Namibia is a Southwestern African country known for the Namibia Desert, the oldest desert in the world, that runs along the Atlantic Ocean coastline. It also borders Zambia, South Africa, Botswana, Zimbabwe, and Angola. The country has a diverse wildlife population, including cheetahs, rhinos, and giraffes.
Many companies want to expand to Namibia and take advantage of certain industries, including tourism, mining, fishing, agriculture, and more. But a global expansion requires time, energy, and money related to aspects such as payroll, hiring, and compensation and benefits. As a global PEO, G-P can handle all aspects of your expansion, including payroll through Namibia payroll outsourcing and other services.
Taxation Rules in Namibia
Namibia uses a progressive income tax scale that ranges from 0-37%. Employers must know all the right tax laws and submit them through a Pay As You Earn (PAYE) system. As an employer, you’re required to withhold the right amount of taxes from employees’ paychecks, then submit them within 20 days after the month’s end.
Employers and employees typically split social security contributions 50/50. Everyone contributes 0.9% of earnings at a minimum of N $2.70 up to N $81. Social security payments also need to be submitted within 20 days after the end of the month.
Namibia Payroll Options for Companies
When you start to set up your Namibia payroll, you can choose between four different options:
- Internal: Most companies immediately jump to setting up an internal payroll when they expand. However, only large companies with big staffs and budgets can sustain this type of infrastructure.
- Remote: Another option is to add your employees to the payroll your parent company runs. Although you can pay employees remotely, you need to follow the right laws according to the country.
- Local outsourcing: If you don’t have the time to handle any type of payment, you can work with a Namibia payroll processing company. A local partner can outsource your payroll, but you’ll still need to deal with matters of compliance.
- Global PEO outsourcing: Your last option is Namibia payroll outsourcing with a global PEO, such as G-P. Our team will offer the best of all options as we outsource your payroll and handle compliance on your behalf.
How to Set Up a Payroll in Namibia
If you want to set up your Namibia payroll, you need to have the right structure in place. A subsidiary will allow you to work in the country and handle all important tasks, but it can take weeks or months to establish. G-P will help you start working faster through our Namibia PEO. Instead of you having to set up your own Namibia payroll, we’ll add your employees to our existing and compliant payroll for a fast expansion.
Entitlement/Termination Terms
How do entitlement and termination terms relate to payroll? Since terminating an employment contract can be a challenge, we recommend outlining these terms before hiring an employee and adding them to the payroll. One of the main regulations is the period of notice. Both employees and employers must give notice of termination depending on how long the employee has worked for the company. For example, notice periods include one day for employment of four weeks or less and one month for employment of more than one year.
Payroll Processing Company in Namibia
G-P wants you to expand to Namibia and beyond without worries about the incorporation process. Contact us today to learn more about Namibia payroll outsourcing.