Key Takeaways

  1. Zimbabwe offers significant investment opportunities in rare earth minerals, with exports including gold, nickel, coal, and tobacco. 
  2. Foreign businesses can hire an educated workforce with affordable labor costs when expanding with a Zimbabwean PEO. 
  3. A PEO in Zimbabwe acts as your co-employer, allowing you to hire employees without registering a company. 
  4. Zimbabwean PEOs handle compliance, assist with hiring employees, and provide professional support for business expansion.

Zimbabwe is one of the few countries in the world that is rich in tradable mineral resources, including gold, platinum, nickel, diamonds, and coal. It is no surprise that its largest export is gold, having reached $2.4 billion in 2024. 

Zimbabwe’s economy is set for robust growth over the next few years, with efforts aimed at increasing foreign direct investment. The Zimbabwean government has launched several policies to create an attractive business environment, including tax incentives and the “Open for Business” Policy, which is aimed at reducing restrictions for foreign investors. 

Businesses expanding in the African country can benefit from Zimbabwe’s educated labor force and economic reforms. One such reform is the introduction of the ZiG, Zimbabwe’s currency that is backed by gold, to promote financial growth and stability.

Export Category Export Value (USD)
Gold $2.4 billion
Platinum $1.6 billion (est.)
Tobacco $750 million (est.)
Nickel $500 million (est.)
Diamonds $420 million (est.)

Before you can hire a professional workforce in Zimbabwe, every business must comply with the Zimbabwean Labor Act, which outlines the employment relationship. Failure to follow the country’s employment legislation will result in penalties. In addition to labor law, registering a company in Zimbabwe can present some challenges, from understanding local regulations to rising costs. 

Partnering with a Professional Employer Organization (PEO) in Zimbabwe will help you enter the local market efficiently while ensuring compliance with labor laws. You can hire a Zimbabwean PEO to hire employees and expand your business without setting up a legal entity, saving time and costs. 

Discover the benefits of hiring a PEO as your co-employer, the services they provide, and why more international businesses are partnering with Professional Employer Organizations, such as Remote People, for successful expansion in Zimbabwe.

What Are PEOs in Zimbabwe?

A Zimbabwean PEO is a third party specializing in outsourced payroll, benefits administration, tax withholding, and drafting employment contracts. Commonly referred to as an HR service provider, the PEO manages your business’s HR administration while ensuring compliance with the Zimbabwean Labor Act. 

A PEO can hire skilled and qualified employees, conduct interviews, and screen prime candidates. As the employer, you are responsible for your workforce’s training, performance, and setting objectives, while the PEO compliantly manages employee processing and administration. Lastly, you don’t need to register a legal entity in Zimbabwe to hire a PEO, making business expansion smoother and more economical.

Start hiring with a Zimbabwe PEO

Let us handle the complexities of hiring, compliance, and payroll in Zimbabwe while you focus on growing your team.

  • Hire employees in Zimbabwe with a Zimbabwe EOR
  • No local entity is needed
  • Pricing starts at USD 199 per employee
  • Remote People can also help you find the best talent in Zimbabwe
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Which Services Do PEOs Provide in Zimbabwe?

A PEO in Zimbabwe outsources services such as payroll, HR, employee benefits administration, drafting employment contracts, and dismissals. They provide the following services: 

Payroll Management

When you hire a Zimbabwean PEO, they will manage every aspect of your payroll, including the calculation and administration of employee benefits, wages, and taxes. The PEO will pay workers on time and deduct benefits. The PEO firm will issue payslips to employees as per Zimbabwe’s payroll requirements. 

Tax Compliance

The Zimbabwean PEO manages tax compliance by calculating and deducting the necessary taxes. A professional PEO will guarantee that businesses comply with the country’s Pay as You Earn (PAYE) and the AIDS Levy.

Additional tax measures provided by the PEO include filing tax returns and paying remittances to the Tax and Revenue Management System (TaRMS) under the Zimbabwe Revenue Authority (ZIMRA) and as per the Revenue Authority Act. 

The corporate income tax rate in Zimbabwe is 25%, and employers and employees must contribute to the National Social Security Authority (NSSA). 

Employee Benefits Administration

In Zimbabwe, employers must provide employees with mandatory benefits, including paid time off, sick leave, and maternity leave. The PEO will handle the calculations and deductions of these benefits, ensuring they are paid on time.

They are also responsible for deducting NSSA contributions consisting of two schemes: The Accident Prevention and Workers’ Compensation Scheme (APWCS), along with the Pension and Other Benefits Scheme (POBS). 

Furthermore, the PEO can negotiate more affordable employee benefits on your behalf. Businesses will be equipped to offer their employees competitive non-statutory benefits. Examples of popular perks include the payment of travel expenses and private medical aid. 

Recruitment and Onboarding

In Zimbabwe, hiring employees can be a challenge when you’re unfamiliar with labor legislation and where to find top talent. A PEO plays a crucial role in sourcing skilled employees and posting job adverts, screening candidates, and performing interviews. 

Onboarding is favored by PEOs in Zimbabwe as it can significantly reduce the time it takes to hire new employees and integrate them into the workforce. The Zimbabwean PEO will conduct employee registrations for benefits and tax and will handle associated HR tasks on behalf of the employer. 

Employment Contracts and Terminations

In Zimbabwe, written contracts are recommended for clarity and the protection of employers and employees. Employment contracts are written in English, and with the help of a PEO, they can ensure that they cover particulars under the Labor Act. These include working hours, employee benefits, annual leave, and social security information. 

