With our Namibia Payroll Outsourcing services, your talents are paid on time and without error! Our team at Africa HR Solutions also provides your company with much-needed guidance to ensure that your operations comply with Namibia’s Labor Code and tax policies. Over the years, we have played a pivotal role in the expansion of over 400 clients across Africa by providing reliable HR and payroll and cross-border payment outsourcing solutions.
Geographic location: Namibia is a southwestern African country with a long coastline on the South Atlantic Ocean.
Population: Namibia’s population considers English their sole official language. However, only 3% speak it as a home language. The most common is Oshiwambo with an estimated 1.2 million speakers.
Economy: Namibia is an upper-middle-income country. The country is rich in mineral resources, including diamonds and uranium. The country has well-established and reliable banking and finance sectors. The country’s strong political stability and sound economic management have led to a decrease in the number of people impacted by poverty.
Value-added tax (VAT)
The standard VAT rate is 15% in Namibia.
Employees are generally entitled to 24 days of paid annual leave in Namibia according to the country’s Labour Act.
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.
In Namibia, women are entitled to a maximum of four weeks of maternity leave after 12 months of continuous service.
There is no statutory paternity leave in Namibia.
Under Namibia’s Labour Act, there are 3 main types of termination:
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.
In the last 10 years, the scenario surrounding compliance in African countries has changed dramatically. Africa HR Solutions understands this and has become a major player in the African payroll market.