Workforce Africa simplifies hiring, payroll, talent management as well as your compliance needs for employees and independent contractors in Namibia. No need for a subsidiary or entity setup. From contracts and onboarding to taxes, payroll, and admin tasks, partnering with us — the Employer of Record in Namibia, will help you focus on growth for greater levels of success.

How Employer of Record (EoR) in Namibia Works

Workforce Africa makes it hassle free to hire and manage your remote staff in Namibia without having to first set up a subsidiary or entity in the country. We handle staff contract management and onboarding, payroll, compliance, taxes, and other administrative matters. With Workforce Africa, you can now focus more on strategic activities and growing your business. These items include >>

1. Employment Contracts in Namibia

A. Types of Contracts

Employment in Namibia can be established under various contract types, including:

• Permanent (Indefinite)
• Fixed-term
• Part-time
• Seasonal
• Casual

B. Key Contractual Elements:

Every employment contract should include essential clauses that clearly define the terms of engagement. These typically cover:

• Identification of the employer and employee
• Job title and description
• Primary place of work
• Details of remuneration
• Working hours and leave entitlements
• Notice periods and termination conditions
• Any additional benefits

2. Working Hours in Namibia 

• Standard Working Hours: Employees may work up to a maximum of 45 hours per week. This is typically structured as either 9 hours per day over a 5-day workweek or 8 hours per day across a 6-day workweek, in line with provisions set by the Labour Act.
• Extended Hours for Specific Sectors: Employees in sectors such as security and healthcare may be permitted to work up to 60 hours per week, provided that specific legal and regulatory conditions are met, as outlined in the Labour Act.
• Overtime Compensation: Any hours worked beyond the standard limit must be compensated at a rate of at least 150% of the employee’s regular wage. Work performed on Sundays or public holidays is subject to a higher overtime rate of at least 200% of the normal wage, in accordance with payroll standards.

3. Observed National Holidays and Vacation 

These national holidays are celebrated in Namibia:

• 1 Jan: New Year’s Day
• 21 Mar: Independence Day  
• 18 Apr: Good Friday  
• 21 Apr: Easter Monday  
• 1 May: Workers’ Day  
• 4 May: Cassinga Day  
• 5 May: Public Holiday (in lieu of Cassinga Day Sunday)  
• 25 May: Africa Day  
• 26 May Public Holiday (in lieu of Africa Day Sunday)  
• 28 May: Genocide Remembrance Day  
• 29 May: Ascension Day  
• 26 Aug: Heroes’ Day  
• 10 Dec: Namibian Women’s Day / Human Rights Day  
• 25 Dec: Christmas Day  
• 26 Dec: Family Day

4. Expats, Visas & Work Permits

A. Visa Application

Work Visa (Short- or Long-Term Employment Permit). Foreign nationals intending to work in Namibia must obtain the appropriate work authorization prior to commencing employment. There are two main categories of work permits based on the duration of employment:

B. Eligibility Criteria

Applicants must meet the following requirements to be considered for a work visa:

• Demonstrated proof that the required skills are not readily available within the local labor market
• Valid police clearance certificate from the applicant’s country of residence
• Recent medical report confirming good health
• Certified copies of relevant academic and professional qualifications
• A signed employment contract with the Namibian employer
• A formal motivation letter from the employer justifying the need to hire a foreign national 

C. Permit Types and Duration

• Short-Term Employment Permit: Valid for a period of up to 6 months; typically used for temporary assignments or project-based roles.
• Long-Term Work Permit: Applicable for employment exceeding 6 months; this permit is renewable, subject to ongoing eligibility and compliance with immigration regulations.

D. Application Process

• The employer acts as the sponsor and is responsible for submitting the complete application to the Ministry of Home Affairs, Immigration, Safety, and Security.
• The typical processing time is between 8 to 10 weeks.
• Upon approval, the applicant must have the work permit endorsed in their passport prior to entering Namibia for employment purposes.

A Namibia EoR offers this service to help businesses manage their clients. 

