Namibia

Namibia is one of southern Africa’s largest nations by population and geographic size. With a western coast on the shores of the Atlantic Ocean, Namibia represents a gateway to continental Africa and shares land borders with Zambia, Angola, Botswana, and South Africa.

The territory that became Namibia has been inhabited since prehistory by the San, Damara, Nama, Bantu, and Ovambo civilizations. Namibia was a protectorate of the German Empire from the late 19th century until it was taken over by South Africa in 1915. After obtaining independence in 1990, Namibia joined the global community, becoming part of numerous international political unions and trade organizations, and set progressive development goals.

Namibia experiences a sub-tropical climate, with warm, dry conditions across its predominantly desert and rocky landscapes. The country's indigenous ecosystems include a wide variety of flora and fauna, contributing to its appeal as an international tourism destination.

General Information

• Full Name: Republic of Namibia
• Population: 2.604 million (World Bank, 2023)
• Capital: Windhoek
• Major Languages: English
• Major Religion: Christian
• Monetary Unit: Namibian Dollar
• Main Exports: Livestock and Meat, Fish and Fish Products, Minerals, Agricultural Products 
• Main Industries: Mining, Agriculture, Fishing, Manufacturing, Tourism, Financial Services, Construction, Energy 
• GNI Per Capita: US $4,870 (World Bank 2023)
• Internet Domain: .na
• International Dialing code: +264

Dates and Numbers in Namibia

In Namibia, dates are usually written in the day, month, and year sequence. For example, 1 July 2024 or 1/7/24. This format is consistent across both formal and informal contexts.

When it comes to numbers, a period is used to denote thousands, and a comma is used to denote fractions. For example, NAD 3.000,50 represents three thousand Namibian dollars and fifty cents. This formatting helps in maintaining clarity in financial and numerical documentation, ensuring consistency and avoiding confusion.

Namibia, located on the western coast of Southern Africa, is bordered by Angola to the north, Botswana to the east, South Africa to the south, and the Atlantic Ocean to the west. Gaining independence on 21 March 1990, Namibia has established Windhoek as its capital. English is the official language, and the Namibian dollar (NAD) is the currency. The country's economy is diverse, with mining being its backbone, primarily focused on diamonds and uranium, alongside smaller operations for copper, zinc, and lead. The manufacturing sector includes meat processing, fish processing, and beverages. Tourism is the second-largest sector in terms of foreign revenue and offers significant growth potential due to Namibia's rich natural landscapes and wildlife.

Namibia's infrastructure varies, with well-developed urban areas and less advanced facilities in more remote regions. Public transportation is limited in some parts, with private operators providing road transport between major towns and neighbouring countries. TransNamib offers passenger rail services, while international and regional airlines, along with private charter companies, provide air travel options. Namibia's stable business environment is conducive to both local and foreign investment. The government encourages foreign businesses, providing clear guidelines and support for setting up operations. Key industries such as mining, manufacturing, and tourism present numerous opportunities for investment and development.

The Namibian labour market is growing, with a skilled workforce and regulations ensuring employee rights and fair treatment. Employment contracts should outline job roles, compensation, and termination conditions, while laws stipulate working hours, overtime, and leave entitlements. Understanding the local business landscape, infrastructure, and workforce regulations is essential for businesses looking to expand or relocate to Namibia. With its supportive business policies, rich natural resources, and diverse economy, Namibia offers a promising environment for investment and growth.

Businesses targeting Namibia will find numerous compelling reasons to invest. The country offers a spectrum of business opportunities, thanks to its abundance of natural resources such as uranium, copper, and gold. Additionally, Namibia's growing agricultural, tourism, manufacturing, and service sectors present significant potential for growth and profitability.

The Namibian government has established a range of investment incentives to attract both local and international businesses. Key among these is the Foreign Investment Act, which ensures the equal treatment of foreign investors. There are also specific incentives for manufacturing and export-oriented businesses operating within Namibia. These measures are designed to create a conducive environment for business growth and international investment.

