Employer of Record in Namibia for international employers
An Employer of Record (EOR) can help arrange and administer a hire in Namibia. Before you make an offer, establish which company the law treats as the employer. When a private employment agency places a worker under your company's direction, section 128 generally treats your company as the employer. If the Minister grants an exemption, both parties can be held liable for breaches of the Labour Act. That distinction shapes who signs the offer, handles payroll and takes responsibility if the job ends. Labour Amendment Act
Employment in Namibia at a glance
National baseline for private-sector employees working in Namibia. Sector rules, collective agreements and the hiring arrangement can change the terms.
| Label | Value | Detail | Source |
|---|---|---|---|
| Employer in agency placements | Client by default | If section 128 applies, the company receiving the worker is normally the employer. A ministerial exemption can leave both the agency and client liable. See hiring options. | Labour Amendment Act |
| Payroll currency and frequency | NAD, typically monthly | Salary is commonly paid monthly in Namibian dollars. The law allows daily, weekly, fortnightly or monthly paydays and generally requires payment by one hour after ordinary work ends on the scheduled payday. | Bank of Namibia, Labour Act §11 |
| Ordinary working week | Up to 45 hours | The usual daily ceiling is nine hours on schedules of five days or fewer and eight on longer workweeks. Special limits apply to roles such as security and emergency health care. | Labour Act §§15 to 17 |
| Paid annual leave | At least 4 weeks | Per 12-month employment cycle, based on the regular schedule. A five-day week gives 20 working days and a six-day week gives 24. | Labour Act §§8 and 23 |
| General minimum wage | N$18 per hour | General floor since 1 January 2025. Domestic, agricultural and security workers have transitional rates through 2026. Check for a higher applicable agreement rate. | National wage order, Security wage amendment, Construction agreement |
| National public holidays | 13 dates in 2026 | Includes Genocide Remembrance Day on 28 May. When a holiday falls on Sunday, the following Monday is also a public holiday unless it already is one. | Namibia's 2026 calendar, Public Holidays Act |
| Individual tax year | March to February | The year of assessment starts on 1 March and ends on the last day of February. PAYE withholding is reported and paid during the year. | Income Tax Act, NamRA employer guide |
EOR and hiring options
Start with who assigns and supervises the work. Namibia's definition of a private employment agency covers a provider that engages someone to work for a client that directs their tasks. The agency generally needs a licence unless it has a licensing exemption under the Employment Services Act. A separate Labour Act rule determines who employs the placed worker. Employment Services Act §§1, 19, 28, Labour Act §128
| Proposed arrangement | What it means for the offer |
|---|---|
| An agency places an employee with your company under the default rule | Your company is treated as the employer. Price the offer against terms for any comparable incumbent staff and agree who will administer payroll and filings on your company's behalf. |
| The Labour Minister grants a section 128 exemption | Your company applies, with support from the agency and affected worker. Even after approval, both companies are deemed employers and each can be held liable for Labour Act breaches. Confirm the terms of the exemption and assign payroll, safety and dismissal responsibilities before setting a start date. |
| Your Namibian operation employs the worker directly | Your operation issues the contract and carries employer obligations. A payroll provider can handle processing and reporting. Global payroll |
If a provider will put its own name on the contract while your team runs the work, confirm whether your company is the employer under section 128 and whether an exemption applies before issuing the offer. The client's existing terms for the same, similar or equally valuable work can set a higher floor than the statutory minimum. Section 128 also bars covered placements during or in anticipation of a strike or lockout, and for comparable work within six months after the client dismissed staff under the section 34 redundancy procedure. If you are considering contracting, direction over the individual's work or hours can trigger a presumption of employment. Labour Act §§128 to 128A
Employment costs
A N$25,000 gross monthly salary comes to about N$301,472 over the first 12 months with employer social security included. Where the responsible employer already owes the training levy, the same hire adds about N$304,472 in salary, employer social security and incremental levy. Price any separate work-injury cover and service fees on top.
