How to Hire in Zambia: A Guide for Global Employers

Zambia is not on most hiring managers’ radar. But it should be. You have millions of ambitious, English-speaking professionals who seek remote opportunities outside of more traditional norms. For global companies seeking skilled talent without the competition or cost of saturated markets, Zambia is an emerging market that deserves a closer look.

About half of Zambia’s population, which exceeds 21 million, is under the age of 18, and 72% are under 30. That translates to a deepening pool of young professionals entering the workforce. Zambia has deliberately invested in education focused on engineering, technology, and business. The result is a talent pool that speaks your language and costs less than hiring in Western markets.

Remote work has cracked Zambia wide open for international companies. The World Bank has ranked the country 85th globally for ease of doing business. You get access to software engineers, data analysts, project managers, and customer support specialists who are eager to work with global teams. The infrastructure is improving. The time zone works for European and some U.S. hours. And you are tapping into a market where your job posting is not competing with 500 other tech companies for the same candidate.

Zambia’s labor market

Zambia’s economy still runs on copper, mining, and agriculture, with copper alone generating over 75% of export earnings. But something else is happening beneath the surface. The government is betting on economic diversification, and the World Bank estimates that reforms in mining, agriculture, tourism, and renewable energy could attract US$21 billion in investment and create 80,000 formal jobs by 2030.

Talent

For hiring managers, this means you’re entering a labor market in transition—one foot still planted in heavy industry while the other steps into tech, finance, and services. Most of the talent you’ll want clusters in three main cities, with Lusaka leading the pack. As the capital and commercial hub, Lusaka offers the most diverse labor pool, combining strong finance, retail, and light manufacturing sectors with a growing tech scene. It’s where startup founders typically look first, and for good reason. You’ll find the widest range of tech talent here, from developers to digital marketers, all concentrated in one accessible market.

Education

Education levels are climbing, but unevenly distributed. Zambia has nine government-funded universities, with three of them offering comprehensive programs: the University of Zambia, Copperbelt University, and Mulungushi University. English is the official language and the medium of instruction. The digital economy is creating new opportunities, and over 175 people recently completed training in AI, cybersecurity, and social media skills in Lusaka and Livingstone.

Wages

Salary competitiveness gives Zambia an edge. The average IT worker earns between 25,160 and 71,400 Zambian Kwacha (ZMW) annually (roughly US$900 to 2,600). Software engineers in Lusaka average around US$7,000 annually (ZMW 156,272). Compare that to Western markets, where the same role pays 10 to 30 times, or more, and the math becomes obvious.

How to hire employees in Zambia

You’ve found the right person in Lusaka or Kitwe. Now comes the operational question: how do you actually put them on payroll? Foreign companies have two realistic paths forward.

Establishing a legal entity

This is the traditional route. You establish a branch office or subsidiary in Zambia and hire directly as a registered employer. You own the entire infrastructure. That means full control over contracts, employee benefits, payroll processes, and compliance protocols.

But control comes with cost and time. Setting up an entity in Zambia typically takes months and requires navigating local corporate registration, securing a tax identification number, opening local bank accounts, and understanding Zambian labor law in detail.

You’ll also need to build or contract local HR and legal expertise to stay compliant with employment regulations, payroll tax obligations, and statutory benefits like social security contributions. This path makes sense if you plan to hire a significant team or establish a long-term physical presence in the country. For testing the market or hiring a handful of employees, the overhead rarely justifies the investment.

Partnering with an Employer of Record (EOR)

An EOR is a third-party organization that becomes the legal employer on your behalf. You identify and select the candidate. The EOR handles everything else: employment contracts, compliant payroll, tax withholding, benefits administration, and compliance with local labor laws.

Speed is the main advantage. You can onboard employees in Zambia within days instead of months. The EOR takes on the legal risk and administrative burden while your new hire works exclusively for your team and reports directly to you. This model works well for companies entering Zambia without a local entity, testing the market with one or two hires, or needing to move quickly on talent before competitors do.

The tradeoff is cost. EOR services charge monthly fees per employee, but those fees often pale in comparison to the expense of entity setup, local legal counsel, and dedicated HR infrastructure.

Employment contracts in Zambia

According to the Employment Code Act, “A contract of employment means an agreement establishing an employment relationship between an employer and an employee, whether express or implied, and if express, whether oral or in writing,” defines Wesley Silwamba, Zambian lawyer and human capital practitioner.

