Zambia Employer of Record & Payroll
Africa Deployments (ADS) Zambia offers our clients Employer of Record solutions in Zambia covering all of the regions within. As your Employer of Record, we offer full-time employment or fixed terms contracts based on your requirements in Zambia for locals or work permits for 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 Zambia. We work with a large number of development agencies and NGO’s in addition to working with the private sector.
ADS as your Employer of Record, 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.In addition to our services we can offer you the employee in Zambia, Medical, Disability, Life and Workmen’s Compensation Insurances.
Zambia, in southern Africa, is a landlocked country of rugged terrain and diverse wildlife, with many parks and safari areas. On its border with Zimbabwe is famed Victoria Falls – indigenously called Mosi-oa-Tunya, or “Smoke That Thunders” – plunging a misty 108m into narrow Batoka Gorge. Spanning the Zambezi River just below the falls is Victoria Falls Bridge, a spectacular viewpoint.
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:
Any individual who works and lives in Zambia for more the 183 days a year will be subject to local taxes in Zambia. The Taxable income will be based on emoluments which include, wage, overtime, leave pay, commission, fee, bonus, gratuity, benefit, allowances, pension or annuity paid, given or granted under any employment or office held. All of these are considered part of taxable income and will be subject to PAYE. Cars and accommodation provided by the employer will not be taxed and employer will be liable for this tax.
Cash benefits paid in the form of allowances will be taxed in accordance with the Zambia Tax Authority for PAYE. These benefits are constituted as housing, car/transport/fuel, mobile phone/data, study, and any form of allowance that is considered a cash benefit to the employee.
Non-Resident Contractors are taxed at a flat rate of 20%. Expatriates in Zambia are subject to Zambian tax rates and there are no special reliefs or concessions.
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:
- January 1 - New Year's Day
- March 8 - Women's Day
- March 12 - Youth Day
- April 07 - Good Friday
- April 08 - Holy Saturday
- April 10 - Easter Monday
- April 28 - Kenneth Kaunda Day
- May 1 - Labour Day
- May 25 - African Unity Day
- July 03 - Heroes' Day
- July 04 - Unity Day
- August 07 - Farmers' Day
- October 18 - National Prayer Day
- October 24 - Independence Day
- December 25 - Christmas Day
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.
