Employer of Record in Namibia

An Employer of Record (EOR) in Namibia helps you hire employees in the country without setting up a local legal entity. The EOR acts as the legal employer, handling payroll, taxes, benefits, and compliance with Namibian labor laws. This allows you to build a team in Namibia quickly and efficiently. For companies looking to hire in Namibia, an EOR provider like Rivermate can manage the entire employment process.

How an Employer of Record (EOR) Works in Namibia

Using an EOR simplifies hiring and employment in Namibia. You find the talent, and the EOR handles the rest.

Here is how it works:

• You Find the Candidate: You recruit and select the person you want to hire in Namibia.
• The EOR Hires Them: The EOR legally hires the employee on your behalf through a compliant local employment contract.
• Onboarding: The EOR manages the onboarding process, collecting necessary documents and setting up payroll.
• Payroll and Benefits: The EOR processes salaries, handles tax withholdings, and manages statutory benefits according to Namibian law.
• Ongoing HR Support: The EOR provides ongoing human resources support for your employee, answering questions about payroll, benefits, and local employment regulations.
• You Manage Daily Work: You manage your employee's day-to-day tasks and responsibilities, while the EOR handles the legal and administrative employment duties.

Why use an Employer of Record in Namibia

Using an EOR in Namibia offers a practical way to expand your business and hire talent without the cost and complexity of establishing a local company. It provides a flexible and low-risk solution for entering a new market or growing your team across borders.

• Enter the Market Faster: You can hire employees and start operations in weeks, instead of the months it can take to register a new business entity.
• Ensure Compliance: EORs are experts in Namibian labor law. They ensure your employment contracts, payroll, and benefits are fully compliant with local regulations, reducing your legal risk.
• Reduce Costs: You avoid the significant expenses associated with setting up and maintaining a legal entity, including registration fees, legal consultations, and administrative overhead.
• Focus on Your Business: By outsourcing employment administration, you can concentrate on your core business activities and managing your team's performance.
• Access Local Expertise: An EOR provides valuable local knowledge on everything from standard employment practices to statutory benefits, ensuring your employees are supported correctly.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Namibia includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Namibia.

Hiring in Namibia offers a growing talent pool, but it is important to understand the local labor laws to ensure a smooth and compliant process. Whether you are looking to hire full-time employees or engage independent contractors, being familiar with the legal landscape is key. This guide will walk you through the essentials.

Employment contracts & must-have clauses

When you hire an employee in Namibia, a written employment contract is essential. It creates a clear understanding of the job's terms and conditions for both you and your employee. There are two main types of employment agreements:

• Indefinite Contracts: These are the standard for ongoing roles and do not have a specified end date.
• Fixed-Term Contracts: These are for a specific period or project and end on a set date or when the project is complete.

Your employment contracts must include several key clauses to be compliant with Namibian law.

Probation periods

You can include a probationary period at the start of employment to assess a new hire's suitability. While there is no maximum duration for probation set by law, it should be a reasonable length for the type of job.

• Typical Duration: Probationary periods in Namibia usually last from three to six months.
• Purpose: This period allows both you and the employee to determine if the role is a good fit.
• Termination: It is simpler to terminate employment during probation, but you must still provide a valid reason related to performance and follow a fair process.

Working hours & overtime

The standard workweek in Namibia is a maximum of 45 hours.

• 5-Day Workweek: Employees should not work more than 9 hours per day.
• 6-Day Workweek: Employees should not work more than 8 hours per day.

Any work performed outside of these standard hours is considered overtime and must be agreed upon with the employee.

• Overtime Limit: Overtime is generally limited to 10 hours per week.
• Standard Overtime Pay: This is paid at 1.5 times the employee's normal hourly rate.
• Sundays & Public Holidays: Work on these days is paid at double the employee's normal hourly rate.

Public & regional holidays

Employees in Namibia are entitled to paid public holidays. If a public holiday falls on a Sunday, the following Monday is observed as a holiday.

Here is a list of Namibia's public holidays:

• New Year's Day - January 1
• Independence Day - March 21
• Good Friday
• Easter Monday
• Workers' Day - May 1
• Cassinga Day - May 4
• Africa Day - May 25
• Ascension Day
• Heroes' Day - August 26
• International Human Rights Day - December 10
• Christmas Day - December 25
• Family Day - December 26

Hiring contractors in Namibia

Engaging independent contractors can be a flexible option for specialized or short-term projects. However, it is crucial to correctly classify these workers to avoid legal risks.

An independent contractor is generally defined as a self-employed individual who is not under the direct supervision of your company and can work for multiple clients. They are responsible for their own taxes and are not entitled to employee benefits like paid leave or severance pay.

Misclassifying an employee as an independent contractor can lead to significant penalties, including back pay and fines. An Employer of Record (EOR) can help you mitigate this risk. An EOR acts as the legal employer for your workers, ensuring they are classified correctly and that all local labor laws are followed. This allows you to work with talent in Namibia without needing to establish a local entity and manage the complexities of employment law yourself.

In Namibia, handling compensation and payroll means navigating specific local rules. You need to understand the tax system, social security contributions, and other legal requirements. This ensures you pay your employees correctly and on time. For companies expanding into Namibia, getting these details right is key to staying compliant and keeping your team happy.

