Employer of Record in Namibia

Hiring independent contractors has boomed in popularity because of the cost savings and flexibility they offer. It can be a great option if you require niche skills or short-term project support. Contractors allow businesses to access specialized skills quickly, without the time and cost of setting up a local entity.

However, it’s important to know the limits of this model: contractors are not a substitute for full-time employees. Relying on them for ongoing, long-term roles can create serious compliance risks, including employee misclassification, which can lead to fines, back taxes, and reputational damage.

Playroll’s contractor management solutions make it simple to compliantly engage, onboard, and pay contractors around the world. We provide clear visibility into agreements, streamline payments, and reduce compliance risks – so you can focus on getting the work done. And when you’re ready to take the next step, we can help seamlessly convert contractors into full-time employees through our global Employer of Record service.

Businesses can only operate smoothly in Namibia if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Namibia below, to avoid any compliance issues.

Employment Contract Requirements

Namibia has a well-established labour law system based on Common Law, Case Law, and Legislation. This ensures a clear and reliable legal environment for both employers and employees.

• Employee and Employer details
• Commencement date
• Duration of employment
• Job description

Onboarding Process

We can help you get a new employee started in Namibia quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations.

For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Namibia

The Labour Act, 2007 states that a regular workweek is 45 hours. Employees working 5 days or less, shouldn't work more 9 hours a day. For a 6-day workweek, the daily limit is 8 hours.

Overtime in Namibia

If employees work extra hours, they should get paid at least 1.5 times their usual hourly wage. On Sundays or public holidays, it is double.

Probation Period in Namibia

There is no fixed probation period in labour law. Each employer can decide the length of the probationary period according to their preferences and needs, as outlined in the employment contract.

Global expansion shouldn't mean losing time to paperwork or dealing with complicated, country-specific HR systems. An Employer of Record helps you keep your focus on talent by handling the operational side of employment in Namibia. That includes onboarding, contract management, payroll processing, and statutory compliance, all aligned with local laws and best practices. The EOR guarantees that employees are legally employed and properly supported from day one.

This streamlined setup allows you to prioritize recruiting the best people and integrating them into your company culture. Your team stays lean, and you avoid getting caught up in the details of local processes or shifting regulations. For founders, global hiring managers, or HR teams working across borders, an EOR multiplies your impact, reducing admin time, preventing errors, and helping ensure that new hires have a smooth experience from the get-go.

Managing payroll in Namibia requires careful attention to several key tax obligations and compliance requirements. Employers must navigate the progressive income tax system with rates from 0-37%, ensure proper social security contributions (0.9% from both employer and employee, with a maximum contribution of NAD 81 per month each), and for larger businesses, manage the vocational education and training levy (1% of payroll). Monthly submission deadlines, particularly the 20th of each month for PAYE remittance, are critical compliance points.

Proper registration with authorities, accurate calculation of deductions, and timely payment of salaries by month-end are essential practices. Using payroll management software can help employers consolidate payroll data, automate calculations, ensure accurate statutory deductions, and maintain compliance with Namibia's evolving tax regulations.

Hiring in Namibia means taking on local payroll obligations, which often include unique tax rates, contribution rules, and strict documentation. If you're not familiar with the system, or don't have a local entity, it’s easy to make mistakes. That’s where an Employer of Record ccomes in. The EOR manages payroll for your team on your behalf, ensuring every process is accurate, timely, and legally compliant.

Key Ways an EOR Supports Payroll in Namibia:

• Full Legal Compliance: Ensures all payments, deductions, and filings meet country-specific requirements.
• Payroll Setup & Processing: Handles salary calculations, tax withholdings, and local reporting obligations.
• Statutory Benefit Contributions: Pays into required social programs and manages country-mandated benefits.
• Employee Documentation: Generates compliant contracts and manages hiring and termination paperwork.
• Local Currency Payouts: Delivers salaries in local currency, avoiding delays or exchange rate issues for employees.

In Namibia, work permits and visas are essential for employers hiring foreign workers. The process involves selecting the appropriate visa type, gathering required documents, and submitting applications to Namibian authorities. The key visa types include the Short-Term Work Visa for temporary assignments, the Long-Term Work Permit for extended employment, and the Business Visa for business-related activities. Employers must ensure compliance with local labor laws, demonstrate proof of recruitment efforts, and meet specific eligibility criteria when sponsoring foreign employees. Processing times can vary from weeks to months, and renewals require timely submissions to maintain employment authorization.

Mandatory Leave Entitlement in Namibia

The annual leave entitlement in Namibia is 20 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Namibia

Namibia's Public Holidays Act, Act 26 of 1990, designates 12 public holidays each year. If a public holiday occurs on a Sunday, the subsequent Monday becomes a public holiday, unless Monday is already a public holiday.

Paid Time Off in Namibia

The calculation for annual leave days in Namibia is determined by multiplying the number of agreed weekly working days by four. A 5-day working week results in 20 working days of annual leave, while a 6-day working week results in 24 working days of annual leave.

Maternity Leave In Namibia

Employees who have worked continuously for 12 months are entitled to 12 weeks of paid leave, with 4 weeks required to be taken before the child's birth. During this period, the employee will receive 100% of their salary, and both Social Security and the employer are responsible for providing this compensation.

Paternity Leave In Namibia

Namibian law does not mandate paternity leave.

Sick Leave In Namibia

Employees in Namibia are entitled to paid sick leave for a period of up to 30 days within a three-year cycle for five-day per week employees, and 36 days for six-day per week employees. During this sick leave, employees receive full compensation, with payment set at 100%.

Parental Leave In Namibia

There is no specific law addressing parental leave. However, employees might be eligible for maternity leave and paternity leave, subject to the policies and practices of individual employers.

When hiring across multiple countries, maintaining consistency in how you deliver employee benefits quickly gets tricky. Each country, including Namibia, has its own legal rules, cultural norms, and contribution systems. An Employer of Record helps you strike the right balance between global structure and local compliance. They take over the complexity of delivering benefits that are aligned with Namibia’s legal requirements and competitive with local market expectations.

From ensuring statutory benefits are in place to managing local onboarding timelines and enrollment systems, the EOR provides a seamless experience for both employer and employee. This makes it easier to grow your team across borders without reinventing your benefits process in each new location. You stay in control of your overall benefits strategy, while the EOR takes care of executing it in a way that works legally and culturally in Namibia. It’s a smarter way to scale benefits globally without losing local relevance.

Termination Process in Namibia

In Namibia, employers cannot terminate employment at will, and dismissal must be justified. Acceptable termination methods include:

• Objective grounds
• Disciplinary dismissal
• Poor job performance due to unsuitability
• Termination by mutual agreement

Notice Period in Namibia

Namibia's Labour Act of 2007 sets the rules for giving notice when ending employment. Instead of notice, the employer can choose to pay the employee the salary they would have earned during the notice time. Both employers and employees must follow these notice periods:

• 1 day if the work period is four weeks or less.
• 1 week if the work period is more than four weeks but less than one year.
• 1 month if the work period is over one year.

Severance in Namibia

Employees are entitled to severance pay only if they are dismissed or resign or retire upon reaching the age of 65 and have completed at least 12 months of continuous service, in line with section 35(1)(c) of the Labour Act 11 of 2007. Severance pay does not need to be paid out where there were fair grounds for dismissal due to misconduct or poor performance. The severance pay is calculated at 1 week of salary for each year of service.