Home Employer of record Employer of record in Zambia
Employer of record in Zambia
To employ people in Zambia without a local company, we engage a vetted local partner as the locally registered legal employer in Zambia, with SLONEC Advisory Group as your single contracting party in the UK. We handle contracts under the Employment Code Act 2019, PAYE, NAPSA pensions, NHIMA health insurance, the skills development levy and employment permits.
Services we coordinate in Zambia
Employer of record for mining, agriculture, energy and NGO programmes in Lusaka and the Copperbelt; payroll and compliance; market entry support.
Payroll in Zambia
All of these are due by the 10th of the following month:
- PAYE to the Zambia Revenue Authority, on 2026 monthly bands: 0% up to K5,100, then 20%, 30% and 37%.
- NAPSA: 5% employer and 5% employee on gross pay up to the 2026 ceiling of K37,236 a month (maximum K1,861.80 each).
- NHIMA: 1% employer and 1% employee on basic salary.
- Skills development levy: 0.5% of gross pay, paid by the employer only, filed on the PAYE return.
Workers’ compensation is assessed separately by the Workers’ Compensation Fund Control Board. Employment terms follow the Employment Code Act No. 3 of 2019.
Foreign staff
Foreign employees need an employment permit from the Department of Immigration before starting work for employment of more than six months; shorter assignments use a temporary employment permit.
Who hires in Zambia
Zambia received about US$1.2 billion of foreign direct investment in 2024 (UNCTAD), led by copper mining. Development finance is also going into the Lobito corridor transport links to the Atlantic.
UK tax angle (general information, not advice)
The UK and Zambia have a 2014 double taxation agreement, in force from 20 July 2015 and effective from 1 January 2016, replacing the 1972 convention. Tax treaties do not cover National Insurance, and the UK has no social security agreement with Zambia. If a UK employer sends one of its own employees to work there, UK Class 1 National Insurance may continue for the first 52 weeks if the conditions are met, and NAPSA contributions may also be due. If the person is employed locally through the employer of record instead, UK Class 1 National Insurance does not normally continue, although they may be able to pay voluntary Class 3 contributions if they meet the conditions. UK income tax depends on residence under the Statutory Residence Test. Using an employer of record does not by itself prevent a permanent establishment. Ask us for a proposal and we will look at your facts.
Pricing. Our employer of record service in Zambia is US$199 to US$399 per employee per month (excluding UK VAT or any local sales tax, where either applies), plus the employment costs, which are charged at cost. We confirm the fee for your team in a written proposal.
Invoicing and VAT. Employment costs (salary, employer social security, pension contributions and other agreed employment costs) are charged at cost. VAT, where it applies, is charged on the total of the employment costs and our service fee. Our fees for this service are set out in US dollars in your proposal and invoiced in US dollars, exclusive of VAT. Where UK VAT applies, the VAT amount is also shown in pounds sterling on our invoice, as UK VAT rules require. SLONEC Advisory Group has applied for VAT registration. Where VAT applies, it will be charged at the applicable rate on fees for work carried out on or after our VAT registration date, and our VAT number will be shown on our invoices.
Frequently asked questions
Can I hire in Zambia without a local company?
Yes, where we engage a vetted local partner as the locally registered legal employer, with SLONEC Advisory Group as your single contracting party.
What is the NAPSA ceiling in 2026?
K37,236 a month, so the maximum contribution is K1,861.80 each for employer and employee.
When are payroll deductions due?
By the 10th of the following month.
Who pays the skills development levy?
The employer, at 0.5% of gross pay.
Is there a UK tax treaty with Zambia?
Yes, in force from 20 July 2015.
Do you cover the Copperbelt?
Yes, where we engage a vetted local partner for your project.
How much does it cost?
Our service fee is US$199 to US$399 per employee per month. Salary, employer contributions and other agreed employment costs are charged at cost on top. UK VAT or any local sales tax is payable on top where either applies, and we confirm everything in a written proposal.