Namibia's strategic location on Africa’s western coast makes it a vital gateway to a market of approximately 277 million potential customers. As a member of the Southern African Development Community (SADC), Namibia benefits from preferential trade treatment with the bloc’s 14 other member states. This advantageous position is complemented by the country's political and economic stability, characterized by a stable democratic government, low levels of corruption, a free press, and robust opposition parties. Namibia’s government and financial institutions are among the most developed and sophisticated in the region, providing a solid foundation for sustainable business interests. Furthermore, businesses can draw from a young and educated labour force, supported by the government's commitment to transforming Namibia into a competitive, knowledge-based, eco-friendly nation with sustainable growth and a high quality of life.

Namibia is an attractive destination for Foreign Direct Investment (FDI) due to its strategic location, abundant natural resources, and stable political environment. The country offers numerous opportunities across various sectors, including mining, agriculture, tourism, manufacturing, and renewable energy.

Key sectors for Foreign Direct Investment (FDI) in Namibia 

• Mining: Uranium, diamonds, gold, copper, zinc, and lead
• Agriculture: Livestock, crop production, and agro-processing
• Tourism: Eco-tourism, adventure tourism, and cultural tourism
• Manufacturing: Food processing, textiles, beverages, and light manufacturing
• Renewable Energy: Solar power, wind power, and other renewable energy projects

The Namibian government provides several key incentives to attract FDI. These incentives are designed to create a favourable investment environment and include tax exemptions, reduced tax rates, and accelerated depreciation on specific capital investments. One notable program is the Export Processing Zone (EPZ) regime, which offers exemption from corporate tax, import duties, and VAT on raw materials and equipment used in manufacturing for export. Additionally, the Foreign Investment Act ensures the equal treatment of foreign investors, granting them the same rights and protections as domestic investors. The Investment Promotion Act further supports investor confidence by providing clear guidelines and protections.

Key government bodies involved in FDI in Namibia

• Namibia Investment Promotion and Development Board (NIPDB): Responsible for promoting and facilitating investment in the country. NIPDB Website
• Ministry of Industrialisation, Trade, and SME Development: Oversees industrial and trade policies. Ministry Website
• Namibia Investment Centre (NIC): Serves as a one-stop shop for investment-related services, offering support and information to potential investors. NIC Website

Namibia's commitment to creating a conducive environment for FDI, combined with its strategic advantages and government support, makes it an ideal destination for investors seeking new opportunities in Southern Africa. The combination of natural resources, government incentives, and a stable political climate provides a solid foundation for sustainable business growth.

Registering a company and establishing a legal entity in Namibia involves a series of steps to ensure compliance with local regulations. This process is essential for businesses looking to operate legally within the country. This section provides an overview of the types of companies that can be established in Namibia and outlines the general process for company registration and incorporation.

Types of Companies in Namibia

In Namibia, businesses can be registered in various forms, including:

• Private Limited Companies (Pty Ltd): Suitable for small to medium-sized enterprises, offering limited liability to shareholders.
• Public Limited Companies (Ltd): Ideal for larger enterprises that intend to raise capital through public share offerings.
• Close Corporations (CC): Designed for small businesses with fewer administrative requirements.
• Partnerships: Formed by two or more individuals or entities sharing profits and liabilities.
• Sole Proprietorships: Owned and operated by a single individual, with no distinction between the owner and the business.
• Branch Offices: Foreign companies can establish a branch office to operate in Namibia without incorporating a separate legal entity.
• Non-profit Organisations: Entities established for charitable, religious, educational, or cultural purposes.

General Process for Company Registration in Namibia

Establishing a business entity in Namibia requires navigating a structured process to ensure compliance with local laws and regulations. This process involves several key steps, including name reservation, document submission, and various registrations with government bodies. Understanding the types of companies that can be formed and the specific requirements for each type is crucial for successfully setting up and operating a business in Namibia. This section provides a detailed overview of the process, the types of companies available, and the key legislative authorities involved.

