Zambia is an African country bordered by Zimbabwe, the Democratic Republic of Congo, Tanzania, Malawi, Mozambique, Botswana, Namibia, and Angola. Its economy is experiencing a good recovery despite a slowdown in recent years, with a GDP of 25.3 billion US dollars (2024) and a growing working population of over 7 million people (2024).

Many companies are choosing to employ in Zambia due to its young, English-speaking workforce, and with labor costs being lower than in Western countries. Industries that are particularly dominant in Zambia include mining, agriculture, tourism, and technology, driving many countries to hire here rather than at home.

However, companies must familiarize themselves with statutory employee benefits and local labor laws of Zambia to ensure strict compliance at all stages of the hiring journey. This guide will outline the mandatory and supplementary benefits under Zambian labor laws, as well as explain how Remote People can optimize hiring in Zambia.

Zambia Labor Law

Zambia’s main labor laws are governed by the Employment Code No.3 of 2019. This act provides a legal framework that consolidates previous labor legislation and provides an outline for employers and employees regarding employment contracts, working conditions, terminations, and employee benefits.

Other acts that further inform on labor laws in Zambia include:

  • Industrial and Labour Relations Act, Chapter 269
  • Minimum Wages and Conditions of
  • Employment (Orders) 2011
  • National Pension Scheme Act
  • Employment Code (Exemptions) Regulations (SI No. 48 of 2020)

When employing workers in Zambia, employers must consult legal experts for detailed compliance to ensure that their employment practices adhere to the latest legislation.

Mandatory Employee Benefits in Zambia

The main mandatory employee benefits in Zambia are detailed in local labor laws. We’ve included these in detail in the sections below:

Minimum Wage

The minimum wage in Zambia as of January 2026 varies depending on your category as a worker.

Domestic workers must be paid 1,100 ZMW per month, with a transport allowance of 200 ZMW.

Shop workers’ and general workers’ minimum wage depends on the employee’s specific role. Full lists can be found below, with details on basic wage, housing allowance, transport allowance, and lunch allowance:

Social Security Contributions

Zambia operates under a formal social insurance model, which protects workers and residents financially in cases of disability, death, and retirement. The main schemes include the National Pension Scheme Authority (NAPSA), the Public Service Pension Fund (PSPF), and the Local Authorities Superannuation Fund (LASF).

Employers and employees must make contributions towards social security. The rates as of 2026 are as follows:

Contributor Contribution Rate
Employers 5%
Employees 5%

Annual Paid Leave

Employees in Zambia are entitled to take a minimum of 24 working days of paid annual leave, once they have completed 12 months of continuous service.

Annual leave must be agreed in advance and set within individual employment contracts.

Working Hours

Normal working hours in Zambia are 48 hours per week, which are usually structured over a 6-day week.

Any hours worked above this count as overtime and must be paid accordingly.

Employees are entitled to take one break per shift of at least 1 hour, which they would usually use to have a meal.

Overtime Pay

Employees in Zambia may be requested to work overtime by their employers. This must be paid at an increased rate of 1.5 times an employee’s normal wage, or twice their wage if worked on Sundays or a public holiday.

Overtime pay cannot be substituted with additional days off, and some employees may be exempt from overtime if stipulated in their contracts. It must also be strictly recorded by employers and paid with an employee’s normal salary amount.

Public Holiday Leave

Zambia has several public holidays each year, which typically provide workers with a paid day off.

The public holidays in Zambia in 2026 are as follows:

  • New Year (January 1)
  • International Women’s Day (March 8)
  • Day off for International Women’s Day (March 9)
  • Youth Day (March 12)
  • Good Friday (April 3)
  • Holy Saturday (April 4)
  • Easter Monday (April 6)
  • Kenneth Kaunda Day (April 28)
  • Labour Day (May 1)
  • Africa Freedom Day (May 25)
  • Heroes’ Day (July 6)
  • Unity Day (July 7)
  • Farmers’ Day (August 3)
  • Prayer Day (October 18)
  • Day off for Prayer Day (October 19)
  • Independence Day (October 24)
  • Christmas Day (December 25)
  • Declaration of Zambia as a Christian Nation (December 29)

If employees are required to work on a Zambian public holiday, they must be paid at double their normal rate of pay for any extra hours worked.

Sick Leave

If an employee is too unwell to work, they are eligible for sick leave with full pay, provided that they can show a valid medical certificate.

The length of sick leave depends on the individual’s contract, but is usually paid as follows:

Contract Type Sick Leave Entitlement
Short-Term Contracts Full pay for the first 26 days, followed by half pay for the next 26 days
Long-Term Contracts Full pay for the first 3 months, followed by half pay for the next 3 months

Maternity Leave

Female employees in Zambia are entitled ot 14 weeks of paid maternity leave if they have a baby. This may be extended to 18 weeks if the employee experiences complications in pregnancy or delivery.

Workers must receive their full rate of pay and are protected from dismissal while pregnant and on maternity leave.

Female employees with children under the age of 6 months are also entitled to a one-hour paid break for breastfeeding, which can be split into two 30-minute paid breaks instead.

Paternity Leave

Male employees are entitled to 5 days of paid paternity leave if they have a child, provided that they have worked for their employer for at least 1 year.

Paternity leave must be taken within the first 7 days of the child’s birth.

This benefit was introduced recently in Zambia to support family well-being and is mandated within Zambia’s labor laws.

Pensions

Zambia operates under a mandatory public pension system, which is administered through the NAPSA.

There are no mandatory occupational pension schemes; however, employees can choose to register for a private pension scheme to save additional funds for retirement.

Workers usually retire at 60, provided that they have at least 15 years of contributions to obtain a full pension.

Severance Pay

Employees who have been dismissed without fault may be eligible for severance pay as per Zambian labor laws.

This is usually calculated as 2 months’ basic pay per year of service, but may vary for fixed-term contract expiration, death in service, or termination on medical grounds.

Specific calculations for severance pay are outlined in Zambia’s labor laws and must be explicitly noted in an employee’s contract.

Supplementary Employee Benefits in Zambia

Employers in Zambia are encouraged to offer their workers supplementary benefits in addition to the mandatory benefits required by law. This is to attract new applicants to open job roles and increase staff retention rates.

Some examples of popular supplementary employee benefits in Zambia include:

  • Private health insurance
  • Housing/transport allowances
  • Performance bonuses
  • Advanced training opportunities
  • Supplementary pension schemes
  • Flexible working

Optimize Employee Benefits with Remote People

Remote People supports companies hiring in Zambia by managing the employment process through a compliant Employer of Record (EOR) solution.

By acting as the legal employer of your workforce in Zambia, Remote People ensures employees are hired in line with local labor laws and regulations. Our EOR services cover key employment requirements, including payroll processing, employee benefits administration, and ongoing compliance management.

We also make sure employees clearly understand their employment contracts, helping avoid misunderstandings by explaining local rules around probation periods, notice requirements, terminations, and statutory benefits.

Using an EOR is a practical option for companies expanding into Zambia from abroad, especially for those looking to enter the market quickly or test operations before establishing a local entity.

Contact Remote People to see how we can help your business hire compliantly in Zambia, allowing you more time to grow your company and spend more time on day-to-day operations.