Namibia

Employer of Record (EOR) in Namibia

Only 399 EUR per employee per month

Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Namibia . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our Employer of Record (EOR) solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Namibia.

Employer of Record people
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Currency
Namibian Dollar
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Capital
Windhoek
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Region
Africa
Megaphone
Language
English
Hire remote employees
Population
2540905
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GDP
$13.25 billion
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GDP growth
-0.0095
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Ease of doing business
61.4
Planet earth
World GDP share
0.0002

1. Grow your team in Namibia with Rivermate as your Employer of Record (EOR) / PEO

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 Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Summary

Namibia, formally the Republic of Namibia, is a Southern African nation. The Atlantic Ocean forms its western boundary. It is bordered to the north by Zambia and Angola, to the east by Botswana, and to the south and east by South Africa. Although it does not border Zimbabwe, the Botswanan right bank of the Zambezi River divides the two nations by less than 200 meters (660 ft). Following the Namibian War of Independence, Namibia obtained independence from South Africa on March 21, 1990. Windhoek is the country's capital and biggest city. Namibia belongs to the UN, the Southern African Development Community (SADC), the African Union (AU), and the Commonwealth of Nations.

Namibia, the driest nation in Sub-Saharan Africa, has been inhabited by the San, Damara, and Nama people since prehistoric times. Immigrating Bantu peoples came in the 14th century as part of the Bantu expansion. Since then, Bantu tribes, the greatest of which is the Ovambo, have dominated the country's population, constituting a majority since the late nineteenth century.

The Cape of Good Hope, then a British colony, seized the port of Walvis Bay and the outlying Penguin Islands in 1878; they became 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 a colony known as German South West Africa. It improved agriculture and infrastructure. It committed genocide against the Herero and Nama people between 1904 and 1908. German authority came to an end in 1915 when South African soldiers defeated them. Following the conclusion of World War I, the League of Nations assigned control of the colony to South Africa in 1920. South Africa enforced its laws, including racial classifications and norms, as a Mandatory authority. With the National Party voted to power in 1948, South Africa implemented apartheid in what was then known as South West Africa.

Uprisings and demands for political representation by local African political activists seeking independence in the late twentieth century led in the UN acquiring direct responsibility for the region in 1966, while South Africa retained de facto sovereignty. The southwest Africa People's Organisation (SWAPO) was recognized by the UN in 1973 as the official representation of the Namibian people; the party is led by the Ovambo, who constitute a huge majority in the area. In 1985, South Africa created an interim government in Namibia as a result of the ongoing guerrilla conflict. In 1990, Namibia gained complete independence from South Africa. However, South Africa retained possession of Walvis Bay and the Penguin Islands until 1994.

Namibia is a stable multi-party parliamentary democracy with a population of 2.55 million people. Agriculture, tourism, and the mining industry – which includes mining for gem diamonds, uranium, gold, silver, and base metals – constitute the foundation of its economy, while manufacturing is a minor contributor. The Namib Desert, from which the nation derives its name, has resulted in Namibia becoming one of the world's least densely inhabited countries.

Hiring talented employees in a short span is not an easy task. Partnering with an Employer of Record (EOR) like Rivermate in Namibia is your best option, giving your organization enough time to focus on other aspects of international expansions like project management and inventory management. The EOR takes care of all the compliance and legal issues while helping you speed up hiring using their knowledge of domestic employment practices and virtual onboarding tools. Top EORs also have provisions for the e-signing of documents to enable faster onboarding.

3. Public holidays

4. Types of leave

There is no information about the types of leave for this country.

Paid time off

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

Public holidays

New Year’s Day

Namibian Independence Day

Good Friday

Easter Monday

Workers’ Day

Cassinga Day

Ascension Day

Africa Day

Heroes Day

Human Rights Day

International Women’s Day

Christmas

Namibian 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

5. Employment termination

There is no information about employment information for this country.

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.

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.

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.

6. Working hours

There is no information about the working hours for this country.

General working schedule

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.

7. Minimum wage

There is no information about the minimum wage for this country.

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.

8. Employee benefits

There is no information about the employee benefits for this country.

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.

9. Taxes

There is no information about the taxes for this country.

Corporate tax

Namibia has a source-based tax system, which implies that money earned in Namibia or considered to be earned in Namibia is taxed in Namibia unless a particular exemption is provided.

Foreign businesses' earnings from sources inside or considered to be within Namibia will be taxed in Namibia. In such situations, the foreign entity must decide whether or not it is required to establish a local company or branch. If a foreign firm establishes a location of business in Namibia, it must register a local company (local subsidiary) or an external company (branch).

If Namibia has engaged into a DTA with the nation where the foreign business is based, such entity will only be taxable in Namibia if it has established a permanent establishment (PE) there. If there is a PE, only the amount of income related to the PE will be taxed in Namibia.

Non-residents without a place of business in Namibia, on the other hand, may be liable to withholding taxes (WHTs).

Domestic companies and close corporations are imposed a corporate income tax rate of 32 percent.

Branches of foreign companies are imposed a corporate income tax rate of 32 percent.

Registered manufacturers are imposed a corporate income tax rate of 18 percent.

Diamond mining companies and companies that render services to such companies in connection with diamond mining are imposed a corporate tax rate of 55 percent.

