggest speaking to one of our Sales Consultants before engaging in country.
