- Platform
- Solutions
- Capabilities
- Resources
- Company
Currency
$ (NAD)
Working Hours
45/Week
Namibia is in southern Africa on the Atlantic Ocean, between Angola and South Africa. It has an upper middle-income, export-driven economy. Namibia is natural resource rich, and mining, fishing, tourism, and agriculture are its key industries. It also is a major nature-based tourist locale. Namibia has a labor force of around 968,000.
Employment contracts in Namibia are deemed to be for an indefinite term unless the employer has a reason to hire an employee for a fixed term. Written agreements must contain the workplace details, salary, employer and employee identification, the nature of the job, working hours, the date of commencement of the work, and the end date if for a fixed term. Employment contracts must be in the employee's local language.
The duration of a fixed-term contract is determined by agreement between the employee and employer or a collective agreement.
In accordance with Labour Act, 2007, ordinary hours per week are 45. The daily working hours cannot exceed 9 hours per day if the employee works 5 days or less per week. Where the employee works 6 days, working hours cannot exceed 8 hours per day. Children below the age of 14 years are not allowed to work.
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 where 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 an emergency healthcare services, or is of any class designated by the Minster of Labour, and has to work up to 60 hours a week.
Maternity Leave
In Namibia, a female employee with six months of continuous service is entitled to 12 weeks of maternity leave, comprising four weeks before and eight weeks after confinement. This period can be extended in case of birth complications. The basic wage during maternity leave is paid by the Social Security Council.
Namibia does not have other types of leave.
Namibia has a public healthcare system. Most employers offer private health insurance.
Employer Payroll Contributions
0.9% - Social Security, capped at NAD 81 per month
1.0%-8.0% - Workers Compensation
1.9-8.9% Total Employment Cost
Employee Payroll Contributions
0.9% - Social Security, capped at NAD 81 per month
0.9% Total Employee Cost
Employee Income Tax
0% - On income up to NAD 50,000
18% - On income between NAD 50,000-100,000
25% - On income between NAD 100,000-300,000
28% - On income between NAD 300,000-500,000
30% - On income between NAD 500,000-800,000
32% - On income between NAD 800,000-1,500,000
37% - On income above NAD 1,500,000
Payroll Frequency
The Payroll frequency is generally monthly
The standard VAT rate in Namibia is 15%.
Collective agreements in different sectors set minimum wages. There is no official minimum wage rate in Namibia, except for domestic workers. Bonuses are not required but some employers pay them.
The Labour Act, 2007 outline sick leave entitlement for employees according to a sick leave cycle of a consecutive period of 36 months i.e. calculated on three-year basis,as opposed to an annual one.
Employees who work five days during a week is entitled to 30 working days of sick leave. Employees on six days a week working set up is entitled to 36 working days of sick leave. Employees working fewer than five days during a week receive a proportional calculation of sick leave, with entitlement still at least 1-day sick leave for every 26 days worked during the employee’s first year of employment. After the first year of employment, a worker accrues up to 30/36 days of sick leave in one sick leave cycle (36 months). Employees who do not work a fixed number of days per week will have sick leave calculated annually based on the average number of days worked per week over the previous 12 months.
The employer pays sick leave at an amount equal to that employee’s daily remuneration for each day of absence of sick leave, providing a medical certificate has been shared after two consecutive days of illness.
The number of annual leave days is calculated by taking the number of agreed weekly working days multiplied by four. Thus, a 5 day working week set up is entitled to 20 working days annual leave, a 6 day working week set up is entitled to is 24 working days annual leave.
Employers can decide their own policy on carryover of unused leave
Namibia’s Public Holidays Act, Act 26 of 1990 provides for 12 public holidays annually. If a public holiday falls on a Sunday the following Monday will be a public holiday, unless the Monday is already a public holiday. The President may declare any day in a particular year as a public holiday by proclamation in the Government Gazette.
Date Day Holiday
1 Jan 2024 - Monday - New Year
21 Mar 2024 - Thursday - Independence Day
29 Mar 2024 - Friday - Good Friday
1 Apr 2024 - Monday - Easter Monday
1 May 2024 - Wednesday - Workers’ Day
4 May 2024 - Saturday - Cassinga Day
9 May 2024 - Thursday - Ascension Day
25 May 2024 - Saturday - Africa Day
26 Aug 2024 - Monday - Heroes’ Day
10 Dec 2024 - Tuesday - Day of the Namibian Women and International Human Rights Day
25 Dec 2024 - Wednesday - Christmas Day
26 Dec 2024 - Thursday - Family Day
Notice Period
The Labour Act 2007 establishes the rules around notice and notice period when terminating workers. The notice of termination must be made in writing (unless the employee is illiterate, in which case the employee can give notice verbally) and state the reasons for termination and both employers and employees must give the follow notice periods:
At least 1 day notice when service length is four weeks or less.
At least 1 week notice when service length is more than four weeks but less than one year.
At least 1 month notice when service length is more than 1 year.
In lieu of giving notice, the employer can pay the employee the remuneration they would have received if the employee had worked during the period of notice.
Severance
Employers must give severance pay to employees who are dismissed or resigns/retires upon reaching the age of 65, as long as at least 12 months of continuous service have been completed. Severance pay does not need to be paid out where there were fair grounds for dismissal due to misconduct or poor performance.
Severance pay must be in an amount equal to at least 1 week’s remuneration for each year of continuous service with the employer. The payment of severance pay does not affect an employee’s right to any other amount that the employee is obliged to pay the employee. Where the contract of employment was terminated as a result of the employee’s death, then in the absence of a will, the employer must pay severance to the employee’s surviving spouse. Where there is no spouse, then to the children of the deceased employee and where there are no children, to the employee’s estate.
Probation
The labor law does not specify any specific length on probation period; each employer can determine this on their own within the Employment Contract.
Namibia offers a long-term two-year work visa short-term, 90-day or six-month work permits. The long-term visa is for long-term employment or contract work, while the short-term work permit allows temporary or seasonal employment in Namibia
The long-term work visa requires a job offer from a Namibian employer or a contract with a Namibian company and can be renewed or extended for continued employment. Employees applying for a long-term visa can also apply for spouse and dependent visas. The processing time for a long-term visa is three to six months.
The short-term visa is for workers affiliated or contracted with a Namibia company and can be renewed for 90 days. Spouse and dependent visas may be allowed. The processing time for a short-term visa is two to three weeks.
Partner with Helios
Partnering with Helios when expanding into South Africa can dramatically reduce the standard brick and mortar processes of doing business in foreign markets and allow you to focus on what you do best, growing your company! To discover more about how Atlas can simplify your ability to expand globally, please feel free to contact us.
Local Laws & Regulations
We understand that local laws and regulations change and sourcing an accurate reference guide is not easy. Our data is researched and verified by our team of local international Employment Attorneys, HR and Benefit Professionals and Tax Accountants through our Atlas team and consultants, to ensure information up-to-date and accurate.
Our team of regional experts are here to support you with your global expansion plans. If you have any questions, contact us and we will be delighted to help.
