Namibia

Overview

Namibia, a higher middle-income country, since independence has adopted free-market economic principles to promote job creation and commercial development. Rich alluvial diamond deposits make the country a primary source of gem-quality diamonds.

The mining sector contributes more than 50% of the country's foreign exchange earnings. Namibia is projected to become the world’s 3rd largest uranium producer when a Chinese-owned mine goes fully online. The economy is closely tied to South Africa’s, and has one of the region’s highest credit ratings.

Currency: Namibian Dollar

Principal Languages: German, English

Government: Republic, Representative Democracy, Presidential System, Semi-presidential System

Capital City: Windhoek

Other Major Cities: Rundu, Walvis Bay, Oshakati, Swakopmund

Employment Contracts

The Labour Act 11 of 2007 outlines the “Basic Conditions of Employment.” An employment contract need not be in writing. Basic conditions of employment are built into the employment relationship by law, except where an employee receives more favorable rights than those provided for in the Act such as work hours, remuneration, leave, accommodation and termination.

Work/Time Regulations

The maximum workweek is 45 hours, with the number of hours worked not exceeding 8 hours per day if an employee works more than 5 days in a week. It would be 9 hours if the employee works for 5 days or fewer per week.

Employees are entitled to an additional payment of 6% of their hourly basic wage, excluding overtime for each hour of additional work done between 8 p.m. and 7 a.m.

Overtime

Employers are required to pay at a rate of 1.5 times the employee's hourly basic wage for overtime based on the maximum workweek of 45 hours. Employers must not ask employees to work more than 10 hours of overtime per week or three hours of overtime per day. Employees that work on Sundays or public holidays are eligible to receive double the hourly basic wage.

Leave

Holidays 

There are 12 public holidays in Namibia, paid by the employer and specified yearly by Namibia's Public Holidays Act:

  • Jan. 1: New Year's Day
  • March 21: Independence Day
  • Good Friday
  • Easter Monday
  • May 1: Workers Day
  • May 4: Cassinga Day
  • Ascension Day
  • May 25: Africa Day
  • Aug. 26: Heroes' Day
  • Dec. 10: International Human Rights Day
  • Dec. 25: Christmas Day
  • Dec. 26: Family Day

Annual Leave
Employees are entitled to a minimum of 24 consecutive days of annual leave with full remuneration.

Sick Leave 
Employers are required to give employees per year:

  • not less than 30 working days of sick days, if the employee ordinarily works five days during a week;
  • not less than 36 working days of sick days, if the employee ordinarily works six days during a week; and
  • not less than the number of working days calculated on a prorated basis, if the employee ordinarily works fewer than five days during a week.

Employees are entitled to one day's sick leave for every 26 days worked during the employee's first year of employment.

Employers must pay employees an amount equal to daily remuneration for each day of absence on sick leave.

Compassionate Leave 
Employers are required to provide workers a minimum of 5 working days of paid compassionate leave per year.

Maternity Leave 
Women employees are entitled to maternity leave for a minimum of 4 weeks before the expected date of delivery and 8 weeks after birth at full pay.

Benefits

Pension and Social Security

Social insurance is administered by Namibia Social Security Commission.

Employers and employees contribute to the Maternity Leave, Sick Leave, and Death Benefit (MSD) Fund. The assessments are based on wages paid to employees, with the wages paid to each employee subject to a cap on the amount subject to assessment for the fund.

Workers' Compensation

Employers are required to pay annual assessments to the Employees' Compensation Fund, which provides replacement income to eligible individuals whose ability to work is reduced because of an injury or illness acquired in the course of employment.

Coverage: All employed individuals working at least one day a week on a regular basis generally are covered under social taxes. Employers with at least one employee in Namibia are covered by the country's social tax provisions.

Employees who are paid at least N$81,300 each year are excluded from coverage by the Employees' Compensation Fund.

How GPS can Help

With our Global PEO/Employer of Record services, companies can expand into Namibia and hire their employees without having to establish a branch office or subsidiary in Namibia.

  • Your candidate is hired via our Namibia PEO. If needed, we can also help you find the right talent in any country with our comprehensive global staffing services
  • Your new employee begins work quickly as we take care of employment contracts, statutory and non-statutory benefits, and running their payroll – all in full compliance with the Namibia laws
  • Global PEO Services experts manage all day-to-day operational issues, such as employee expenses, and severance/termination if required.
  • No contractor risks, pass on the compliance burden to Global PEO Services.

 Spin Off/M&A Support

  • Ensure continuity of payroll, benefits and HR support when acquiring or spinning off a business with employees overseas.

24/7 Support in 100+ Countries

  • Empower your teams with 24×7 support and a single point-of-contact model in which experienced client services directors are in continuous communication with information and advice.
  • We are backed by a mix of 300+ multidisciplinary experts from HR, Payroll, Finance, Tax, and Legal domains who are ready to respond to the expected and unexpected needs of your business on the shortest notice.

Easy Visibility into Your Employee Time & Attendance and Benefits Data

With our Global PEO, you get access to our proprietary Mihi SaaS solution for time and attendance, vacation, leave management and benefits enrollment and management. Mihi enables clients to have easy access to employee data in real time. It is designed specifically for companies with a global workforce, especially when working in multiple countries with low headcount.

Ready for Growth When You Are

When ready, we can seamlessly transition you from the PEO/EOR model to your own legal entity and provide ongoing international HR, finance, legal, compliance and staffing support. Learn more about our end-to-end international expansion services here.

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