Employer of Record Guide in 
Zimbabwe

Zimbabwe's growing tech sector and skilled workforce present exciting opportunities, but navigating dual-currency payroll and complex compliance requirements can feel overwhelming. Our comprehensive guide breaks down everything you need to know to hire confidently and compliantly in this dynamic market.

Capital City

Harare

Currency

Zimbabwean dollar ($)

Languages

Chibarwe, English, Kalanga, Khoisan, Ndau, Northern Ndebele, Chewa, Shona, Sotho, Tonga, Tswana, Tsonga, Venda, Xhosa, and Zimbabwean Sign Language

Population size

17,073,087
OVERVIEW

Key stats and facts

From Harare's bustling business district to emerging tech hubs across the country, Zimbabwe offers access to talented software developers, engineers, and healthcare professionals. Understanding the local market dynamics—including the unique dual-currency system and key economic indicators—is your first step toward successful expansion.

Major economic hubs

Harare, Bulawayo, Chitungwiza, Mutare, Gweru

Skills in demand

Software Developers, Renewable Energy Engineers, Healthcare Professionals, Agricultural Specialists, Mining and Metallurgy Engineers

Currency

Zimbabwean dollar ($)

Language

Chibarwe, English, Kalanga, Khoisan, Ndau, Northern Ndebele, Chewa, Shona, Sotho, Tonga, Tswana, Tsonga, Venda, Xhosa, and Zimbabwean Sign Language

GDP per Capita

$2,588.97 USD per capita

Standard Tax Rate

41.2% federal

Your EOR guide in 
Zimbabwe

Getting payroll, benefits, and compliance right in Zimbabwe requires navigating everything from dual-currency tax structures to sector-specific minimum wages. This detailed breakdown covers the practical essentials every HR leader needs to manage their Zimbabwean workforce effectively.

Minimum Wage

Zimbabwe operates a tiered minimum wage system with sectoral variations:

  • National Minimum Wage: USD $150 per month for entry-level menial workers
  • Payment Options: Payable in local currency (Zimbabwe Gold - ZiG) at prevailing official rate or in foreign currency
  • Sectoral Rates: Most industries governed by National Employment Councils (NECs) with sector-specific, often higher minimum wages
  • Exclusions: Domestic workers, maids, and agricultural workers are excluded from minimum wage coverage

Payroll Cycle

  • Standard Frequency: Monthly payment is most common, typically toward month-end
  • Legal Requirements: Labour Act mandates regular payment on specified dates
  • Industry Variations: Some sectors may use bi-weekly cycles

Individual Income Tax (PAYE)

Zimbabwe operates a dual-currency tax system with separate tables for Zimbabwe Gold (ZiG) and USD.

Tax Year: January 1st to December 31st

2025 ZiG Tax Brackets (Annual):

Income Range (ZiG) Tax Rate
Up to 33,600 0%
33,600.01 to 100,800 20%
100,800.01 to 336,000 25%
336,000.01 to 672,000 30%
672,000.01 to 1,008,000 35%
Above 1,008,000 40%

USD Tax Structure: Tax-free threshold of USD $100 per month, with progressive rates mirroring ZiG structure up to 40%

Additional Levy: AIDS Levy of 3% of calculated PAYE amount applies to all employees

Tax Residency Criteria

Individuals spending more than 183 days in Zimbabwe per tax year or having Zimbabwe as their permanent home are considered tax residents. Residents are taxed on worldwide income, while non-residents pay tax only on Zimbabwe-sourced income. Foreign workers require a valid work permit for legal employment.

Employer Payroll Contributions

When hiring employees in Zimbabwe, employers must make several mandatory contributions:

Contribution Type Rate Purpose
Social Security (NSSA) 4.5% Pension and social benefits
Workers' Compensation (WCIF) 1.1% - 2%+ Workplace injury insurance
Manpower Development Fund 1% Skills development
Total Employer Burden 6.6% - 7.6%+ Of gross salary

Note: Workers' Compensation rates vary by industry risk classification

Working Hours

  • Standard Week: 40 hours typical, with legal maximum of 48 hours before overtime applies
  • Daily Hours: 8-hour standard workday
  • Meal Breaks: Minimum 30-60 minutes required after 5 continuous hours of work
  • Flexible Arrangements: Permitted but not specifically regulated under current labour law

Overtime Pay

Note: Research shows some discrepancy in overtime rates - please verify current regulations

  • Overtime Threshold: Beyond 8-hour day or weekly maximum (40-48 hours)
  • Regular Day Overtime: 1.5× normal hourly rate
  • Holiday/Rest Day Work: 2.0× normal rate
  • Maximum Overtime: 10 hours per week limit
  • Time-Off Alternative: May be provided at higher rate than hours worked

Bonus Payments

There is no statutory obligation for 13th-month salary or annual bonuses in Zimbabwe. However, performance-based bonuses or collective agreement provisions are common practice in many industries.