This Borderless AI illustration covers a full-time office operations coordinator in Windhoek on a five-day week, from December 2026 through November 2027. It models ordinary employee payroll on 12 instalments of gross base pay. Price any contractual or agreement-based bonus, allowances and overtime separately.
| Budget item | First 12 months | Basis |
|---|---|---|
| Gross base salary | N$300,000 | N$25,000 a month for 12 months, before employee deductions. |
| Employer social security | N$1,471.50 | The employer pays 0.9% of basic pay subject to the monthly cap. For this salary, that is N$112.50 through February and N$126 from March 2027. Social security regulations, Gazette 8975 |
| Vocational training levy | N$0 or N$3,000 in the example | The levy is 1% of annual payroll for liable employers with total annual payroll of N$1 million or more. The N$3,000 is the additional cost where the employer is already liable. Training levy rules |
| Work-injury cover | Confirm coverage and price | This salary exceeds the fund's ordinary eligibility limit of N$101,625 in annual earnings. Ask about special coverage agreed with the Social Security Commission or separate injury cover. For workers in the fund, the Commission assesses the employer based on wages and risk. Eligibility notice, Employees' Compensation Act §§3, 68 to 72 |
| EOR administration | Quote required | Confirm the fee, what it includes and the invoice currency. Price optional medical or retirement benefits separately, along with one-off costs such as permit filings, equipment or relocation where needed. |
The training levy threshold follows the employer's full payroll. If this hire takes that payroll to N$1 million or more, test the levy on the employer's entire eligible payroll. In an agency placement, establish who carries the obligation before applying either example amount. Training levy order
Payroll, taxes and payments
The employer withholds pay-as-you-earn income tax (PAYE) and the worker's social security share from gross pay. The employer and worker each pay 0.9% of basic wages into the Maternity Leave, Sick Leave and Death Benefit Fund. Payroll uses a minimum monthly basic-wage base of N$500 and, from the September 2026 payroll, a maximum of N$12,500. That caps each side at N$112.50 a month until the scheduled March 2027 increase. Social security regulations, Gazette 8975, September implementation
Set the first payday and payslip cutoff before the employee starts. NamRA generally requires the PAYE payment and return within 20 days after the withholding month ends. The Social Security Commission normally requires payment within 30 days after the month the basic wage is paid or becomes payable. Liable employers remit the training levy monthly in arrears by the 20th of the following month. Employers liable for the work-injury assessment normally file their wage return in March. Plan for the employee's payday, government remittances and the provider's invoice separately. NamRA employer guide, Social security regulations, Training levy, Compensation assessment
Contracts and employment conditions
Put the employer, role, work location, schedule, gross basic pay, allowances and notice terms in a written offer and contract. For remote work, agree who provides equipment, how hours are recorded and how injuries are reported. For an ongoing non-managerial role, plan for indefinite employment. If the work has a genuine end point, document the reason for a fixed term. The employer generally has to justify it under section 128C, which excludes managerial employees from that presumption. If using probation, spell out the review period and criteria. The Labour Act's fair-dismissal protections still matter during that period. Labour Act §§9, 33, 39, 128C
In 2026 the hourly wage floors are N$15 for domestic work, N$14 for agriculture and N$16 for security. All three are scheduled to reach N$18 on 1 January 2027. Pay the applicable floor in money before lawful deductions, including where the package also provides housing or meals. For construction, check the extended agreement's classification schedule. It sets the labourer rate at N$20.43 per hour from 1 September 2026, rising to N$21.45 a year later, with separate rates for other jobs. National wage order, Security wage amendment, Cash wage amendment, Construction agreement
Working hours, leave and holidays
- Hours and overtime. The usual ordinary limit is 45 hours a week. Security officers and emergency health care workers can fall under a separate ceiling of 60 hours a week, and designated continuous shifts have their own rules. Overtime generally needs agreement, is limited to three hours a day and ten a week, and attracts at least 1.5 times the hourly basic wage. Check the separate Sunday and holiday rules before rostering weekend or holiday coverage. Labour Act §§15 to 22
