Employer of Record Zimbabwe services enable businesses to hire local talent without the need to establish a physical presence in the country. Navigating employment laws, tax regulations, and administrative procedures in Zimbabwe can be challenging, especially for foreign companies. An Employer of Record (EOR) acts as the legal employer on your behalf, handling compliance, payroll, taxes, and HR responsibilities.
Whether you’re exploring the Zimbabwean market, expanding operations, or supporting remote clients, Zimbabwe Employer of Record helps you access skilled professionals quickly and legally, while minimizing risk and operational overhead. Watch this short video to gain a better understanding
Labour Law in Zimbabwe
Zimbabwe’s employment framework is largely structured under the Labour Act [Chapter 28:01], which underwent revisions in 2019. This law establishes essential worker rights, promotes fair labor practices in line with global standards, and regulates various employment matters, including salary structures, union negotiations, and dispute handling procedures.
Key aspects of Zimbabwe’s labor laws include:
1. Income tax in Zimbabwe
When hiring through an Employer of Record in Zimbabwe, understanding the local tax structure is crucial to ensure compliance with payroll and income tax regulations. Zimbabwe uses a progressive income tax system for employees, with rates increasing based on earnings. Additionally, specific levies and flat rates may apply to other forms of income.
Zimbabwe Income Tax Brackets for Employees (in USD)
| Annual Income (USD) | Tax Rate |
| $0 – $1,200 | 0% |
| $1,201 – $3,600 | 20% |
| $3,601 – $12,000 | 25% |
| $12,001 – $24,000 | 30% |
| $36,001 and above | 40% |
Note: A 3% AIDS Levy is also applied to employment income in addition to the standard tax rates.
Tax on Other Income
Income earned outside regular employment—such as consulting fees, freelance work, or business profits—is taxed separately at a flat corporate rate of 24%, regardless of the individual’s employment status
2. Employment in Zimbabwe
Employment in Zimbabwe is primarily governed by the Labour Act [Chapter 28:01], supported by the Employment Code Act and the Occupational Health and Safety Act. These regulations set out the minimum standards for employment, covering critical areas such as wages, working hours, employee leave entitlements, and procedures for lawful termination. Together, they ensure fair labor practices and promote safe and equitable working environments across Zimbabwe.
a. Public Holidays in Zimbabwe
Zimbabwe recognizes several paid public holidays, including:
| Public Holiday | Date |
| New Year | 1 January |
| New Year observed | 2 January |
| Robert Gabriel Mugabe National Youth Day | 21 February |
| Good Friday | 7 April |
| Holy Saturday | 8 April |
| Easter Sunday | 9 April |
| Easter Monday | 10 April |
| Independence Day | 18 April |
| Workers Day | 1 May |
| Africa Day | 25 May |
| Fathers Day Observance | 18 June |
| Heroes Day | 14 August |
| Defence Forces Day | 15 August |
| Unity Day | 22 December |
| Christmas Day | 25 December |
| Boxing Day | 25 December |
Employees working on these days are entitled to be paid at least double their normal rate for that day.
b. Employment Contract in Zimbabwe Requirements
As your provider of Employer of Record Zimbabwe, we ensure that employment contracts are provided in English or another language clearly understood by both parties. These contracts must outline essential details such as:
The names and identification of the employer and employee
The starting date of employment
A clear description of the employee’s roles and responsibilities
Details on salary, benefits, and other compensation arrangements
Properly structured contracts help ensure compliance with local labor laws and protect the rights of both parties.
c. Working Hours in Zimbabwe
In Zimbabwe, working hours are typically established through collective bargaining agreements within various industries. Most of these agreements align with International Labour Organization (ILO) standards, which recommend a maximum of 48 working hours per week and no more than 12 hours within a 24-hour period. These standards aim to promote fair labor practices and protect employee wellbeing.
d. Compensation Structure in Zimbabwe
While Zimbabwe does not enforce a universal minimum wage, specific minimum wages are set through collective bargaining agreements in various industries. These are negotiated by employment councils representing both employers and workers. Under the Labour Act, employers are required to provide double pay for employees working on public holidays, but there are no statutory requirements for overtime rates outside this provision.
