Country Payroll Guide Zambia

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Zambia

Key Facts

Capital
Lusaka
Date format
dd/mm/yyyy
Currency
Zambian kwacha (ZMW)
VAT
the standard rate is 16%

Contributions

Employers

Social Security
Social Security - 5%
Total Employment Cost
Total Employment Cost - 5%

Employees

Social Security
Social Security - 5%
Total Employee Cost
Total Employee Cost - 5%

Minimum Wage

Minimum Wage
The minimum wage in Zambia is 1050 to 2167 ZMW per month depending on industry.

Payroll

Payroll Cycle
Monthly
13th Salary

Not required by law.

Income Tax

Employee Income Tax (1)
Up to 39600 ZMW - 0%
Employee Income Tax (2)
39601 to 49200 ZMW - 25%
Employee Income Tax (3)
49201 to 74400 ZMW - 30%
Employee Income Tax (4)
Over 74401 ZMW - 37.5%

Working Hours

General Working Hours

48 hours per week.

Overtime

Overtime should be paid at an increased rate.

Leave

Paid Time Off

22 days per year.

Public Holidays

13 days.

Sick Days

Employees are entitled to between 52 days and six months, depending on length of service.

Maternity Leave

14 weeks of paid maternity leave. At least six weeks must be taken prior to the due date.

Paternity Leave

Fathers are entitled to 5 days of paternity leave.

Parental Leave

There are no statutory laws regarding parental leave.

Other Leave

Compassionate Leave – 12 paid days for the death of an immediate family member.

Termination

Termination Process

An employer must provide the employee with the correct notice period in the event of a dismissal.

Notice Period

Notice periods range from one day to three months, depending on the employee’s length of service.

Severance Pay

Severance pay is required in some cases, including the termination of a fixed contract and to employees dismissed for redundancy.

Probation Period

Maximum of six months.

Visa

Employment Visa

The Zambian government offers different visa categories to foreign nationals; short-term work permits or long-term work permits.