Employer of Record in Zimbabwe

How EOR services work in Zimbabwe

An EOR service provider is a company that acts as a legal employer on behalf of a foreign business, handling the legal and compliance aspects of the employment relationship. This simplifies, not only the hiring process, but also reduces the administrative burden.

The Employer of Record is responsible for understanding all the intricacies of local regulations, statutory contributions and reporting obligations. For businesses testing the market, or hiring a single employee, this can be a huge benefit.

The Rivermate EOR model is built on three pillars:

• Local expertise that understands the market and employment laws.
• A network of Zimbabwean partners that allows us to provide competitive benefits and handle benefits administration.
• The Rivermate platform that simplifies every aspect of the employment relationship.

When you partner with us in Zimbabwe, you’ll be working with a reputable company with a presence in over 180 countries globally.

Zimbabwean labor market: A snapshot

The hiring market
Greatest hiring activity:	Harare
Onboarding timelines:	Once the employee signs the employment contract: Locals: 24 - 48 hours Foreign nationals: 6 - 8 weeks
In-demand sectors:	Solar, energy, construction
Sectors with skills shortages:	Medical, engineering, technology, agriculture

The salary market
Employer statutory costs:	NSSA pension (POBS): 4,5% of insurable earnings and subject to caps and exemptions.
NSSA workers compensation (APWCS): Industry-related risk rate ZIMDEF training levy: 1% of gross monthly wage bill
Standards Development Fund (SDF) levy: 0.5% of total gross wages
AIDS levy: 3% of the income tax liability (calculated on corporate profits, not on payroll)
Monthly minimum wage:	US$270 (2026 - unclassified operations)
Personal income tax rates (USD - Annual):	Progressive tax system with rates from 0% to 40%: Up to US$1,200: 0% US$36,001 and above: 40%

Hiring in Zimbabwe: what employers should know

Do you need to establish a legal entity to hire in Zimbabwe?

Every foreign employer hiring workers in Zimbabwe must either establish a legal entity or use a third-party provider, who can act as a legal employer on your behalf. Establishing a legal entity requires you to carry the financial burden, the legal risks and the administrative burden.

Hiring through a provider, like an Employer of Record (EOR), gives you the freedom to focus on day-to-day activities of your employee, knowing they are taken care of locally. The main differences between the responsibilities of the EOR and your company are as follows:

→ Find out how Rivermate simplifies international hiring and compliance

Important first steps

Whether you partner with an EOR or establish your own entity, initially the most important steps are a compliant employment contract and registering for statutory contributions. This is taken very seriously in Zimbabwe, as is the remittance of statutory payments. Non-compliance will attract fees and penalties.

Compliant employment contracts

Employment contracts in Zimbabwe must comply with the stipulations laid out in the Zimbabwean Labor Act. This Act, in Section 12(2), requires employers to inform employees, in writing of certain particulars. The duration of a contract is defined as follows:

• A contract without limit of time: a contract that does not specify its duration or date of termination.
• A contract with a limit of time: such as casual or seasonal work and contracts for the performance of a specific task. Such contracts can be converted to a contract without time limit in certain circumstances as provided for by the Act (Section 12, 3a).

Contracts for both locals and foreign nationals must comply with the stipulations of the Labor Act. Individual employment contracts do not need to be registered with the Ministry of Labor, but contracts for foreign nationals are submitted as part of the visa/work permit application.

Probation periods

Probation periods are provided for in the Zimbabwe Labor Act but follow very specific rules. Under Section 12(5) of the Act:

An employment contract may provide for a single, non-renewable probationary period of not more than one day for casual or seasonal work, and three months in any other case. During this probation period, a notice period is applicable on termination of the contract by either party, as follows:

• Casual or seasonal work: 1 week
• Any other case: 2 weeks

Statutory contributions

Statutory contributions in Zimbabwe are shared between the employer and employee, but it is the responsibility of the employer to remit these contributions in accordance with the local laws. Apart from statutory contributions, employers have a number of levies to pay, usually based on gross wages. The employer-employee breakdown is as follows:

Employer		Employee
Statutory obligation	Contribution	Statutory obligation	Contribution
NSSA pension	4.5% of insurable earnings, capped at US$700	NSSA pension	4.5% of insurable earnings, capped at US$700
NSSA APWCS	Industry-related risk rate	PAYE	Progressive rates between 0% and 40%
ZIMDEF training levy	1% of monthly gross wages for covered employers	AIDS levy	3% of PAYE due, after the tax credit
SDF levy	0.5% of total gross wages	NEC contributions	Sector-specific rates
AIDS levy	3% of income tax liability, calculated on corporate profits, not on payroll
NEC levy	Sector-specific rates

Statutory employee rights

Statutory benefits	Description
Working hours	The Labor Act does not publish a single maximum working hours but they can be determined by an NEC or CBA. Most industries adopt a 40 - 48 hour week. For the calculation of overtime, it is essential for employers to document working hours in the employment contract.
Public holidays	14 official statutory holidays per year.
Overtime	Standard overtime is set by the employer, NEC or CBA but for work on a public holiday, the Labor Act mandates a rate of not less than twice the employee’s current remuneration for that day.
Vacation leave	Accrues at one twelfth of the qualifying service in each year of employment, with a maximum accrual of ninety-days paid vacation leave. (This is commonly expressed as 30 calendar days). Qualifying service is any period following the completion of the first year of employment.
Sick leave	Employees may be granted up to 90 days during any one year on full pay, upon the presentation of a valid health certificate. Further sick leave can be granted as per the provisions of the Labor Act, Section 14(3).
Paid maternity leave	98 calendar days on full pay to a female employee Further stipulations apply where applicable, as mandated by the Labor Act, Section 18.
Special leave	Not exceeding 12 days on full pay an employee can be granted special leave for ad hoc reasons, as stipulated by the Labor Act, Section 14B.

