Zambia

Employer of Record (EOR) in Zambia

Only 399 EUR per employee per month

Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Zambia . 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 Zambia.

Employer of Record people
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Currency
Zambian Kwacha
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Capital
Lusaka
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Region
Africa
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Language
English
Hire remote employees
Population
18383955
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GDP
$25.87 billion
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GDP growth
0.034
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Ease of doing business
66.9
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World GDP share
0.0003

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

Payroll, benefits, taxes, and compliance can be difficult to manage in Zambia , particularly if you don't have established local relationships. You can hire employees in Zambia 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

Zambia, formally the Republic of Zambia, is a landlocked nation in Central, Southern, and East Africa, while it is most often referred to as being in Southern Africa at its most central point. The Democratic Republic of the Congo borders it to the north, Tanzania to the east, Malawi to the east, Mozambique to the southeast, Zimbabwe and Botswana to the south, Namibia to the southwest, and Angola to the west. Zambia's capital city, Lusaka, is situated in the country's south-central region. The population is centered mostly around Lusaka in the south and the Copperbelt Province in the north, the country's primary economic centres.

The area was originally populated by Khoisan peoples before being influenced by Bantu expansion in the thirteenth century. Following European explorers in the eighteenth century, the British colonised the area into the British protectorates of Barotseland-North-Western Rhodesia and North-Eastern Rhodesia in the late nineteenth century, including 73 tribes. Northern Rhodesia was formed in 1911 when these two countries combined. Zambia was ruled for the majority of the colonial era by an administration selected from London on the recommendation of the British South Africa Company.

Zambia gained independence from the United Kingdom on October 24, 1964, with Prime Minister Kenneth Kaunda serving as the initial president. From 1964 through 1991, Kaunda's socialist United National Independence Party (UNIP) ruled. Kaunda was a prominent figure in regional diplomacy, working closely with the US to find solutions to problems in Southern Rhodesia (Zimbabwe), Angola, and Namibia. From 1972 until 1991, Zambia was a one-party state, with UNIP being the only legal political party operating under Kaunda's slogan "One Zambia, One Nation." In 1991, Kaunda was replaced by Frederick Chiluba of the social-democratic Movement for Multi-Party Democracy, ushering in an era of socioeconomic progress and political decentralisation. Zambia has subsequently become a multi-party state with multiple peaceful leadership transfers.

Zambia is rich in natural resources such as minerals, wildlife, forests, freshwater, and arable land. Zambia was ranked one of the world's fastest-reforming economies by the World Bank in 2010. The headquarters of the Common Market for Eastern and Southern Africa (COMESA) are in Lusaka.

Hiring talented employees in a short span is not an easy task. Partnering with an Employer of Record (EOR) like Rivermate in Zambia 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

After a year of employment, employees are entitled to 24 days of paid leave. Employees are entitled to two days of vacation every month commencing on the first day of their second year of employment.

Public holidays

Zambia recognizes 20 national public holidays.

Sick days

In the case of a temporary disability due to illness or an accident, the Employment Act allows for fully compensated sick leave. A certified medical certificate is required in order to take advantage of fully compensated leave. The employer may continue to pay for a longer amount of time, but the law does not demand it.

The period of paid sick leave varies depending on the type of job. An employee on a short-term contract gets paid full pay for the first 26 days of sick leave, then half pay (50 percent) for the next 26 days of sick leave. Long-term contracts are any contracts that last longer than 12 months.

A worker may be awarded paid sick leave at full pay for the first three months under the General Wage Order and half pay for the next three months under the Shop Workers' Wages Order. Probationary employees are likewise entitled to paid sick leave for a period of 26 working days under the Shop Workers' Wages Order.

Maternity leave

The Employment Code Act of 2019 mandates a 14-week maternity leave. Post-natal leave is required for at least 6 weeks. Maternity leave can be extended to 18 weeks in the event of multiple deliveries. A female employee must provide her employer a written notice, together with a medical certificate, of her decision to go on maternity leave on a certain date and return to work when the maternity leave is over.

A woman who gives birth to a preterm child is eligible to an extended maternity leave (beyond 14 weeks) if a medical practitioner recommends it. A female worker may take sick, annual, compassionate, or other leave that she is entitled to immediately after her maternity leave ends and before returning to work, with the employer's agreement.

If a woman has worked for the same company for one year and has a miscarriage or has a stillborn child, she is entitled to six weeks of maternity leave after the miscarriage or stillbirth. A medical officer must properly certify the loss or stillbirth.