Any employment agreement lasting six months or longer must be in writing, per the Zambian Employment Code Act (Section 22[1]). Agreements shorter than six months can be verbal, but most employers prefer written documentation to avoid disputes. Written contracts need to be signed by both parties and attested by a labor officer. Without proper attestation, your contract lacks legal standing in the event of a dispute.

Contracts should include standard provisions: job title, duties, start date, salary, working hours, leave entitlements, termination procedures, and probationary period terms. Both parties get a copy. If you are hiring expatriates, additional requirements kick in. You’ll need to demonstrate efforts to hire locally through newspaper advertisements in at least two leading publications. Also, you’ll need a succession plan showing how the foreign employee will transfer skills to Zambian workers over time. Immigration authorities require this documentation when processing work permits.

Working hours, holidays, and leave

Standard working hours in Zambia cap at 48 hours per week. Most companies structure this as eight hours per day across six days or slightly longer shifts across five days. Overtime exists but comes with premium pay requirements. Employees working beyond standard hours are entitled to at least 1.5 times their regular rate.

Public holidays are generous. Zambia observes 12 public holidays annually. If an employee works on a public holiday, they receive double pay or a compensatory day off. Annual leave is mandatory. Full-time employees earn at least two days of paid leave for every completed month of service, which totals 24 days per year. If someone leaves the company with unused leave days, you owe them payment for those days at their current salary rate.

Sick leave and maternity leave follow statutory minimums. Employees are entitled to paid sick leave, though the specific duration can vary based on length of service and medical certification requirements. Female employees are entitled to 14 weeks of maternity leave with full pay, covered through social security contributions. Fathers receive paternity leave as well, typically around two weeks. Many employers offer more generous leave policies to stay competitive in the talent market.

Employee benefits and social contributions

Social security is mandatory. Both employers and employees contribute to the National Pension Scheme Authority (NAPSA). The employer contributes 5% of the employee’s gross salary while the employee contributes another 5%. This covers retirement benefits, disability, and survivor benefits. Contributions are capped at a maximum monthly salary threshold set by NAPSA, which adjusts periodically.

Health benefits vary by employer but are increasingly expected. Zambia does not mandate private health insurance, but offering medical coverage can make your compensation package more competitive. Many companies provide health insurance or direct access to private clinics for employees and their immediate families. The cost is modest compared to Western standards, but the value it signals to candidates is significant.

Housing allowances and transport allowances are also common, particularly in urban centers where the cost of living is higher. Other statutory considerations include:

• Workers’ Compensation Fund contributions to cover workplace injuries and occupational diseases
• Severance pay for employees on fixed-term contracts or those made redundant
• Gratuity payments for long-serving employees according to contract terms and company policy
• Notice period requirements vary based on salary payment frequency and length of service

Payroll and taxation in Zambia

Payroll in Zambia operates on a Pay As You Earn (PAYE) system. Employers withhold income tax from employee salaries each month and remit it to the Zambia Revenue Authority (ZRA). Tax rates are progressive. The first ZMW 61,200 annually is tax-free. Income above that threshold is taxed at rates ranging from 20% to 37% depending on the income bracket.

Beyond income tax, employers handle social security deductions and remit them to NAPSA, as mentioned earlier. You also need to register with ZRA for a Tax Identification Number (TPAN) and ensure each employee has their own TPAN. Payroll processing requires meticulous recordkeeping. The law mandates that employers maintain payroll records for at least two years after an employee’s departure. Audits happen, and documentation gaps can result in fines or disputes.

Currency matters more than you might think. Salaries are typically paid in Zambian Kwacha (ZMW). If you are paying from abroad, be sure to factor in exchange rate fluctuations and transfer fees. Many employers use local payroll providers or EOR services to handle currency conversion, tax compliance, and statutory filings.

This reduces risk and ensures you meet deadlines without building an entire finance operation in-country. Getting payroll wrong does not just frustrate employees. It exposes you to legal liability and reputational damage in a market where word travels fast.

Employee vs. contractor classification

Getting worker classification wrong in Zambia is expensive. The legal distinction boils down to control and integration. Employees work under a “contract of service” where the employer dictates how, when, and where work happens. Contractors operate under a “contract for services” and maintain autonomy over their methods, schedule, and business operations.

