Employer of Record in Namibia

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.

Fiscal Year in Namibia

1 March - 28/29 February is the 12-month accounting period that businesses in Namibia use for financial and tax reporting purposes.

Payroll Cycle in Namibia

The payroll cycle in Namibia is usually monthly, with employees being paid by the last day of the month.

Minimum Wage in Namibia

The minimum wage for employees in Namibia is typically 18 NAD per hour, amounting to ~3 132 NAD per month for a typical 45 hour work week.

Bonus Payments in Namibia

There is no specific law regulating the provision of a 13th salary.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 1.9 - 8.9% on top of the employee salary in Namibia.

Employee Payroll Tax Contributions

In Namibia , the typical estimation for employee payroll contributions cost is around 0.9%.

Individual Income Tax Contributions

Individual income tax in Namibia is levied at progressive rates, ranging from 0% to 37% as follows:

Pension in Namibia

Namibia has a National Pension Scheme (NPS) for people aged 60 and above. Administered by the Ministry of Health and Social Services, the NPS provides a fixed monthly pension of NAD 450 or USD 45 for eligible individuals, covering those over 60 residing in Namibia for less than six months.

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. 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.

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

When employees are terminated, they are entitled to severance pay. The severance pay is calculated at 1 week of salary for each year of service.