Paternity leave

A male employee who has worked for the company for at least one year is entitled to at least 5 consecutive working days of paternity leave. The employee must be the father of the kid; and must have given the employer a copy of the child's birth certificate. The leave must be taken within seven days of the kid's birth.

Parental leave

Parental leave, whether paid or unpaid, is not covered by the law.

Other leave

5. Employment termination

There is no information about employment information for this country.

Termination process

Employers may terminate an employee's employment contract with notice. Additionally, an employer may be entitled to grant compensation in place of notice. In a few limited circumstances, an employee may be dismissed without warning. Redundancy dismissals are subject to special procedures.

Notice period

The notice period is between one day and three months, depending on the length of service of the employee.

Probation period

There are no provisions in the labor laws specifically tailored to probationary periods in Zambia.

Severance pay

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

6. Working hours

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

General working schedule

Employees typically work eight hours per day and can work up to 48 hours per week. Collective bargaining agreements may specify the hours and days worked.

Overtime

Overtime is permitted, and employees are entitled to additional compensation for work performed outside of normal business hours.

7. Minimum wage

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

Zambia's yearly minimum wage is $917.00.

8. Employee benefits

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

Zambia provides universal healthcare, but private treatment is accessible in more populated regions. Private health insurance is also accessible.

Mandatory benefits postulated by law include a probationary period, pay on annual leaves, public holidays, sick leaves, maternity leave, paternity leave, and overtime pay. Statutory benefits also include social security benefits.

9. Taxes

There is no information about the taxes for this country.

Corporate tax

Zambia mostly has a source-based income taxes system. Income considered to be derived from Zambia is usually subject to Zambian income tax. However, a person's or entity's presence in Zambia broadens the scope of taxes to include foreign interest and dividend income. As a result, Zambian citizens will be taxed on interest and dividends received from sources outside than Zambia.

A non-Zambian resident business with a permanent establishment (PE) in Zambia must pay corporate income tax (CIT) on its Zambian-sourced revenue. If there is no PE, the non-Zambian resident's Zambian-source income may still be liable to WHT, which is usually deducted at source.

The normal CIT rate on taxable income of corporate entities (other than individuals) is 35%.

Small companies that are unable to maintain enough records for efficient tax assessment are subject to base tax, which is charged at ZMW 365 per year. Small market dealers are usually affected by this.

Individual income tax

Zambia has a source-based income taxation system under the Income Tax Act. Income considered to be derived from Zambia is usually subject to Zambian income tax. Zambian citizens are additionally taxed on interest and dividends received from sources outside Zambia.

For a taxable income of up 20 ZMW 39,600, the tax rate is 0.

For a taxable income between ZMW 39,601 to 49,200, the tax rate is 25 percent.

For a taxable income between ZMW 49,201 to ZMW 74,400, the tax rate is 30 percent.

For a taxable income over ZMW 74,401, the tax rate is 37.5 percent.

In general, both Zambian and non-Zambian residents pay the same rates. In reality, the only way for non-Zambian residents' income to be taxed at these rates would be on Zambian-source emoluments from work or office under pay-as-you-earn (PAYE). Non-Zambian residents' other Zambian-sourced income may be subject to withholding tax (WHT).

VAT, GST and sales tax

The VAT rate is 16% and applies to deliveries of standard-rated goods and services.

Zambian exports are taxed at 0 percent. However, whether the client is a Zambian person or a non-Zambian resident, the supply of services categorized as standard-rated goods from a Zambian place of business is liable to VAT at 16 percent.

Standard-rated items imported into Zambia are subject to a 16 percent import VAT.

The provision of standard-rated services to Zambian consumers by a non-Zambian supplier who was not subject to VAT in the nation from where the services were supplied would be liable to VAT in Zambia. The non-Zambian provider may hire a local tax agent to account for output VAT on their services, allowing the Zambian client to recover the equivalent input VAT. Otherwise, the Zambian VAT-registered client would be obliged to account for the output VAT, often known as "reverse-charge VAT," on services obtained from a non-resident provider. In this case, the Zambian client has no way of recovering reverse-charge VAT.

10. VISA and work permits

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

The Zambia visa policy is a set of laws and regulations that govern who is allowed to visit the nation, who needs a Zambian visa, and what sort of visa is necessary. Zambia offers a range of visa kinds based on the purpose and duration of stay. You may also get an admission permission in a variety of methods.

