Capital: Harare

Population: (2022 est.) 14,089,000

Monetary Unit: Zimbabwean Dollar (ZWL) or United States Dollar (USD).

Language(s): Shona, Ndebele, Nambya, English, Southern Sotho, Tshwa, Kalanga

Zimbabwe is a developing country with growing GDP. The country holds the  17th position in Africa in terms of GDP. Zimbabwe mainly focuses on agriculture and services for the growth of the economy.

The public holiday in Zimbabwe are as follows;

Date           Holiday

  • 1 Jan          New Year’s Day
  • 2 Jan          New Year Holiday
  • 21 Feb        Robert Mugabe National Youth Day
  • 7 Apr         Good Friday
  • 8 Apr         Easter Saturday
  • 9 Apr         Easter Sunday
  • 10 Apr       Easter Monday
  • 18 Apr       Independence Day
  • 1 May        Workers’ Day
  • 25 May      Africa Day
  • 14 Aug       Heroes’ Day
  • 15 Aug       Defense Forces Day
  • 22 Dec       National Unity Day
  • 25 Dec       Christmas Day
  • 26 Dec       Boxing Day

Labour Act, 1985 specifies maximum probationary period (single, non-renewable probationary period) as:

  • One day in the case of casual work or seasonal work; or
  • Three months in any other case

The Labor Act provides paid annual leave on completion of one year of service with an employer. An employee is entitled to vacation leave at the rate of one twelfth (30 calendar days; 22 working days) of his qualifying service in each year of employment, unless more favorable provisions are provided in employment contract or collective agreement.

Female employees are granted maternity leave for a period of 98 days on full pay. A female employee may proceed on maternity leave not earlier than the forty-fifth day and not later than the twenty-first day prior to the expected date of delivery. Paid maternity leave is granted only once during any period of twenty-four months calculated from the day any previous maternity leave granted. Law also limits the number of times (to three only) when maternity leave can be availed by a worker while working with a specific employer.

There is no paternity leave

Sick leave is only granted by a duly registered medical practitioner. An employee may enjoy 90 days of sick leave in a year on full pay (before the employer can consider medical termination)

In accordance with the Labor Act, severance pay is available only for collective dismissals for economic reasons, i.e., retrenchment. Although Retrenchment Board fixed the severance pay differently depending on the ability of the organization to pay, the most usual is 03 months’ pay for one year of service.

13th / 14th Month Pay: No. There is no statutory requirement to pay the 13th or the 14th month salary. There is evidence that civil servants do receive the 13th month payment as Christmas bonus, however, it is seldomly paid.

The assistance of expatriate experts for a relatively short period is welcome if their skills are not available locally and if the employer trains a local substitute. Any person who wishes to engage in an occupation (including work for gain or in the interests of any business undertaking) in Zimbabwe must obtain a valid temporary employment permit (TEP).  TEP holders must train Zimbabweans to develop the skills for which the foreign nationals were admitted. Applications for temporary residence permits must be submitted in conjunction with TEP applications. A TEP may be issued for a maximum period of three years and may be extended for a maximum period of five years if approved by the Chief Immigration Officer. A TEP is subject to the following conditions: 

  • The permit holder may not engage in any occupation other than the occupation specified. 
  • If the permit is issued on application by a particular employer, the holder may not take up employment with any other employer. 
  • The holder and all the persons authorized to enter with him or her must leave Zimbabwe on or before the expiration of the period stated in the permit. 
  • The permit must be surrendered to an immigration officer before leaving Zimbabwe. 

To recruit staff from outside the country, an employer in Zimbabwe must comply with the following procedures: 

  • Obtain TEP application forms and temporary residence permit application forms from the Department of Immigration Control. 
  • Submit the completed TEP application to the Chief Immigration Officer together with an offer of employment to the prospective employee. This offer should indicate the salary and conditions of service. 
  • Apply for a temporary residence permit completed by the prospective employee. 
  • It is government policy to give Zimbabweans precedence over foreign workers; therefore, the employer must justify the employment of an expatriate rather than a Zimbabwean by submitting copies of the following documents: 
  1. Press advertisements of the position in question Letters from employment agencies indicating that no suitable Zimbabwean is available to fill the position
  2. Application letters and résumés received 
  3. List of all applicants 
  4. A cover letter from the employer indicating why none of the Zimbabwean applicants is suitable for the position 

All applicants for TEPs are referred by the Department of Immigration to the Ministry of Public Service, Labor and Social Welfare for approval. On approval of the permit, the prospective employee is sent a letter confirming the application for a TEP, which must be presented to the appropriate offices of the Department of Immigration Control at least 14 days after entering the country to obtain the permit. The employee must present a passport and valid radiological certificate of freedom from active pulmonary tuberculosis.

