Namibia Payroll Outsourcing

• Population: 2,587,344
  
• Gross Domestic Product (GDP): $12.24 B
• GDP Growth (April 2021): 2.4%
• Inflation, consumer prices: 3.6%
• Foreign Direct Investment (% of GDP): -1.5%
• Unemployment Rate: 21.7%
• Capital: Windhoek
• Currency: Namibian Dollar
  
• Languages: English, Oshiwambo, Afrikaans, German

Employer Contribution

• 0.9% of the employee’s emoluments must be contributed to social security.

Employee Contribution

• 0.9% of the employee’s emoluments must be contributed to social security.

• Value-added tax (VAT)

  The standard VAT rate is 15% in Namibia.

Paid Time-Off

Employees are generally entitled to 24 days of paid annual leave in Namibia according to the country’s Labour Act.

Sick Leave

Employees who work 5 days a week are entitled to 30 days of paid annual leave. If an employee works 6 days a week, they are then entitled to 36 days of paid annual leave.

Maternity Leave

In Namibia, women are entitled to a maximum of four weeks of maternity leave after 12 months of continuous service.

Paternity Leave

There is no statutory paternity leave in Namibia.

Under Namibia’s Labour Act, there are 3 main types of termination:

• Termination of employment through notice
• Termination through wages in lieu of notice
• Automatic termination of the employment contract.

The period of notice cannot be less than a day if the employee has been employed in the establishment for four weeks or less.

If the employee has been employed for more than four weeks but not more than one year, the period of notice should not be less than one week.

When terminating an employee who has been working for the same company for 1 year or more, the minimum notice should be at least one month.

Instead of providing notice, an employer can choose to remunerate the dismissed employee the pay they would have normally received if the worker had worked during the notice period.

An employee can also pay their employer the remuneration they would have received to terminate the employment contract immediately.

An employment contract is considered as automatically terminated one month after the death or sequestration of the employer or business closure.

However, in a mutual agreement, both parties can negotiate the prolonging of the employment contract.

Severance pay in Namibia must be in an amount equal to at least one week’s remuneration for each year of continuous service with the employer. However, the payment of severance pay does not affect an employee’s right to any other amount that the employee is obliged to pay the employee.

• New Year’s Day (1st January)
• Namibian Independence Day (21st March)
• Good Friday (10th April)
• Easter Monday (13th April)
• Cassinga Day (4th May)
• Ascension Day (21st May)
• Africa Day (25th May)
• Heroes’ Day (in Namibia) (26th August)
• Human Rights Day (10th December)
• Christmas Day (25th December)
• Family Day (26th December)