Employment Guide to Hiring in Zambia
jobs in ZambiaHiring in Zambia – EOR Zambia
For companies looking to hire employees and run payroll in Zambia without first setting up an entity or subsidiary, Global Expansion offers Employer of Record (EOR Zambia) services.
Our EOR services streamline and simplify the global hiring process. We handle the most important global HR tasks, including compliance, contracts, payroll, and global benefits, so you can avoid hours of administrative work, human error, and high-risk compliance.
In Zambia, companies once set up subsidiaries or branches to legally employ people in the country. With Global Expansion, this step is no longer necessary. With offices around the world, we can legally hire staff on your behalf. Employees belong to us on paper only and report directly to your company manager.
Zambia Labour Law
Zambia's employment laws are uniquely tailored to the country's way of life and are crucial if you want to employ local talent in the country. Click here to learn more about Zambia's labour laws and regulations.
Employment Contracts
According to Zambia's labour laws, there are four types of employment contracts:
1. Permanent employment
o The employment contract ends immediately upon termination unless terminated.
2. Long-term employment
o This contract may be for more than 12 months.
o It may be extended for a further period.
3. Work-related employment
o This contract ends when the hired employee completes the project or task.
4. Employment during the trial period
o In this contract, the trial period is usually three months.
o The period can be up to six months, but may be extended for another three months.
Employee trial period
The 2019 Labor Law provides for a three-month trial period to evaluate applicants. The trial period can be extended from three to six months. The employer can terminate the contract at any time during this period.
Annual Leave in Zambia
Full-time employees are entitled to at least two days of annual leave/paid vacation per month of employment. Annual leave includes a total of 24 calendar days.
Maternity Leave in Zambia
Zambia's 2019 Labour Act allows pregnant workers 14 weeks of maternity leave, up from 12 weeks under the 1965 Labour Act. Maternity leave is a minimum of six weeks. In the case of multiple births, maternity leave can be extended to 18 weeks.
Parental leave in Zambia
Male employees are given five days of paid parental leave.
Medical leave in Zambia
The length of paid sick leave depends on the type of employment contract. Employees on fixed-term contracts receive full pay for the first 26 working days of sick leave, then half (50%) of their pay for the next 26 working days of sick leave. Employees on long-term contracts receive full pay for the first three months they are ill, and half their salary for the next three months.
Working Hours in Zambia
According to the Zambian Labour Act, the normal working week is 8 hours per day, with a maximum of 48 hours per week. Working hours must not exceed 9 hours per day, including lunch and prayer times.
Overtime in Zambia
There are no legal limits on overtime in Zambia. However, an additional rate of at least 150% of the normal hourly rate is paid for any overtime work outside the normal working week.
Termination of Employment in Zambia
The employment contract may be terminated in any manner specified in the employment contract or in any other manner (specified in the Labour Act). However, when terminating a contract, the employer must notify the employee of the reason for termination, as specified in the employment contract. Termination of an employment contract is only permitted for valid reasons. Valid reasons include reasons related to the employee's performance or behavior, as well as reasons based on the company's operational needs. An employee's employment contract cannot be terminated for poor performance or behavior without first giving the employee an opportunity to be heard.
Employment contracts expire:
⢠At the end of the expressly concluded term
⢠If the employee dies before the end of the term specified in the contract
⢠If the employment contract is for an indefinite period, when the employee reaches the applicable retirement age
⢠Or in any other way in which the employment contract is legally terminated or deemed to have expired.
Notice Period in Zambia
Employees are entitled to a period of notice or severance pay in lieu of dismissal, except in cases of gross misconduct. The notice period is usually stated in the employment contract.
If it is not stated in the employment contract, the minimum periods are:
24 hours for employment contracts of up to 1 month.
14 days for employment contracts of 1-3 months.
And 30 days for employment contracts of more than 3 months.
Termination of employment contracts of more than 6 months must be in writing.
Severance pay in Zambia
Severance pay is defined in the Employment Law Act 2019 as "wages and allowances payable to an employee on the termination of a contract".
The law provides that severance pay is payable in the following cases:
Termination of a fixed-term employment contract: at least 25% of the employee's basic salary earned during the contract period.
• Termination of employment due to dismissal: 2 months' salary for each year of service.
In the event of the death of an employee during the employment relationship: 2 months' salary for each year of service.
• Discharge: at least 3 months' salary for each year of service.
Salaries and wages in Zambia
Average salary in Zambia
The average monthly salary in Zambia is 5,200-6,000 ZMW, which is equivalent to 300-350 US dollars. Social Security Mandatory in Zambia
It is important to understand the legal requirements for employing employees in Zambia (whether remote or in-office) so that your business can remain compliant.
As part of Global Expansion's international PEO and Employer of Record (EOR) solutions, we ensure that your employees are registered with the appropriate government agencies and receive the mandatory benefits.
In addition, all employee-related tax deductions are processed at source, meaning that our in-country branch is responsible for paying all taxes to the authorities on behalf of new employees.
Mandatory Benefits Overview
· Trial Period Available
· Annual Leave
· Holidays
· Maternity Leave
· Parental Leave
· Sick Leave
· Overtime Pay
· Notice Period
· Severance Pay
Social Security Benefits
Zambia Payroll
Here's what you need to know about Zambia payroll:
Individual taxpayers who earn more than ZMW54,000 per year outside of employment and are subject to PAYE must file a provisional tax return. Income tax is determined based on the 12-month tax year ending December 31.
The deadlines for filing quarterly tax returns for the 2022 tax year are as follows:
The deadline for filing first quarter tax returns is March 31, 2022.
The deadline for filing second quarter tax returns is June 30, 2022.
The deadline for filing third quarter tax returns is September 30, 2022.
The deadline for filing fourth quarter tax returns is December 31, 2022. Income tax returns are due by June 21 after the end of the fiscal year. For example, income tax returns for the 2021 fiscal year must be filed by June 21, 2022. The same deadline applies for paying outstanding income tax.
Global Expansion's EOR and international PEO solutions help you complete payroll in Zambia with ease. With just a few clicks, your employees are onboarded and onboarded to your payroll system. Plus, you can invoice your local customers, so you can quickly and efficiently onboard new employees, whether they're expatriates or locals.
Zambia Payroll
Additional information for country-specific boundaries
Both employers and employees are required to contribute to the National Pension Scheme Authority (NAPSA). The contribution rate is 5% of an employee's gross earnings (10% contributions from employers and employees combined), subject to limits set by authorities.
The contribution limit for 2020 is 1,149.60 Zambian Kwacha (ZMW) per employee per month (i.e. 2,299.20 ZMW combined per month from employers and employees).
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