Payroll cycles & wage structure

In Namibia, the payroll cycle is typically monthly. You should pay your employees by the last day of the month. While not required by law, performance-based bonuses are common.

The average salary in Namibia is around N$2,215 per month. However, this varies based on the industry, experience, and location. For example, professionals in mining or finance often earn more. Wages are generally higher in cities like Windhoek compared to rural areas.

Overtime & minimums

The standard work week in Namibia is 45 hours. If you have employees working a five-day week, their workday should not exceed nine hours. You must compensate employees for any overtime they work as outlined in their employment contract.

As of January 1, 2025, the national minimum wage is N$18.00 per hour. For a standard 45-hour work week, this comes out to N$3,507 per month.

Employer taxes and contributions

As an employer in Namibia, you are responsible for several contributions. These are calculated on top of an employee's salary.

Employee taxes and deductions

Employees in Namibia also contribute to taxes and social security. These are deducted from their gross salary.

Individual income tax is based on a progressive scale. The first N$100,000 of annual income is exempt from tax.

In Namibia, providing solid benefits and leave is key to attracting and keeping great talent. It’s not just about following the law; it’s about showing your team you value them. When you offer competitive packages, you build a stronger, more dedicated workforce. This guide breaks down what you need to know about leave and benefits in Namibia.

Statutory leave

Namibian law sets minimum leave requirements for all employees.

• Annual Leave: You must give employees at least 24 consecutive days of paid annual leave after every 12 months of continuous work.
• Sick Leave: Employees get paid sick leave over a 36-month cycle. If they work a five-day week, they are entitled to 30 days of sick leave. For those working a six-day week, it's 36 days. A medical certificate is required to claim this leave.
• Maternity Leave: Female employees receive 12 weeks of maternity leave. This is typically taken as four weeks before the birth and eight weeks after. The Social Security Commission covers the payment during this time, not the employer directly.
• Paternity Leave: There is no statutory paternity leave in Namibia.

Public holidays & regional holidays

Your employees are entitled to paid time off for Namibia's 12 public holidays.

Typical supplemental benefits

While the law sets the minimum, many companies offer more to stay competitive.

How an EOR can help with setting up benefits

Setting up a benefits plan in a new country can be complex. An Employer of Record (EOR) simplifies this for you. We handle the technical details so you can focus on your team.

An EOR helps you:

• Stay Compliant: We make sure your benefits packages meet all of Namibia's legal requirements.
• Save Time: You don't have to research and manage benefits providers. We do it for you.
• Attract Top Talent: We help you create competitive benefits packages that attract the best people in the market.
• Simplify Administration: We manage the paperwork and administration of your team's benefits.

When an employment relationship in Namibia ends, you need to follow a specific process. This process, known as termination and offboarding, is governed by the country's Labour Act to ensure fairness for both you and your employee. You must have a valid and fair reason for termination and follow a fair procedure. Failing to do so can lead to unfair dismissal claims.

Notice periods

When you decide to terminate an employment contract, you must provide written notice. The length of this notice period depends on how long the employee has worked for you.

You can choose to pay an employee their salary for the notice period instead of having them work. This is often called payment in lieu of notice.

Severance pay

If an employee has worked for you for at least 12 months, you are required to pay them severance. The payment should be equal to at least one week's wages for each year of continuous service. This applies unless the employee was dismissed for serious misconduct.

How Rivermate handles compliant exits

Navigating the details of Namibian labor law can be complex. We make sure every termination and offboarding process is handled correctly and compassionately.

Here’s how we manage it:

• Compliance check: We review every proposed termination to ensure it meets the requirements of the Labour Act.
• Clear documentation: We prepare all necessary written notices and documents.
• Final pay calculation: We accurately calculate and process all final payments, including severance and any unused leave.
• Guidance and support: We provide clear guidance to you and your employee throughout the entire process.

We handle the complexities so you can focus on your business.

Getting the right visa or work permit is key to working in Namibia. The government has specific rules for foreign nationals who want to work in the country. You need to show that you have skills that are not easy to find in the local job market. The main goal is to make sure that Namibian citizens get jobs first.

Employment visas & sponsorship realities

When you plan to work in Namibia for more than a short period, you will need a work permit. The type of permit depends on how long you will be working.

• Short-Term Work Visa: This is for work that lasts up to six months. Think of it for temporary projects.
• Long-Term Work Permit: If your job is for more than six months, you will need this permit. It is usually given for one to three years.

To get a work permit, you need a job offer from a company that is registered in Namibia. This company will act as your sponsor. An Employer of Record (EOR) can sponsor work permits for employees. This is a common way for companies to hire foreign talent in Namibia.

The process to get a work permit can take some time, often between two and four months. You will need to provide many documents, including:

• A completed application form
• Your passport
• A letter from your employer in Namibia
• Proof of your qualifications and experience
• Medical and police clearance certificates

Business travel compliance

If you are traveling to Namibia for short business trips, you will need a business visa. This visa is for activities like attending meetings, conferences, or negotiations. It is important to know that a business visa does not let you work in the country. If you plan to do any paid work, you need a work permit.

For any business travel, make sure you have the right documents. This usually includes an invitation letter from the company you are visiting in Namibia and proof that you have enough money for your stay. Always check the latest rules with the Namibian embassy or consulate in your country before you travel.