Full-Time vs. Part-Time

  • Full-time Classification: 40-48 hours per week
  • Part-time Benefits: Same statutory benefits as full-time employees, often calculated on a pro-rata basis

Vacation Leave

  • Standard Entitlement: 30 calendar days (22 working days) after one year of continuous service
  • Accrual Rate: One-twelfth of annual entitlement per month of service
  • Maximum Accrual: 90 days total accumulation allowed
  • Calculation Method: Saturdays, Sundays, and public holidays are counted within the vacation period
  • Termination Payout: Accrued unused leave must be paid out upon employment termination

Sick Leave

  • Primary Entitlement: 90 days at full pay per calendar year
  • Extended Coverage: Additional 90 days at half-pay if initial entitlement is exhausted
  • Documentation: Medical certificate from registered practitioner required
  • Long-term Disability: Employer may terminate for incapacity after 180-day period following proper procedure

Maternity Leave

  • Duration: 98 days fully paid maternity leave
  • Eligibility: Minimum one year of service with the same employer
  • Limitations: Maximum three times with same employer, once every 24 months
  • Job Protection: General non-discrimination principles apply, though specific job guarantee provisions may vary

Parental/Paternity Leave

Note: Research shows conflicting information on paternity leave provisions - please verify current statutory framework

  • Paternity Leave: No statutory paid paternity leave provision under current labour law
  • Alternative Options: Employees may use "special leave" entitlement for family responsibilities

Bereavement Leave

  • Entitlement: Up to 12 days paid special leave per calendar year
  • Qualifying Events: Death of spouse, parent, child, or legal dependent
  • Standard: Must meet "justifiable compassionate grounds" criteria

Personal & Family Leave

  • Family Responsibility Leave: 12 days special leave available for urgent family matters
  • Coverage: Court attendance, quarantine, other serious family crises under "justifiable compassionate grounds"
  • Documentation: Employer may require appropriate verification of circumstances

Summary

Leave Type Duration Paid? Funding
Vacation 30 calendar days/year Yes Employer
Sick Leave 90 days + 90 half-pay Yes/Partial Employer
Maternity Leave 98 days Yes Employer
Paternity Leave No statutory provision N/A N/A
Bereavement Up to 12 days Yes Employer
Family Responsibility 12 days Yes Employer

Termination Types

Termination With Cause (Dismissal):

  • Must involve misconduct per registered Code of Conduct
  • Requires formal disciplinary hearing process
  • No notice or severance required if properly executed

Termination Without Cause (Retrenchment):

  • For economic, technological, or structural reasons
  • Requires consultation process and retrenchment package
  • Must follow Labour Retrenchment Regulations 2024

Mutual Agreement:

  • Requires written agreement between both parties
  • Terms negotiable but must comply with minimum standards

Constructive Dismissal:

  • When intolerable working conditions force resignation
  • Employee may claim unfair dismissal

Notice Period Requirements

Notice periods vary based on contract duration:

Contract Length Required Notice
Under 3 months 1 day
3-6 months 2 weeks
6 months-1 year 1 month
1-2 years 2 months
2+ years or indefinite 3 months

Pay in Lieu: Employers may pay salary for the notice period instead of requiring working notice.

Severance Pay

  • Requirement: Mandatory for retrenchment cases
  • Calculation: One month's salary per year of service (Labour Retrenchment Regulations 2024)
  • Enhancement: Parties may negotiate more favourable packages
  • Exemptions: Possible through Employment Council or Retrenchment Board for employers demonstrating financial incapacity

Probationary Periods

  • Standard Length: Maximum 3 months (shorter periods allowed for casual/seasonal work)
  • Termination Rights: Shorter notice periods required but termination must still be for fair reason
  • Protection: Anti-discrimination laws still apply during probation

Final Pay Requirements

  • Timeline: Payment must be made "as soon as reasonably practicable" after termination
  • Inclusions: Outstanding salary, accrued vacation pay, notice pay, and contractual benefits
  • Penalties: Unreasonable delay constitutes unfair labour practice and criminal offence

Termination Documents & Process

Required Documentation:

  • Comprehensive termination letter stating reason, effective date, and payment calculation
  • For mutual termination: Signed written agreement required
  • For retrenchment: Extensive consultation process documentation necessary

Anti-Discrimination & Retaliation Laws

Employees cannot be terminated for reasons related to:

  • Nationality, race, colour, tribe, origin, language, class, religion, politics
  • Custom, culture, sex, gender, marital status, age, pregnancy
  • Disability, HIV/AIDS status
  • Equal pay is required for male and female employees performing equal value work

National Holidays (2025)

Zimbabwe observes 13 national public holidays:

Holiday Date
New Year's Day January 1
Robert Gabriel Mugabe National Youth Day February 21
Good Friday April 18
Holy Saturday April 19
Independence Day April 18*
Easter Sunday April 20
Easter Monday April 21
Workers' Day May 1
Africa Day May 25 (observed May 26)
Heroes' Day August 11
Defence Forces Day August 12
National Unity Day December 22
Christmas Day December 25
Boxing Day December 26

Note: Independence Day coincides with Good Friday in 2025

Regional Variations

Zimbabwe does not have official regional or state-specific public holidays. All public holidays are observed nationally.

