Employer of Record in Zimbabwe

Employment Laws and Regulations in Zimbabwe

Employment Contracts

The Labour Act [Chapter 28:01] governs employment in Zimbabwe, overseen by the Ministry of Public Service, Labour and Social Welfare. The Labour Amendment Act No. 11 of 2023 brought recent updates. Every employment agreement must be in writing and include the job title, description, workplace, start date, gross wage (in USD or ZWG), hours, probation terms, notice period, and benefits. Contracts are typically drafted in English, the standard language in government and business. You can use either fixed-term or indefinite contracts, but the labour inspectorate scrutinizes repeated renewals of the same role. If contracts are kept fixed-term without a pathway to permanent status, they may be reclassified as indefinite roles anyway.

Working Hours and Overtime

Zimbabwe’s standard workweek is either 48 hours (8 hours daily, 6 days) or 45 hours (9 hours daily, 5 days) – depending on industry and collective bargaining agreements. The Labour Act [Section 14C] guarantees at least 24 consecutive hours of weekly rest, typically on Sunday. Overtime pay follows premium rates (see Table below). Any work beyond the standard week must be voluntary unless there’s an emergency. Tracking and paying overtime correctly matters – it keeps you clear with labour inspectors and the NSSA.

Overtime sits on top of regular pay and is calculated based on the ordinary rate. While there’s no statutory annual cap, most collective bargaining agreements set limits, so check yours. Overtime must stay reasonable and be voluntary (except emergencies). One thing to note: 13th month bonuses (where they apply) are based on base salary only, not on overtime hours.

Minimum Wage

The national minimum wage is USD 150 per month (Statutory Instrument 186 of 2024). That said, many sectors have set higher minimums through their National Employment Council (NEC) agreements. You must pay at least the USD 150 floor, but professional services, finance, and skilled trades roles typically earn well above that. When you hire through an EOR, benchmark the salary against both the sectoral minimum (if one exists) and local market rates for that role.

Probation Period

Probation is capped at 3 months of continuous service [Section 4, Labour Act]. During this period, you can dismiss someone who isn’t working out with just 1 day’s notice and no severance pay. The employee can also resign with 1 day’s notice. Time the employer doesn’t provide work doesn’t count toward probation. Once those 3 months are up and the employee keeps working, they’re automatically confirmed and get full statutory protections – notice periods, severance, the whole package.

Leave Entitlements

The Labour Act [Chapter 28:01] sets out entitlements for annual leave, sick leave, maternity leave, and other special leave. The rules differ by type – accrual rates, pay rates, and who foots the bill all vary. Generally, employers cover most of the cost since the NSSA doesn’t reimburse leave pay in the private sector.

Annual Leave

Employees get 30 calendar days of paid annual leave per year, accrued at 1/12 per month after the first 12 months [Section 14A]. No leave accrues during probation. You can carry over up to 90 days; anything beyond that is lost at year-end unless you agree otherwise. Leave pay is the regular wage at the time taken. If someone leaves before using accrued leave, you pay out unused days at the termination rate.

Sick Leave

Once probation ends, employees are entitled to 180 days of sick leave in a 12-month period: 90 days at full pay and 90 days at half pay [Section 14]. The employee must notify you promptly and provide a medical certificate. You pay for this leave – the NSSA doesn’t reimburse. After those 180 days run out, the employee can take unpaid leave or may be dismissed if they’re unable to do the job.

Maternity Leave

Pregnant employees get 98 days of fully paid maternity leave [Section 18], available after 12 months on the job and limited to 3 pregnancies max with the same employer. The employee can take it before or after delivery. You can’t terminate anyone or give notice during maternity leave or pregnancy-related sick leave. The employee should provide a medical certificate with the expected delivery date so you can plan coverage.

Paternity Leave

The Labour Act doesn’t require paternity leave – fathers have no statutory right to paid time off when a child is born. Some employers offer a few days as a courtesy, and a few collective bargaining agreements cover it (usually 2–5 days), but it’s optional, not mandatory.

Other Statutory Leave

• Family events leave (paid): marriage or death of a spouse, parent, child, or close relative – typically 3–5 days per your CBA or discretion
• Public holiday leave (paid): 13 gazetted days in 2026, with double-time pay for any work on those days [Section 14E]
• Study leave (paid): approved vocational or tertiary study – typically 1–2 weeks per year depending on your CBA
• Compassionate leave (usually unpaid): for exceptional personal hardship, at your discretion

Statutory Employee Benefits

All employers must register employees with the NSSA and contribute to both the Pension and Other Benefits Scheme (POBS) and the Accident Prevention and Workers Compensation Scheme (APWCS). That’s it for legally mandated benefits – no mandatory private pension, health insurance, life insurance, or disability coverage. Anything beyond NSSA contributions (medical insurance, transport allowances, housing, education support) is optional and must be spelled out in the employment contract or CBA.

