Employer of Record in Zambia

Businesses can only operate smoothly in Zambia 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 Zambia below, to avoid any compliance issues.

Employment Contract Requirements

When hiring in Zambia, it's essential for employers to adhere to labor laws and regulations. The employment contract should preferably be in English or another mutually understandable language. Typical contract details include:

• Identification of both parties
• Commencement date
• Job responsibilities and duties
• Employee's compensation and other benefits

Onboarding Process

We can help you get a new employee started in Zambia 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 Zambia

Regular working hour is 8 hours per day, up to 48 hours per week

Overtime in Zambia

Any work exceeding the standard 8 hours per day is considered overtime and should be compensated at a rate of 150% of the regular salary.

Probation Period in Zambia

During a probationary period, which should not exceed three months, an employee may be hired to assess their suitability for the position. This probationary period can be extended for an additional three months if needed.

Fiscal Year in Zambia

January 1st - December 31st is the 12-month accounting period that businesses in Zambia use for financial and tax reporting purposes.

Payroll Cycle in Zambia

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

Minimum Wage in Zambia

The minimum wage for employees in Zambia is typically 13.50 ZMW per hour, amounting to ~2,167.70 ZMW per month for a typical 40 hour work week.

Bonus Payments in Zambia

There's no mandatory law for a 13th-month pay in Zambia. Employers have the option to provide a 13th and 14th-month pay if they choose to do so.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 6.5% on top of the employee salary in Zambia.

Employee Payroll Tax Contributions

In Zambia , the typical estimation for employee payroll contributions cost is around 6%.

Individual Income Tax Contributions

In Zambia, income tax follows a progressive structure on annual income, with individual rates ranging from 0% to 37.5%.

Pension in Zambia

The public pension system, managed by NAPSA, involves a 5% contribution from both the employer and employee. An individual who is a registered member, aged 55 or above, and has contributed for at least 180 months becomes eligible for an early retirement pension.

Mandatory Leave Entitlement in Zambia

The annual leave entitlement in Zambia is 24 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 Zambia

In Zambia, there are 17 national public holidays in a year.

Paid Time Off in Zambia

Employees with 12 months of continuous employment in Zambia are entitled to 24 days of annual leave per year. If the employer fails to provide the full leave, they must compensate the employee for the remaining leave at the end of the 12-month period.

Maternity Leave In Zambia

Employees in Zambia are entitled to 14 weeks of maternity leave, extendable to 18 weeks for multiple births. Those with 24 months of service with the same employer receive full pay during maternity leave and have the right to their previous job or a suitable alternative upon return.

Additionally, they are entitled to nursing breaks totaling 60 minutes per day.

Paternity Leave In Zambia

Fathers with at least 12 months of service before childbirth are entitled to five days of paid leave, to be taken within seven days of the child's birth.

Sick Leave In Zambia

Employees in Zambia receive paid sick leave, with employers covering the payments. Initially, the first 3 months of absence are fully paid, followed by 3 months at half pay. A medical certificate is required from the second day of absence onward.

Parental Leave In Zambia

Employees with at least six months of service can use Family Responsibility Leave, which allows them to take up to seven paid days off per calendar year to care for a sick spouse, child, or dependent.

Mother's Day

Female employees are entitled to one day off per month without needing a medical certificate or providing a reason to the employer, regardless of motherhood status.

Compassionate Leave

Employees can take up to 12 days of compassionate leave with full pay in a calendar year under circumstances such as experiencing the loss of a spouse, parent, child, or dependent, or presenting a valid compassionate reason.

Termination Process in Zambia

In Zambia, either the employer or the employee can end the employment contract, but both parties must state the reason for termination or provide a notice period. The employer can terminate the contract for one of the following reasons:

• Poor work performance
• Misconduct
• Redundancy
• Unsuitability to job role

Notice Period in Zambia

In Zambia, both the employer and the employee must adhere to specific notice periods when terminating employment contracts. These periods vary based on the duration of the contract:

• 24 hours for contracts not exceeding one month
• 14 days for contracts exceeding one month but not exceeding three months
• 30 days for contracts exceeding three months, with written notice required for contracts over six months.
• Termination can also be initiated by immediate payment equivalent to all wages and benefits due to the employee at the time of termination.

Severance in Zambia

In Zambia, severance pay is obligatory for most employees, excluding those on certain contracts. It applies in cases of medical discharge, contract expiration or termination, redundancy, and employee death. The amount varies, from three months' basic pay for medical discharge to 25% of basic pay for contract terminations.