How to Hire and Pay Employees in Namibia: A Step-by-Step Guide for Global Employers

You’re looking beyond the usual markets—and Namibia just landed on your list. Smart thinking. The country offers a well-educated, English-speaking workforce and a strategic foothold in one of Southern Africa’s most promising economic regions. But hiring there isn’t exactly straightforward.

You need to register with multiple government bodies. Your employment contracts have to include details you may not have seen before. And payroll has its own set of rules that don’t line up with what you’re probably used to.

That’s where this guide comes in. We’re walking you through the steps clearly and simply so you can hire the right people and pay them the right way, without scrambling over legal requirements or payroll mistakes.

Step-by-step process: How to hire employees in Namibia and set up payroll

Here’s how to get your hiring foundation right:

1. Register as an employer. Start by registering with the Ministry of Labour, Industrial Relations and Employment Creation, the Social Security Commission (SSC), and the Namibia Revenue Agency (NamRA) for PAYE tax.
2. Get work permits (if needed). Hiring a non-Namibian? You’ll need to help them secure a work visa or employment permit through the Ministry of Home Affairs. Start early. These take time.
3. Create a legal employment contract. Namibia’s Labour Act 11 of 2007 requires written contracts for all employees. You’ll need to include:
   - Job title and duties
   - Salary and payment cycle
   - Working hours (max 45 per week)
   - Leave entitlements
   - Termination terms
4. Register with any industry-specific authorities. Some sectors, like construction, mining, and fishing, have additional registration or compliance steps. Double-check based on your field.
5. Confirm employment eligibility. This includes ID verification, qualifications, and legal right to work. For expats, track work permit expiry dates so nothing slips through the cracks.
6. Choose your payroll setup. Decide if you’re managing payroll in-house or working with a local provider or EOR (we’ll explain more on that shortly).

Understanding legal requirements for employers in Namibia

The Labour Act is the backbone of employment law in Namibia. It lays out everything from minimum leave to dismissal rules. You’ll also need to follow tax rules enforced by NamRA and keep up with contributions to the SSC.

Certain industries have union regulations or collective agreements that require extra steps, so be sure you know what’s expected in your field.

Drafting and issuing employment contracts

This part isn’t optional. In Namibia, employment contracts must be written and must include key terms. If it’s missing leave days or notice periods, you’re exposed.

Contracts must:

• Match actual job terms
• List pay, work hours, and entitlements
• Include at least 24 working days of paid annual leave
• Align with the Labour Act’s dismissal rules

You can find sample contracts and templates on the Ministry of Labour’s website.

Navigating compensation: Setting salaries, wages, and benefits

Namibia doesn’t have a blanket minimum wage, but several sectors do—like agriculture and security. For example, the current agricultural rate is NAD 10.00 per hour.

Want to set fair, competitive pay? Look to Namibia’s Labour Force Survey.

A typical pay package might include:

• Monthly salary or hourly rate
• Employer and employee social security (0.9% each)
• Allowances (housing or transport)
• Performance bonuses or annual incentives

Common compensation questions, answered

What’s the average salary?

Roughly NAD 9,034 per month (about US$540).

What’s the hourly rate?

Expect between NAD 20 and NAD 60, depending on role and experience.

What are the highest-paying fields?

Energy, mining, and finance often lead the way—especially for roles tied to compliance or project leadership.

Payroll setup and processing: Paying employees the right way in Namibia

Let’s talk logistics. You’ve got two routes:

• In-house payroll. You’ll handle PAYE tax deductions, social security payments, and monthly reports to NamRA and SSC. It’s doable, but you need systems and someone who understands local rules.
• Use an Employer of Record (EOR). An EOR acts as the legal employer on your behalf. They manage contracts, payroll, benefits, taxes, and compliance, so you don’t need a local entity or in-house HR team.

Deductions and how employees get paid

Here’s what goes into every payslip:

• PAYE tax. Based on income. Ranges from 0% to 37%.
• Social Security. 0.9% from the employee, 0.9% from you.
• Other deductions. Union dues, pensions, etc. (only if agreed to in writing)

Payments are made in Namibian dollars (NAD), usually via bank transfer. Salaries must hit accounts on or before the last working day of the month.

Ensuring ongoing compliance: Labor laws, leave, and reporting

Compliance isn’t one-and-done. You’ll need to keep employment contracts updated and file reports regularly.

Here’s what to stay on top of:

• Leave. 24 working days (annual), 30 sick days, 12 weeks maternity leave (paid through the Maternity Leave Fund)
• Public holidays. 12 per year
• Hours. Max of 45 hours/week, overtime must be paid

Falling out of compliance can mean fines, audits, or losing employee trust. Periodic HR audits help keep you on track.

Handling leave, work hours, and high-demand roles

Certain roles, like engineers, construction managers, and IT specialists, are always in demand. If you’re hiring for one of these, factor in longer lead times for recruiting and, in some cases, for getting work permits.

Tip: Review your employment terms at least once a year using resources like the Labour Act.

Tips and resources for a successful application

Want fewer delays? Here’s how to keep things smooth:

• Bookmark official sites like NamRA and the Social Security Commission for forms and updates
• Partner with a local legal advisor if your sector has complex hiring rules
• Use a shared calendar or tool to track visa expirations and payroll dates

Partnering with an EOR provider

Let’s say you don’t want to open a local entity or manage payroll from scratch. That’s where an employer of record comes in.

An EOR is your hiring shortcut. They officially employ your team in Namibia, handle payroll, ensure compliance, and keep you updated on any labor law changes.

Here’s what that gives you:

• No need to register locally
• Worry-free payroll and taxes
• Confidence that every hire is 100% legal and protected

Whether you’re testing the market or scaling fast, an EOR keeps you focused on growth, not paperwork.

Hiring in Namibia, the right way

You’ve got a great opportunity ahead of you—but only if you get the details right. Hiring in Namibia means navigating specific labor laws, tax rules, and compliance requirements. With the proper guidance and tools, you can make it happen smoothly.

Create a checklist based on this guide. Review it often. And when you’re ready to take hiring off your plate without losing control, know that there’s support out there to make global hiring actually work.

How Pebl can help

Pebl’s EOR services help you hire legally in Namibia without setting up a local entity. We manage contracts, payroll, tax filings, and everything else you’d rather not Google at midnight.

Hiring in 185+ countries is our thing. We stay ahead of the legal curve so you can stay focused on your business.

Ready to get started? Let’s talk.

This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.

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