When you register someone with NSSA, make sure they understand the pension side (POBS) and work injury coverage (APWCS). The employee’s POBS contribution comes out of their paycheck, which you withhold and remit (see the rates table below). You also contribute separately. APWCS is on you and varies by industry risk.

Recent Regulatory Updates (2026)

The biggest recent change is Statutory Instrument 191 of 2024 (effective 6 December 2024), which doubled severance payments. Before, it was 1 month per 2 years of service; now it’s 1 month per 1 year of service. The Amendment Act No. 11 of 2023 also tightened protections for pregnant workers and tweaked notice and severance rules. As of April 2026, no further reforms have been announced, so the Labour Act [Chapter 28:01] with SI 191/2024 remains the law.

Work Permits and Visas in Zimbabwe

Work Permit Requirements

Who Needs a Work Permit

Every foreign national working for pay in Zimbabwe needs a work permit (Temporary Employment Permit – TEP) and a residence visa from the Department of Immigration. No exceptions based on passport, and no bilateral deals allow visa-free work. Short business trips under 30 days with no paid work can use a business visa; anything else requires a TEP.

Eligibility and Required Documents

Zimbabwe uses a labour market test – you can only hire a foreigner if no qualified local is available, and you have to show you tried to recruit locally first. You’ll need a passport valid for at least 12 months, the signed employment contract (naming the EOR as employer), degree certificates, a police clearance from the home country, and a medical certificate. Immigration handles processing and often asks for more documents if something’s missing, which can slow things down.

Processing Time and Validity

Initial processing typically takes 4 to 10 weeks – depends on role complexity, qualifications, and whether extra background checks are needed. A TEP is valid for 3 years and renewable up to 5 years total. It’s tied to one employer and role, so changing jobs means applying again. Start the work visa and permit process at least 10 weeks before your target start date to buffer for delays and document requests.

Renewal Process

Renewals must be filed before expiry, with the original documents plus proof of ongoing employment, current tax clearance (ZIMRA), and anything else Immigration asks for. If you apply on time, the employee can keep working during renewal. But if the permit expires before the new one comes through, that’s unauthorized employment and both of you face penalties.

Common Visa Types for Foreign Workers

Here are the main work permit options in Zimbabwe. Your EOR can sponsor and handle all of them for you.

The TEP is the standard work permit for foreign employees. Short business trips use a regular business visa, but paid work – whether consulting, temp projects, or part-time – needs a TEP or ICT permit. Your EOR handles all documents and talks to Immigration for you.

How an EOR Handles Work Permits

The EOR steps in as the sponsor for foreign staff and manages the whole work permit process with Immigration and the Ministry of Labour. It writes the justification letter (labour market test), gathers documents, files the application, and follows up directly with Immigration. The employee provides their passport, degrees, police clearance, medical certificate, and contract – the EOR authenticates these and submits them all.

A work permit application adds 6 to 10 weeks on top of the 2 to 3 weeks for local hiring – so plan on 8 to 13 weeks total for foreign staff. Since Zimbabwe requires formal sponsorship to grant a TEP, using an EOR with a local entity is the only practical way for foreign companies to hire non-Zimbabweans without setting up their own company.

Payroll, Taxes, and Social Security in Zimbabwe

Employer Contributions

Employers must contribute to the NSSA (National Social Security Authority), which runs two main schemes: Pension and Other Benefits Scheme (POBS) and Accident Prevention and Workers Compensation Scheme (APWCS). You also pay the Manpower Levy (ZIMDEF) for skills development.

About 7.5% total is the ballpark for professional and office roles, though APWCS rates swing based on industry. Check the exact rate with NSSA for your role’s classification. The EOR sends all contributions to NSSA monthly and these amounts are deductible for your taxes.

Employee Contributions

The AIDS Levy is a national health levy applied at 3% of PAYE income tax and sent to ZIMRA with the tax. It raises the overall tax rate slightly. If an employee owes USD 100 in PAYE, they also owe USD 3 in AIDS Levy – total USD 103.

Income Tax

Zimbabwe uses progressive income tax with different tables for USD and ZWG earners. Since most work happens in USD, those brackets are the main ones. ZIMRA sets both tables each year.

Zimbabwe publishes separate ZWG brackets too. The ZWG tax-free threshold is ZWG 33,600 per year (ZWG 2,800/month), with a top rate of 40% above ZWG 1,008,000 per year. Pick one currency for each employee and stick with it – don’t split between USD and ZWG to reduce tax. With the AIDS Levy factored in, the top rate is 41.2%.