- Annual leave and holidays. A five-day schedule gives 20 working days of paid annual leave per cycle and a six-day schedule gives 24. For variable schedules, the Act uses an average workweek. A holiday on a normal workday usually brings ordinary pay when the employee has the day off. If they work, each hour normally adds the basic hourly wage on top of daily pay, with a reduced premium and paid time off if the employee requests it and the employer agrees. Work on a holiday outside the normal schedule attracts twice the basic hourly wage. Labour Act §§22 to 23, 2026 holiday calendar
- Sick and compassionate leave. Sick leave accrues at one day per 26 days worked in the first year. The statutory allowance is 30 working days for a five-day worker or 36 for a six-day worker per 36-month cycle, subject to the first-year rule and proof requirements. Employees get five paid working days of compassionate leave per 12 months of continuous employment for a death or serious illness in the family. Labour Act §§8, 24 to 25
Employee benefits
Eligible employees get at least 12 weeks of maternity leave after six months of continuous employment. The employer continues the contractual remuneration other than basic wages during that leave. From 1 October 2026, the Social Security Commission's benefit for eligible claims is set at 100% of basic wages up to N$20,000 per month for up to 12 weeks. Check the claim amount and any agreed employer top-up when budgeting the leave. Labour Act §§26 to 27, Maternity benefit amendment, SSC maternity claims
Confirm work-injury coverage separately. The compensation law has specific rules for workers lent to another employer and for subcontracted work. Identify which entity's cover and assessment apply before sending an employee to a client site. Employees' Compensation Act §§3, 5, 9
For medical cover or a retirement contribution, check what the applicable agreement or contract already requires, then price any enhancements separately.
Hiring, onboarding and work authorization
- Settle the employer and the terms. The client and provider identify the legal employer or employers, check the agency licence and any applicable exemption, and agree who handles filings. Confirm the job classification, workplace, schedule and first payday.
- Check the right to work. The candidate supplies evidence of their status. If they need authorization, Namibia offers a short-term work route for up to six months. Longer work goes through the employment-permit process. The revised employment-permit paperwork requires the employer to show, among other documents, a job advertisement that ran for at least seven days, the offer or contract, and evidence of entity registration and social security good standing. The employer needs to be identified early enough to supply those records. Make the start date conditional on receiving the required authorization. Work visa guidance, September 2026 permit forms
- Set up the first pay run. The employer or its payroll administrator collects identity, tax and payment details and sets up social security, work-injury cover as applicable and PAYE. A newly liable employer generally has 14 days to register with NamRA, and the social security regulations generally give an existing registered employer 30 days from hiring to apply to register the employee. Confirm the filing owner and the employee's pay details before closing payroll. NamRA employer guide, Social security registration
Termination and final pay
Ending the client's assignment and ending the employee's contract are separate decisions. The legal employer needs a valid, fair reason and a fair procedure for dismissal. Redundancy generally brings four weeks’ advance notification to the Labour Commissioner, disclosure to worker representatives and negotiations over alternatives. For an ordinary termination on notice, the minimum is one day at up to four weeks of service, one week at more than four weeks through one year, and one month after one year. In the one-month tier, written notice is generally given on the first or 15th of the month. Where severance is owed after at least 12 months of continuous service, the minimum is one week's remuneration per year of continuous service. Fair dismissal for misconduct or poor performance is among the exceptions. Labour Act §§30 to 35
Prepare outstanding wages, payable leave, any pay in lieu or severance, and a service certificate. If employment ends before payday, section 11 requires payment of remuneration due on the termination day. Section 37 lists additional final-pay items and sets the next payday as the outer deadline, subject to section 11. A dismissal within the first 12 months in a different place from where the employee was recruited can also trigger return transport or reimbursement. Labour Act §§11, 36 to 37
Hiring with Borderless AI
Borderless AI's global employment service covers onboarding, contracts, payroll and benefits administration. For a Namibia hire, start by confirming who would employ the worker, which filings each party would handle and what the quote includes. Bring the job duties, work location, expected salary, schedule, target start date and work-authorization status. Ask for separate amounts for salary, employer contributions, any work-injury cover and service fees. Borderless EOR services, Book a demo