e. Bonuses in Zimbabwe
There is no legal obligation for employers in Zimbabwe to offer bonuses. However, some companies may include bonus payments as part of internal policies or collective agreements to attract and retain talent.
f. Paternity Leave in Zimbabwe
Currently, there is no specific legal provision for paternity leave under Zimbabwe’s labor laws. However, male employees may request special leave to attend to important personal or family matters, including the birth of a child. This type of leave is limited to a maximum of 12 calendar days per year and is granted at the employer’s discretion.
g. Maternity Leave in Zimbabwe
Female employees who have completed at least one year of continuous service are entitled to 98 days of fully paid maternity leave. However, maternity leave can only be taken twice within any 24-month period, and not more than three times during the course of employment with the same employer.
h. Annual Leave in Zimbabwe
Employees accrue paid vacation leave at a rate of 30 days per year, with a maximum accumulation of 90 days. This allows employees to rest and recharge while ensuring business continuity through planned leave cycles.
i. Sick Leave in Zimbabwe
Zimbabwean labor law allows employees to take up to 90 days of paid sick leave in any 12-month employment period. This can be extended under specific circumstances, based on medical certification.
j. Health Coverage and Social Insurance in Zimbabwe
Health and social security benefits are managed through the National Social Security Authority (NSSA).
Two main schemes are available:
- Pension and Other Benefits Scheme (POBS)
- Accident Prevention and Workers’ Compensation Scheme (APWCS)
All employees aged between 16 and 65 — including contract, seasonal, and temporary workers — are covered under these schemes.
As of January 1, 2020, both employers and employees contribute 4.5% each, totaling 9% of the employee’s salary toward the POBS.
k. Pension and Additional Benefits
In addition to social insurance, employees in Zimbabwe are eligible for:
Government-funded pension benefits
Workers’ compensation for job-related injuries
Death, disability, and retirement benefits
Employers bear a significant portion of social costs, but companies can enhance their benefits package by offering supplemental coverage such as private pension schemes or life insurance.
3. Employment Termination in Zimbabwe
Understanding the legal process for employment termination is essential for companies hiring locally, especially when operating through an Employer of Record Zimbabwe (EOR). The labour laws in the country require employers to follow strict procedures to dismiss employees and avoid costly legal disputes lawfully.
Notice Periods and Contract Types
The notice period for terminating an employee in Zimbabwe depends on the contract type and wage payment frequency
Contracts with no specified end date or exceeding 2 years require 3 months' notice.
One to two years of service requires 2 months' notice.
6 to 12 months requires 1 month's notice.
3 to 6 months requires 2 weeks' notice.
Less than 3 months or seasonal work requires 1 day's notice.
Severance Pay and Final Dues
For retrenchments, employers must follow a formal consultation process. Severance packages are often negotiated, with a standard benchmark being 2 weeks’ salary for every year of service. Final payouts must include accrued leave, notice pay, and other agreed benefits.
Grounds for Termination
Employment can be terminated on several legal grounds:
Misconduct
Requires a documented disciplinary process.
Incapacity
Due to illness or poor performance.
Retrenchment
Job redundancy from restructuring or downsizing.
Mutual Agreement
With both parties’ consent.
Contract Expiry
For fixed-term agreements
Avoiding Unfair Dismissal Claims
Zimbabwean law protects employees against unfair dismissal. Terminations must have valid reasons and follow proper legal procedures. Failure to comply can result in employee claims, leading to reinstatement or financial compensation.
N/B – Partnering with us as your Zimbabwe Employer of Record ensures that your business remains fully compliant with local employment termination laws.
Services Offered Under Afrisetup Employer of Record Zimbabwe
Our Zimbabwe Employer of Record offers comprehensive support to help businesses hire and manage employees without setting up a local legal entity. At Afrisetup, we provide the following EOR services:
1. Hiring and Onboarding
We support your talent acquisition efforts by managing the hiring and onboarding process in full compliance with Zimbabwe’s labour laws. This includes verifying employee eligibility, preparing compliant contracts, and ensuring all necessary documentation is in place.