Payroll Cycle

Payroll runs monthly. The EOR figures gross, withholds NSSA POBS (capped), applies the tax brackets, and deducts the AIDS Levy. Net pay goes to a local bank account or cash in USD if agreed. You get a pay slip each month with gross, deductions, and net. The EOR files all tax, levy, and NSSA money to the authorities in the first 10 working days of the next month. Year-end reconciliation and PAYE summaries go to ZIMRA by end of February.

13th Month Salary and Bonus Pay

The Labour Act doesn’t require a 13th month salary. No law mandates an annual bonus, holiday bonus, or year-end payment. That said, many CBAs and contracts do offer one – typically one month’s salary in December. If you pay a 13th month, it’s taxable and subject to standard PAYE plus the AIDS Levy. The EOR can process it with regular payroll or as a separate bonus, depending on your contract.

Cost of Hiring Through an EOR in Zimbabwe

EOR Service Fees

EOR service fees run $300 to $600 per employee per month (in USD). That includes contract drafting, monthly payroll processing (USD or ZWG), NSSA setup and contributions, tax withholding and ZIMRA filing, statutory reports, leave tracking, and your share of the cost to run the local entity. Work permits and severance handling are usually billed separately since they involve direct Immigration costs.

Total Employment Cost Breakdown

For USD 2,500 gross, total employer cost is around USD 3,056.50 per month – about 22% above gross. Statutory contributions run about 4.3% at this salary since NSSA POBS caps at USD 700 of insurable earnings. The EOR fee makes up the rest. All amounts are in USD as of April 2026; if you prefer, budget in ZWG at the official rate.

Ready to start hiring? Connect with Remote People. We handle contracts, payroll in USD or ZWG, tax withholding, NSSA setup, and full compliance – no local company required.

Benefits of Using an EOR in Zimbabwe

An EOR can get you hiring in 2 to 3 weeks instead of the 4 to 8 months it takes to incorporate locally. Since the EOR already has a local entity, ZIMRA and NSSA registrations, and relationships with Immigration and the Ministry of Labour, you skip incorporation, deposits, and slow government filing. That speed matters – Zimbabwean candidates won’t wait months for you to set up a local company.

• Speed to Market: Hire your first employee in 2–3 weeks with no entity setup, bank accounts, or government filings. Foreign nationals take 6–10 weeks more for work permits, but the EOR manages the whole sponsorship.
• Compliance Assurance: The Labour Act and SI 191/2024 rules are complex – get severance, leave accrual, or notice periods wrong and you face liability. An EOR stays on top of changes, keeps your pay slips and contracts compliant, and handles terminations by the book.
• Dual-Currency Flexibility: Zimbabwe uses separate tax tables for USD and ZWG, different NSSA ceilings in each, and exchange rates shift. An EOR runs payroll in your chosen currency and gets the tax math right both ways.
• Cost Efficiency and Scalability: For 1 to 10 employees, an EOR fee of USD 300–600/month is cheaper than a full subsidiary. It scales with headcount. If you wind down or restructure, closing an EOR is simple – no legal dissolution, no tax deregistration, no sunk costs.
• Local Expertise and Relationships: The EOR knows ZIMRA, NSSA, Immigration, and the Ministry of Labour. It understands local timelines, which documents slow things down, and can fix issues fast without you having to walk into government offices yourself.
• Risk Mitigation: The EOR takes on legal employment liability, shields you from misclassification, and calculates severance and terminations correctly to avoid disputes and back-pay under the new rules.

Termination and Offboarding in Zimbabwe

Notice Periods

Section 12(4) of the Labour Act sets notice periods based on how long someone has worked. These apply to indefinite contracts once probation ends. During probation, either party needs only 1 day’s notice.

You or the employee can pay wages instead of working the notice period [Section 12]. So instead of making someone work 3 months’ notice, you can pay 3 months’ salary in lieu. For just cause (theft, gross misconduct, willful disobedience), you can dismiss without notice or severance – as long as you follow Section 12 procedures.

Severance Pay

Severance applies when you retrench someone (for economic reasons, not cause) after probation. Statutory Instrument 191 of 2024 (effective 6 December 2024) doubled it: now 1 month per year of service (was 1 month per 2 years). Anyone with less than 1 year gets a pro-rata amount.

Calculation Method

It’s simple: take the gross monthly salary at termination, multiply by years of service. For less than 1 year, use: (months worked / 12) × 1 month’s salary. Base salary is the ordinary monthly wage including regular allowances but not overtime or random bonuses (unless they’re guaranteed in the contract). SI 191/2024 has no cap, so long-service employees (10, 15, 20 years) rack up serious severance.

