Namibia: A Guideline to Payroll and Employer of Record

Run your business seamlessly with Neeyamo as we help you go beyond borders to manage your international payroll and hire new talent in Namibia.

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Overview

Namibia is known to be home to the oldest desert in the world, The Namib. The word Namib means “an area where there is nothing,” which perfectly fits with the landscape of the desert, which comprises 15% of Namibia's driest and most inhospitable areas. Though the climate is parched, the desert is home to a number of desert life-adapted wildlife and is also a wonder for wildlife enthusiasts looking to explore. Namibia also has much more to offer in its skilled and talented workforce. 

Do your organization's expansion plans require hiring employees in Namibia? Do you lack a physical entity in the country – a key requisite to hire local talent? Neeyamo – one of the best Global payroll providers, assists organizations worldwide with onboarding and managing employees in Namibia- processing payroll, managing local compliance requirements, benefits, and more.

Tools And Instances

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Global Payroll

Neeyamo’s global payroll solution covering 180+ countries

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Global Work

A tech-based EOR solution to manage your extended workforce

Facts And Stats

Capital

Windhoek

Currency

Namibian Dollar

Official Language

English

Fiscal Year

1st April- 31 March

Date Format

DD/MM/YYYY

Country Calling Code

+264

Other Languages

Oshiwambo

Time Zone

GMT +02:00

Global Payroll

Overview

Global Payroll: Meaning

Handling payroll for a widespread workforce can pose a significant challenge for any organization, and the added complication of compliance can make things worse. If companies spend more time processing payroll, it directly impacts day-to-day operations and their overall productivity. The solution to this is using payroll management services such as Neeyamo.

What is a payroll system?

Over the years, Neeyamo – Global Payroll Services has observed these complexities and strived to provide global payroll solutions through a single technology platform – Neeyamo Payroll. Neeyamos global payroll systems ease the process for companies looking to outsource their global payroll requirements and aid them in maneuvering the tricky payroll system in Namibia. Neeyamos payroll software provides the perfect solution for all your global payroll needs – for employees working in primary geographies, the long-tail region, remote or internationally located.

What is Payroll Processing?

Payroll processing involves the administration of employee compensation, encompassing salaries, deductions, bonuses, and related components. For global operations, the management of payroll processing often relies on the expertise of an external payroll service provider.

How is payroll calculated?

Neeyamo acts as your personalized Payroll Calculator. Ensuring adherence to local regulatory requirements using multi-level controls. Providing timely and accurate payroll, courtesy of our experts worldwide and using a tech-based integrated smart helpdesk solution with seamless support experience manned by payroll experts - Neeyamo has all your payroll needs covered.

Payroll Taxes

Payroll tax is the percentage amount retained from an employee's salary and paid to the government to invest in the welfare of the general population.

Employee Taxes

Employees must contribute 0.9% towards Social Security which is capped at NAD 81 per month.

Employee Income Tax:

Tax Percentage Income
0% up to 50,000 NAD
18% 50,000-100,000 NAD
25% 100,000-300,000 NAD
28% 300,000-500,000 NAD
30% 500,000-800,000 NAD
32% 800,000-1,500,000 NAD
37% above 1,500,000 NAD

 

Employer Taxes

Employers must contribute 0.9% towards Social Security which is capped at NAD 81 per month

Payroll Cycle

Overview

Undoubtedly, payroll is a critical aspect of any organization. The Pay cycle is a notable feature that provides a sense of accountability for an employee to be paid consistently for their work.

Pay Cycle

The remuneration payable to an employee, other than a casual employee, shall be paid to such employee weekly or, if the employer and his or her employee so agree, fortnightly or monthly, as the case may be, on the pay­day in respect of which that remuneration is payable or, in the case of an employee whose contract of employment is terminated before such pay­day, on the day on which such contract of employment is terminated, not later than one hour after the completion of the ordinary working hours of that employee.

(2) The remuneration payable to a casual employee shall be paid daily or, if the employer and his or her employee so agree, weekly, fortnightly or monthly.

13th Month Cycle

13th-month pay is not mandatory.

Global Work

Overview

An Employer of Record (EOR) service provider helps you get rid of the hassle of handling the complexities that come with setting up a new employee in remote locations. They act as legal employers, facilitate salary payments, and handle everything from health insurance, payroll taxes, and employee benefits to comply with local tax laws and regulations.

This ensures that the client company can focus on the employee’s everyday tasks safely in the knowledge that they have a cost-effective solution as they continue their global expansion.

