How to Hire Remote Employees In 

Namibia

The Basics

Currency
Namibian Dollar
Employer Taxes
0.9%
Payroll Frequency
Monthly
Official Language
English

Employment in 

Namibia

Hire Independent Contractors

Independent contractors or freelancers are self-employed individuals who provide services to companies as a non-employee. This is one of the most common ways companies tend to hire non-local designers, engineers, support reps, etc.

For legal and tax purposes, independent contractors are not classified as employees. They may work for multiple clients, set their own work hours, negotiate their pay rate, and decide how a job gets done.

For example, the IRS says that if an independent contractor or freelancer does work that can be controlled (what will be done and how it will be done) by an employer then they are, in fact, classified as an employee.

As you can imagine, hiring someone as an independent contractor versus an employee is a fine line to tread.

While there are benefits when you choose the contractor route, there are quite a few drawbacks to consider and you’ll need to weigh them carefully to determine the best fit for your company.

Benefits of Hiring Independent Contractors
Reduced overhead: Lower cost in expenses, payroll, benefits, and more.
Greater flexibility: Contractors can be brought on as-needed. If not a good fit, you simply don’t have to move forward with the contract.
Reduced legal risk: Contractors aren’t usually protected by employment anti-discrimination and workplace safety laws.
Disadvantages of Hiring Independent Contractors
Risk of Misclassification: Not only does this deny workers their proper protections, it can also result in steep penalties and damage to your company. If the IRS determines that employee misclassification has occurred, you will be liable for a percentage of the employees wages, FICA contributions, penalty fines, unpaid taxes, up to a year in prison, and more.
Lack of Control: Contractors are drawn to being independent because it gives them greater control over the work they perform and who they work with. Because they’re not employees, you can’t tell them what to work on and how it should be done.
Lack of Loyalty: Contractors come and go as-needed. Many companies hire contractors for short-term work, which makes it difficult to cultivate loyalty.
Increased Scrutiny: Using Independent Contractors typically leads to an increased risk of being audited.

Set up a subsidiary in 

Namibia

A foreign subsidiary is a company that operates overseas as part of a larger company who’s HQ is in another country.

Establishing a foreign entity is great for having an international presence and accessing new markets. Though, setting up a subsidiary in Namibia can be expensive, stressful, and time-consuming. It's not for the faint of heart.

To set up a subsidiary in Namibia, you have to:

  1. Register your business name and file articles of incorporation
  2. File for local bank accounts
  3. Learn and keep track of the local employment laws
  4. Set up local payroll
  5. Hire local accounting, legal, and HR people

If you're lucky, this process can take months. If you're not so lucky, it can take up to a year. And on average, it costs about $50k-$80k, all-in-all, to get setup. And that's just for Namibia.

Use an Employer-of-Record (EOR)

An employer-of-record (EOR) is a company that hires and pays an employee on behalf of another company.

An EOR is typically used to overcome the financial and regulatory hurdles that often come with employing remote workers.

Each country has its own payroll, employment, and work permit requirements for non-resident companies doing business in their jurisdiction. Meeting those demands can be a huge obstacle when it comes to hiring remotely.

At Panther, we help companies employ and pay people in over 160 countries, without having to set up a foreign subsidiary. Payroll, benefits, taxes, compliance, and more are all handled by us, at a fraction of the cost.

Outside of saving you months and tens of thousands of dollars, other advantages of using Panther are:

  • Ability to attract talented and motivated employees from all over the world.
  • Full legal compliance: There is no risk of violating local employment laws.
  • Transparency: Employees are still your employees. All the work, processes, operations and day-to-day business belong to you, the company, just like with any other employee. Panther just takes on all of the responsibilities, obligations and admin work related to your team's employment.
  • No risk of misclassification

Because you no longer have to set up your own subsidiary, you’ll save a ton of time and tens of thousands of dollars using Panther.

Paying Remote Employees

Paying employees in Namibia is not the same as paying workers in your own country. Employees have to be paid using Namibia’s employment and payroll standards.