1. Reserve a Company Name: Apply for a name reservation through the Business and Intellectual Property Authority (BIPA). BIPA Website
2. Submit Incorporation Documents: Prepare and submit the necessary incorporation documents, including the Memorandum and Articles of Association, to BIPA.
3. Obtain a Certificate of Incorporation: Once the documents are approved, BIPA issues a Certificate of Incorporation.
4. Register with Tax Authorities: Register for Pay-As-You-Earn (PAYE) tax with the Receiver of Revenue. Estimated timeline: 4 days. Ministry of Finance Website
5. Register with Social Security Commission: Register employees with the Social Security Commission. Estimated timeline: 21 days. Social Security Commission Website
6. Register with Workmen’s Compensation Commission: Register employees with the Workmen’s Compensation Commission. Estimated timeline: 20 days.
7. Open a Namibian Bank Account: It is mandatory for businesses to have a local bank account for payroll and business transactions.

Registering a company and establishing a legal entity in Namibia generally takes several weeks, depending on the efficiency of document submission and processing times. The entire process, from name reservation to obtaining all necessary registrations, can typically be completed within 4 to 6 weeks. By following these steps and having a partner to help you navigate these complexities like activpayroll, businesses can successfully navigate the regulatory framework, ensuring compliance and smooth operations in Namibia. With the support of key legislative authorities and a clear understanding of the process, businesses can confidently establish their presence in this promising market.

Namibia boasts a well-established banking system, regulated by comprehensive legislation and state agencies to ensure stability and reliability. The banking sector supports both local and international businesses with a wide array of financial services.

Commercial banks in Namibia operate through an extensive nationwide network of branches, providing a comprehensive range of banking services. These services include:

• Current Accounts and Overdraft Facilities: Flexible options for managing daily business finances.
• Term Deposits: Secure investment options with fixed returns over a specified period.
• Discounting of Bills: Financial solutions to improve cash flow by converting receivables into immediate funds.
• Foreign Exchange Services: Competitive rates and efficient transactions for international business dealings.
• Loan Products: A variety of loans tailored to meet the needs of different businesses, from small enterprises to large corporations.

For businesses operating in Namibia, it is mandatory to have a Namibian bank account for payroll and business transactions. This requirement ensures that all financial operations are conducted within the regulatory framework of the country, promoting transparency and compliance with local laws.

Namibian banks are typically open from Monday to Friday, from 9:00 AM to 3:30 PM, and on Saturdays from 9:00 AM to 11:00 AM. They are usually closed on Sundays and public holidays. These hours may vary slightly depending on the bank and its specific branch locations

Namibia's banking system is designed to support business growth and financial stability, making it an attractive destination for investors and businesses looking to expand in Southern Africa.

Navigating the process of obtaining visas and work permits is crucial for individuals planning to work, conduct business, or stay in Namibia for extended periods. 

Work Visa in Namibia

Any person intending to enter Namibia for employment, conducting a business, or carrying on a profession or occupation for a period of less than three months is required to apply for a work visa beforehand. The approval process typically takes approximately 7-14 days, subject to the availability of the approval committee. Applications must be submitted to the Ministry of Home Affairs, Immigration, Safety and Security, and the outcomes are at the discretion of the relevant officials.

Business Visa in Namibia

Individuals planning to enter Namibia for business purposes, such as exploring business prospects or attending business activities (excluding productive work for which income is received) for a period of less than three months, must apply for a business visa in advance. The approval process for a business visa also takes about 7-14 days, depending on the approval committee's availability. All applications are submitted to the Ministry of Home Affairs, Immigration, Safety and Security, and the outcomes are at the discretion of the relevant officials.