Neeyamo, a global payroll provider, strives to provide its customers with a seamless employee management experience and offers global payroll compliance as well as EOR services with our Global Payroll Technology Stack. Neeyamo provides both managed payroll services with an automated payroll system as well as EOR services under one umbrella. 

HR Mandates and Practices

Minimum Wage

The minimum wage in Namibia is 9.03 NAD per hour, 72.25 NAD per day, and 1,564.39 NAD per month.

Overtime

An employer cannot ask the employee to do overtime unless otherwise agreed in the written agreement. Overtime must not exceed 10 hours a week and 3 hours per day. The employer must pay an employee at a rate of at least one and one-half times (150%) of the employee’s hourly basic wage for overtime. Where the employee ordinarily works on a Sunday or on a public holiday, he/she must be paid at a rate of at least double (200%) the employee’s hourly basic wage for overtime.

The periods of work are to be fixed in such a way that where an employee has continuously worked for 5 hours, he/she must be given a meal interval for at least 1 hour. This meal interval can be decreased to half an hour if the employee agrees and the Labour Department has been notified of such an agreement.

The meal interval is not regarded as time worked unless the employee is a security officer, works in emergency healthcare services, or is of any class designated by the Minster of Labour, and has to work up to 60 hours a week.

Data Retention Policy

Every employer:

  1. shall keep at an address in Namibia a proper record in such form as may be determined by the Permanent Secretary and made known by notice in the Gazette or by notice in writing to such holder of such particulars as may be so specified in relation to:
    1. the employees employed by him or her, including their sex and ages;
    2. the date on which every such employee commenced his or her employment and the date on which any contract of employment was terminated and the reasons for such termination;
    3. the remuneration payable to every employee other than a casual employee and the increment of such remuneration as may from time to time be granted;
    4. the remuneration paid to each employee;
    5. any periods of annual leave, sick leave or maternity leave, and other periods of absence granted to every employee other than a casual employee;
    6. such other information and particulars as may be determined by the Permanent Secretary and specified in such notice;
  2. shall submit to the Permanent Secretary, within such period as may be determined by the Permanent Secretary by notice in the Gazette, such returns and containing such particulars and information contained in such employer's records kept in terms of paragraph (a) as may be so determined and specified.

(2) An employer shall retain all records kept in terms of subsection (1), or a microreproduction thereof, for a period of not less than five years.

Hiring and Onboarding Requirements

Hiring

For the purposes of the Act, there are three designated groups whose members are to benefit from the implementation of affirmative action measures:

The phrase `racially disadvantaged persons' means all persons who belong to a racial or ethnic group that formerly had been, or still is, directly or indirectly disadvantaged in the sphere of employment as a consequence of social, economic, or educational imbalances arising out of racially discriminating laws or practices before the independence of Namibia. Where several suitably qualified candidates from designated groups qualify for a position of employment, an employer must give preference to Namibian citizens and candidates who belong to more than one designated group. In other words, it is the intention of the Act that relative priority be accorded to such individuals.

  • Racially disadvantaged persons;
  • women (irrespective of race), and
  • persons with disabilities (physical or mental limitations, irrespective of race or gender)

Probation

The probation period in Namibia is not specified in the applicable labor laws. However, this can be determined within the employment contract between the employer and the employee.

Leave

Public Holidays

There are 10 national public holidays in New Zealand:

  • Jan. 1: New Year’s Day 
  • Apr. 7: Good Friday 
  • Apr. 10: Easter Monday 
  • May 1: Labor Day 
  • May 4: Cassinga Day
  • May 21: Independence Day 
  • May 25: Ascension Day 
  • Aug. 26: Heroes Day 
  • Dec. 10: Day of the Namibian Women and International Human Rights Day
  • Dec. 25: Christmas Day 
  • Dec. 26: Family Day 

Annual Leave:

An employer shall grant an employee at least 24 consecutive days' leave of absence on full remuneration in respect of each period of 12 consecutive months for which the employee is employed by him or her (hereinafter referred to as a leave cycle): Provided that the period of leave may be reduced by the number of days on which the employee was during the relevant leave cycle granted occasional leave on full remuneration at his or her request;

The leave

  1. shall be granted by the employer as from a date determined by him or her, but not later than four months after the expiration of the leave cycle concerned, provided that if an employee has agreed thereto in writing before the expiration of the said period of four months, his or her employer may grant such leave to him or her as from a date not later than two months after the expiration of the said period of four months;
  2. shall not be granted by the employer to be concurrent with any period of sick leave granted in terms of section 40 or maternity leave granted in terms of section 41 or with a period of notice of termination of the contract of employment;
  3. shall for each public holiday which falls within the employee's period of leave and which falls on a day which otherwise would have been an ordinary working day for such employee, be extended by one working day with full remuneration.

