Namibia PEO & Employer of Record Services
Global PEO Services (GPS) helps companies hire employees in Namibia without establishing a legal entity. All human resources, benefits, payroll, and tax needs for the employees are managed by the Global PEO, while the new hires and headquarter teams focus on your business goals.
When hiring employees in Namibia, establishing a subsidiary or branch office is not always the best route, as it’s often a lengthy and expensive process. Hiring via a Professional Employer Organization (PEO), or Employer of Record (EOR), is a faster and often more effective option – especially when starting up in a new country.
Global PEO Services hires the employees on your behalf, legally contracting them through our subsidiary in accordance with Namibia labor laws. As a result, the burden of compliance is on us and the employees can begin work for your company in a matter of days. PEOs/EORs provide you with a streamlined option for hiring employees, testing markets, and responding to growing business needs in Namibia. With Global PEO Services, you get control without taking on legal entity liabilities, contractor risks, or sacrificing on talent or speed to market.
Namibia - Country 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.
Republic, Representative Democracy, Presidential System, Semi-presidential System
Rundu, Walvis Bay, Oshakati, Swakopmund
Employment Contracts in Namibia
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.
Working Hours in Namibia
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.
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.
Employee Leave in Namibia
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
Employees are entitled to a minimum of 24 consecutive days of annual leave with full remuneration.
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.
Employers are required to provide workers a minimum of 5 working days of paid compassionate leave per year.
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.
Employee Benefits in Namibia
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.
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.