Mining companies (other than diamond mining companies) and companies that render services to such companies in connection with mining are imposed to a corporate income tax rate of 37.5 percent.

Long-term insurers are imposed a corporate income tax rate of 12.8 percent.

The petroleum income tax rate is set at 35 percent.

Individual income tax

Namibia has a source-based tax system, which implies that money earned in Namibia or considered to be earned in Namibia is taxed in Namibia unless a particular exemption is provided.

Workers who earn up to NAD 50,000 are tax-exempt.

Workers who earn between NAD 50,000 and NAD 100,000 are taxed 18 percent.

Workers who earn between NAD 100,000 and NAD 300,000 are taxed 25 percent.

Workers who earn between NAD 300,000 and NAD 500,000 are taxed 28 percent.

Workers who earn between NAD 500,000 and NAD 800,000 are taxed 30 percent.

Workers who earn between NAD 800,000 and NAD 1,500,000 are taxed 32 percent.

Workers who earn over NAD 1,500,000 are taxed 37 percent.

VAT, GST and sales tax

VAT is a transaction tax, and the consequences vary depending on the transaction. Some transactions are taxed at a rate of 15% or 0%, while others are VAT-free. Certain restrictions apply to the ability to claim input tax deductions.

VAT is charged on all taxable supplies made by a registered person. A taxable supply is one that is made in the course or advancement of a taxable activity. A taxable activity is defined as any continuous or regular activity in Namibia that includes the provision of goods or services for consideration.

10. VISA and work permits

There is no information about VISA and work permits for this country.

The Namibia visa policy refers to the rules and requirements for visitors who need a visa to enter the nation. A visa is a movement granted by a government to foreigners that allows them to enter, remain in, or depart the country.

The Namibian government allows people of certain nations to visit and experience Namibia for tourism or formal business reasons. Citizens of other nations may travel and remain in Namibia for three months without a visa for tourism, official and business meetings, or visiting friends and relatives. However, the Namibia visa policy states unequivocally that the individual must carry an ordinary service passport in order to take use of this provision in Namibia.

The tourist visa for Namibia is valid for up to three months. The Namibia tourist visa application procedure takes three days at the Namibian consulate.

For longer visits in Namibia, including living or working in Namibia, foreign citizens need apply at the Namibian government office for appropriate visas and supplementary permission.

According to Namibia visa regulations, visitors from the other countries must apply for a consular visa at a Namibian government office. According to Namibian visa regulations, almost all visitors must apply for a visa before entering the nation. In the sections below, you will find detailed rules regarding Namibia visa policy in terms of tourist travel and temporary stays in the nation.

11. Employer Of Record service terms

There is no information about the Employer of Record (EoR) service terms for this country.

Employment contracts

In Namibia, employment contracts are assumed to be indefinite unless the employer has a compelling cause to recruit an employee for a certain period of time. Written agreements must include the workplace information, remuneration, employer and employee identity, the type of the employment, working hours, the start date of the work, the termination date if for a defined period, and the employee's native language.

With Rivermate being your Employer of Record (EoR) in Namibia, you do not have to worry about the employment contracts, as we take care of that.

Minimum assignment length

A fixed-term contract's duration is not governed by statute. Rather, the length is defined by an agreement reached between the employee and the employer, or by a collective bargaining agreement. Similarly, there is no legislative provision governing the length and duration of the probation period. A probation term may be agreed upon by employers and workers via an individual or group agreement.

Payment currency

Namibian Dollar

13.Opening a subsidiary in Namibia

There is no information about the working hours for this country.

How to set up a subsidiary

Your Namibia subsidiary formation procedure may vary significantly from that of another firm. This is due to the fact that the procedure varies based on your location and the kind of company in Namibia. For example, establishing in one city or area may feature advantageous Namibia subsidiary laws, whilst incorporating in another may require more difficult restrictions. If you are unfamiliar with all of Namibia's locations and rules, we suggest dealing with an expert who can assist you in remaining compliant.

Your entity is another crucial element to consider while incorporating. Namibia recognizes three kinds of entities: a limited liability company (LLC), a public limited company, and a branch office. The structure you choose should be determined by your company's operations and objectives. Having said that, most businesses choose to grow as an LLC due to the favorable rules for foreigners and the capacity to manage a broad variety of operations.

The following actions are required to establish a subsidiary as an LLC:

1. Creating a memorandum and articles of association and getting them certified by a notary public

2. Registering documents with the Registrar of Companies and Close Corporations

3. Completing all documents in black ink

4. Submitting more than one unique name in order of preference

5. Opening a local bank account and depositing initial registered share capital

6. Drafting an association clause showing that you want to form a company and stating how many shares you agree to have

7. Appointing an auditor to work for the company

Subsidiary laws

LLCs have their own Namibia subsidiary laws that are distinct from those of other companies. You'll just need one dollar in share capital, but you'll also require at least one director and shareholder. These people might be of any nationality and reside anywhere on the planet. You will, however, need to lease office space and enter the location in your incorporation forms.

All LLCs must have their financial accounts audited annually, therefore you'll need to hire an auditor to work for your firm. Residents are not required to submit such papers to the authorities, but as a foreign firm, you may.

13. Why choose Rivermate as your Employer of Record / PEO in Namibia

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 (EOR) 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 (EOR) / PEO solution.

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