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Zambia payroll, hiring, talent management, and compliance requirements for your employees and independent contractors.
Workforce Africa simplifies hiring, payroll, talent management as well as your compliance needs for employees and independent contractors in Zambia. No need for a subsidiary or entity setup. From contracts and onboarding to taxes, payroll, and admin tasks, partnering with us — the Zambia Employer of Record, will help you focus on growth for greater levels of success.
Lusaka
In Zambia, employers can subject employees to a probation period lasting up to three months to evaluate their fit for a particular role. This period may be prolonged once but not beyond three additional months, making the maximum probation duration six months.
Yes
Zambian Kwacha
The minimum wage in Zambia varies depending on the type of employment. For domestic workers, it stands at 1,300 Zambian kwacha per month, while shopkeepers receive 2,722.57 Zambian kwacha per month. General workers' monthly wages stand at 2,313.10 Zambian kwacha.
English
Workforce Africa makes it hassle free to hire and manage your remote staff in Zambia 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 >>
Contracts and offer letters must be in the official language and the local currency.
The maximum probationary period in Zambia is 6 months. It can be two consecutive three-month periods.
An employer must pay an employee a gratuity of at least 25% of the base pay at the end of a long-term contract period.
The minimum age for employment is 15.
Employees are entitled to: One rest day for 24 hours per week; one-hour lunch break per day; and twenty minutes health break per day.
Overtime for working on a public holiday or weekly rest day is calculated at 200% of the employee’s hourly pay rate.
An ordinary workday typically consists of eight hours. Employers may extend the daily work hours without extra pay with the employee's agreement, if the total hours worked in a week do not exceed 48 hours. However, the weekly working hours should be at most 60 for a guard.
There are the official public holidays in Zambia:
January 1 – New Year’s Day
March 8 – International Women’s Day
March 12 – Youth Day
Good Friday
Easter Saturday and Sunday.
Note: When a holiday falls on a Sunday, the following day (Monday) is considered a public holiday. Hence Monday 29th April 2024 is a public holiday.
Easter Monday
April 28 – Birthday of Kenneth Kaunda
May 1 – Labour Day
May 25 – Africa Day
July (first Monday) – Heroes’ Day
July (Tuesday following Heroes’ Day) – Unity Day
August (first Monday) – Farmers’ Day
October 18 – National Prayer Day
October 24 – Independence Day
December 25 – Christmas Day
Two categories of Zambian work permits are accessible to foreigners:
Once in Zambia, switching between permit types is not feasible. Therefore, ensuring that your employees acquire the appropriate permit for their intended stay and work activities is crucial. A Zambia EoR offers this service to help global businesses manage their team expansion.
After completing six months of continuous service, an employee is entitled to receive full pay for a holiday at a rate of two days for each month of service. The vacation period is subject to mutual agreement between the employer and the employee.
Sick Leave: Employees who have served for at least 12 months are entitled to paid sick leave extending up to six months. They receive full pay during the first three months, followed by a subsequent three months at 50%. Individuals employed under shorter contracts are granted 52 days of leave, receiving full pay for the initial 26 days and 50% pay for the next 26 days.
Maternal leave: Any female employee who has worked continuously for a minimum of two years with her employer, either from the initial date of engagement or since her last maternity leave, is eligible for maternity leave lasting 14 weeks with full pay upon presenting a medical certificate confirming her pregnancy, signed by a registered medical practitioner.
Paternal leave: They receive full pay during the first Wek employees with at least 12 months of service are entitled to five consecutive working days of unpaid paternity leave.
Family Responsibility leave: Employees who have completed at least six months of service have the right to seven working days of paid leave to attend to a sick child, spouse, or dependent.
Other leave: Bereavement Leave – Employees have the right to 12 days of compassionate leave with pay upon the death of a spouse, child, parent, or dependent.
Military Service Leave: Not specified by the law
Social Security Contributions: Both employers and employees must contribute to the National Pension Scheme Authority (NAPSA). The contribution rate equals 5% of the employee’s overall earnings, resulting in a total contribution of 10% from both parties, subject to a limit set by the authority.
National Health Insurance Contributions: Employers and employees must contribute monthly to the National Health Insurance Scheme. This contribution equates to 1% of the employee’s basic salary, resulting in a combined contribution of 2% from both parties.
Tax: Personal income tax
Corporate Tax Rate: 30%
In Zambia, the nation's populace can access cost-free healthcare services via the public healthcare system. While employers can offer private health insurance as an additional perk, it is not mandatory under the law. A Zamabia employer of record can help employers make provision of health insurance for their remote employees.
Possible benefits include:
Transportation allowances
Private health insurance
Optional pension schemes
Optional life insurance
Holiday bonuses
The labor laws require employers to provide the following:
Social security contributions
National Health Fund contributions
Paid public holidays
Paid annual and compassionate leave
Paid sick leave
Workman’s insurance
Gratuity at the end of a contract
For every hour of overtime worked, the employee is eligible to receive their standard wage along with an extra 50% of their regular wage.
Termination Process: In Zambia, when terminating a written employment agreement, the employer must offer a legitimate reason for the dismissal related to the employee’s behaviour, ability, or the employer’s operational needs. This ensures fairness throughout the termination procedure. Failing to meet these requirements could result in the employer being held accountable for damages.
Notice Period: Except in misconduct cases, employees have the right to receive a notice period or compensation in place of notice upon contract termination. The minimum notice period varies according to the duration of the contract:
Severance Pay: Employees in Zambia are eligible to receive severance pay upon the termination or expiration of their employment contracts. The following criteria determine the severance pay amount:
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