Namibia Employer of Record & Payroll
Africa Deployments Namibia offers our clients Employer of Record (EOR) services covering all of the regions within. We offer full-time employment or fixed terms contracts based on your requirements in Namibia for locals or expatriates. ADS will take care of the work permit under our umbrella and will issue local work contracts to your contractors. We will also advise our client’s on best Human Resource (HR) practices when setting up the employee’s locally in Namibia.
ADS takes care of the local tax & PAYE remittances to the Revenue Services on a monthly basis ensuring that they are fully compliant with the law. We will also ensure that their salaries are paid on time monthly and issue them with their pay slips.
Few countries in Africa can match Namibia’s sheer natural beauty.
Namibia is home to ±2.67 million people and is 824 292km² in size.
The country’s name derives from its (and the world’s) oldest desert, the Namib, and there are few more stirring desert realms on the planet – from the stunning sand sea and perfect dead-tree valleys at Sossusvlei to the otherworldliness of sand dunes plunging down to the ocean at Sandwich Harbour and the Skeleton Coast
What is the main language spoken in Namibia:
In Namibia, English is the sole official language in, but only 3% speak it as a home language. Oshiwambo is the most common language spoken. Afrikaans is the most widely understood national language.
What type of employment contracts can you offer in Namibia:
- Fixed Term
- Indefinite term
- Be in writing
- Be in the official local language and the local currency
- Include salary/compensation, benefits and termination requirements
- 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 not specified in Namibia, therefore if required it can be determined within the employment contract between the employer and the employee.
WHAT INCOME IS TAXABLE IN Namibia:
- Reimbursement of relocation costs for an employee moving to Namibia at the beginning and end of an assignment.
- Compensation for officials of other governments or specialized agencies of the United Nations working in Namibia.
- Exclusion of allowances or alimony received from a spouse or former spouse in cases of divorce, judicial order, or written separation agreement.
- Dividend payments received by ordinary residents of Namibia are generally not taxable, but non-residents may be subject to a withholding tax.
- Lump-sum payments received due to the termination, loss, or variation of employment may be exempted from tax under certain conditions, such as redundancy, reaching the age of 55, superannuation, ill-health, or infirmity. The exemption is limited to NAD300,000.
- Salary earned from working abroad may have additional tax implications but is not specifically mentioned in the given information.
Standard working hours: Number Overtime to be paid?
- The work week should not exceed 45 hours.
- Overtime should not exceed 10 hours per week.
- Overtime work must be compensated with additional payment or time off.
- The specific rate for overtime payment may vary and should be determined based on the employment contract or collective bargaining agreement.
- Overtime rates are typically higher than regular rates, such as 1.5 times the regular hourly wage.
- Namibian labor laws aim to protect employees from excessive working hours and ensure fair compensation for additional work performed beyond standard working hours.
Mandatory contributions?
Employee
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Maternity Leave, Sick Leave, and Death Benefits Fund |
0.9% of basic salary |
No specific threshold |
|
Workmen's Compensation |
Contribution rates vary based on occupational risk |
Annual remuneration exceeds NAD 81,300 (exclusion) |
|
Property Taxes |
Levied by municipalities |
Based on property valuations |
|
Luxury and Excise Taxes |
Rates vary based on product category and production |
- |
|
Stamp Duty |
Amount varies based on nature of each transaction |
- |
Employer
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Maternity Leave, Sick Leave, and Death Benefits Fund |
0.9% of basic salary |
No specific threshold |
|
Workmen's Compensation |
Contribution rates vary based on occupational risk |
Annual remuneration exceeds NAD 81,300 (exclusion) |
|
Property Taxes |
Levied by municipalities |
Based on property valuations |
|
Luxury and Excise Taxes |
Rates vary based on product category and production |
- |
|
Stamp Duty |
Amount varies based on nature of each transaction |
- |
Social
| Contribution Type | Employers | Employees | |
|---|---|---|---|
|
Maternity Leave, Sick Leave, and Death Benefits Fund |
0.9% of basic salary |
0.9% of basic salary |
|
|
Workmen's Compensation |
Contribution rates vary based on occupational risk |
Contribution rates vary based on occupational risk |
Annual remuneration exceeds NAD 81,300 (exclusion) |
|
Property Taxes |
Levied by municipalities |
- |
|
|
Luxury and Excise Taxes |
Rates vary based on product category and production |
- |
|
|
Stamp Duty |
Amount varies based on nature of each transaction |
- |
What is the Maternity and Paternity policy within Namibia:
- 12 weeks [generally a minimum of 8 weeks to be post birth]
- A certificate from a medical practitioner may be necessary
- Maternal leave may only be applicable after 12 months of employment
- No statutory paternity leave is currently in place in Namibia
What type of leave is allowed in Namibia:
- 24 days, full pay per year.
- employees are entitled to 30 days of annual sick leave or 36 if they work six-day weeks.
Do I need to pay a mandatory bonus annually OR is it discretionary in Namibia:
In Namibia, guaranteed and performance-based bonuses are common and generally paid out annually.
What Gratuity / Severance payments do you need to provide for Namibia:
- Severance payments may be required if an employee’s position becomes redundant due to the employer’s personnel reduction.
- The amount of severance pay may vary based on factors such as years of service, employment contract terms, and collective bargaining agreements.
- Severance payments may be applicable when an employee reaches the retirement age or superannuation age.
- The specific amount of severance pay may depend on factors such as years of service and employment terms.
- Severance payments might be required if an employee’s termination is due to ill-health or other infirmity.
- The amount of severance pay may depend on various factors, including the employee’s health condition and the terms of employment.
- Lump-sum payments may be provided in certain situations such as relinquishment, termination, loss, repudiation, cancellation, or variation of employment.
- Exemptions apply if the employee became redundant, the employer ceased or intends to cease the relevant trade, or the employee has reached the age of 55.
- The exemption is limited to a maximum amount of NAD 300,000.
CAN YOU GIVE FRINGE BENEFITS IN Namibia:
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 Namibia:
The probation period in Namibia is not specified in the applicable labor laws.
Is 13th month pay (Bonus) mandatory?
Not mandatory, applicable as per contract.
What are the Corporate and VAT / Sales tax rates in Namibia:
Corporate Tax Rates: 32% [in general]
VAT / Sales Tax Rates: 15% [on most goods and services]
Public Holidays in Namibia:
- January 1 - New Year's Day
- January 2 - New Year's Day
- March 21 - Independence Day
- April 07 - Good Friday
- April 09 - Easter Monday
- May 01 - Worker's Day
- May 04 - Cassinga Day
- May 18 - Ascension Day
- May 25 - Africa Day
- August 26 - Heroes Day
- December 10 - International Human Rights Day
- December 11 - International Human Right Day
- December 25 - Christmas Day
- December 26 - Day of Goodwill
What Industries we support in Namibia:
- 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.