Factors affecting employment costs in Zimbabwe

Current impact of the economic reforms on employment budgets

In recent times, Zimbabwe’s currency has been affected by a number of local and global crises, requiring urgent reforms and economic measures to be put in place. The ZiG (Zimbabwean Gold) currency was introduced in April 2024, replacing the Zimbabwean dollar. The ZiG is used alongside other currencies, such as the USD, ZAR, EUR and others. While the Reserve Bank continues its efforts to stabilize the ZiG, foreign employers will be faced with implementing measures to stabilize employment costs, such as offering compensation in USD.

According to one report, one thing clearly separated employers who retained their staff from those that didn’t: they offered salaries in USD. Across sectors, 90 - 100% of executives, 70 - 85% of middle-management and 50 - 70% of entry-level staff received their salaries in USD.

Base salaries

Base salaries vary across industries, jobs and whether the company is local or international. Foreign companies commonly benchmark salaries in USD, but also make offers in other currencies, with the agreement of the employee. A typical gross monthly salary in Harare is equivalent to $253 - $259, but this is influenced by Zimbabwe’s large informal market. Professional roles in multinationals earn significantly more at $1,000 - $3,000 a month.

Additional benefits

Apart from statutory benefits, it is common market practice to offer private healthcare, internet allowances for remote workers and transportation allowances for workers in a sales or managerial role.

You can get a clearer picture of your potential employment costs by using our Employment Cost Calculator.

Employment cost calculator

Hiring foreign nationals in Zimbabwe: what employers need to know

An employer with a legally registered entity in Zimbabwe can relocate foreign nationals to the country by following the immigration process as prescribed by the Department of Immigration. The employer formally sponsors the individual and submits the application to the Chief Director of Immigration.

Zimbabwe distinguishes between the permission to enter the country and the right to work and live there. While an employee can enter on a temporary visitor visa, it is not an authorization to work, and a work/residence permit must still be obtained.

Employment contracts form part of the Temporary Employee Permit (TEP) process in Zimbabwe and must be finalized before the application (along with the supporting documentation) can be submitted.

Temporary Employment Permits have a maximum duration of 5 years and can be extended a number of times, as long as it doesn’t cumulatively exceed the 5-year period. Once someone has been under a valid work/live arrangement for a continuous period of 5 years, they may become eligible for a permanent residence permit, dependent on certain eligibility criteria.

Compliant contract terminations in Zimbabwe: the basics

Justification for termination

Zimbabwean local labor laws require that a valid reason must exist for the termination of a contract. In 2023, an amendment was made to Section 12(4a) of Zimbabwe’s Labor Act 28:01, defining the termination of a contract as follows:

A contract of employment may be terminated only, on the part of an employee, by his or her resignation or retirement, and on the part of an employer as follows:

• By mutual agreement in writing,
• For the breach of an express or implied term of contract. Such a breach is to be verified under an applicable employment code or another manner agreed in advance by the employer and employee. [Section 8. 2023 Labor Act amendment]

Resignation, retirement and retrenchments are governed by separate regulations in the Labor Act.

Notice periods

Where they are legally applicable, notice periods are mandated by the Zimbabwean Labor Act, Section 12(4) as follows:

Contract duration or type	Statutory notice period
Contract without limit of time, or for two years or more	3 months
Contract for one year or more but less than two years	2 months
Contract of six months or more but less than one year	1 month
Contract of three months or more but less than six months	2 weeks
Contract of less than three months	1 day
Casual or seasonal work contract	1 day

How Rivermate can help you hire compliantly in Zimbabwe

When you’re only looking to hire a single employee, small team or test the market in Zimbabwe, then establishing a legal entity is expensive and time-consuming. Partnering with a reliable EOR provider with experience in 180+ countries may be the better option for you. We take the legal responsibility, sort out administrative tasks and handle employee benefits. For a global employer, this makes hiring in Zimbabwe easier than it's ever been.

Ready to hire in Zimbabwe?

Rivermate handles the complexities so you can hire with confidence in Zimbabwe.

Talk to a Zimbabwean Hiring Expert

Sources:

Zimbabwe Labor Act 28:01
Zimbabwe Labor Act 28:01, including 2019 amendments
2023 amendments to the Labor Act, Zimbabwe
Labor Relations Amendment Act of 2002
Labor Relations Amendment Act, 2005
Labor Amendment Act, 2015
National Social Security Act, Chapter 17:04
National Social Security Authority
Residence Permit
https://www.zim.gov.zw/
https://www.mic.gov.zw/
Tax Rates