Employer of Record in Zambia

Hiring independent contractors has boomed in popularity because of the cost savings and flexibility they offer. It can be a great option if you require niche skills or short-term project support. Contractors allow businesses to access specialized skills quickly, without the time and cost of setting up a local entity.

However, it’s important to know the limits of this model: contractors are not a substitute for full-time employees. Relying on them for ongoing, long-term roles can create serious compliance risks, including employee misclassification, which can lead to fines, back taxes, and reputational damage.

Playroll’s contractor management solutions make it simple to compliantly engage, onboard, and pay contractors around the world. We provide clear visibility into agreements, streamline payments, and reduce compliance risks – so you can focus on getting the work done. And when you’re ready to take the next step, we can help seamlessly convert contractors into full-time employees through our global Employer of Record service.

Businesses can only operate smoothly in Zambia if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Zambia below, to avoid any compliance issues.

Employment Contract Requirements

When hiring in Zambia, it's essential for employers to adhere to labor laws and regulations. The employment contract should preferably be in English or another mutually understandable language. Typical contract details include:

• Identification of both parties
• Commencement date
• Job responsibilities and duties
• Employee's compensation and other benefits

Onboarding Process

We can help you get a new employee started in Zambia quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations.

For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Zambia

Regular working hour is 8 hours per day, up to 48 hours per week

Overtime in Zambia

Any work exceeding the standard 8 hours per day is considered overtime and should be compensated at a rate of 150% of the regular salary.

Probation Period in Zambia

During a probationary period, which should not exceed three months, an employee may be hired to assess their suitability for the position. This probationary period can be extended for an additional three months if needed.

Setting up a local legal entity in Zambia can be time-consuming and expensive. It often involves complex paperwork, local representation, banking, registrations, and ongoing tax filings, which isn't cost-effective if you're simply looking to hire a few employees or test the market. An Employer of Record removes these barriers entirely. Instead of spending months establishing a presence, an EOR lets you hire and onboard employees within days while staying fully compliant.

This enables faster market entry and greater agility. Whether you’re launching a pilot program, supporting a regional client, or adding specialized talent, you don't need to commit to long-term infrastructure to explore new business opportunities. The EOR handles local employment logistics while you retain day-to-day oversight of your hires. This model lets you scale up or down based on business needs, giving you more flexibility with less overhead and risk.

Fiscal Year in Zambia

January 1st - December 31st is the 12-month accounting period that businesses in Zambia use for financial and tax reporting purposes.

Payroll Cycle in Zambia

The payroll cycle in Zambia is usually monthly, with employees being paid last day of the month.

Minimum Wage in Zambia

As of 1 January 2025, the minimum wage rate in Zambia varies depending on sector, as follows:

Zambia reviews its minimum wage rates biennially through the Labour Advisory Committee.

Bonus Payments in Zambia

There's no mandatory law for a 13th-month pay in Zambia. Employers have the option to provide a 13th and 14th-month pay if they choose to do so.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 6.5% on top of the employee salary in Zambia.

Employee Payroll Tax Contributions

In Zambia , the typical estimation for employee payroll contributions cost is around 6%.

Individual Income Tax Contributions

In Zambia, income tax follows a progressive structure on annual income, with individual rates ranging from 0% to 37%.

Pension in Zambia

The public pension system, managed by NAPSA, involves a 5% contribution from both the employer and employee. An individual who is a registered member, aged 55 or above, and has contributed for at least 180 months becomes eligible for an early retirement pension.

One of the biggest risks in global hiring is payroll mismanagement. In Zambia, even small errors in tax reporting or social contribution payments can trigger audits, fines, or reputational damage. For companies without in-country expertise, the risk isn’t worth taking. An Employer of Record removes this burden by owning the legal responsibility of payroll, executing every step with built-in compliance.

Key Ways an EOR Supports Payroll in Zambia:

• Mitigates Compliance Risk: Oversees all legal obligations for payroll, tax filings, and recordkeeping.
• Local Regulatory Expertise: Interprets and applies Zambia’s latest labor and tax changes in real time.
• Free Processing: Reduces mistakes in wage calculations and reporting through built
• Payroll Record Management: Maintains compliant payroll audit trails and documentation for each employee.

