Find your employer of record in Zambia

• Social Security benefits.
• Annual leave.
• Sick leave.
• Overtime pay.
• Transportation allowances.
• Public holidays and holiday bonuses.
• Optional pension schemes.
• Private health insurance.
• Optional life insurance.
• Severance pay.
• Notice period.

When it comes to visas, African employees and foreigners can apply for different visa categories that the Zambian government offers. For example, the main visa categories that are available are short-term work permits and long-term work permits.

• Short-term work permits: it is a document that allows holders to work in Zambia for an initial period of up to 3 months. However, after it expires, holders can renew the permit only once. In other words, it will allow holders to live and work in the country for a maximum period of 6 months.
• Long-term work permits: these permits are also known as employment permits, and they have two main characteristics. Firstly, these permits allow holders to live and work in Zambia for 2 years. Secondly, these documents are renewable, just like short-term work permits are.

On the other hand, it is not possible to change from one type of work permit to the other after arriving in the country. Therefore, employers must make sure to obtain the right permits for their foreign hires from the beginning.

The standard VAT rate in Zambia is 16.00%. Now, if you desire to hire employees in this country, we suggest hiring PEO services or EOR services. As a result, you will get suitable solutions for all hiring challenges you might face along the way.

Termination Process

In the event of a dismissal, the employer must provide the employee with the required notice period. Besides, the employee is eligible to receive the following entitlements:

• At least 25% of their basic pay (in the case of termination of an employment contract of a fixed duration).
• 2 months’ basic pay for each completed year of service (in the case of termination of an employment contract due to redundancy).
• At least 3 months’ basic pay for each completed year of service (in the case of termination on medical grounds).
• 2 months’ basic pay for each completed year of service (in the event of the death of the employee).

Notice Period

Notice periods in Zambia can vary depending on the employee’s length of service as follows:

• 24 hours or 1 day: for employees on an employment contract of no more than 30 days.
• 14 days: for employees who served for no less than one month but no more than three.
• 30 days: for employees who served on an employment contract of more than three months. However, notice to terminate an employment contract of more than six months shall be in writing.

Severance Pay

This benefit does not apply to employees who work under a fixed-term employment contract or long-term employment contract. Nonetheless, they may receive an end-of-service lump sum gratuity that equals 25% of their base pay over the term of the agreement.

Probation Period

The laws establish provisions for probationary employment of up to 3 months. However, it is possible to extend this period once. Therefore, probation periods in Zambia can be a maximum of 6 months. Make sure to contact an Employer of Record in Zambia to get more information about probation periods in the country.

Paid Time Offs

Every employee in Zambia (except temporary employees) who has been hired to work for at least 12 months is eligible to receive an annual paid leave. On the other hand, employers must calculate this benefit at a rate of 2 days per month (24 days per annum). 

Public Holidays

There are 14 national holidays throughout the year.

Vacation Holidays

There are 24 vacation holidays throughout the year.

Sick Days

The sick leave entitlement that workers can receive in Zambia depends on the following criteria:

• The employee must provide a valid medical certificate in order to receive fully paid sick leave.
• Depending on the type of employment contract, the employer will calculate the length of the employee’s paid sick leave.
• If the employee works under a short-term contract, they will receive full pay for the first 26 working days of the leave. After that, they will receive 50% of the pay for the following 26 working days of the leave.
• On the other hand, if the employee works under a long-term contract, they receive full pay during the first 3 months of the leave. Then, they receive 50% of the pay for the following 3 months of the leave. But keep in mind that long-term contracts are all whose duration is more than 12 months.
• Lastly, the employer may discharge the employee if they do not recover from illness after 6 months from the date of the accident or illness. Nonetheless, the employer may do this on the recommendation of a registered medical doctor.