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Overview
Zimbabwe Dollar (ZWD)
CURRENCY
Harare
CAPITAL
monthly
PAYROLL FRECUENCY
1
PUBLIC HOLIDAYS
7 to 16
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Zimbabwe
Employer
Employer Payroll Contributions
4.50% - 4.50%
Social Security
2% - 11%
Workmen’s Compensation Act
0.50% - 0.50%
Standards Development Fund
7% - 16%
Total Employment Cost
Employee
Worker Payroll Contributions
0%- 4.50%
Social Security
0%- 3%
Aids Levy
0% - 7.5%
Total Employee Cost
Employee Income Tax in Zimbabwe
Employee Income Tax
- 0.00%: For wages of up to ZWD 120,000
- 0 + 20.00% for each ZWD above ZWD 120,000: For wages between ZWD 120,001 and ZMW 360,000
- ZWD 48,000 + 25.00% for each ZWD above ZWD 360,000; For wages between ZWD 360,001 and ZMW 720,000
- ZWD 138,000 + 30% for each ZWD above ZWD 720,000: For wages between ZWD 720,001 and ZMW 1,440,000
- ZWD 354,000 + 35.00% for each ZWD above ZWD 1,440,000: For wages between ZWD 1,440,001 and ZMW 3,000,000
- ZWD 900,000 + 40.00% for each ZWD above ZWD 3,000,000: For wages over ZWD 3,000,000
Minimum Wage in Zimbabwe
General
In Zimbabwe, there is not a single official minimum wage. In fact, there are 22 different industrial sectors in the country. And each of these industries has a specific minimum wage. Furthermore, minimum wages can vary for agricultural, domestic, and government workers. But in case you need more information about minimum wages, contact an Employer of Record in Zimbabwe.
Minimum Wage per month
Payroll Contributions in Zimbabwe
Payroll Cycle
Employers in Zimbabwe must process their employees’ payments on a monthly basis. However, if you hire a specialized Employer of Record in Zimbabwe, your payroll process can be easier for you. Besides, requesting a payroll service, particularly payroll outsourcing, allows you to delegate this responsibility to a specialist.
13th Salary
The labor laws in Zimbabwe include provisions for a 13th month of salary that employees can receive. Besides, they may receive performance-based and production-based bonuses as well. But before calculating these special bonuses, make sure to get assistance from an Employer of Record in Zimbabwe.
Employee Benefit in Zimbabwe
- Paid annual leave.
- Maternity leave.
- Sick leave.
- Public holidays.
- Medical Aid Contribution.
- Pension.
- Performance bonus.
- 13th salary.
- Housing loan.
- Domestic allowance.
Visa and work permit in Zimbabwe
In order to obtain an employment visa or work permit in Zimbabwe, applicants need to fulfill certain requirements. For example, it is mandatory to provide a passport with at least 6 months of validity and 2 blank pages. Besides, applicants may also need to have a certificate of vaccination against yellow fever.
Furthermore, other requirements for obtaining a temporary work visa can be the following:
- Two passport-size photos.
- A letter that contains a job offer from a company based in Zimbabwe.
- Proof of qualifications for the position (including prior work experience).
- In some cases, a birth certificate and marriage certificate are necessary.
- Lastly, the payment of the corresponding application fees is also mandatory.
VAT in Zimbabwe
In Zimbabwe, the standard VAT rate is 14.50%. Apart from learning about this topic, an Employer of Record can help you run many operations in your company. Besides, you are free to choose between EOR services and PEO services; both can provide the solutions you need.
Working Hours in Zimbabwe
General
In Zimbabwe, the standard working hours are 8.5 hours per day. Besides, the standard working week consists of 44 hours.
Overtime
Overtime pay is given to employees when they are required to work beyond their regular working hours. And the minimum overtime rate in Zimbabwe is 150% of the employee’s normal salary or wage rate. However, if the employee works on a public holiday, they shall receive 200% of their normal salary or wage rate.
On the other hand, employers can only request their employees to work for a maximum of 10 hours a day.
