Employer of Record in Zimbabwe

Guide to Hiring Employees in Zimbabwe

Your guide to hiring employees in Zimbabwe, covering the employment landscape, employer of record responsibilities, working customs, and local labor laws.

Hiring Employees In Zimbabwe
Employer Of Record In Zimbabwe

Capital City

Harare

Currency

Zimbabwean dollar

 (

$

)

Timezone

GMT+2

Payroll Frequency

typically monthly

Tax Year

January 1st - December 31st

Employer Tax

8%

Languages

English

Southern Sotho

Nambya

Ndebele

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How to Hire Employees In Zimbabwe

Hiring in Zimbabwe for the first time can be overwhelming, especially when navigating unfamiliar employment laws.  Whether you hire independent contractors, set up a legal entity, or use an EOR service, understanding the local employment landscape is crucial for success.  Playroll’s comprehensive guide can help you get started if you're hiring locally or relocating a team member.

Companies can hire employees in Zimbabwe in the following three ways:

  • Setting up a local entity. Entity establishment reduces risk exposure and enables direct hiring, but can be costly and time-consuming – making it less practical for companies seeking quick and flexible solutions for hiring in Zimbabwe.
  • Partnering with an Employer Of Record. An EOR, like Playroll, is a third-party entity that serves as the legal employer of your international workforce which hires, pays, and manages compliance with Zimbabwe’s labor laws and tax regulations.
  • Hiring independent contractors. Hiring contractors gives companies a flexible, affordable alternative to hiring local employees, though it involves unique misclassification risks.

Good To Know

Zimbabwe offers a diverse and skilled workforce, with expertise in various sectors such as agriculture, mining, and tourism, making it an attractive destination for businesses seeking talent.

The country provides competitive labor costs and abundant natural resources, presenting cost-effective opportunities for foreign investors.

Zimbabwe's strategic location in Southern Africa offers access to regional markets, enhancing business prospects and trade opportunities.

Recent economic reforms and efforts to improve the business climate demonstrate Zimbabwe's commitment to attracting foreign investment, making it a favorable choice for expanding operations or starting new ventures.

Employment and Labor Laws in Zimbabwe

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

Employment Contract Requirements

Employers in Zimbabwe must adhere to employment laws, ensuring contracts are in English or a mutually understood language. Contracts typically include:

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

Onboarding Process

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

In Zimbabwe, the standard workday is 8 hours, amounting to 40 hours per week. Employees have the right to 24 consecutive hours of rest each week. For non-shift workers, this 24-hour break usually falls over the weekend.

Overtime in Zimbabwe

Extra hours beyond the regular workweek are paid as overtime at a rate of 150% of the salary. On public holidays, employees typically receive 200% of their regular salary. An agreement can be made for a maximum working time of 10 hours per day.

Probation Period in Zimbabwe

The Zimbabwe Labor Act of 1985 specifies that the probation period should not exceed 3 months. Casual or seasonal workers, however, require only 1 day of probation.

Employer of Record in Zimbabwe

An Employer of Record (EOR) acts as the legal employer for workers in Zimbabwe, taking on key responsibilities to ensure compliance with local labor laws and regulations. The EOR facilitates the hiring process for businesses that want to employ workers without establishing a legal entity in the country.

The employer of record in Zimbabwe is responsible for:

  • Employment Compliance: Ensure all employment contracts comply with Zimbabwe's labor laws and regulations, including proper classification of employees.
  • Payroll Management: Calculate, process, and distribute employee salaries in accordance with Zimbabwe's payroll laws, including deductions for taxes and social security contributions.
  • Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
  • Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with Zimbabwe's legal requirements.
  • Benefits Administration: Provide mandatory employee benefits as required by Zimbabwe's labor laws, such as health insurance, pension contributions, and statutory leave.
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Payroll Management in Zimbabwe

Fiscal Year in Zimbabwe

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

Payroll Cycle in Zimbabwe

The payroll cycle in Zimbabwe is usually typically monthly, with employees being paid towards the end of the month.

Minimum Wage in Zimbabwe

As of 2024, the minimum wage in Zimbabwe varies by industry and sector, as there is no single national minimum wage applicable across all sectors. Instead, minimum wages are set by sectoral wage councils, which determine the minimum pay for different industries, such as agriculture, mining, manufacturing, and others.

Bonus Payments in Zimbabwe

There is no legal obligation to provide the 13th salary in Zimbabwe.

Employment Taxes in Zimbabwe

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 8% on top of the employee salary in Zimbabwe.

Tax TypeTax Rate
Social Security (NSSS)4.5%
Training Levy1%
Workers Compensation Insurance2% - 11%
Standard Development Fund (applied on the quarterly gross wage)0.5%

Employee Payroll Tax Contributions

In Zimbabwe , the typical estimation for employee payroll contributions cost is around 7.5%.

Tax TypeTax Rate
Social security (NSSS)4.5%
AIDS Levy3%

Individual Income Tax Contributions

The individual income tax in Zimbabwe is calculated according to progressive rates.

