Zambia Employer of Record & Payroll
What is the main language spoken in Zambia:
The main language spoken in Zambia is English. English serves as the official language and is used in government, education, and business sectors. However, it’s important to note that Zambia is a multilingual country with over 70 indigenous languages spoken by various ethnic groups. Some of the major indigenous languages spoken in Zambia include Bemba, Nyanja, Tonga, Lozi, and Lunda.
What type of employment contracts can you offer in Zambia:
Through our employer of record (EOR) solutions in Zambia, we can offer the following types of employment contracts:
- Fixed Term
- Indefinite term
Contracts and Offer Letters must:
- 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 6 months [maximum] – can be done as 2 consecutive probationary periods of 3 months each
WHAT INCOME IS TAXABLE IN Zambia:
What income is exempt from taxes in Zambia:
- Ex-Gratia / by favour Payments
- Medical Expenses or Medical
- Discharge, Funeral expenses
- Employment Expenses
- Fringe Benefits that cannot be converted into cash
- Charitable Contributions
Standard working hours: Number Overtime to be paid in Zambia?
In Zambia, the standard working hours for most employees are typically set at 8 hours per day and 40 hours per week. Any work performed beyond these standard working hours is considered overtime. For each hour of overtime worked, the employee is entitled to receive their regular wage plus an additional 50% of their regular wage.
Mandatory contributions in Zambia?
Employee
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Social Security Fund (CNaPS) |
5% of gross salary |
No specific threshold
|
|
National Health Insurance Fund (CNAM) |
1% of gross salary |
No specific threshold
|
|
National Pension Fund (CNAPS) |
5% of basic salary |
Monthly salary above ZMW 1,000 |
Employer
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Social Security Fund (CNaPS) |
5% of gross salary |
No specific threshold
|
|
National Health Insurance Fund (CNAM) |
1% of gross salary |
No specific threshold
|
|
National Pension Fund (CNAPS) |
5% of basic salary |
No specific threshold |
Social
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Social Security Fund (CNaPS) |
Yes |
Yes |
|
National Health Insurance Fund (CNAM) |
Yes |
Yes |
|
National Pension Fund (CNAPS) |
Yes |
Yes |
What is the Maternity and Paternity policy within Zambia:
Maternal leave:
- A minimum of 12 weeks (84 calendar days).
- Start no earlier than 8 weeks before the expected delivery date.
- Employee is entitled to receive maternity pay equivalent to her normal wages.
- Complications or illness related to pregnancy or childbirth, additional leave may be granted based on medical certification.
Paternal leave:
- 5 days for new born.
Do I need to pay a mandatory bonus annually OR is it discretionary in Zambia:
Employer must pay an employee gratuity of at least 25% of the base pay at the end of a long-term contract period.
What Gratuity / Severance payments do you need to provide for Zambia:
Before employing your employees in Zambia, it is always advisable to understand your risk from an employment perspective. Unfortunately, nothing is guaranteed and in the event that you need to terminate for a valid reason, we always suggest that you know what you are in for in the unlikely event you need to terminate.
Below are the types are terminations in Zambia:
Notice period:
- Calculated based on length of service and employment type
- Prior written notice required
- Can be from minimum:
- 24 hours for a contract of employment for less than 30 days.
- 14 day’s notice for a contract of employment ranging between 1 to 3 months.
- 30 day’s notice for a contract of employment of more than 3 months.
Severance [economic reasons]:
Employees generally entitled to 2 months’ basic pay for each completed year of service.
Please also note: an employer may make changes to the terms of an employment agreement by obtaining consent from the employee. Any adverse alteration to the contract entitles the employee to a severance payout.
Mandatory Probation period of Zambia?
The 2019 Employment Code Act allows for a 3 month probationary period to evaluate a candidate. The probationary period can be extended from 3 to 6 months. The employer has the option to terminate the contract at any time during this period.
What are the Corporate and VAT / Sales tax rates in Zambia:
Corporate Tax Rates: 35% [in general]
VAT / Sales Tax Rates: 16% [on most goods and services]
Public Holidays in Zambia:
What Industries we support in Zambia:
- Non-Governmental Organization’s (NGO) / Non- profit
- Engineering & Construction
- Government / Development Agencies
- Oil & Gas
- FMCG & Manufacturing
- Private Equality, Finance, Insurance & Banking
- Mining
- Agriculture
What Double Tax Treaties are in place in Zambia:
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.
