Definitive Guide to Hiring in Namibia

Hiring in Namibia

Hiring employees compliantly in Namibia means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Namibia so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Namibia; or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Labor Laws in Namibia

Employee Probation Period

• The initial three months’ employment will be deemed a probationary period during which the Employee's suitability for the position will be monitored and feedback be provided.

Annual Leave in Namibia

• According to the country's Labor Act, an employee is entitled to 24 consecutive days of annual leave with full remuneration.

Holidays in Namibia

Maternity Leave Namibia

• According to the country’s Labor Act, after 12 months of continuous service, a female employee is entitled to four weeks of maternity leave in Namibia before the expected date of confinement and at least eight weeks of leave after the date of confinement

Paternity Leave Namibia

• There is no statutory paternity leave.

Sick Leave in Namibia

• Five-day per week employees are entitled to 30 working days of sick leave and six-day per week employees are entitled to 36 working days of sick leave, applicable for a sick leave cycle of 36 months and not on an annual basis.

Working Hours in Namibia

• In general, the work week should not exceed 45 hours, and overtime should not exceed 10 hours per week.

Overtime in Namibia

• 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.

Termination of Employment in Namibia

• Under the Labor Act, 2007, there is termination of employment through notice, termination through payment instead of notice and automatic termination of the employment contract.
• For termination of employment contract on notice whether by employer or employee, the period of notice cannot be less than one day if the employee has been employed in the establishment for four weeks or less.
• If the employee has been employed for more than four weeks but not more than one year, the period of notice should not be less than one week.
• Where the employee has been employed for than one year, the notice period should be of at least one month.
• Payment in lieu of notice is allowed.
• Instead of giving notice, the employer can pay the employee the remuneration the employee would have received, if the employee had worked during the period of notice.
• Similarly, an employee can pay the employer the remuneration the employer would have paid, if the employee had worked during the period of notice and terminate the employment contract immediately.
• An employment contract terminates automatically one month after the death or sequestration of the employer or shut down of the business.
• However, the employment may continue on a for a longer period as provided in the employment contract/collective agreement, or during the duration where the employer continues to carry on business.

Notice Period in Namibia

• In general, employees who have been terminated for just cause are entitled to the following notice periods:
  • less than four weeks’ service: one day’s notice
  • more than four weeks’ service but less than one year: one week’s notice
  • more than one year’s service: one month’s notice

Severance in Namibia

• Severance pay must be in an amount equal to at least one 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.

Namibia Salary and Wages

13th / 14th Month Salary in Namibia

• No
• There is no statutory requirement to pay the 13th and 14th month salary.
• Employees at Managerial level are more likely to receive the 13th month.
• Other employees may receive other type of bonuses such as travel allowances, insurance etc.

• Namibia has a limited social security system.
• The Maternity Leave, Sick Leave, and Death Benefit Fund are compulsory for all employees.
• It is funded by employer and employee contributions of 0.9% of the basic salary, with a maximum contribution of NAD 81 per month each (i.e. the total monthly contribution of both the employer and the employee will amount to NAD 162).

Immigration Namibia

• Visitors’ visas are issued to foreign nationals who intend to visit Namibia for recreational purposes only and are issued to visitors on arrival in Namibia.
• These visas are valid for up to 90 days and can be extended at a cost of NAD470 if the extension application is submitted within 14 days (weekends or holidays excluded) of the expiration date.
• Business visas are required for individuals who enter Namibia for business purposes.
• The business visa is now granted at the airport to individuals from visa-exempt countries, but the individual must be in possession of a confirmed return air ticket.
• On application, business visas may be granted for multiple reentry.
• However, they must be obtained for each entry into the country for business purposes if a multiple re-entry visa was not originally granted.
• The documentation required for a business visa consists of a copy of the passport (showing date of issuance, date of expiration and passport number), a completed visa form and a motivation letter (references from the employer) on a company’s letterhead.
• Work permits are issued to foreign nationals who intend to undertake employment in Namibia and are valid for a period approved by the Ministry of Home Affairs.
• The cost for a 12-month work permit is NAD2,500.
• In addition, a handling fee of NAD80 is charged on all applications.
• The cost for a 24-month work permit is NAD5,000.
• In addition, a handling fee of NAD80 is charged on all applications.
• The multiple-entry visa allows an individual to enter and leave Namibia as he or she desires.
• Applicants may not begin work until they are in possession of valid work permits.
• Work permits must be renewed three months before their expiration dates.
• They are valid only for the employment detailed in the application and are not transferable if the holder changes employment.
• A Change of Conditions permit must be obtained in these circumstances.

Value Added Tax (VAT) in Namibia

• VAT is a transaction tax, and the implications will vary for different transactions.
• Some transactions are taxed at a rate of 15% or 0% while other transactions are exempt from VAT.

Mandatory Benefits in Namibia

• These are mandatory benefits as postulated by law
• These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, notice period, and severance pay
• Statutory benefits also include social security benefits

Payroll Accrual in Namibia

Country Accruals Additional Information

Description

Namibia has a limited social security system. The Maternity Leave, Sick Leave, and Death Benefit Fund are compulsory for all employees. It is funded by employer and employee contributions of 0.9% of the basic salary, with a maximum contribution of NAD 81 per month each (i.e. the total monthly contribution of both the employer and the employee will amount to NAD 162)

Payroll Accruals Additional Information

Accrued Benefits in Namibia

Why use Global Expansion to hire in Namibia

Establishing a branch office or subsidiary in Namibia can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Namibia labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Namibia law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Namibia. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Namibia Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.