Namibia at a glance
Taxes in Namibia
Employer Contributions
| Contribution | Rate |
|---|---|
| Social Security Commission (SSC/SSCOM) — maternity, sickness & death (MSD) | 0.9% of gross remuneration (capped at NAD 81/month) |
| Social Security Commission — development fund | 0.5% of gross remuneration |
| Vocational Education and Training (VET) levy | 1% of annual payroll |
Note: Employer must also deduct employee PAYE and remit to Namibia Revenue Agency (NamRA).
| Contribution | Rate |
|---|---|
| Social Security Commission (SSC/SSCOM) — maternity, sickness & death (MSD) | 0.9% of gross remuneration (capped at NAD 81/month) |
| Social Security Commission — development fund | 0.5% of gross remuneration |
| Vocational Education and Training (VET) levy | 1% of annual payroll |
Note: Employer must also deduct employee PAYE and remit to Namibia Revenue Agency (NamRA).
| Contribution | Rate |
|---|---|
| Social Security Commission (SSCOM — MSD) | 0.9% (capped at NAD 81/month) |
| GIPF (Government Institutions Pension Fund — public sector only) | N/A for private sector |
| Income Tax (PAYE) | 0% – 37% (progressive) |
| Annual Income (NAD) | Tax |
|---|---|
| 0 – 100,000 | 0% |
| 100,001 – 150,000 | 18% |
| 150,001 – 200,000 | 25% |
| 200,001 – 350,000 | 28% |
| 350,001 – 500,000 | 30% |
| 500,001 – 750,000 | 32% |
| 750,001 – 1,500,000 | 34% |
| Over 1,500,000 | 37% |
Employer of Record in Namibia
What Is an Employer of Record?
An Employer of Record is the legal employer of your worker in Namibia. Remote& handles employment contracts under the Namibian Labour Act, NamRA PAYE registration, Social Security Commission enrollment, payroll processing, and statutory benefits — so you can hire in Namibia without setting up a local entity.
How Remote& EOR Works
| Party | Role |
|---|---|
| Your Company | Recruits the worker, assigns tasks, manages performance |
| Remote& | Signs the employment contract, registers with NamRA and SSC, processes payroll, withholds PAYE, manages statutory contributions |
| Employee | Fulfills their role for your company under a Namibia-compliant employment contract |
Ask Remi:
"Hire a Mining Operations Coordinator in Windhoek — NAD 45,000/month, starting next quarter" Remi handles contract drafting, NamRA and SSCOM registration, payroll configuration, and statutory leave management — all in one conversation.
Benefits in Namibia
Social Security Commission (SSCOM) The SSC provides maternity leave, sick leave benefits, and death benefits through the MSD fund. Both employer and employee contribute 0.9% of gross salary (capped).
Workmen's Compensation (WCA) Employers are required to register with and contribute to the Namibia Employees Compensation Fund for work-related injuries and diseases.
Vocational Training Levy (VET) Employers contribute 1% of annual payroll to fund vocational education and training under the Vocational Education and Training Act.
- Private medical insurance (common — public healthcare access is limited in remote areas)
- Pension fund contributions (private sector, through approved fund)
- Annual performance bonus
- Housing allowance
- Transportation allowance
- Mobile phone allowance
Leave entitlements
| Leave type | Entitlement |
|---|---|
| Annual Leave | 24 consecutive days per year |
| Sick Leave | 30 working days over a 36-month cycle |
| Maternity Leave | 12 weeks |
| Paternity Leave | 5 days |
| Family Responsibility Leave | 5 days per year |
Employment conditions
Working Hours
Maximum working hours are 45 per week (9 hours per day for a 5-day week). Overtime beyond the standard must be compensated at 1.5 times the regular rate on weekdays and Saturdays, and 2 times on Sundays and public holidays.
Probation
Probation periods must be specified in the employment contract. The standard maximum probation is 3 months for general employees. Either party may terminate during probation with notice as agreed in the contract.
Payments
End of employment in Namibia
Termination must comply with the Namibian Labour Act. Dismissal must be for a valid, fair reason (misconduct, incapacity, or operational requirements) and follow a fair procedure. Notice periods for indefinite-term contracts are: 1 week (less than 4 weeks' service); 1 month (4 weeks to 1 year); or as specified for longer service.
Unfair dismissal gives rise to reinstatement or compensation claims in the Labour Court. Retrenchments require a consultation process with affected employees and the relevant trade union. Final settlement must include outstanding wages, accrued leave, and any applicable severance.
Frequently asked questions
International companies can hire in Namibia via: home-country payroll (non-compliant for ongoing employment — NamRA PAYE and SSC obligations apply), contractor arrangements (appropriate for genuine project-based work), establishing a local entity, or using Remote& as Employer of Record. The EOR route is the most efficient compliant option.