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The individual income tax ranges from 0% to 37%. Income tax is calculated based on the income of the person.

The employer cost is generally estimated at 29.38% of the employee's salary.

• National Pension Scheme Authority (NAPSA) capped at 1342 ZMW per month - 5.0%
• National Health Insurance - 1.0%
• Skills Development Levy - 0.5%
• Workers Compensation Fund (WCF) - 2.83%
• Housing Allowance - 20%

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.

Employees who have worked for six consecutive months are entitled to 14 weeks of paid leave. Six weeks must be taken before the child's birth. The employee will receive 100% of the salary during this period and the employer will be responsible for this pay.

In Zambia, no law covers parental leave. However, employees may be entitled to maternity leave and paternity leave and can also use Family Responsibility Leave.

Family Responsibility Leave can be used by employees with at least six months of service, allowing up to 7 days with pay to be taken off each calendar year to care for a sick spouse, child, or dependent. Employees are paid 100% pay for 3 out of the 7 days by the employer.

Terminations in Zambia can be complex. There is no at-will termination in Zambia for employers outside the probation period, and termination must be done for just cause.

Compliant terminations include:

• Voluntarily by the employee
• By mutual agreement
• Unilaterally by the employer based on:
  • Inefficiency;
  • Incompetence;
  • Habitual Tardiness and/or Absences;
  • Insubordination;
  • Violation of any provision/s of this Agreement;
  • Violation of the policies, rules and regulations of the Employer; and/or
  • Other causes similar or analogous to the foregoing which are prejudicial to the Employer’s interests, profitability, operations and/or efficiency.

In Zambia, the notice period varies depending on the length of the contract.

• During Probation - 1 day
• Contracts of 1 month or less - 1 day
• Contracts of more than one month but not exceeding three months - 14 days
• Contracts of more than three months - 30 days

Severance compensation in Zambia is applicable under the following circumstances:

1. Conclusion of an employment contract with a specified duration: A minimum of 25% of the employee’s basic salary earned throughout the contract period.

2. Termination of employment due to redundancy: The employee is entitled to receive 2 months' worth of basic pay for each full year of service under the employment contract. This includes any outstanding dues owed by the company to the employee, encompassing gratuity, accrued leave days, and earned salary.

3. In the event of the employee's demise during active service: The employee's beneficiaries are eligible to receive 2 months' worth of basic pay for each year of completed service.

4. Medical discharge: In the case of medical discharge, the employee is entitled to a minimum of 3 months' basic pay for each completed year of service.

Zambia celebrates 11 Public Holidays. National public holidays are:

• New Year's Day
• Youth Day
• Good Friday
• Holy Saturday
• Labour Day
• African Freedom Day
• Heroes Day
• Unity Day
• Farmers Day
• Independence Day
• Christmas Day

When public holidays falls on a Sunday, the following Monday should be observed as a public holiday.

Contracts must be in English. They must be in writing and signed by both parties. A contract must include:

• Job title
• Nature of employment
• Commencement period
• Contract duration
• working hours
• Renumeration package
• Termination period
• Probation period
• Confidentiality clause
• Over-time or off days in lieu of notice
• Leave entitlements
• Meal breaks