- Main labour provisions are contained in the following four Acts
|Relevant Act||Definition of|
|Employment Act||Various employment contractual terms.|
|Conditions of Employment Act||Minimum conditions of employment for categories of employees not effectively covered through collective bargaining.|
|Employment of Young Persons and Children Act||Protection against child labour and abuse.|
|Industrial and Labour Relations Act||Conduct of industrial relations among parties.|
Contracts of employment
- Although oral contracts of employment are authorised, it is recommended to sign a written contract.
- Any person under the age of 15 is not allowed to be employed.
- The minimum age for hazardous work is 18.
- Written contracts should include the following elements
|Name of the employer and of the employee||Place of engagement and, where applicable, the place of origin of the employee and any other particular necessary for his identification||Place at which, or the geographical limits within which, any work under the contract is to be performed||An undertaking by the employer to pay the wages of the employee monthly or at shorter period|
|Name of the business or undertaking in which the employee is to be employed||Date of commencement and the duration of the contract of service||Wages to be paid and, if applicable, particulars of any food to be provided under the contract or of any cash equivalent of any such food||Nature of the employment, including working hours and tasks where applicable and practical, and the general operations involved|
Source: The Employment Act (Chapter 268 of the Laws of Zambia)
Types of employees
- In Zambia, there are two categories of employees: unionized and non-unionized (management) workers.
- While rules for non-unionized employees are generally defined by the top management, rules applicable to unionized employees are usually negotiated through a collective bargain or agreement.
Working hours and overtime
- The normal working hours in a week shall not exceed 40 hours for office employees and 45 hours for factory employees.
- The Minimum Wages and Conditions of Employment Act specifies that the normal weekly hours should not exceed 48 hours.
- The table displayed below lists applicable hourly rates for extra-hours
|Hours performed||Applicable hourly rate|
|Between 18.00 hours and 6.00 hours||1.15 x Usual hourly rate of pay|
|In excess of 48 hours a week||1.50 x Usual hourly rate of pay|
|During Sunday or a public holiday||2.00 x Usual hourly rate of pay|
Sources: Minimum Wages and Conditions of Employment Act (2011), Minimum Wages and Conditions of Employment (Shop Workers) (Amendment) Order (2018). Note: the “usual” hourly rate of pay is simply the basic monthly wage divided by the total number of “usual” hours worked.
Employment rights and benefits
- In Zambia, workers have notably the following rights
|1. Under Minimum Wages and Conditions of Employment Act, employees are entitled to, at least, 24 days off per year with full pay (excluding public holidays).||2. In addition to annual leave, women employees, that worked at least 24 months with their current employer, are entitled to three months maternity leave.|
|3. Employees benefit from paid sick leave for up to six months, the last 3 months being half-paid. A medical certificate is required. Female domestic workers can request a leave of absence without loss of pay to take care of their hospitalized child requiring special attention.||4. 7 days paid leave must be granted to the employee in case of the death of the employee’s spouse, child, mother or father. The employer must provide a funeral grant for a standard coffin, cash and one 50-kilogramme bag of mealie meal.|
|5. In case of redundancy, severance pay applies. The employee has to receive an indemnity corresponding to at least 2 months for each completed year of service.||6. Employers have to provide employees with one of the following: (i) housing or housing allowance in lieu thereof; (ii) house loan or advance towards the purchase or construction of a house; or (iii) guarantee facility for a mortgage.|
|7. Employees shall operate in safe working conditions.|
Termination of employment and employment disputes
- Termination of the contract of employment may occur if at least one of the following conditions are met
|Expiry of contract||Frustration (e.g. death)||Normal retirement or medical discharge|
|Redundancy||Resignation or dismissal|
- In case of disputes and if conciliation failed, it is advised to refer and follow procedures precised by the Employment Act and the Industrial and Labour Relations Act.
- Investors can recruit foreign workers.
- Employer seeking to employ rare skills are required to apply for work permits.
Employee costs estimation calculator
Invest in Zambia
Cost calculator*Start by picking an employee type :
Occupations subject to a minimum wage
- For certain occupations, the government regularly defines basic minimum wages.
|Person employed as a/in the||Minimum monthly wage|
|Assistant bicycle assembler||1,504.50||145.7|
|Assistant dispatch clerk||1,504.50||145.7|
|Audio visual equipment repairer||2,167.50||210|
|Bailing or wrapping of articles and goods||1,050.00||101.7|
|Delivery vehicle assistant||1,050.00||101.7|
|Driver of a motor cycle||1,278.00||123.8|
|Driver of a motor scooter||1,278.00||123.8|
|Driver of a motor vehicle requiring a heavy duty or public service vehicle licence||1,629.00||157.8|
|Driver of a motor vehicle requiring an ordinary driving licence||1,504.50||145.7|
|Driver of a motorised three-wheeled vehicle||1,278.00||123.8|
|General worker, not elsewhere specified||1,050.00||101.7|
|Opening, closing and repairing packages||1,050.00||101.7|
|Operating of a mechanically operated passenger of goods lift||1,278.00||123.8|
|Window dresser’s assistant||1,504.50||145.7|
Note: Exchange rate: 1 USD = 10.3238 ZMW
Source: Minimum Wages and Conditions of Employment (Amendment) Order (2018)
Typical wages applied by international companies
- The table below provides examples of typical monthly wages paid by international companies
Source: IGuide-Zambia. 2018 figures..
Contributions to the pension scheme
- Both employees and employers have to contribute (at the same rate) to the national pension scheme provider –National Pensions Scheme Authority (NAPSA).
- Employers have to make a monthly contribution equivalent to 5% of the employee’s salary but limited to ZMW 995 (2018 limit).
- In addition to NAPSA, employers may also register with other private pension scheme providers.
*Disclaimer: Estimates of the “Cost calculator” are based on data provided by related local stakeholders. ZDA will not be liable for any computation made on outdated information.