2. Payroll Management
Afrisetup handles payroll processing, ensuring accurate salary calculations, statutory deductions, and timely payments. We also manage remittances for income tax and social security contributions as required by Zimbabwean law.
3. Tax Compliance
Our team ensures full compliance with Zimbabwe’s tax regulations. We file tax returns, remit employeerelated taxes, and ensure all statutory requirements are met, helping your company avoid penalties.
4. Employee Benefits Administration
We oversee the administration of mandatory and optional employee benefits, such as social security contributions under the National Social Security Authority (NSSA), pensions, and healthcare benefits, ensuring compliance with local standards.
5. Labour Law and Legal Compliance
From employment contract preparation to workplace safety compliance and immigration support for expatriates, we ensure that your Zimbabwean operations align with all applicable labour and legal regulations
Why Choose Afrisetup as Your Zimbabwe Employer of Record Provider
As your Employer of Record Zimbabwe partner, Afrisetup simplifies HR and compliance, helping your business focus on growth while we manage the local employment landscape. Here’s why businesses choose us:
1. Local Expertise
We stay current with Zimbabwe’s evolving labour laws and regulatory requirements. Our in-depth knowledge ensures your workforce remains compliant, reducing your legal exposure.
2. Efficient HR Operations
We manage all employer-related functions—including hiring, payroll, benefits, and legal compliance—so you can concentrate on your core business activities without the need for an internal HR department.
3. Risk Reduction
By outsourcing HR compliance to us, your company minimizes the risk of errors or regulatory violations. We proactively manage legal obligations and reduce the chances of labour disputes or government penalties.
4. Cost-Effective Solutions
Using our Employer of Record services eliminates the need to invest in local infrastructure or HR staffing. Our flexible, scalable solutions help you optimize costs without sacrificing compliance or efficiency.
5. Custom Solutions for Your Business
Whether you’re hiring your first employee in Zimbabwe or managing a growing workforce, our EOR services are tailored to your company’s unique needs. We design personalized strategies that support smooth and compliant operations.
6. Training and Compliance Support
We offer ongoing training and educational support to your in-house HR team, equipping them with upto-date knowledge on Zimbabwean employment laws and best practices.
FAQS
An Employer of Record (EOR) in Zimbabwe is a third-party service that legally employs workers on behalf of a company. This allows businesses to hire local staff without setting up a legal entity. The EOR handles employment contracts, payroll, taxes, and compliance with Zimbabwe’s labour laws.
As of Statutory Instrument 186 of 2024, the national minimum wage in Zimbabwe is set at $150, or the equivalent value in Zimbabwean gold. This amount applies to all workers, regardless of the industry, and represents the legal minimum employers must pay.
The average monthly salary in Zimbabwe is around USD 253. However, actual earnings can vary based on factors like job role, education level, work experience, and location. Comparing local salaries to global averages can also help put Zimbabwe’s wage levels into perspective.
Pay As You Earn (PAYE) is a system where employers deduct income tax from their employees’ salaries and send it to the Zimbabwe Revenue Authority (ZIMRA) every month. It ensures that employees pay tax regularly. If an employer fails to comply, they may face fines and interest charges.
In Zimbabwe, personal income tax is deducted based on how much you earn. The top tax rate is 41.2% for higher-income earners. The system is progressive, meaning the more you earn, the higher the percentage of tax you pay.
Conclusion
Using an Employer of Record Zimbabwe is a strategic move for companies looking to expand into the country without the burden of legal incorporation and compliance complexities. Whether you’re scaling a startup, managing a nonprofit, or entering the mining industry, EOR services simplify hiring, mitigate risk, and help you operate faster and smarter.
With the right EOR partner, you can confidently access Zimbabwe’s skilled workforce while focusing on your core business growth. Contact us today for professional assistance!