All TEP applicants must submit the following items together with the permit application: 

  • Two full-face photographs of the applicant, the spouse, and each child younger than 18 years of age, if the spouse and children are accompanying the applicant or joining him or her later 
  • A certified copy of the birth certificate of the applicant and, if applicable, of the spouse and children 
  • One certified copy of the marriage certificate, if married 
  • Documentary evidence, in English, of qualifications and experience in the proposed occupation of the applicant

 

Type of Visa/Permit

Temporary Employment Permit (TEP): Any person who wishes to engage in an occupation (including work for gain or in the interests of any business undertaking) in Zimbabwe must obtain a valid temporary employment permit (TEP). This visa is valid for 3 years and can be extended for a maximum of 5 years. TEP holders must train Zimbabweans to develop the skills for which the foreign nationals were admitted. The following are the requirements for a temporary employment permit;

  • Passport
  • Valid radiological certificate of freedom from active pulmonary tuberculosis
  • Two full-face photographs of the applicant, the spouse and each child younger than 18 years of age, if the spouse and children are accompanying the applicant or joining him or her later
  • A certified copy of the birth certificate of the applicant and, if applicable, of the spouse and children
  • One certified copy of the marriage certificate, if married
  • Documentary evidence, in English, of qualifications and experience in the proposed occupation of the applicant

 

According to the Code of Conduct, a contract of employment can be terminated if the employer and employee mutually agree to it in writing. This is also the case if an employee is engaged in a fixed-term contract or for performance of a specific task and the contract has expired after the mandated period or the task is completed. Employers CAN terminate contracts on the following grounds, if an employee:

  • Is guilty of theft or fraud
  • Wilfully destroys employer’s property
  • Is absent for a period of five days or more working days without giving a reasonable excuse
  • Lacks a skill that he or she implicitly said they was capable of
  • Is substantially negligent in his or her duties
  • Is drunk to the extent that it makes him/her fail to perform their duties

According to the legislation, these benefits are required. These consist of the probationary term, yearly leave, federal holidays, sick leave, maternity leave, overtime pay, notice period, and severance compensation. Social Security payouts are statutory benefits as well.

The model Collective Bargaining Agreement recommends a minimum of eight hours per day, subject to the nature of the work, and 40 hours per week. 

For breakdown, continuous work, emergency and for every hour or part thereof worked by an employee in excess of his/her ordinary hours of work, the employer shall pay the employee not less than one and a half times his/her ordinary rate. For every hour or part thereof worked by an employee between midnight on Saturday and midnight on Sunday, or midnight of the day before their day off, the employer shall pay the employee not less than twice their ordinary rate. An employee can only be required to work a maximum of 10 hours per day.

Notice of termination of the contract of employment to be given by either party shall be:

  • Three months in the case of a contract without limit of time or a contract for a period of two years or more
  • Two months in the case of a contract for a period of one year or more but less than two years
  • One month in the case of a contract for a period of six months or more but less than one year
  • Two weeks in the case of a contract for a period of three months or more but less than six months
  • One day in the case of a contract for a period of less than three months or in the case of casual work or seasonal work

The Zimbabwean tax system is currently based on source and not on residency. Income derived or deemed to be derived from sources within Zimbabwe is subject to tax. It has been indicated that Zimbabwe is considering moving to a residence-based system during the current tax reform exercise. Source is the place where income originates or is earned, not the place of payment. If goods are sold pursuant to a contract entered within Zimbabwe, the source of income is deemed to arise in Zimbabwe, regardless of the place of delivery or transfer of title. The source of services is the place in which the services are rendered. Certain types of income arising outside Zimbabwe may, in the hands of a Zimbabwean tax resident, be deemed to arise in Zimbabwe and be taxed as such. Examples are interest, dividends, and certain copyright royalties arising outside Zimbabwe. Non-residents who do not have a place of business in Zimbabwe may be subject to WHT.

Annual Taxable Income (USD)                                                           Rates of Tax (USD)

0 to 4,200                                                                                                                    0%

4,201 to 18,000                                                                         0 + 20% for each USD above 4,201

18,001 to 60,000                                                                       2,760 + 25% for each USD above 18,001

60,001 to 120,000                                                                     17,660 + 30% for each USD above 60,001

120,001 to 180,000                                                                  35,760 + 35% for each USD above 120,001

180,001 to 240,000                                                                  56,760 + 40% for each USD above 180,001

240,001 and over                                                                     80,760 + 45% for each USD above 240,001

 

Zimbabwe has a limited social security system. The National Social Security Scheme (NSSS) is compulsory for all resident employees. NSSS contributions are payable at the same rate of 3.5% of basic salary by the employer and employee, with a salary cap set at USD 700 per month.

Employment Expenses: An employee may deduct contributions of up to USD 3,600 per annum to an approved pension, retirement annuity, and NSSS fund registered in Zimbabwe. Travel, entertainment, and motor vehicle expenses are potentially deductible, but the onus is on the employee to prove they were incurred in the production of taxable income. Where allowances are provided by the employer, this onus is more readily discharged, but the deduction cannot normally exceed the allowance.

Personal Deductions: Personal and domestic expenses are not generally deductible. There are minor deductions available for donations to registered welfare and educational institutions. Domestic mortgage interest is not deductible in Zimbabwe.

VAT is a transaction tax, and the implications will vary for different transactions. Some transactions are taxed at a rate of 15% or 0% while other transactions are exempt from VAT.

Income from royalties, dividends, interest, and similar income are subject to withholding taxes at source. Non-residents are subject to withholding tax on dividends, royalties, fees, and remittances. Zimbabwean resident individuals are subject to withholding tax at source on dividends and bank interest. Zimbabwean resident companies are not subject to dividend withholding tax on dividends paid by local companies, but their bank interest is subject to withholding tax. The rate of withholding tax is 15% in all cases except for dividends from securities listed on the Zimbabwe Stock Exchange for which the rate is 10%.

Dividends                                    –              10%/15%

Royalties                                      –              15%

Interest                                        –              15%

Fees for Technical Services  –              15%

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