Employers have the option of giving new workers a probationary period. Only if employees are retrenched are they entitled to severance pay, which is calculated as one month’s salary for every two years of service. The PEO will oversee contract termination by handling the administration, recommending notice periods, and ensuring that legal procedures are satisfied. 

Why Choose a PEO in Zimbabwe?

New businesses expanding in Zimbabwe must contend with cultural differences, 16 official languages, and evolving economic and business reforms. Employers and employees in Zimbabwe often struggle with the interpretation of the Labor Act. This includes misinterpretation of the procedures for contract termination and the broad definition of unfair labor practices.

A Zimbabwean PEO will clarify labor laws and assist with adherence to working hours, leave entitlements, minimum wages, and hiring employees. Ultimately, choosing a PEO company in Zimbabwe makes hiring and expanding your business easier, faster, and more affordable. Consider the services provided by a trusted PEO to support your expansion efforts. 

Advantages of Using a PEO in Zimbabwe

A PEO in Zimbabwe makes establishing and expanding a workforce far more efficient and compliant than if you were to expand your business on your own. The benefits of partnering with a Professional Employer Organization include cost savings and business growth. 

Cost Savings

Hiring a PEO eliminates the costs of registering a legal entity in Zimbabwe. While it isn’t costly to start a company in an African country, it is lengthy, and many employers encounter bureaucratic challenges along the way. If your business does not have a full-time HR department, it is more cost-effective to outsource these services to a PEO. Because a Zimbabwean PEO negotiates employee benefits on your behalf, they can reduce the company’s monthly benefits rates.

Speed to Market

Establishing a business in Zimbabwe with a PEO as your co-employer means faster market entry because they manage the time-consuming admin from onboarding to compliance. A PEO in Zimbabwe reduces the time it takes to enter the Zimbabwean market as it eliminates the need to set up a legal entity.

Risk Mitigation

PEOs are knowledgeable in Zimbabwe’s labor laws and can assure employers of compliance through every stage of employment. The PEO keeps clients informed on labor reforms and updated HR policies to maintain compliance and mitigate risk.

Focus on Core Business Activities

A PEO eases your administrative burden by handling HR-related tasks. Their outsourced HR gives businesses the time to focus on growth and reaching their objectives.

How RemotePeople.com Facilitates PEO Services in Zimbabwe

Recognized as leaders in international recruitment, our expert team at Remote People helps foreign businesses expand their workforces in Zimbabwe. Our PEO services are aimed at creating cost savings and efficiency for our clients with an emphasis on compliance. We offer the management of payroll, HR, employee benefits administration, and the development of employment contracts. 

To support client companies with expansion, we simplify hiring Zimbabwe’s most skilled job candidates with rapid onboarding. Businesses can work with our onboarding manager to seamlessly integrate new employees without disruptions. We make employee management easier and more secure with our self-service platform, where you’re in control of onboarding and tracking expenses. 

When you partner with our trusted PEO firm, we take care of every aspect of compliance while providing scalable solutions for international teams. At Remote People, we offer fully transparent pricing and human support services for our clients.

Steps to Engage a PEO in Zimbabwe

To hire the best Zimbabwean PEO, consider the following engagement steps: 

1

Initial Consultation

During the first meeting with your selected PEO firm, describe the objectives of your business and the services you need to achieve them. PEOs provide full-scale HR services, or you can hire a single solution, such as payroll.

The initial consultation allows you to ask important questions, from the PEO’s level of experience in Zimbabwe’s labor laws to assisting companies with work permits and visa sponsorships for foreign employees. Be sure to discuss the PEO’s pricing model and compare costs before making a hiring decision. 

2

Service Agreement

The service agreement is the contract that will solidify the services and costs discussed in the consultation. The agreement must include confidentiality clauses to protect the interests of all parties involved. Before agreeing to the contract, read the breakdown of the services you are paying for, how they will be implemented, and the legal standards that must be upheld by the client and PEO. Lastly, the costs must be clearly stipulated with no hidden fees or confusing charges. 

3

Onboarding Process

When the service agreement is signed and employees are presented with their new contracts, the PEO will manage employee onboarding. The PEO will enroll employees with the NSSA and ZIMBA. Personal details such as full names, addresses, and bank accounts are shared with the Professional Employer Organization to register new staff for payroll and benefits. The Zimbabwean PEO can integrate employees into your company with minimal disruptions. 

The Difference Between PEO and EOR in Zimbabwe

Before hiring a PEO in Zimbabwe, it is important to know the difference between a PEO and an EOR, or Employer of Record. You may find these terms are interchangeable, but a PEO and an EOR are not the same companies. While both share similarities in terms of managing payroll, benefits administration, taxes, and compliance, the PEO in Zimbabwe is a co-employer compared to an EOR, which is recognized as the legal employer of the workforce. 

As the employer, you remain in full control of your workforce in terms of training and performance, whether you hire a PEO or an EOR. However, with a PEO, you share legal responsibilities with them, whereas an EOR assumes legal liability for the workforce. 

When partnering with an employment service provider, ensure that they provide what you are looking for when expanding your business and labor force in Africa.

Partner With a PEO in Zimbabwe To Expand Your Business Successfully

Zimbabwe presents excellent opportunities for companies seeking to grow in Southern Africa, especially in mining and agriculture. However, navigating its evolving labor laws and administrative requirements can be complex. A PEO can be the ideal solution.

Unsure which PEO to pick in Zimbabwe? Contact Remote People, your trusted PEO, to be the best solution for your business. We provide top-rated PEO services that help unlock your business potential in Zimbabwe. Reach out today to get started!