Sick Leave

An employer shall grant an employee who is absent from work through incapacity:

  • in the case of an employee who works not more than five days during a week, not less than 30 working days, or
  • in the case of any other employee, not less than 36 working days;

Sick leave on full pay in aggregate over each period of 36 consecutive months during which the employee is employed by him or her (hence referred to as a sick leave cycle): Provided, however, that an employee shall not be entitled to sick leave on full remuneration for more than one working day in respect of each completed period of five weeks employment, and one working day in respect of each completed month of employment, during the first 12 consecutive months of employment.

The amount paid to an employee on full payment for a day's sick leave should not be less than the remuneration given to him or her for the hours (excluding overtime) typically worked by him or her on that day of the week.

An employer is not obligated to pay an employee an amount for any absence from work for more than two consecutive days unless the employee produces a medical certificate signed by a medical practitioner stating the nature and duration of the employee's incapacity. Provided, however, that if an employee has received payment in terms of that subsection on two or more occasions without producing such a certificate to his or her employer during any period of up to eight weeks, his or her employer shall not be bound to pay the said amount to the employee in respect of any absence from work during the period of eight weeks immediately following the last such occasion, unless he or she produces such a certificate.

Maternity Leave

A female employee who has completed at least 12 months continuous service in the employment of an employer shall, with a view to her confinement, be entitled to at least four weeks maternity leave before the expected date of her confinement, certified in writing by a medical practitioner to be such expected date, and ending at least eight weeks after the date of such confinement, so certified to be such date of confinement.

A female employee is not in violation of any rights granted to her by virtue of her employment on the date immediately preceding the commencement of her maternity leave, and such rights, including any rights to seniority, promotion, and any benefits to which she is entitled by law.

Virtue of her membership of a medical scheme or fund or a pension scheme or other retirement scheme shall continue as if her period of employment were not interrupted during the period of any maternity leave granted to her in terms of that subsection;

The provisions are not to be considered as granting any right on the female employee concerned to receive any remuneration during the period of her maternity leave, but such female employee may be entitled to receive such compensation as may be provided for in any law governing employment security during such period.

Extended maternity leave

If a medical practitioner certifies that :

due to complications arising from pregnancy or delivery, it is necessary for the health of an employee, an employer must grant that employee extended maternity leave in excess of the periods referred to above, up to a maximum equal to the greater of – 

  • one month; or
  • the amount of accrued sick leave that the employee has at that time; or

due to complications arising from birth or congenital conditions, it is necessary for the health of the employee’s child, an employer must grant that employee extended maternity leave in excess of the periods referred, up to a maximum equal to the greater of - 

  • one month; or
  • the amount of accrued sick leave that the employee has at that time.

If a medical practitioner issues a certificate in terms of both subsection, the periods of extended maternity leave must run concurrently.

Compassionate Leave

  • An employee is, during each period of 12 months of continuous employment, entitled to five working days’ compassionate leave with fully paid remuneration.
  • An employee is entitled to compassionate leave if there is a death or serious illness in the family.

Visa

Overview

The two kinds of work visas offered in Namibia are as follows.

Namibia work visa, which is a short-term temporary work visa for up to six months.

A work permit visa, which is for a longer period of one to three years. The requirements for a temporary work visa, are as follows:

  • A correctly signed and completed application form. 

  • A motivation letter from the applicant. 

  • The applicant's CV/Resume. 

  • Proof of qualifications of the applicant. 

  • Police clearance from the country of origin as well as Namibia if the applicant has been a resident there before. 

  • A satisfactory radiological Report coupled with medical reports. 

  • A Deed of Surety. 

  • Proof of means of sustenance while in Namibia. 

  • Proof of employment contract. 

  • Copies of all passport pages. 

Employee Background Checks

Legal and Background Checks 

In Namibia, pre-employment background screening checks that involve checking an individual's medical screening, identity, criminal records, and education are generally permissible.

Last updated on August 8, 2023

If you have any queries or suggestions, reach out to us at irene.jones@neeyamo.com

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