Payroll and Benefits Guide Namibia
Last updated: Mar 03, 2026
Contribution
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Employer
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Employer Payroll Contributions
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| 0.9% | Social Security, capped at NAD 81 per month | |
| 1.0%-8.0% | Workers Compensation | |
| 1.9-8.9% |
Total Employment Cost
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Employee
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Employee Payroll Contributions
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| 0.9% | Social Security, capped at NAD 81 per month | |
| 0.9% |
Total Employee Cost
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Employee Income Tax
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| 0% | On income up to NAD 1,00,000 | |
| 18% | On income between NAD 100,001-150,000 | |
| 25% | On income between NAD 150,001-350,000 | |
| 28% | On income between NAD 350,001-550,000 | |
| 30% | On income between NAD 550,001-850,000 | |
| 32% | On income between NAD 850,001 – 1,550,000 | |
| 37% | On income above NAD 1,550,001 |
Employer taxes
Employee taxes
Payroll
Payroll Frequency
The Payroll frequency is generally monthly
Working Hours
Working Hours
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
| Aspect | Regulation Details | Notes |
| Maximum Ordinary Hours (Section 16) | 45 hours per week is the standard statutory limit. Daily limits are 9 hours (5-day week) or 8 hours (6-day week). | Overtime is any work beyond these limits. |
| Daily Overtime Cap | Overtime is strictly limited to a maximum of 3 hours per day. | Total working time generally cannot exceed 12 hours per day. |
| Weekly Overtime Cap | Overtime must not exceed 10 hours per week. | These limits may be increased by the Permanent Secretary upon written application by the employer. |
| Consent | Overtime work must be stipulated in the contract of employment or agreed upon by the employee. | The limits on overtime do not apply to an employee performing urgent work (e.g., in an emergency). |
| Exemptions | The 45-hour limit and overtime caps may be adjusted for emergency healthcare workers and security officers, who may work up to 60 hours weekly and 12 hours daily under specific circumstances. |
Mandatory Overtime Pay Rates (Section 17, 21, 22)
Overtime compensation is mandatory and is calculated as a minimum premium percentage of the employee’s hourly basic wage.
| Day/Condition | Minimum Compensation Rate (Statutory) | Total Pay Rate | Notes |
| Standard Overtime (Daytime) | 1.5 times the employee’s hourly basic wage. | 150% | Applies to hours worked beyond 45/week on normal working days. |
| Weekly Rest Day/Public Holiday | 1.5 times the employee’s hourly basic wage. | 150% | Applies to work on the designated weekly rest day or a public holiday. Some sources cite double time (200%), particularly for Sunday work if it is not a regular working day for the employee. |
| Night Work Premium (20:00 to 07:00) | +6% of the hourly basic wage. | 106% | This is a premium for night work itself, excluding overtime pay, which must be added if the night work is also classified as overtime. |
Important Note on Rest Day/Holiday Work:
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Conflicting Rates: While the majority of the Labour Act’s provisions set the rate at 150% for Rest Day/Holiday work, there are specific interpretations that suggest 200% (double the basic wage) applies if the employee ordinarily works on that day, or in certain high-risk sectors. The minimum statutory rate for working on a rest day is $150\%$.
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Alternative Rest Day: When an employee works on a Sunday or Public Holiday, the employer must grant the employee an equal period of time off work during the next working week.
Leave
Annual Leave (vacation)
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.
PTO carryover
Note:
- For Zapeo, All leave accrued in respect of each 12-month leave cycle will be forfeited and the Employee
Public Holidays
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 | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 21 March 2026 | Saturday | Independence Day | Standard holiday |
| 23 March 2026 | Monday | Independence Day Holiday | |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 1 May 2026 | Friday | Workers’ Day | Standard holiday |
| 4 May 2026 | Monday | Cassinga Day | Standard holiday |
| 14 May 2026 | Thursday | Ascension Day | Standard holiday |
| 25 May 2026 | Monday | Africa Day | Standard holiday |
| 28 May 2026 | Thursday | Genocide Remembrance Day | Standard holiday |
| 26 August 2026 | Wednesday | Heroes’ Day | Standard holiday |
| 10 December 2026 | Thursday | Day of the Namibian Women and International Human Rights Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 26 December 2026 | Saturday | Family Day | Standard holiday |
| 28 December 2026 | Monday | Family Day Holiday |
Sick Leave
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.
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.
Termination
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.
| Salary payment interval / date | Final payment on termination | Bank account/payment-method requirement |
|---|---|---|
| Wages must be paid on the normal payday, whether weekly, fortnightly or monthly; and upon termination, wages must be paid on the day the contract ends (or by the next payday) according to interpretation of the law. | The employer must pay all remuneration owed (wages, accrued leave) when employment ends. Payment is required on the day of termination or the next scheduled payday. | Wages must be paid in money; payment via bank deposit is permitted, but the statute does not clearly mandate that all payments must be by bank account for all employees. |
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.
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Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 21 March 2026 | Saturday | Independence Day | Standard holiday |
| 23 March 2026 | Monday | Independence Day Holiday | |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 1 May 2026 | Friday | Workers’ Day | Standard holiday |
| 4 May 2026 | Monday | Cassinga Day | Standard holiday |
| 14 May 2026 | Thursday | Ascension Day | Standard holiday |
| 25 May 2026 | Monday | Africa Day | Standard holiday |
| 28 May 2026 | Thursday | Genocide Remembrance Day | Standard holiday |
| 26 August 2026 | Wednesday | Heroes’ Day | Standard holiday |
| 10 December 2026 | Thursday | Day of the Namibian Women and International Human Rights Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 26 December 2026 | Saturday | Family Day | Standard holiday |
| 28 December 2026 | Monday | Family Day Holiday |
If a domestic worker only works one day per week, how many days leave must I pay her?
A domestic worker who works one day per week is usually entitled to 4 working days of annual leave per year, from each of their employers.
If a domestic worker works 1 day per week, how do I calculate her severance pay?
In Namibia, severance pay is generally calculated as one week’s wages for each completed year of continuous service. For someone working one day per week, you’d calculate their weekly wage based on that single day’s pay, then multiply by the number of full years she’s worked. That said, the Labour Act doesn’t always spell out part-time specifics clearly, so it’s a good idea to confirm with the Ministry of Labour to ensure compliance.