Guide to employment, payroll and benefits in

Namibia

Rivermate offers complete payroll, benefits and compliance services for

Namibia

01. Overview

Last updated: 

August 19, 2021

Currency
Namibian Dollar
Capital
Windhoek
Ease of doing business
61.4
Language
English
Population
2540905
GDP growth
-0.95%

02. Grow your team in

Namibia

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Namibia

, particularly if you don't have established local relationships. You can hire employees in

Namibia

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Namibia is a country in Southern Africa, officially known as the Republic of Namibia. It shares land boundaries with Zambia and Angola to the north, Botswana to the east, and South Africa to the south and east. Its western boundary is the Atlantic Ocean. Although it does not share a border with Zimbabwe, the Zambezi River divides the two countries by less than 200 meters. Following the Namibian War of Independence, Namibia declared independence from South Africa on March 21, 1990. Windhoek is the country's capital and largest city. The United Nations, the Southern African Development Community, the African Union, and the Commonwealth of Nations all recognize Namibia as a member state. Namibia, the driest nation in Sub-Saharan Africa, has been home to the San, Damara, and Nama people since ancient times. Immigrant Bantu peoples arrived in the 14th century as part of the Bantu expansion. Since then, Bantu tribes, the largest of which is the Ovambo, have dominated the country's population, constituting a majority since the late 19th century. The port of Walvis Bay and the offshore Penguin Islands were annexed by the Cape of Good Hope, then a British colony, in 1878, and became an integral part of the new Union of South Africa when it was formed in 1910. The German Empire took control of the majority of the region in 1884, establishing the German South West Africa colony. It improved agriculture and infrastructure. It committed genocide against the Herero and Nama people between 1904 and 1908. German rule came to an end in 1915 when South African forces defeated them. The League of Nations ordered administration of the colony to South Africa in 1920, following the end of World War I. South Africa placed its laws, including racial classifications and regulations, as a Mandatory Power. South Africa's application of apartheid to what was then known as South West Africa began in 1948, when the National Party was elected to power. Uprisings and demands for democratic representation by native African political activists seeking independence in the late twentieth century led to the United Nations taking full control of the region in 1966, but South Africa retained de facto rule. The South West Africa People's Organisation was recognized by the United Nations in 1973 as the official representative of the Namibian people; the party is governed by the Ovambo, who make up a significant majority in the country. In 1985, South Africa established an interim government in Namibia as a result of continuing guerrilla warfare. In 1990, Namibia gained complete independence from South Africa. However, until 1994, South Africa controlled Walvis Bay and the Penguin Islands. Namibia is a prosperous multi-party parliamentary democracy with a population of 2.55 million people. Agriculture, tourism, and the mining industry – which includes gem diamonds, uranium, gold, silver, and base metals – are the backbones of the country's economy, while manufacturing is a minor contributor.

04. Public holidays

05. Types of leave

Paid time off

Employees are given between four and twenty-four days of vacation.

Public holidays

New Year’s DayNamibian Independence DayGood FridayEaster MondayWorkers’ DayCassinga DayAscension DayAfrica DayHeroes DayHuman Rights DayInternational Women’s DayChristmasNamibian Family Day

Sick days

After 36 months (sick leave cycle), employees are entitled to at least 30 days of sick leave if they work five days a week, or 36 days if they work six days a week. Employees earn one day of sick leave for every 26 days worked during their first year of employment.

Maternity leave

After six months of work, female employees are entitled to 14 weeks of maternity leave. In most cases, four weeks of leave are taken prior to the due date and eight weeks are taken following the birth. If there is a pregnancy-related sickness or difficulty, maternity leave might be extended by a month. The employee must present the company with a medical certificate detailing the projected date of confinement prior to the absence, as well as the actual date when she returns.Except for the basic wage, which is paid by social security, the employer is responsible for paying the employees' wages.

Paternity leave

There is no statutory paternity leave.

Parental leave

Apart from maternity and paternity leave, there is no parental leave.

Other leave

06. Employment termination

Termination process

In Namibia, both employers and employees have the right to terminate an employment contract. Employers are banned from terminating an employee without a legal and reasonable reason and are required to follow a fair method specified by law, regardless of whether notice is given.


When an employer terminates an employee's employment contract for reasons such as disclosure of information to which the employee is legally allowed or compelled to reveal; refusal to perform anything illegal; and exercise of a right granted by law or collective bargaining agreement.


A reasonable justification for dismissing an employee is determined by the type and gravity of the offense. Just cause may include, but is not limited to, employee misconduct, employee incapacity, whether physical or mental, employee incompatibility, unsuitability during the probationary term, and the business's operating requirements.


Whether the employee or the employer terminates the employment relationship, the notice period varies according to the length of time worked.


Employers are liable for compensating employees for work performed prior to the termination notice, annual leave entitlements, paid time off for Sunday or public holiday work (if applicable), severance pay (if applicable), and transportation allowance (if applicable) (if applicable).

Notice period

Employees terminated for just cause are generally entitled to the following notice periods: one day for less than four weeks' service; one week for more than four weeks' service but less than one year's service; and one month for more than one year's service.


If both the employer and employee agree, a longer period of notice may be granted, provided that the notice period applies equally to the employer and employee. Notification is prohibited during any leave granted to an employee. Employers may provide pay in lieu of notice in an amount equal to what the employee would have earned during the notice period. Additionally, the employer has the right to waive notice given by an employee in exchange for payment of the employee's remuneration.

Severance pay

After 12 months of uninterrupted service, severance pay is equal to at least one week's pay for each year of continuous service with the employer.

Probation period

The first three months of employment will be considered probationary, during which time the employee's suitability for the position will be assessed and feedback will be provided.

07. Working hours

General

The standard workweek is 45 hours and nine hours per day for employees who work five days or fewer per week; eight hours per day for employees who work more than five days per week.

Overtime

Overtime is limited to three hours per day or ten hours per week and is compensated at a rate of at least one and a half times (150 percent ) the employee's hourly wage, or double (200 percent ) on Sundays and public holidays. For work performed between 8 p.m. and 7 a.m., an additional 6% is added to the employee's hourly wage, excluding overtime.

08. Minimum wage

General

Domestic workers in Namibia are entitled to a set minimum pay of N $9.03 per hour under Namibian compensation legislation. Guaranteed and performance-based incentives are popular in Namibia, although they are not compulsory.

09. Employee benefits

General

Namibia's healthcare system is a mix of state and private providers. According to the Africa Health Observatory, the public system serves 85 percent of the population, while private healthcare serves 15 percent of the middle and higher classes. For out-of-pocket costs, private insurance is available.

Medical assistance, subsidized housing, food allowance, vehicle allowance, entertainment allowance, telephone allowance, fitness allowance, sabbatical, and extra maternity leave are all common employment perks in Namibia.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Namibia

to hire a team takes time, money, and effort. The labor law in

Namibia

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Namibia

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Namibia

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Namibia

via our Employer of Record / PEO solution.

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