Working Week
Monday to Friday.
Employee Termination in Zimbabwe
Termination Process
As per the Code of Conduct in Zimbabwe, the termination of an employment contract is only possible if both the employer and the employee agree to it in writing. Similarly, an employer can terminate an employee on a fixed-term contract if it has expired after the mandated period. Besides, this is also the case if the employee performs a specific task and completes it.
On the other hand, employers can terminate an employee on the following grounds:
- Firstly, if the employee is guilty of theft or fraud.
- Secondly, if the employee willfully destroys the employer’s property.
- Thirdly, if the employee is absent for 5 days or more without providing a reasonable excuse.
- Also, if the employee lacks a skill that they implicitly said they had.
- If the employee is substantially negligent in their duties.
- And if the employee is drunk to the extent that it makes them fail to perform their duties.
Notice Period
The notice period for terminating an employment contract can be given by either party. Besides, notice periods can vary as follows:
- Three months: for employment contracts without limit of time. Or it can also be for contracts valid for a period of two years or more.
- Two months: for employment contracts with a validity of one year or more. However, it does not apply to contracts valid for two years or more.
- One month: for employment contracts valid for a period of six months or more. But not for contracts valid for one year or more.
- Two weeks: for employment contracts valid for at least three months but no more than six months.
- One day: for employment contracts valid for less than three months. Furthermore, this is also the notice period for casual or seasonal work.
Severance Pay
According to the Labor Act in Zimbabwe, employers must pay severance pay to a collective agreement or employees who were dismissed due to redundancy. Although severance pay calculations may vary depending on many factors, it usually consists of 3 months’ pay for one year of service. On the other hand, it may also consist of one day’s pay if the contract’s validity is three months. Similarly, severance pay is calculated as one day’s pay if it is casual or seasonal work.
Probation Period
In Zimbabwe, the usual probation period consists of 3 months. However, in the case of casual or seasonal work, the probation period consists of 1 day.
Employee Leaves in Zimbabwe
Paid Time Offs
As per the Labor Act, all African employees in Zimbabwe who have completed one year of service can receive paid annual leave. As a matter of fact, they can receive this vacation leave at the rate of one-twelfth of their qualifying service in each year of service. In other words, their vacation leave consists of 30 calendar days or 22 working days). However, the employment contract or collective agreement may include more favorable provisions for the employee.
On the other hand, note that these 30 calendar days of leave include weekends and public holidays.
Public Holidays
There are 1 national holidays throughout the year.
Vacation Holidays
There are 30 vacation holidays throughout the year.
Sick Days
If an employee needs to take sick leave, they must provide a certificate signed by a duly registered medical practitioner. After that, they will be able to take 90 days of sick leave with full pay in a year. Furthermore, female employees may also receive 98 working days of leave with full pay.
However, if the employee takes all 90 days in any one-year service period, they can request 90 additional days. But this time, they will only receive half pay. Besides, these additional days of sick leave will also require a signed certificate from a registered medical practitioner.
On the other hand, the employer may terminate the employment contract of that employee in some cases. But this can only happen if the sick leave exceeds 90 days of full and the remaining 90 days of half pay.
Paternity Leave
In Zimbabwe, there is no mandatory paternity leave. Nonetheless, it is possible for an employee to take up to 12 days of unpaid leave after their child’s birth.
Paternal Leave
There are no provisions for parental leave in Zimbabwe.
Other Leave
Bereavement Leave: in the event of the death of an immediate family member, the employer may provide the employee with this special leave. However, it is up to the employee to prove the existence of the circumstances.
Maternity Leave in Zimbabwe
Female employees in Zimbabwe are eligible to receive 98 working days of paid leave with full pay. Besides, note that there is a compulsory entitlement of 21 days before confinement that the 98 days include.
However, a female employee may take this type of leave not earlier that the 45th day. But it must not be later than the 21st day prior to the expected due date. On the other hand, you can get further information about maternity leave from an Employer of Record in Zimbabwe.
There are 98 leave throughout the year.