Zimbabwean labor law mandates a specific set of benefits that employers must provide to their employees. These benefits are essential for employee well-being and are enshrined in the Labour Act, 1985.

Paid Time Off

• Annual Leave: Employees are entitled to 30 days of paid annual leave after working continuously for a year. Weekends and public holidays are included in these vacation days.

• Public Holidays: Employees are entitled to paid time off on all national public holidays.

• Sick Leave: Employees can request up to 90 days of sick leave with full pay upon providing a medical certificate from a registered practitioner. After working for a year, they can request an additional 90 days of sick leave at half pay.

• Maternity Leave: Female employees are entitled to 98 days of paid maternity leave at full pay.

• Special Leave: The Labour Act also provides for special leave in specific situations, such as compassionate leave for bereavement or attending to urgent personal matters.

Social Security and Insurance

• National Social Security Authority (NSSA): Every working Zimbabwean between 16 and 65 must be a member of the NSSA pension scheme. Employers contribute a portion of the employee's salary along with their own contribution.

• Workers Compensation Insurance Fund (WCIF): Employers are required to contribute to the WCIF, which provides financial assistance to employees who suffer work-related injuries or illnesses.

• Zimbabwe Manpower Development Fund (ZIMDEF): Employers contribute to ZIMDEF, which supports skills development programs in the country.

• Standards Development Fund (SDF): Employers also contribute to the SDF, which funds initiatives for improving workplace safety and health standards.

Other Mandatory Benefits

• Notice Period: Both employers and employees are required to provide a specific period of notice before termination of employment. The notice period varies depending on the length of service.

• Severance Pay: In some cases, employees may be entitled to severance pay upon termination of their employment.

In Zimbabwe, many employers offer additional perks to enhance their employees' well-being and create a more competitive compensation package. Here's a look at some commonly offered optional employee benefits in Zimbabwe:

Health and Wellness Benefits

• Medical Aid: Many employers offer group medical aid schemes to cover employees and sometimes their dependents for medical expenses.

• Wellness Programs: Companies might provide on-site wellness programs or gym memberships to promote employee health and well-being.

• Health Cash Plans: Some employers offer health cash plans that reimburse employees for specific healthcare expenses.

Financial Benefits

• Pension Top-Up: Employers may contribute additional funds on top of the mandatory NSSA contribution towards an employee's pension.

• Performance Bonuses: Companies may offer performance-based bonuses to incentivize and reward high-performing employees.

• Car Allowances: Employers may provide car allowances or company cars to facilitate employee transportation.

• Housing Allowances: Some companies offer housing allowances to help employees with housing costs.

Work-Life Balance Benefits

• Flexible Work Arrangements: Employers may offer flexible work arrangements like remote work options or compressed workweeks to promote a healthy work-life balance.

• Paid Time Off (Additional): Companies might offer additional paid time off beyond the mandatory requirements, such as personal leave days or volunteer leave.

• Childcare Assistance: Some employers may provide childcare subsidies or on-site daycare facilities to support working parents.

Other Optional Benefits

• Employee Discounts: Companies may offer discounts on their products or services to employees.

• Life Insurance: Some employers provide group life insurance plans for their staff.

• Training and Development Opportunities: Employers may invest in their employees' professional development by offering training programs or sponsoring educational pursuits.

• Travel Allowances: Companies may provide travel allowances for work-related travel expenses.

In Zimbabwe, there is no legal requirement for employers to provide health insurance to their employees. Despite this, many employers understand the importance of offering health insurance as a benefit to attract and retain talent.

Employer-Sponsored Health Insurance

Many companies opt to offer group medical aid schemes to their employees, sometimes extending coverage to dependents as well. These schemes typically involve the employer contributing towards the premium, with employees covering the remaining cost through payroll deductions.

Individual Health Insurance

Employees also have the option to purchase individual health insurance plans directly from private insurance providers.

Additional Considerations

Employers who contribute to employee health insurance plans may be eligible for tax deductions on their contributions. A significant portion of the Zimbabwean workforce falls under the informal sector, where health insurance coverage is generally less prevalent. The landscape of health insurance in Zimbabwe is evolving, with a growing emphasis on employee well-being. While not mandatory, health insurance is becoming an increasingly sought-after benefit for employees in the formal sector.

In Zimbabwe, retirement planning for employees is a two-pronged approach, encompassing mandatory and voluntary options.

National Social Security Authority (NSSA) - Mandatory Retirement Plan

Every working Zimbabwean between the ages of 16 and 65 must contribute to the NSSA pension scheme. Both employers and employees contribute a set percentage of the employee's salary towards the NSSA scheme. The contribution rate is subject to periodic revisions but is typically split evenly between employer and employee. Upon reaching retirement age (currently 65 years old), members are entitled to a monthly pension benefit based on their earnings and contribution history. However, the NSSA pension benefit alone may not be sufficient to maintain one's pre-retirement standard of living, highlighting the importance of exploring supplementary retirement savings options.

Voluntary Retirement Plans

Several voluntary retirement savings options are available for employees in Zimbabwe:

Company Pension Plans

Many employers offer company pension plans in addition to the mandatory NSSA contribution. These plans can be defined benefit (pension based on salary and years of service) or defined contribution (pension based on employee and employer contributions and investment returns) plans.

Personal Pension Plans

Individuals can opt to open personal pension plans with registered insurance companies or financial institutions. These plans offer flexibility in terms of contribution amounts and investment options.

Old Mutual Diamond Retirement Plan

This is a savings plan specifically designed for self-employed individuals or those whose employers don't offer a pension plan. It allows for gradual contributions towards retirement savings.

Choosing the right retirement plan depends on individual circumstances and risk tolerance. Consulting with a financial advisor can be helpful in navigating the various options and creating a personalized retirement savings strategy.