Flexi-Personnel supports your business in complying with Zambia’s regulations and labor laws as you expand into the country.
As the leading Employer of Record (EOR) firm in Zambia, we handle payroll, expatriate services, tax administration, and recruitment making your entry into the market easy.
Zambia, formerly the Republic of Zambia, has 19.47 million people as of 2021. Its strategic location in South Africa in proximity to large markets such as DRC and South Africa makes it an ideal hub to expand your business. The country’s capital is Lusaka, and the official language is English, with Nyanja (Chewa) and Bemba being the widely spoken languages.
The country’s currency is the Zambian Kwacha (ZMW), with 1 USD equivalent to 18 ZMW in 2023.
Zambia’s Gross Domestic Product (GDP) was 22.15 billion USD in 2021, with a growth rate of 4.6% annually. The growth continues due to the government’s constant efforts to restore the country’s economic stability and, in turn, attract new businesses. Inflation, measured by consumer prices, was 10.83%, while the unemployment rate was 13.03%.
Our EOR service provides hassle-free ways to hire and manage employees in Zambia.
We simplify your finances by offering monthly invoices covering all services, including salaries, taxes, fees, and employee expenses. This saves you money on banking fees and reduces your finance team’s time managing finances.
With us, you’ll have a dedicated account manager who can assist you with any Payroll, HR, or Legal questions. This means you have a single point of contact for all your employment needs.
We ensure compliance with all relevant regulations by processing all funds payable to employees through payroll and providing you with monthly evidence of taxation paid to competent authorities. This guarantees that your employees are paid legally and correctly.
Our in-country experts are professionally qualified in Legal and HR services and provide timely electronic payslips for all employees. This saves you time and resources by eliminating the need for paper payslips.
At Flexi-Personnel, we complete all statutory filings on your behalf, meaning you won’t worry about missing any important deadlines or requirements. This ensures that your business stays compliant with all necessary regulations.
Zambia has no minimum wage; however, it applies to “protected” workers like security guards, clerks, domestic and shop workers, receptionists, cleaners, and drivers.
The standard working hours in Zambia are 40 a week, with a set overwork maximum of 48 and 60 for security guards. The overtime pay rate is 1.5 times the employee’s hourly wage.
When working on a holiday or a scheduled rest day (typically a Sunday), overtime pay is twice the employee’s hourly pay rate.
Employees have a weekly rest day of 24 hours, a one-hour lunch break every working day, and a 20-minute health break each day.
So long as an employee isn’t casual or temporary, Zambia entitles them to 24 days payable leave in a year. However, the employee must have worked a consecutive 12 months to qualify for this leave.
Employees are entitled to three days of paid leave per year plus a 7-day payable family responsibility leave to cater for their spaces, children, and dependents in education, health, and care.
Short-term and long-term contract employees can take unpaid sick leave in Zambia. Nonetheless, after six months, the employer can terminate the contract depending on the doctor’s recommendation and the employer’s decision.
A short-term employee is entitled to sick leave and full payment for her 26 days, followed by half payment for the next 26 days, while a long-term employee gets full pay sick leave for the first three months of their holiday and a half wages for the next three months.
In Zambia, employees are entitled to 12 days of paid compassionate leave under justifiable grounds such as the death of a spouse, child, parent, or dependent.
Senegal gives a 12-week paid maternity leave to women who have worked for at least two years consecutively. Also, male employees are entitled to a 5-day paternity leave but must have worked for at least 12 months.
However, for a male employee to secure a paternity leave, one of the following should be true:
Zambia has 14 national holidays, as in the table below.
|New Year’s Day||January 1st|
|Women’s Day||March 8th|
|Youth Day||March 12th|
|Good Friday||The Friday before Easter Sunday|
|Holy Saturday||The Saturday before Easter Sunday|
|Easter Monday||The day after Easter Sunday|
|Labor Day||May 1st|
|African Unity Day||May 25th|
|Hero’s Day||First Monday of July|
|Unity Day||First Tuesday of July|
|Farmer’s Day||First Monday of August|
|National Prayer Day||Second Thursday of October|
|Independence Day||October 24th|
Generally, Zambia uses a progressive tax system, meaning employees will pay taxes based on their earnings. Also, corporate income tax varies from one industry to the other. The tax year, often known as the charge year, is scheduled from April 1st to March 31st of every year. Let’s have a look at the various taxation in Zambia.
This kind of tax applies to employees in Zambia and is structured in the Pay As You Earn (PAYE) model for indefinite contracts. The maximum tax rate applicable in individual income tax is 37.5%.
The VAT rate is 16% and applies to deliveries of goods and services with standard VAT rates.
Zambia’s corporate tax is at 35% and different for different organizations as follows:
Zambia has three categories of custom duty
Zambia’s Employment Code Act of 2019 features a maximum probation period of three or six months in specific conditions to assess the worker’s suitability for employment. Besides, the contract is terminable by both parties after a 24-hour notice is given.
However, if the worker is rehired by the same employer for the same position within two years after the termination, a probation period isn’t necessary again.
As per Zambia’s employment code, the employee must give notice before terminating a contract. The principle implies the following notice periods:
On the other hand, an employer should do the following in case they want to terminate a contract with employees in Zambia:
The employee is entitled to severance pay in the following cases.
Take advantage of our years of experience in Zambia’s business dynamics and thrive faster. We are informed on ways to get you started in new and emerging markets to result in a competitive edge.
We ensure our clients comply with HR, payroll, and Zambia legal requirements, thus reducing business risks.
Our comprehensive employment solutions will help you streamline your operations by reducing the number of suppliers and legal complexities involved in running your business.
With our cost-effective solutions, you’ll save money compared to a traditional set-up for employees, allowing you to allocate resources to other areas of your business.
By working with us, we significantly reduce your processing and back-office time, allowing you can focus on other core business activities while we handle the administrative tasks.