Hiring Talent And Managing Payroll In Zimbabwe

Agreements

• The language of the agreement can be in any of the official languages of Zimbabwe, but it's recommended to use English.
• Agreements must comply with the country's labor laws, including minimum wage rates, working hours, and leave entitlements.
• Agreements can be negotiated between individual employers and employees, or they can be collective agreements negotiated between employers and labor unions.
• Collective agreements are usually for a fixed term, and they must be registered with the Ministry of Labor and Social Welfare.
• Agreements can cover various aspects of employment, such as remuneration, benefits, job responsibilities, performance evaluation, and termination of employment.

Onboarding Process

• Provide a formal job offer that outlines the terms and conditions of employment.
• Obtain the employee's personal information, including identification documents, qualifications, and references.
• Provide orientation and training to the employee regarding the company's policies, procedures, and expectations.
• Submit mandatory documents such as work permits and tax clearance certificates.
• Obtain the employee's bank account details to facilitate salary payments.
• Provide necessary tools and equipment for the employee to perform their job duties.

Minimum Wage

Payroll Cycle

Annual Bonus

Health Benefits

• Medical aid cover for employees and their dependents
• Access to on-site medical facilities or discounts with preferred healthcare providers
• Health and wellness programs, such as gym memberships, counseling services, or nutrition consultations

Working hours and overtime

• Work-hours: The standard workweek is 45 hours, with a maximum of 9 hours per day
• Break: Employers must provide a minimum of a one-hour break after every five hours of work.
• Overtime: Paying for overtime is mandatory in Zimbabwe, but the amount is not defined and is decided by mutual agreement.

Social Security

Taxes for Employees

• Employees earning in Zimbabwean dollars have to pay the income tax based on the following tax slab:

  • 0 to 300,000 ZWL - 0%.
  • 300,001 to 720,000 ZWL - 20%
  • 720,001 to 1,440,000 ZWL - 25% on ZWL above 720,000 + 84,000 ZWL.
  • 1,440,001 to 2,880,000 ZWL - 30% on ZWL above 1,440,001 + 264,000 ZWL.
  • 2,880,001 to 6,000,000 ZWL - 35% on ZWL above 2,880,000 + 696,000 ZWL.
  • 6,000,001 ZWL and above - 40% + 1,788,000 ZWL.
• National Social Security Authority (NSSA): Employees are required to contribute 4.5% of their salary towards NSSA.

Termination

• Misconduct or poor performance
• Redundancy or restructuring
• Health reasons or disability
• Gross insubordination or wilful disobedience
• Absence without leave or unauthorized absence
• Breach of contract
• Expiry of a fixed-term contract

Severance Pay

Employees or Contractors

• The distinction between employees and contractors is important, as employees are entitled to certain employment benefits and protections under the law that contractors are not.
• If an employer misclassifies an employee as a contractor, they may be required to pay back wages and benefits owed to the employee, as well as penalties for non-compliance with employment laws. On the other hand, if an employer misclassifies a contractor as an employee, they may be required to pay employment taxes and provide benefits retroactively.

Final Words