Employment in Namibia is governed by the Labour Act 11 of 2007, which sets basic conditions of employment for leave, working hours and termination. A national minimum wage has applied since 1 January 2025. Here is what employers need to know about leave, pay, tax and ending employment.
The Labour Act sets minimum paid leave for all employees. Annual and sick leave are calculated on the number of days the employee ordinarily works each week.
Four consecutive weeks on full pay each year: 20 working days for a 5-day week, 24 for a 6-day week. Must be taken within 4 months of the end of the leave cycle (6 if agreed in writing).
Paid, over a 36-month cycle for a 5-day week (36 days for a 6-day week). In the first year, 1 day is earned for every 26 days worked.
After 6 months' service: 4 weeks before and 8 weeks after the birth. The Social Security Commission pays a benefit in place of basic wage.
Paid, per 12 months of continuous employment, for a death or serious illness in the family. Unused days lapse.
Set up each Namibian leave type in IceHrm with its own accrual, carry forward and approval rules, such as a 36-month sick leave cycle, including pro-rata entitlements. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
Namibia's first national minimum wage took effect on 1 January 2025 under a Wage Order issued under the Labour Act. Lower rates for some sectors are being phased up to the full rate by 2027.
From 1 January 2025, for all employees except the uniformed and intelligence services.
No more than 9 hours a day for a 5-day week, or 8 hours a day for a longer week.
At least one and a half times the hourly basic wage, or double for overtime on a Sunday or public holiday. Overtime must be agreed.
| Sector | From 1 Jan 2025 | From 1 Jan 2026 |
|---|---|---|
| Domestic workers | N$12.00 | N$15.00 |
| Agricultural workers | N$10.00 | N$14.00 |
| Security workers | N$13.50 | N$16.00 |
Overtime is limited to 10 hours a week and 3 hours a day unless the Permanent Secretary approves higher limits. Employers cannot deduct the value of food, clothing or housing from the minimum wage.
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so ordinary, Sunday and public holiday overtime rates reflect what was actually worked. Time & attendance →
Namibia taxes income from Namibian sources at progressive rates. Employers withhold employees' tax (PAYE) from remuneration and pay it to the Namibia Revenue Agency (NamRA) by the 20th of the following month. The tax year runs from 1 March to the end of February.
| Taxable income | Rate | Tax payable |
|---|---|---|
| N$0 – N$100,000 | 0% | Nil |
| N$100,001 – N$150,000 | 18% | 18% of the amount over N$100,000 |
| N$150,001 – N$350,000 | 25% | N$9,000 plus 25% over N$150,000 |
| N$350,001 – N$550,000 | 28% | N$59,000 plus 28% over N$350,000 |
| N$550,001 – N$850,000 | 30% | N$115,000 plus 30% over N$550,000 |
| N$850,001 – N$1,550,000 | 32% | N$205,000 plus 32% over N$850,000 |
| N$1,550,001 and over | 37% | N$429,000 plus 37% over N$1,550,000 |
Social security in Namibia is limited. Employers contribute to the Social Security Commission and to the Employees' Compensation fund.
Of earnings, matched by a 0.9% employee contribution, for the Maternity Leave, Sick Leave and Death Benefit Fund. Maximum N$99 a month each.
Employer-only contribution for work injury, disability and death cover. The rate depends on the occupational risk of the business.
Build Namibian pay the way you already structure it, with your own salary components, deductions and formula columns, such as a capped social security column. Want to know how well IceHrm handles payroll calculations for Namibia? Contact us or see Payroll →
A dismissal must be for a valid and fair reason and follow a fair procedure, otherwise it can be challenged as unfair dismissal. When the employer gives notice, it must be in writing and state the reasons.
| Length of employment | Notice |
|---|---|
| 4 weeks or less | 1 day |
| More than 4 weeks, up to 1 year | 1 week |
| More than 1 year | 1 month |
After 12 months of continuous service, employees are entitled to severance pay of at least 1 week's remuneration for each completed year of service when they are dismissed (for example through retrenchment), die while employed, or resign or retire on reaching 65.
Severance is not payable for a fair dismissal for misconduct or poor performance. Employers can pay remuneration in lieu of notice.
Public holidays are set by the Public Holidays Act 1990, and the President can declare additional one-off holidays. Genocide Remembrance Day on 28 May has been a public holiday since 2025.
Employers generally may not require work on a public holiday, except in listed cases such as urgent work, shops and hotels, farms and continuous shift operations, or with the Permanent Secretary's approval.
Load Namibia's holiday calendar into a leave group so the right days are blocked out automatically, and add one-off holidays when they are declared. Holiday calendars →
Employees can be engaged on permanent or fixed-term contracts. Contracts cannot provide less than the basic conditions of employment in the Labour Act or the national minimum wage.
Send contracts for e-signing, store them on the employee's record, and track onboarding with task lists so registrations and paperwork are not missed. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Namibia, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Namibia? Talk to us.
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