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Namibia

Introduction
 

General overview & country facts, as well as labour regulations.
Employer Contributions
 

These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Employee Contributions
 

These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Employment Terms
 

All you need to know about salary & bonuses, working hours & overtime, probation period, notice period & severance pay, as well as all leave types.

COUNTRY PLAYBOOK

Namibia
Everything you need to know about payroll, benefits & hiring top talent in Namibia

Currency

Namibian Dollar (NAD) and South African Rand (ZAR)

Salary payment frequency

Daily, Weekly, Fortnightly, or Monthly

Capital

Windhoek

Time Zone

GMT +2:00

Official Languages

English

Is English spoken?

Yes
Namibia Payroll

Quick Links

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Introduction

General Overview & Economic Facts
  • Namibia, officially known as the Republic of Namibia, is a country within Southern Africa. It is a stable multi- parliamentary democracy
  • It has a population of 2.55 million people and covers 825, 615 square kilometers (318,772 sq mi)
  • Namibia is a higher-middle-income country, ranking 130th on the Human Development Index, but has the world’s 125th-largest economy by nominal GDP and the 134th-largest by PPP. In 2013, Namibia was named the top emerging market economy in Africa and 13th best in the world
  • Namibia’s free market economic principles are designed to encourage the development of business and help under privileged Namibians to be economic contributors
Why Employ In Namibia?
  • The Namibian economy is connected closely to South Africa due to shared history. Agriculture, tourism, manufacturing, and mining (gem diamonds, uranium, gold, silver, base metals) form the basis of the Namibian economy

  • 20.27% of the population is between the ages of 15 and 24 years, with 35.47% of the population being between the ages of 25 and 54. Namibia has a low cost of labour, a young population and a commitment to education making it an attractive place to hire young, hardworking individuals at a low cost.
Overview Of The Labour Law
  • The Namibian Labour Act describes the conditions surrounding labour in Namibia. The law is extensive and specific. It contains details such as basic conditions of employment, termination of employment rules, dismissal, or workers among others
  • The labor laws in Namibia are strict. This is done to protect employees from unfair labour practices
  • Employees in Namibia have the fundamental right to freedom of association. This includes the right to join a trade union
Fun Country Facts
  • Namibia is the driest country in sub-Saharan Africa experiencing the least amount of rainfall as compared to any other country in sub-Saharan Africa
  • Namibia has the largest population of free roaming cheetahs in the world
  • Namibia is home to fascinating Namibian tribes who still wear traditional clothes, eat traditional foods, and practice traditional religions
Why Use Playroll Services For Namibia?
  • Employing in Namibia requires companies to have their own legal entity in the country as well as managing payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in Namibia
  • With Playroll’s Employer of Record services, your team will be employed by our established legal entities in each country
  • We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing your team
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Employer Contributions

These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.

Social Security

Calculated on the employee’s gross monthly earnings

Salary brackets:

0.00%
Less than NAD 300.00 per month

0.90%
Between NAD 300.00 and NAD 9, 000.00 per month

0.00%
Greater than NAD 9, 000.00 per month

Accident Fund

Called Occupational Accident and Disease.
Calculated on the company’s gross monthly payroll amount.

Low Risk Industries (Commercial / Administrative)

<1.00%
Less than NAD 81, 300.00 per year

0%
Greater than NAD 81, 300.00 per year

High Risk Industries (Drilling, Tunnelling, and Rock-blasting)

8.00%
Less than 81, 300.00 per year

0.00%
Greater than 81, 300.00 per year

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Employee Contributions

These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.

Social Security

Calculated on the employee’s gross monthly earnings

Salary brackets:

0.00%
Less than NAD 300.00 per month

0.90%
Between NAD 300.00 and NAD 9, 000.00 per month

0.00%
Greater than NAD 9,000.00 per month

Income Tax

Income Tax is ‘Pay As You Earn’
Calculated on employment income

Income bracket (NAD)

0.00 – 50,000.00
0.00%

50,000.00 – 100,000.00
18.00% on excess above NAD 50,000.00

100,000.01- 300,000.00
NAD 9,000.00 + 25.00% on excess above NAD 100,000.00

300,000.01 – 500,000
NAD 59,000.00 + 28.00% on excess above NAD 300,000.00

500,000.01 – 800,000
NAD 115,000.00 + 30.00% on excess above NAD 500,000.00

800,000.01 – 1,500,000
NAD 205,000.00 + 32.00% on excess above NAD 800,000.00

1,500,000.01 >
NAD 429,000.00 + 37.00% on excess above NAD 1,500,000.00

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Employment Terms

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General

Minimum Wage
  • Namibia does not have a minimum wage other than for domestic workers which is NAD 72.25 per day
Working Hours
  • 9 hours per day or 45 hours per week, 8 hours per day or 45 hours per week
  • Minimum meal interval of 1 hour after 5 hours of continous work
  • Typical working hours are 09h00 to 17h00 Monday to Friday
Overtime
  • Maximum of 3 hours per day and 10 hours per week
Notice Period
  • Employed between 0 and 4 weeks- 1 days’ notice
  • Employed between 4 weeks and 1 year- 1 weeks’ notice
  • Employed for more than 1 year- 1 months’ notice
Severance Pay
  • 1 week’s pay for each year of continuous employment

Probation Period
  • There is no statutory regulation of probation periods, and the period should be agreed between the parties
Bonus
  •  There is no legal requirement to pay a bonus

  • Guaranteed and performance-based bonuses are common
Public Holidays

Public holidays 2022

  • January 1st – New Year

  • March 21st – Independence Day
  • April 15th – Good Friday
  • April 18th – Easter Monday
  • May 1st – Worker’s Day
  • May 2nd – Worker’s Day (observed)
  • May 4th – Cassinga Day
  • 25th May – Africa Day
  • May 26th – Ascension Day
  • August 26th – Heroes Day
  • December 10th – Day of Namibian Women and International Human Right’s Day
  • December 25th – Christmas Day
  • December 26th – Family Day
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Leave

Paid Leave / Vacation Days
  • For a 5-day work week – 20 days per year
  • For a 6-day work week – 24 days per year
Sick Leave

An employee is entitled to 1 days of sick leave for every 26 days worked in their first year of employment

 

  • For a 5-day work week – 30 days per 36 months. Paid leave except during the first 12 consecutive months of employment an employee shall not be entitled to sick leave on full remuneration at a rate of more than one working day in respect of each completed period of five weeks employment, and, in the case of every other employee
  • For a 6-day work week – 36 days per 36 months. Paid leave except during the first 12 consecutive months of employment an employee shall not be entitled to sick leave on full remuneration at a rate of more than one working day in respect of each completed period of five weeks employment, and, in the case of every other employee
Maternity Leave
  • Paid leave
  • Paid by employer
  • 12 weeks per year
Paternity Leave
  • There is no statutory paternity leave
Family Responsibility Leave
  • Paid leave
  • Paid by employer
  • 5 days per year
Start hiring in Namibia today!