Income BracketTax Rate
0 - 300,000 ZWL0%
300,001 ZWL - 720,000 ZWL20% for each ZWL above 300,000
720,001 ZWL - 1,440,000 ZWL84,000 + 25% on excess
1,440,001 ZWL - 2,880,000 ZWL264,000 + 30% on excess
2,880,001 ZWL - 6,000,000 ZWL696,000 + 35% on excess
6,000,001 ZWL And above1,788,000 + 40% on excess

Pension in Zimbabwe

In Zimbabwe, the pension system is managed by NSSA under the National Pension Scheme (NPS). The standard retirement age is 60 years; 55 years for arduous jobs; mandatory retirement at 65 years.

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The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Zimbabwe tailored to your needs.

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Work Permits & Visas in Zimbabwe

Annual Leave & Company Policies In Zimbabwe

Mandatory Leave Entitlement in Zimbabwe

The annual leave entitlement in Zimbabwe is 30 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 Zimbabwe

Zimbabwe has 16 recognised national holidays:

HolidayDate
New Year1 January
New Year observed2 January
Robert Gabriel Mugabe National Youth Day21 February
Good Friday7 April
Holy Saturday8 April
Easter Sunday9 April
Easter Monday10 April
Independence Day18 April
Workers Day1 May
Africa Day25 May
Fathers Day Observance18 June
Heroes Day14 August
Defence Forces Day15 August
Unity Day22 December
Christmas Day25 December
Boxing Day26 December

Paid Time Off in Zimbabwe

After one year of continuous employment, employees are entitled to 30 calendar days (22 working days) of paid leave.

Maternity Leave In Zimbabwe

Female employees are entitled to 98 days of maternity leave with full pay.

Paternity Leave In Zimbabwe

Zimbabwe's labor laws do not provide a statutory entitlement to paternity leave. Male employees may utilize special leave for personal reasons affecting their immediate family, such as the birth of a child. This special leave allows for up to 12 calendar days and is subject to employer approval.

Sick Leave In Zimbabwe

An employee can have a maximum of 90 days of paid sick leave within a year. If the sick leave exceeds 90 days, the employer may consider medical termination for the employee.

Parental Leave In Zimbabwe

Zimbabwe's labor laws do not provide a shared parental leave policy.

Employment Termination and Severance Policies in Zimbabwe

Termination Process in Zimbabwe

Employment contracts in Zimbabwe can be terminated through mutual agreement or by employers based on specific grounds outlined in the Code of Conduct. These include:

  • Commits theft or fraud
  • Intentionally damages the employer's property
  • Is absent from work for five or more days without a valid reason
  • Lacks a skill that they claimed to possess
  • Shows significant negligence in their duties
  • Exhibits intoxication to an extent that hinders their work performance

Notice Period in Zimbabwe

Termination notice periods for contracts in Zimbabwe vary based on their duration:

  • 3 months for indefinite contracts or contracts lasting two years or more
  • 2 months for contracts between 1 year and less than 2 years
  • 1 month for contracts between 6 months and less than a year
  • 2 weeks for contracts between 3 months and less than 6 months
  • 1 day for contracts less than 3 months or casual/seasonal contracts

Severance in Zimbabwe

Severance pay is only mandatory for collective dismissals caused by economic factors like retrenchment. Severance pay is equal to 3 months' pay for every year of service.

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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ABOUT THE AUTHOR

Jesse Weisz

Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).

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FAQS

FAQs About Hiring In Zimbabwe

Questions and Answers

What Is an EOR in Zimbabwe?

An Employer of Record (EOR) in Zimbabwe is a third-party organization that legally employs workers on behalf of your company. The EOR handles all local employment tasks, including compliance with labor laws, payroll, taxes, benefits, and employment contracts. This allows businesses to easily hire talent in Zimbabwe without the need to set up a legal entity there, saving time and ensuring compliance with local regulations.

Can I Hire in Zimbabwe Without an Employer of Record?

Yes, you can hire in Zimbabwe without an Employer of Record, but this typically requires setting up a legal entity in the country. Establishing a local entity involves navigating registration processes, tax systems, and employment regulations. This can be costly and time-consuming, often taking between 4-6 months to enter a new market. An EOR provides an alternative by allowing you to hire talent quickly and compliantly without the need to establish a legal presence in Zimbabwe.

How Much Does It Cost To Employ Someone In Zimbabwe?

The cost of employing someone in Zimbabwe includes more than just their salary. You also need to consider mandatory contributions such as taxes, social security, insurance, and benefits. These additional costs can vary based on the role, location, and specific employment laws in Zimbabwe. When using an Employer of Record, there are additional service fees, usually charged as a percentage of the employee's salary or as a monthly or annual fee. This ensures compliance and covers administrative tasks.

What Is the Minimum Wage In Zimbabwe?

As of January 1, 2024, Zimbabwe's minimum wage rates are:

  • XOF per month.
  • Applies nationwide across all sectors.
  • Adjustments typically occur annually.

How Does an EOR Help You Run Payroll In Zimbabwe?

An EOR simplifies payroll management in Zimbabwe by handling all aspects of salary payments, tax deductions, and compliance with local labor laws for your international employees. The EOR calculates gross pay, deducts necessary taxes and contributions, and ensures employees are paid accurately and on time. They also manage year-end tax reporting and compliance filings, reducing the administrative burden on your team and minimizing the risk of errors or penalties.

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