Zambia Payroll Outsourcing

• Population: 19,473,125
  
• Gross Domestic Product (GDP): $22.15 B
• GDP Growth (April 2021): 4.6%
• Inflation, consumer prices: 22%
• Foreign Direct Investment (% of GDP): -3.7%
• Unemployment Rate: 13.0%
• Capital: Lusaka
• Currency: Zambian Kwacha
  
• Languages: English

Employer Contribution

• Employer contribution to the National Pension Scheme Authority (NAPSA) must match the employee’s

Employee Contribution

• Employee contribution to the National Pension Scheme Authority (NAPSA) is capped at the lower 5% of annual basic salary or ZMW21 476 per annum

• Value-added tax (VAT)

  The standard VAT rate is 16% in Zambia.

Paid Time-Off

Employees are generally entitled to 24 days of paid annual leave.

A full-time employee is entitled to at least 2 days of annual leave after one month of service.

Sick Leave

In Zambia, the maximum duration of a sick leave depends on the nature of the employment contract.

• On a short-term contract, an employee is paid fully for the first 26 days of illness and thereafter, paid at half rate (50%) for the next 26 days
• On a long-term contract, an employee is paid fully during the first three months of illness and thereafter, paid at half (50%) for the next three months

Maternity Leave

According to the Employment Code Act of 2019, women in Zambia are entitled to 14 weeks of paid maternity leave – 6 of which must be taken in the postnatal period.

In the event of multiple births (birth of twins or more), an employee can extend their maternity leave to 18 weeks.

Paternity Leave

In Zambia, men are entitled to 7 days of paid paternity leave.

• In Zambia, an employee is entitled to termination notice or payment in lieu of notice. This is not applicable to workers guilty of grave misconduct.
• The notice period is generally specified under the employment contract.
• The minimum notice period under the Labour Act is:

1. 24 hours for a contract not exceeding 1 month
2. 14 days for a contract ranging between 1 to 3 months
3. 30 days for a contract of more than 3 months.

Any notice provided for a contract of more than 6 months must be in writing.

Severance pay in Zambia is regulated under the Employment Code Act of 2019 as “wages and benefits paid to an employee on contract termination.”

Compensation is as follows:

• Termination of an employment contract with a fixed duration: a minimum of 25% of the employee’s basic wages earned during the contract period.
• Termination of employment due to redundancy: 2 months’ basic wages for each completed year of service.
• Employee’s death in service: 2 months’ basic wages for each completed year of service.

Medical discharge: at least 3 months’ basic wages for each completed year of service.

• New Year’s Day (1st January)
• International Women’s Day (9th March)
• Youth Day (in Zambia) (12th March)
• Good Friday (10th April)
• Holy Saturday (11th April)
• Easter Monday (13th April)
• Labor Day (1st May)
• Africa Day (25th May)
• Heroes Day (in Zambia) (6th July)
• Unity Day (7th July)
• Zambia Farmers Day (3rd August)
• Zambian National Day of Prayer (19th October)
• Zambian Independence Day (24th October)
• Christmas Day (25th December)