Work Permit in Namibia

Anyone intending to take up permanent employment or work for a period exceeding three months in Namibia must apply for a work permit beforehand. Work permits can be granted for a period of one year up to a maximum of two years. The approval process for a work permit takes approximately three to six months, subject to the approval committee's availability. Applications must be submitted to the Ministry of Home Affairs, Immigration, Safety and Security, and the outcomes are at the discretion of the relevant officials.

Application Process

1. Prepare Required Documents: Collect all necessary documents, which typically include a valid passport, completed application forms, passport-sized photographs, a letter of intent or employment, proof of business activities (for business visas), and any other supporting documents specified by the Ministry of Home Affairs.
2. Submit Application: Submit the completed application along with the required documents to the Ministry of Home Affairs, Immigration, Safety and Security.
3. Processing Time:
   • Work Visa: 7-14 days
   • Business Visa: 7-14 days
   • Work Permit: 3-6 months
4. Approval: Wait for the approval committee's decision. Note that the outcome of the application is based on the discretion of the relevant officials.
5. Receive Visa/Permit: Once approved, collect your visa or permit from the Ministry of Home Affairs, Immigration, Safety and Security.

Relevant Government Agency in Namibia

The Ministry of Home Affairs, Immigration, Safety and Security is the primary agency responsible for processing visas and work permits in Namibia.

Namibia's personal income tax system managed by the Namibian tax authority is known as the Namibian Inland Revenue Authority (NIRA). is progressive, with tax rates increasing as income levels rise. The following are the key points of the tax system:

• Tax Brackets: Income is taxed at rates ranging from 0% for earnings up to NAD 50,000, to 37% for earnings over NAD 1,500,000.
• Progressive Rates: There are seven tax brackets, ensuring higher earners pay a higher percentage of their income in taxes.
• Withholding Taxes:
  • Interest: A 10% withholding tax is applied to interest received by individuals from Namibian financial institutions and to interest paid by Namibian residents to non-residents.
  • Dividends and Royalties: Withholding taxes apply to dividends and royalties distributed to non-Namibian residents.

Personal Income Tax Rates in Namibia

Taxable income is taxed at the following individual tax rates:

These progressive tax rates ensure that individuals with higher incomes pay a larger percentage of their earnings in taxes. It's crucial for both local employees and expatriates to understand where their income falls within these brackets to accurately determine their tax liabilities.

Withholding Taxes in Namibia

Withholding taxes (WHTs) are applicable in various scenarios, particularly involving non-Namibian residents or certain services rendered by non-residents. Key points include:

• Dividends and Royalties: WHT applies when dividends and royalties are declared or distributed to non-Namibian residents.
• Interest Received by Residents: The gross amount of interest received by any person (other than a Namibian company) from a registered banking institution or unit trust scheme in Namibia is subject to a WHT of 10%.
• Interest Paid to Non-Residents: A new WHT of 10% applies to all interest paid by a Namibian resident to a non-resident.

These withholding taxes are designed to ensure that the government collects tax revenue from income generated within Namibia, even when the recipients are non-residents. Employers and financial institutions must comply with these regulations to avoid penalties and ensure proper tax collection.

Every employer in Namibia must register with the Social Security Commission (SSC) and ensure that all employees younger than 65 years of age are registered.

Registered employers will be issued with a social security registration number, and registered employees will receive a social security number.

Contributions should be paid within 20 days after the end of each month.

Social Security Benefits in Namibia

Namibia’s social security system covers several key areas, including:

• Pension: Provides retirement benefits to eligible employees.
• State Health: Ensures access to healthcare services and benefits for registered employees.

The SSC uses a computerised system to manage contributions and benefits. Employees will receive a social security card as confirmation, typically via post within one month of registration.

Contribution Rates in Namibia

The contributions are calculated based on a percentage of the employee's basic salary. These contributions are shared equally between the employer and the employee.

The figures reflect the social security contribution of 0.9% on minimum payroll of NAD 300 and maximum payroll of NAD 9,000.