For foreigners, the government provides many long-term visa options, as well as short-term visas for visitors. Zambia is accessible via a single entrance visa, a double entry visa, or a multiple entry visa.

You may apply for an electronic visa (e-Visa) from the Zambian government online. This is the easiest approach to get travel authorisation to an African nation. Tourists from certain countries may get visas upon arrival in Zambia. Applicants must wait in the border control line and complete their applications on the spot. However, you may have to wait a long period at the border or airport before being permitted to enter the nation.

Other citizens must visit a Zambian embassy or consulate in person to get a visa. Online applications often take a long time to process. Any foreign individual wanting to reside or work in Zambia must get a long-term visa or a work permit. Furthermore, nationals of a handful of countries are permitted to visit Zimbabwe without a visa for up to 90 days.

Zambia's tourist visa policy requires international visitors from the majority of nations to get a visa in order to enter the country for leisure purposes. Zambia welcomes travelers who may apply for a short-term visa online, upon arrival, or through a Zambian diplomatic office overseas.

Tourists possessing a Zambian visa may remain in the country for 90 days from the date of admission. eVisa Zambia is a website that provides tourist visas. Applicants must complete a short online form, after which the entrance permission will be issued to them within a few days. More information on Zambia's visa rules may be found here.

Online applicants for Zambia visas may choose a single-entry, double-entry, or multiple-entry visa. In certain situations, visas must be sought at Zambia's embassy or consulate rather than at immigration offices. Personal visits to the diplomatic mission are essential, as are any necessary supporting documentation. Certain nations are eligible for visas on arrival in Zambia. Furthermore, several nations allow travelers to visit for a limited period of time without having a visa.

11. Employer Of Record service terms

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

Employment contracts

The name and official address of the employer

The name of the undertaking in which the employee will work

The nature of the employer’s business

The employee’s name, age, sex, permanent address, nationality, identity and social security number, workplace and any other details required to identify the employee

The date of the contract’s commencement and the type and duration of the contract

The date the employee’s service began, which may include employment with a previous employer

The workplace, or the geographical area within which the employee will work

The employee’s normal working hours and working days

The employee’s wages, rate of pay and/or the method of calculating the employee’s wages and any other benefits and the interval at which the employee will be paid

The details of any other payments or benefits the employee will receive

Any food or cash equivalent of food to be provided per the contract, if applicable

Any deductions to be made from the employee’s wages

The employee’s job description

Any other significant details

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

Minimum assignment length

In Zambia, employment contracts must be in writing if the contract length is for six months or more in a one-year period, or if the number of working days totals more than six months.

Payment currency

Zambian Kwacha

13.Opening a subsidiary in Zambia

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

How to set up a subsidiary

Do you understand all of the elements that influence how to establish a Zambia subsidiary? The two most important are location and company objectives. Cities and areas in Zambia may have variances in Zambia subsidiary laws, much as states in the United States have various laws and regulations. If you are unsure about whether region offers the most favorable rules for international firms, we suggest consulting with an expert who can assist you in determining the ideal place to incorporate.

Another critical step in the Zambia subsidiary establishment process is determining the proper entity for your purposes. If your firm intends to operate as a resident company in Zambia, you should consider incorporating as a limited liability company (LLC). If you simply require your subsidiary to do a few tasks, you might set it up as a representative or branch office.

The Zambia subsidiary establishment procedure includes the following steps:

1. Appointing foreign company directors

2. A minimum of one documentary agent should be appointed.

3. Form 46 is completed by creating a Certificate of Incorporation and attaching it to it.

4. The charter, laws, rules, memoranda, and articles were all submitted.

5. Paying registration costs and opening a bank account in the nation

6. Obtaining and sealing the Registration Certificate

Subsidiary laws

Zambia's subsidiary laws differ depending on the kind of organization selected for formation. LLCs must have at least two stockholders and two directors of any nationality. However, at least one of your directors must be a Zambian citizen. Your LLC must also hire a recognized law firm, which you must pay for on an annual basis. Finally, all LLCs in Zambia are required to have a company secretary.

Although LLCs have advantageous legislation for international corporations, you must still be concerned about tax obligations. LLCs, for example, must submit annual tax reports, and your accounts may be audited.

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

Establishing an entity in Zambia to hire a team takes time, money, and effort. The labor law in Zambia has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into Zambia 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 Zambia 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 Zambia via our Employer of Record (EOR) / PEO solution.

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