In Zambia, work permits and visas are essential for employers looking to hire foreign workers or relocate international employees. The process involves submitting applications, providing supporting documents, and adhering to immigration laws. Key visa options include the Short-term Work Permit, which allows employment for up to three months, and the Employment Permit, suitable for long-term assignments up to two years, typically granted for an initial two-year period and renewable for up to a maximum of ten years.

Employers must also consider the Temporary Employment Permit for short-term assignments of up to six months. Understanding the eligibility criteria, processing times, and costs associated with these permits is crucial for compliance and ensuring a smooth hiring process.

Mandatory Leave Entitlement in Zambia

The annual leave entitlement in Zambia is 24 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Zambia

In Zambia, there are 17 national public holidays in a year.

Paid Time Off in Zambia

Employees with 12 months of continuous employment in Zambia are entitled to 24 days of annual leave per year. If the employer fails to provide the full leave, they must compensate the employee for the remaining leave at the end of the 12-month period.

Maternity Leave In Zambia

Employees in Zambia are entitled to 14 weeks of maternity leave, extendable to 18 weeks for multiple births. Those with 24 months of service with the same employer receive full pay during maternity leave and have the right to their previous job or a suitable alternative upon return.

Additionally, they are entitled to nursing breaks totaling 60 minutes per day.

Paternity Leave In Zambia

Fathers with at least 12 months of service before childbirth are entitled to five days of paid leave, to be taken within seven days of the child's birth.

Sick Leave In Zambia

Employees in Zambia receive paid sick leave, with employers covering the payments. Initially, the first 3 months of absence are fully paid, followed by 3 months at half pay. A medical certificate is required from the second day of absence onward.

Parental Leave In Zambia

Employees with at least six months of service can use Family Responsibility Leave, which allows them to take up to seven paid days off per calendar year to care for a sick spouse, child, or dependent.

Mother's Day

Female employees are entitled to one day off per month without needing a medical certificate or providing a reason to the employer, regardless of motherhood status.

Compassionate Leave

Employees can take up to 12 days of compassionate leave with full pay in a calendar year under circumstances such as experiencing the loss of a spouse, parent, child, or dependent, or presenting a valid compassionate reason.

In Zambia, benefits play a central role in attracting and retaining top talent. Employees often expect more than just a paycheck – they're looking for stability, healthcare coverage, pension plans, and other perks that show a company is invested in their well-being. If you're not familiar with what’s standard or required, you risk falling short. An Employer of Record helps bridge that gap by administering a locally competitive benefits package that meets both legal requirements and employee expectations.

An EOR doesn't just check boxes, they make sure your employees receive benefits that are timely, properly communicated, and well-managed from the moment they’re onboarded. From managing healthcare contributions to adjusting for regional differences in leave or bonus entitlements, an EOR acts as both a legal and operational partner. The result is a better employee experience, less administrative burden on your internal team, and greater confidence that your offer is aligned with what top candidates in Zambia actually want and need.

Termination Process in Zambia

In Zambia, either the employer or the employee can end the employment contract, but both parties must state the reason for termination or provide a notice period. The employer can terminate the contract for one of the following reasons:

1. Poor work performance
2. Misconduct
3. Redundancy
4. Unsuitability to job role

Notice Period in Zambia

In Zambia, both the employer and the employee must adhere to specific notice periods when terminating employment contracts. These periods vary based on the duration of the contract:

1. 24 hours for contracts not exceeding one month
2. 14 days for contracts exceeding one month but not exceeding three months
3. 30 days for contracts exceeding three months, with written notice required for contracts over six months.
4. Termination can also be initiated by immediate payment equivalent to all wages and benefits due to the employee at the time of termination.

Severance in Zambia

In Zambia, severance pay is obligatory for most employees, excluding those on certain contracts. It applies in cases of medical discharge, contract expiration or termination, redundancy, and employee death. The amount varies based on the reason for termination.