Navigating the complex labour laws governing employment practices is essential when running Zimbabwe payroll. However, building an in-house compliance team may not be the most efficient way to manage your remote team’s payroll in Zimbabwe.

Regardless of size, global companies need help to secure in-country expertise for localised payroll service. This is where a partner like Workforce Africa provides significant value in supporting global firms to maintain compliance when handling payroll in Zimbabwe, addressing every intricate detail, including;

benefits administration, and more (health insurance, pension, paid leaves, holiday compensation, salary computation requirements, taxation legislation specifics (social security, employee income tax, corporate tax, VAT and other employee deductions.

Workforce Africa simplifies hiring and payroll compliance for offshore talent management in Zimbabwe. No need for a subsidiary or entity setup. From contracts and onboarding to taxes, payroll, and admin tasks, partnering with us – a payroll firm in Zimbabwewill help you focus on growth for greater levels of success.

A. Employment Contract Termination

Recognised termination grounds include mutual agreement, expiry of contract, incapacity, misconduct, retrenchment, and other agreed grounds.

Probation: Up to 3 months, with possible extension by written agreement.

Notice periods (based on length of service):

• Up to three months, casual, or seasonal work: 1 day
• Three to six months: 2 weeks
• More than six months but less than one year: 1 month
• More than one year but less than two years: 2 months
• Two years or more, or indefinite contracts: 3 months

Severance pay: Not automatic unless contract provides or retrenchment applies. Retrenchment compensation is commonly negotiated and may be around one month salary per year of service, subject to employer capacity.

B. Country Overview

Zimbabwe, officially the Republic of Zimbabwe, is a landlocked country in Southern Africa with its capital in Harare. Key sectors include mining, agriculture, and services, with tourism also important, and its Roman-Dutch and common-law-influenced, English-language legal system, alongside regional ties such as SADC and COMESA, can support regional market entry for international employers.

Zimbabwe’s low labour costs and abundant natural resources continue to make it an attractive destination for businesses seeking expansion opportunities in Southern Africa.

Although Zimbabwe possesses a highly skilled workforce, hiring and establishing a team can be time-consuming and challenging. However, partnering with an Employer of Record (EOR) or Professional Employer Organisation (PEO) in Zimbabwe facilitates swift market entry. It manages all legal complexities associated with operations in the country.

C. Payroll Processing in Zimbabwe

Local labour laws in Zimbabwe govern payroll processing, with each employee’s salary potentially calculated differently. Due to compliance concerns, processing payroll at scale can become complex, cumbersome, and risky. Here are the phases of payroll processes global businesses should understand-:

• Pre-payroll Phase: Set clear policies and compliant processes (entity and employee set-up, work-location rules, leave and working-time alignment with Zimbabwe standards) while collaborating with compliance partners.
• Payroll Calculation Phase: Collect and validate inputs to compute base pay, allowances, overtime, and statutory deductions accurately, using secure systems and digital workflows to reduce error.
• Post-payroll Phase: Disburse net pay, remit PAYE and social contributions on time, file required returns, administer benefits, and reconcile records to minimise penalties and support audits.

D. Payroll Components in Zimbabwe

Here are some aspects comprehensively needed to navigate Zimbabwe’s payroll compliance:

• Salary / Wages
• Overtime premiums
• Social-security contributions
• Health-insurance cover
• Payroll taxes (corporate & personal)
• Paid leave & public holidays
• Other statutory benefits

E. Navigating Zimbabwe Payroll Compliance

Salary and minimum wage: General minimum wage is commonly referenced as USD 150 per month.

Working hours and overtime:

• Standard working time is commonly 8 hours per day, with a weekly range depending on sector.
• Overtime is commonly paid at 1.5 times on weekdays and 2 times on Sundays or public holidays.

Social security (NSSA):

• Pension and Other Benefits Scheme contributions are shared equally, 4.5 percent employer and 4.5 percent employee, total 9 percent.
• Employers must also comply with workplace injury and compensation requirements administered through NSSA schemes.

Health insurance: No universal healthcare coverage. Employers often provide private medical insurance or medical aid.

Personal income tax (PAYE): Withholding applies based on monthly schedules. A common USD monthly table includes:

• 0 to 100: 0 percent
• 100.01 to 300: 20 percent, less 20
• 300.01 to 1,000: 25 percent, less 35
• 1,000.01 to 2,000: 30 percent, less 85
• 2,000.01 to 3,000: 35 percent, less 185
• 3,000.01 and above: 40 percent, less 335

Aids levy: 3 percent of the individual’s tax payable.

Corporate income tax: 25 percent.
VAT: 15 percent. contracts and 1 month for fixed-term contracts; termination during probation follows reduced notice rules.

IX. Payroll Taxes Summary:

Taxes	Employer	Employee	Details
NSSA pension contributions	4.5%	4.5%	Shared contributions, total 9%.
Health insurance	Not a separate statutory payroll rate stated	Not a separate statutory payroll rate stated	Typically provided as private medical cover.
Income Tax (PAYE)	0%	Variable	Withheld at source using monthly schedules.
Aids levy	0%	3% of tax payable	Charged on the individual’s tax payable.
VAT	Not payroll	Not payroll	Standard VAT 15%.
Corporate Income Tax	Entity level	N/A	Standard rate 25%.

F. Paid Leaves

Paid annual leave: Minimum 30 calendar days per year, commonly treated as 22 working days, accruing at 2.5 days per month.

Sick leave: Up to 90 days on full pay and a further 90 days on half pay in a year, subject to certification.

Maternity leave: 98 days on full pay, typically subject to service conditions and limits on frequency.

Paternity leave: No statutory entitlement, depends on employer policy or collective agreements.

Paid Public Holidays

Public holidays typically include New Year’s Day, Independence Day, Workers’ Day, Africa Day, Heroes Day, Defence Forces Day, National Unity Day, Christmas Day, Boxing Day, and Easter holiday

G. Payroll Outsourcing in Zimbabwe

Payroll in Zimbabwe also encompasses probation rules, notice/severance entitlements, and multiple employer social charges. Employers should align contracts and policies with the Labour Code (e.g., probation, notice, severance, working time, leave) to avoid disputes and penalties.

Collaborate with an Africa employer of record and payroll solutions provider such as Workforce Africa to strategically outsource your payroll operations while ensuring compliance with local labour regulations. Additionally, leverage our flexible service offerings to expand your international teams as needed.