Employer of record in Zimbabwe

Holiday:

• 1 Jan          New Year’s Day
• 2 Jan          New Year Holiday
• 21 Feb        Robert Mugabe National Youth Day
• 7 Apr         Good Friday
• 8 Apr         Easter Saturday
• 9 Apr         Easter Sunday
• 10 Apr       Easter Monday
• 18 Apr       Independence Day
• 1 May        Workers’ Day
• 25 May      Africa Day
• 14 Aug       Heroes’ Day
• 15 Aug       Defense Forces Day
• 22 Dec       National Unity Day
• 25 Dec       Christmas Day
• 26 Dec       Boxing Day

Social Security: Employers and employees contribute to the National Social Security Authority (NSSA) pension scheme. The contribution rate is 3.5% of the employee’s gross salary, split equally between employer and employee.

Notice Period: The notice period for termination varies based on the length of service:

• Less than 3 months: 1 day
• 3 to 6 months: 2 weeks
• 6 months to 1 year: 1 month
• 1 to 2 years: 2 months
• 2 years or more: 3 months These periods apply unless otherwise specified in the employment contract.

Termination: Termination can occur by mutual agreement, expiration of a fixed-term contract, dismissal for just cause, or retrenchment. Employers must follow due process, especially in cases of dismissal for misconduct.

Severance: Upon termination without just cause, employees are entitled to severance pay calculated as follows:

• Less than 1 year of service: 1 month’s salary
• 1 to 2 years: 2 months’ salary
• 2 years or more: 3 months’ salary This applies unless a more favorable agreement exists.

Annual Leave: Employees are entitled to 30 days of paid annual leave after completing one year of continuous service. This includes weekends and public holidays.

Sick Leave: Employees are entitled to up to 90 days of sick leave per year, with full pay for the first 3 months and half pay for the subsequent 3 months. Beyond 6 months, the employer may dismiss the employee.

Maternity Leave: Female employees are entitled to 98 days of paid maternity leave at full pay. This leave is granted only once during any 24-month period.

Immigration: Employers must obtain work permits for foreign employees. The law sets quotas for foreign workers, varying by company size. For companies with up to 10 employees, the quota is 15%; for those with 11 to 30 employees, 10%; for 31 to 100 employees, 8%; and for over 100 employees, 5%.

Probation Period: The probationary period is limited to 3 months. During this period, either party can terminate the contract with shorter notice periods.

Income Tax: Employees are subject to personal income tax (PAYE) on their earnings, with rates ranging from 0% to 40%, depending on income brackets. Employers are responsible for withholding and remitting these taxes to the Zimbabwe Revenue Authority (ZIMRA).

Value Added Tax (VAT): The standard VAT rate is 15 %. Employers must register for VAT if their annual turnover exceeds the threshold set by ZIMRA.

Working Hours: The standard workweek is 48 hours, typically divided into six days of eight hours each. Overtime is compensated at a rate of 150% of the regular hourly wage.