Employer Obligations

Employers have several obligations under the social security system:

• Registration: Employers must register with the SSC and ensure all employees younger than 65 years are registered.
• Timely Payments: Contributions must be paid within 20 days after the end of the month.
• Contribution Calculation: Calculate contributions accurately based on the employee's basic salary.
• Record Keeping: Maintain accurate records of all contributions and employee registrations.

Reporting tax in Namibia involves specific requirements and deadlines that businesses must adhere to. A businesses payroll provider does not need to be licensed to file tax or social security returns on behalf of their client.

• Social Security Payments: Contributions must be made within 20 days after the end of each month.
• Withholding Taxes: Applicable where certain payments are made to non-Namibian residents, including dividends and interest, with payments due within 20 days after the month-end.

Monthly Reporting

• P.A.Y.E. Monthly Return: Employers must submit the PAYE monthly return within 20 days after the month-end in which PAYE was deducted.

Yearly Reporting

Employers are required to submit the following documents:

• Return of Income (Form 6-0/0014C/1)
• Tax Assessment (Form 6-0/0137)

These tax returns should be submitted at the regional offices’ customer services or at the magistrate court.

Individual Tax Returns

Salary-earning individuals are required to submit their tax return four months after the end of the tax year.

When a business hires a new employee in Namibia, several steps must be followed to ensure compliance with local labour and tax laws. These steps include completing necessary forms and submitting them to the appropriate authorities.

Namibia has a well-established labour law system based on Common Law, Case Law, and Legislation, ensuring a clear and reliable legal environment for both employers and employees. Upon hiring a new employee, the first step is to draft and sign an employment contract. Contracts must be in English and they must be signed by both employer and employee. A contract must include:

• Full Name
• Start Date
• Length of Employment
• Full Job Description
• Termination Conditions

Social Security Registration

Every employer must register new employees with the Social Security Commission (SSC). This involves submitting the employee's details to the SSC to receive a social security registration number for the employer and a social security number for the employee. This step is crucial for ensuring that employees are covered under Namibia’s social security system, which provides benefits such as pensions and state health services. More information can be found on the Social Security Commission (SSC) website.

Tax Registration

Employers must also ensure that new employees are registered for income tax if they earn more than NAD 40,000 per annum or have non-salary income exceeding NAD 5,000 per month. This registration is done at the Inland Revenue Department (IRD) by completing a registration form, after which the employee will receive an Income Tax Number. Additionally, employers need to register the employee for Pay-As-You-Earn (PAYE) tax with the Receiver of Revenue, a process that typically takes up to four days. Details on this process can be found on the Namibia Revenue Agency (NamRA) website.

Employee Details Submission

Employers need to complete and submit the required forms with the employee’s details to the relevant authorities. This includes:

• Social Security Registration Form: To be submitted to the SSC within the stipulated timeframe.
• PAYE Registration Form: To be submitted to the Receiver of Revenue.

Record Keeping 

Maintaining accurate records is essential. Employers must keep detailed records of all submitted forms and registrations, including employment contracts, social security registration, and tax registration documents. This ensures compliance and facilitates easy reference in the future.

Payroll Setup

Once the employee is registered, employers should ensure the new employee is added to the payroll system, with all deductions for PAYE and social security contributions correctly configured. This guarantees that the employee's earnings and deductions are handled properly from the start of their employment.

Managing employee departures is an important aspect of HR operations in Namibia. This process includes several administrative and legal steps to ensure compliance with local laws and smooth transitions for both the employer and the employee.

Employee Resignation

When an employee decides to leave the company voluntarily, they must provide written notice as stipulated in their employment contract or as per the Namibia Labour Act of 2007. The required notice period is typically:

• 1 Day: If the work period is four weeks or less.
• 1 Week: If the work period is more than four weeks but less than one year.
• 1 Month: If the work period is over one year.

Final Pay and Benefits

Upon resignation, the employer must process the employee's final pay, which includes:

• Outstanding Wages: All unpaid salary up to the last working day.
• Accrued Leave: Payment for any unused annual leave.
• Severance Pay: If applicable, based on the circumstances of the departure.

