Payroll and Benefits Guide Zambia
Last updated: Mar 03, 2026
Contribution
| Employer Payroll Contributions | |
|
5.00%
|
National Pension Scheme Authority (NAPSA), capped at 1,708.20 ZMW per month |
|
1.00%
|
National Health Insurance |
|
0.5%
|
Skills Development Levy |
| 6.50% |
Total Employment Cost |
| Employee Payroll Contributions | |
|
5.00%
|
National Pension Scheme Authority (NAPSA), capped at 1,708.20ZMW per month |
|
1.00%
|
National Health Insurance |
| 6.00% |
Total Employee Cost |
| Employee Income Tax | Annual |
|
0%
|
Up to 61,200 ZMW |
|
20%
|
61,201 – 85,200 ZMW |
|
30%
|
85,201 – 110,400 ZMW |
| 37% | Above 110,400 ZMW |
Employer taxes
Employee taxes
Payroll
Payroll Frequency
Monthly
Working Hours
Workweek
8 hours per day, up to 48 hours per week
Overtime
Additional working hours are paid at a rate of 150% salary.
Leave
Annual Leave (Vacation)
In Zambia, annual leave is 24 working days. Two days per month are accrued.
Public Holiday
Public holidays which fall on a Sunday are moved the next Monday.
| Date | Day | Holiday | Holiday Notes |
|---|---|---|---|
| January 1, 2026 | Thursday | New Year’s Day | |
| March 8, 2026 | Sunday | International Women’s Day | |
| March 9, 2026 | Monday | Public Holiday (for Women’s Day) | |
| March 12, 2026 | Thursday | Youth Day | |
| April 3, 2026 | Friday | Good Friday | |
| April 4, 2026 | Saturday | Holy Saturday | |
| April 6, 2026 | Monday | Easter Monday | |
| April 28, 2026 | Tuesday | Kenneth Kaunda Day | |
| May 1, 2026 | Friday | Labour Day | |
| May 25, 2026 | Monday | Africa Freedom Day | |
| July 6, 2026 | Monday | Heroes’ Day | |
| July 7, 2026 | Tuesday | Unity Day | |
| August 3, 2026 | Monday | Farmers’ Day | |
| October 18, 2026 | Sunday | National Day of Prayer | |
| October 19, 2026 | Monday | Public Holiday (for Day of Prayer) | |
| October 24, 2026 | Saturday | Independence Day | |
| December 25, 2026 | Friday | Christmas Day |
Sick Leave
Sick leave is paid by the employer. The first 3 months of absence are paid in full, followed by 3 months of half pay.
A medical certificate must be provided from the second day onwards.
Maternity Leave
Mothers are entitled to 14 weeks of maternity leave. An additional 4 weeks is given in the event of multiple births. Women who have been employed with the same employer for 24 months are entitled to full pay from the Employer during this period. Following the maternity leave, the worker has the right to return to her prior job position or to a reasonably suitable alternative job role as long as the conditions are no less favorable. After returning to work, the worker is entitled to 2 nursing breaks per day of 30 minutes each, or one break for 60 mins included within the regular daily working hours.
Paternity Leave
Fathers are entitled to 5 continuous working days, paid at full salary by the employer. Eligibility is for those employed with the same employer for at least 12 months before birth. The leave should be used within seven days of the birth.
Parental Leave
Family Responsibility Leave can be used by workers with at least six months of service, allowing up to 7 days with pay to be taken off each calendar year to care for a sick spouse, child, or dependent.
Other Leave
Compassionate Leave- 12 days, fully paid by the Employer for bereavement. Could be required in other situations as well.
PAID MATERNITY LEAVE (DAYS)
Termination
Termination Process
A worker’s contract may not be terminated due to poor performance or conduct without first giving the employee an opportunity to be heard.
| Salary payment interval / date | Final payment on termination | Bank account/payment-method requirement |
|---|---|---|
| Wages must be paid at “regular intervals” and no later than **5 days after the date on which they fall due”. | On termination/expiry of employment contract the employer must pay severance pay where applicable under Section 54 of the Employment Code Act No. 3 of 2019. | Payment in legal tender directly to the employee; employer may pay into bank account, by cheque or money order or other means if employee agrees. |
Probation
The Probation period is 3 months, following this, the probation can be extended by a further 3 months.
Notice Period
30 days’ notice must be given in writing or payment in lieu of notice can be used.
Severance
In cases of termination of employment of a worker with a contract of a fixed duration, 25% of the employee’s basic pay earned during the contract period must be paid.
In cases of termination of employment due to redundancy = 2 months’ basic pay for each completed year of service must be paid.
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Public Holidays Calendar
| Date | Day | Holiday | Holiday Notes |
|---|---|---|---|
| January 1, 2026 | Thursday | New Year’s Day | |
| March 8, 2026 | Sunday | International Women’s Day | |
| March 9, 2026 | Monday | Public Holiday (for Women’s Day) | |
| March 12, 2026 | Thursday | Youth Day | |
| April 3, 2026 | Friday | Good Friday | |
| April 4, 2026 | Saturday | Holy Saturday | |
| April 6, 2026 | Monday | Easter Monday | |
| April 28, 2026 | Tuesday | Kenneth Kaunda Day | |
| May 1, 2026 | Friday | Labour Day | |
| May 25, 2026 | Monday | Africa Freedom Day | |
| July 6, 2026 | Monday | Heroes’ Day | |
| July 7, 2026 | Tuesday | Unity Day | |
| August 3, 2026 | Monday | Farmers’ Day | |
| October 18, 2026 | Sunday | National Day of Prayer | |
| October 19, 2026 | Monday | Public Holiday (for Day of Prayer) | |
| October 24, 2026 | Saturday | Independence Day | |
| December 25, 2026 | Friday | Christmas Day |
Questions & Answers