This means that you have to know, understand, and keep up with 1) fluctuating currency changes, and 2) local payroll and tax laws in the countries you’re looking to hire in.

Outside of the laws and regulations around payroll, there may be different conditions surrounding leave, overtime, termination, and more. As you can imagine, maintaining this kind of regulatory knowledge can be challenging. But it is crucial and necessary to follow local legislation.

After, you’ll have to determine the best way to pay your international employees. This can be done in a number of ways, including but not limited to:

Pay through a local entity

One of the most challenging (and expensive) parts of paying international employees is setting up the infrastructure to do so.

Before you start to run payroll, you have to register your company as the local employer in the country the worker resides in. As you can see in the “Set up a subsidiary” section, this is a multi-step process that can take up to a year and put you on your way to bankruptcy.

Work with an EOR

Outside of EORs acting as the full admin employer, many also provide remote payroll.

For example, at Panther, in just 1-click, you’re able to pay your entire global team, anywhere in the world. We send you an invoice each month, charge you in US Dollars, and pay your employees the same amount in their local currency.

We factor in currency fluctuations and use the mid-market rate plus any applicable fee passed on by our provider at cost at the time of billing.

Namibia

 Specific Information

Working Hours

The standard working hours in Namibia is 45 hours a week and 9 hours per day for five days a week.

Overtime

In Namibia, overtime is limited to three hours a day or 10 hours a week and paid at least one and half times (150%) of the employee’s hourly wage or double (200%) on Sunday or a public holiday.

There is an additional 6% over the employee’s hourly salary, excluding overtime, for work performed between 8 p.m. and 7 a.m.

Payroll Tax

Employer

Employer

  • Social Security

Minimum Wage

There is no mandatory minimum rate of pay for workers in Namibia.

Payroll

Pay Cycle

In Namibia, employees expect to be paid monthly.

13th Salary

In Mauritius, bonuses are not required but some employers pay them.

Leave

Paid Time Off (PTO)

In Namibia, annual leave is calculated by multiplying an employee’s contracted number of working days per week by four.

Employees are entitled to 4 to 24 days of vacation leave depending on their service period.

Public Holidays

There are 13 public holidays.

Sick Days

In Namibia, Employees who do not work longer than five days a week are entitled to 30 working days of sick leave.

Employees who work longer than five days a week are entitled to 36 days. During the first year of work, employees receive one day of sick leave for every 26 days worked.

Maternity Leave

Female employee would be entitled to:

  • four (4) weeks of paid maternity leave before the child’s birth; and
  • eight (8) weeks after the child’s birth bringing it to a total of twelve (12) weeks of paid maternity leave.

The employer is liable to pay the employees’ remuneration except for the basic wage, which will be paid by social security.

Paternity Leave

There is no statutory paternity leave.

Parental Leave

There are no statutory provisions for parental leave.

Other Leave

No Info.

Marriage Leave

No Info.

Bereavement Leave

No Info.

Termination

Termination Process

Termination of the contract has been terminated by the employer when:

  • If an employer wishes to terminate an employee’s contract then as per Namibian law, due process should be followed and a fair reason must be provided.
  • Fair reason includes employee’s misconduct, incapacity of the employee to perform the work allotted, employee incompatibility, etc

Unfair termination of an employment contract would take place if the said termination has taken place on grounds such

  • refusal to do anything unlawful;
  • if the employee exercises his rights under the law;
  • if the employee exercises his rights under the contract; and
  • if the employee discloses information that he is legally required to.

Notice Period

Notice period in Mauritius can be made only when the following:

  • The employee has received a minimum of seven days’ notice to answer the allegations made on them
  • The employer has exhausted every possible option other than termination of the employee
  • Within 10 days of learning about an employee’s alleged misconduct, the employer has informed the employee about it
  • The employee has been given seven days’ notice to answer the allegations made on them
  • The employer has tried every other course of action possible

Severance Pay

In Mauritius, an employee is entitled to severance pay only after 12 months of continuous uninterrupted service.

This severance pay is equivalent to one week’s remuneration for each year of service.

Probation Period

The probation period is 3 months.