Caps and Exceptions

SI 191/2024 has no numeric cap on severance. Probation-period dismissals for unfitness: no severance, just accrued leave. Dismissals for cause (theft, misconduct, willful disobedience, 5 consecutive unexcused days) earn no severance but accrued leave is still owed and notice is waived. Fixed-term contracts ending on schedule: no severance. Severance only kicks in for retrenchment or non-cause dismissal. Whether it’s “no cause” or “business retrenchment,” severance is owed and can’t be waived by contract.

Grounds for Termination

You can terminate for cause or without. Section 12 spells out the grounds and process. Cause includes: breach of contract, forged documents, theft, breach of trust or crimes, 5 unexcused absences in a row or 10 in a year, and disclosing confidential information. No notice or severance if it’s for cause. For anything else (restructuring, retrenchment, poor performance, contract end), notice periods and severance apply.

EOR vs. Other Hiring Models in Zimbabwe

EOR vs. Setting Up a Local Entity

Incorporating a local subsidiary in Zimbabwe is a 4 to 8 month effort. You need to register with the Registrar of Companies (now part of the Ministry of Justice), register with ZIMRA, set up NSSA, and open a bank account. Upfront costs run USD 5,000–USD 15,000 (legal, translation, fees), plus USD 5,000–USD 10,000 yearly maintenance. Zimbabwe allows 100% foreign ownership in most sectors, except mining (which has indigenization rules – check locally if that applies to you).

An EOR cuts through that completely. You can sign your first employee in 2 to 3 weeks, zero upfront cost, with fees that scale with headcount. A local entity makes sense only if your team grows beyond about 10 people, if you need to bid on Zimbabwean government contracts, or if you need a physical Harare office. Below that, an EOR wins on speed, cost, and risk.

Exit is where the gap is really stark. Ending an EOR is simple – notice and final payroll. Closing a local company involves deregistering with the Registrar, getting tax clearance from ZIMRA, labour clearance, and weeks of back-and-forth to fully wind down.

EOR vs. Hiring Independent Contractors

Contractors work only for short-term projects, specialized consulting, or where they genuinely control their schedule and methods. The Labour Act defines employees by control, integration, and economic dependence – so if someone works full-time for you, on your schedule, under your direction, the labour inspectorate will treat them as an employee regardless of what the contract says. Misclassification lands you with back pay on leave, severance, and withheld tax, plus a formal ruling that they should have been employees all along.

If a role looks like ongoing employment, use a compliant contractor agreement or full EOR – don’t risk a basic bilateral contract. Remote People can hire and pay contractors in Zimbabwe and advise which route makes sense for your role.

EOR vs. PEO (Professional Employer Organization)

Zimbabwe’s Labour Act doesn’t recognize PEO or co-employment – it treats employment as a two-party relationship between one legal employer and the worker. So the PEO option only works if you already have a local subsidiary and just want someone to handle payroll and HR.

For everyone else, an EOR is the only compliant option short of incorporating. The EOR becomes the legal employer, files tax and contributions under its own ZIMRA number, manages leave and notice, and sponsors work permits. A PEO can’t do any of that – it can’t sponsor permits, hold a ZIMRA registration alone, or file returns without an existing Zimbabwe company.

If you already have a local subsidiary, you can use a PEO-style arrangement, but most providers deliver this the same way they do EOR – as a payroll and HR backoffice rather than the legal employer.

Public Holidays in Zimbabwe

There are 13 public holidays in 2026. Work on any of them pays 2x the regular rate [Section 14E]. Employees get the day off paid; if you need them to work, they get double pay on top of regular wages. These are mandatory – plan your staffing around them.

How to Get Started with an EOR in Zimbabwe

• Sign an EOR service agreement with Remote People – nail down scope, start date, team size, roles, and payroll currency (USD or ZWG).
• Share the candidate’s details, salary, job description, location, and any extra benefits (medical, transport, housing).
• Review and approve the draft Labour Act-compliant contract in English before the employee signs – it covers tenure, notice, severance, and leave rights.
• The EOR registers the employee with ZIMRA and NSSA (POBS and APWCS), sets up a bank account if needed, and configures payroll – usually 5–10 working days.
• The employee starts on day one. The EOR handles ongoing payroll, tax, leave, and compliance while you manage day-to-day work.

Ready to hire? Reach out to our team for a free call and a fixed USD quote. Remote People handles contracts, payroll (USD or ZWG), tax withholding, NSSA setup, work permits, and full compliance with the Labour Act and SI 191/2024 – no local company required.