Zambian authorities look beyond what you call someone in a contract. They examine the substance of the relationship. If you set someone’s hours, provide their tools, integrate them into your organizational structure with a corporate email and internal title, and they rely on you as their sole income source, that person is an employee regardless of what the paperwork says. The Ministry of Labour and ZRA actively scrutinize disguised employment arrangements, particularly long-term engagements that look and feel like full-time roles.

In the case of employee misclassification, certain retroactive liabilities can be triggered. You may owe back payments for PAYE taxes, NAPSA contributions (both employer and employee portions), penalties, and interest. The worker may also claim unpaid leave, overtime, and severance entitlements they would have received as an employee.

These costs easily surpass any savings you thought you gained by treating someone as a contractor. If you want to hire true contractors, structure the relationship around defined deliverables, allow autonomy over work methods, permit them to work for other clients, and avoid embedding them in your daily operations like a regular team member.

Termination and severance in Zambia

Termination in Zambia requires valid grounds and proper process. You cannot fire someone without cause and expect to walk away clean. Valid reasons include poor performance, misconduct, redundancy, or operational changes. The burden is on you to demonstrate the reason and follow fair procedures. That means written warnings for performance issues, opportunities for the employee to respond to allegations, and documentation at every step.

Notice periods depend on the frequency of the employee’s pay and their length of service. Daily-paid workers get one day’s notice. Weekly-paid employees receive seven days. Monthly-paid staff are entitled to 30 days’ notice. You can pay in lieu of notice, but it must equal what the employee would have earned during that period.

Severance pay applies in specific circumstances:

• Fixed-term contracts. Employees receive gratuity or severance when the contract expires.
• Redundancy. Employees are entitled to severance calculated based on the length of service.
• Unfair dismissal. If a labor court finds the termination unjustified, you may owe reinstatement or substantial compensation.

“It should be noted that employees engaged on a permanent basis are entitled to payment of severance pay of not less than 25% of their basic pay earned during the contract period,” advises Silwamba. “This should be paid when this contract of employment is terminated for a reason other than redundancy, medical discharge, or death,” he adds.

Work permits and immigration

Foreign nationals cannot work in Zambia without the proper permit. The Department of Immigration enforces this strictly, and penalties for non-compliance include fines, deportation, and blacklisting. Work permits fall under the Employment Permit category and are divided into self-employment permits and employment permits depending on whether the individual works for themselves or an employer.

To sponsor an employment permit, you must prove efforts to hire locally. This means advertising the position in at least two leading Zambian newspapers for a minimum of 14 days. You also need a succession plan showing how the foreign worker will transfer skills to Zambian employees over time. Immigration officials want to see that hiring a foreigner serves a developmental purpose and that you are not simply bypassing local talent.

Processing times vary, but expect at least two to three months from application to approval. Required documentation includes the employment contract, proof of academic and professional qualifications, police clearance certificates, medical fitness certificates, passport copies, and evidence of the local recruitment effort. Work permits are typically issued for a period of two years and can be renewed.

Why hire in Zambia with Pebl

Pebl offers EOR services in Zambia and across 185+ other countries so that you can skip the lengthy entity setup process and onboard talent in days instead of months. We handle employment contracts, payroll, tax compliance, NAPSA contributions, and benefits administration while you focus on building your team. Whether you’re testing the Zambian market with one hire or scaling a distributed workforce across Africa, Pebl manages the operational complexity so you don’t have to. Contact us to learn more.

FAQs: Hiring in Zambia

Here are answers to the questions that arise most frequently when companies begin considering hiring in Zambia.

Can I hire in Zambia without a local business entity?

Yes, you can bypass establishing a legal entity and hire in Zambia through an employer of record. The EOR becomes the legal employer on your behalf and handles contracts, payroll, tax compliance, and benefits administration while your hire works exclusively for your team. This lets you onboard employees in days without establishing a subsidiary or branch office in Zambia.

What jobs are in high demand in Zambia?

Software developers, data analysts, digital marketers, project managers, and customer support specialists are in high demand among remote and tech-focused employers. Traditional sectors like mining, energy, agriculture, and finance also drive significant employment. The digital economy is expanding rapidly with growing opportunities in AI, cybersecurity, and freelance services.

What is the work culture in Zambia?

Zambian work culture emphasizes respect for hierarchy, professionalism, and collaborative teamwork. Employees expect clear authority structures and use formal titles when addressing senior colleagues. The work culture values punctuality, formal dress codes, and open communication, though building personal relationships with team members is equally important for long-term success.

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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