5. Paid Leaves

• Annual Leave: Employees are entitled to a minimum of 20 working days of paid annual leave per 12-month period if they work a 5-day week, or 24 working days for those on a 6-day schedule. This leave is fully paid at 100% of the employee’s regular wage, as stipulated by the Ministry of Labour and Employment Creation.
• Sick Leave: Employees are entitled to 30 working days (for a 5-day workweek) or 36 working days (for a 6-day workweek) of paid sick leave over a 36-month cycle. During the first year of employment, this entitlement accrues proportionally. Full pay is maintained for the first 30 or 36 days; thereafter, employees may qualify for sickness benefits through the Social Security Commission (SSC).
• Maternity Leave: Female employees are entitled to 12 weeks of maternity leave, consisting of 4 weeks before and 8 weeks after childbirth. This period may be extended in the event of medical complications. During maternity leave, the SSC provides income support of up to N$15,000 per month.
• Compassionate Leave: Employees may take up to 5 working days of paid leave annually in the event of the death or serious illness of a close family member. This leave is fully paid, in accordance with Namibian labour regulations.
• Paid Public Holidays: Employees are entitled to paid leave on recognized public holidays, with full wage compensation at 100%.

6. Statutory Deductions

A. Social Security Contributions

In accordance with Namibia’s Social Security regulations, both employers and employees are required to contribute to the Social Security Commission (SSC) on a monthly basis. The contribution structure is as follows:

• Employer Contribution: Employers are obligated to contribute 0.9% of each employee’s gross monthly earnings. However, the contribution amount is subject to a minimum of N$2.70 and a maximum cap of N$81.00 per employee per month.
• Employee Contribution: Employees must also contribute 0.9% of their gross monthly income, with the same contribution range applied—N$2.70 minimum and N$81.00 maximum per month.

These contributions support various statutory benefits, including sick leave, maternity benefits, and social welfare coverage, as administered by the SSC.

B. Tax Brackets & Rates

Taxable Income (N$)	Tax Payable
0 – 100 000	0%
100 001 – 150 000	18% of excess over 100 000
150 001 – 350 000	N$9 000 + 25 % of excess over 150 000
350 001 – 550 000	N$59 000 + 28 % of excess over 350 000
550 001 – 850 000	N$115 000 + 30 % of excess over 550 000
850 001 – 1 550 000	N$205 000 + 32 % of excess over 850 000
1 550 001 and above	N$429 000 + 37 % of excess over 1 550 000

• Corporate Income Tax: 31%.
• Value-Added Tax: 15%.

7. Health Insurance

There is no universal national health insurance fund. SSC’s maternity, sick leave, and death benefits are financed by the 0.9% SSC payroll levy. Employers usually top up cover with private medical aid schemes for employees and dependents.

8. Additional Compensation and Benefits

While not mandated by law, some employers might offer additional benefits, such as:

• Health care – public facilities exist but are limited; many employers provide private medical-aid cover.
• Maternity cash benefit – Social Security Commission (SSC) pays 100% of the basic wage (capped at N$15,000/month) for up to 12 weeks.
• Workers’ Compensation – employers contribute 1%–8% (risk-based) on payroll to the Employees’ Compensation Fund.
• Pension/Retirement – voluntary occupational schemes are common; there is no statutory national pension yet (under review).

9. Termination/Severance in Namibia 

A. Probationary Period:

There is no statutory limit on the duration of a probation period. However, a three-month probation is commonly observed and may be extended by mutual agreement.

B. Termination of Employment

Employment may legally be terminated under the following grounds:

• Expiry of a fixed-term contract
• Employee resignation
• Mutual agreement between parties
• Redundancy or operational requirements
• Incapacity due to illness or injury
• Misconduct or poor performance (subject to fair procedure)

C. Notice Periods:

• Less than 4 weeks of service: 1 working day
• 4 weeks to less than 1 year of service: 1 week
• 1 year or more of service: 1 full calendar month

D. Severance Pay:

Employees are entitled to severance pay upon dismissal (except in cases of fair dismissal due to misconduct or poor performance), as well as in cases of death or retirement at the age of 65 or older. The amount payable is equivalent to one week’s remuneration for each completed year of continuous service.