Holiday Pay Rules

  • Entitlement: Employees receive normal day's pay for public holidays falling on scheduled work days
  • Working Holiday Pay: Double (2×) ordinary daily rate for employees who consent to work on public holidays
  • Sunday Rule: If a holiday falls on Sunday, the following Monday is typically observed as the holiday

Required Documentation

Employment Contracts:

  • Written contracts strongly recommended in English or mutually understood language
  • Must include job title, duties, salary, working hours, leave entitlements, termination clauses

Government Registration:

  • ZIMRA registration and Taxpayer Identification Number (TIN) required
  • NSSA registration within 30 days using P3 form for employee registration
  • Valid work permit required for foreign nationals

Banking Information:

  • Direct deposit details required for salary payments
  • Must comply with foreign exchange regulations

Language Requirements

Zimbabwe has three official languages:

  • English: Primary business language for contracts and documentation
  • Shona: Widely spoken indigenous language
  • Sindebele: Regional indigenous language

Employment contracts and workplace communications typically use English.

Background Checks & References

Permitted Types:

  • Criminal record checks through Criminal Investigation Department
  • Education verification
  • Employment history verification
  • Professional references

Process Requirements:

  • Written consent from employee is best practice
  • Police clearance requires fingerprints and applicable fees
  • Must be relevant to the position

Data Protection & Privacy

Zimbabwe's Data Protection Act [Chapter 11:12] (effective December 2021) governs employee data handling:

  • Processing Requirements: Data must be processed lawfully, fairly, and securely
  • Consent: Written consent required for sensitive personal data
  • Security: Technical and organisational protection measures mandatory
  • Breach Notification: 24-hour reporting requirement to Data Protection Authority

IP Assignment & Confidentiality

  • Default Ownership: Employer owns intellectual property created during the course of employment
  • Contract Provisions: Standard IP assignment and confidentiality clauses recommended
  • Non-Compete Enforceability: Must be reasonable in duration, geography, business nature, and public interest; unenforceable if employer terminated unlawfully

Onboarding Timeline

Step Timeline
Job offer accepted Day 0
Employment contract signed Day 1-3
ZIMRA registration (if new employer) Within 14 days
NSSA employee registration Within 30 days
Work permit verification (foreign nationals) Before start date
Payroll setup completed Day 5-7

What the EOR Handles

Borderless AI manages:

  • Employment contract drafting and execution
  • ZIMRA and NSSA registration compliance
  • Dual-currency payroll processing
  • Local tax withholding and remittance
  • Statutory contribution management
  • Data protection compliance

Worker Classification: Employee vs Contractor

Zimbabwe distinguishes between employees and independent contractors based on control level and supervision:

  • Employees: Subject to employer control and supervision, covered by Labour Act protections
  • Contractors: Use own discretion, not subject to employer control, not covered by Labour Act
  • Misclassification Penalties: Liability for back-payment of PAYE, social security contributions, statutory benefits, plus penalties and interest

Unionisation & Collective Agreements

  • Rights: Constitutional and Labour Act protection for union formation and collective bargaining
  • Structure: Industry-level Collective Bargaining Agreements through National Employment Councils
  • Scope: Binding minimum wages, working hours, and benefits for all sector employers and employees

Cultural Norms & DEI Expectations

Work-Life Balance:

  • Standard 8-hour workday well-established
  • Respect for family obligations and traditional ceremonies

Communication Style:

  • Formal, hierarchical approach preferred
  • Respect for seniority and age
  • Indirect criticism and feedback preferred over confrontational approaches

DEI Progress:

  • Growing recognition of diversity and inclusion beyond legal compliance
  • Traditional patriarchal norms still influential in some sectors
  • Increasing focus on gender equality and disability inclusion

Remote Work Considerations

Legal Framework:

  • No specific Labour Act provisions for remote work
  • Existing employment law principles apply to remote arrangements
  • Clear contract terms essential for remote work arrangements

Employer Obligations:

  • Duty of care extends to remote workspace safety
  • Equipment and connectivity responsibilities should be clearly defined
  • Cross-border remote work requires local entity or EOR service

Digital Nomad Considerations:

  • No specific digital nomad visa category currently available
  • Foreign remote workers typically require work permits

Note: Remote work regulations are evolving - verify current requirements with legal counsel

Built-in benefits packages for
Zimbabwe

When the world is your competition, it pays to incentivize new hires and existing alike. Borderless AI benefits packages typically inlucde:

Medical Insurance

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Dental Insurance

United Healthcare
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Retirement Contribution

United Healthcare
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Life Insurance

United Healthcare
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Vision Insurance

United Healthcare
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