The final pay should be processed and paid on the employee’s last working day or soon thereafter.

Final Pay and Benefits

Upon resignation, the employer must process the employee's final pay, which includes:

• Outstanding Wages: All unpaid salary up to the last working day.
• Accrued Leave: Payment for any unused annual leave.
• Severance Pay: If applicable, based on the circumstances of the departure.

The final pay should be processed and paid on the employee’s last working day or soon thereafter.

Deregistration Process

Once an employee leaves, the employer must deregister them with the relevant authorities:

• Social Security Commission (SSC): Inform the SSC to terminate social security contributions for the employee.
• Inland Revenue Department (IRD): Update the PAYE tax records to reflect the employee’s departure.

Terminating Employment in Namibia

When it comes to terminating employment in Namibia, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

In Namibia, employers cannot terminate employment at will, and dismissal must be justified. Acceptable termination methods include:

• Objective Grounds
• Disciplinary Dismissal
• Poor Job Performance Due to Unsuitability
• Termination by Mutual Agreement

Severance Pay

When employees are terminated, they are entitled to severance pay. The severance pay is calculated at one week of salary for each year of service.

In Namibia, it is mandatory for employers to provide payslips to employees, detailing their earnings, deductions, and net pay. This requirement is part of Namibian labour laws to ensure transparency and help employees understand how their wages are calculated, including any overtime, allowances, and deductions for taxes or social security contributions.

Payroll Cycle in Namibia

The payroll cycle in Namibia is usually monthly, with employees being paid by the last day of the month.

Payroll Reports in Namibia

Monthly Reporting: Every employer who pays salaries, wages, allowances, or bonuses to employees must deduct the applicable taxes and forward them to the tax authorities monthly. The Pay-As-You-Earn (PAYE) monthly return must be submitted within 20 days after the month-end.

Annual Reporting: The income tax return for salaried individuals is due on 30 June each year. Employers must ensure that all necessary documentation is submitted to the Inland Revenue Department by this date

Social Security Contributions: Employers must ensure that social security contributions are made on time and employees are correctly registered and deregistered with the Social Security Commission as needed.

Holiday Accrual and Calculations in Namibia

The annual leave entitlement in Namibia is 24 consecutive days for a full-time worker per year of continuous employment. For employees working a five-day week, this equates to 20 working days annually, while those working a six-day week are entitled to 24 working days of leave.

These leave days are on full pay and do not typically include public holidays, which are additional unless otherwise specified in the employment contract​. 

If a public holiday occurs on a Sunday, the subsequent Monday becomes a public holiday, unless Monday is already a public holiday

Maternity Leave in Namibia

In Namibia, employees who have worked continuously for at least 12 months are entitled to 12 weeks of paid maternity leave, with 4 weeks to be taken before the child's birth.

During this period, the employee is entitled to receive 100% of her salary, with the cost shared between the employer and the Social Security Commission.

Namibian law provides robust protections for pregnant employees. Employers are prohibited from terminating an employee’s contract due to pregnancy or during maternity leave, ensuring job security and financial stability during this crucial time. 

Paternity Leave in Namibia

Although Namibian law does not mandate paternity leave, employers have the discretion to offer it as part of their company policies. Providing paternity leave can be beneficial for supporting new fathers and promoting family well-being, even though it is not a legal requirement. 

Sick Leave in Namibia

Employees in Namibia are entitled to up to 30 days of paid sick leave within a three-year cycle. During this time, employees receive full compensation, amounting to 100% of their salary. This policy ensures that employees can take necessary time off for health reasons without experiencing financial hardship. Moreover, employers are required to maintain the employee's position during their sick leave, preventing any dismissal due to illness. 

National Service in Namibia

In Namibia, there is no mandatory national service for all citizens.

There is no set Nationa Minimum Wgae in Namibia, however typically the minimum wage is 9.03 NAD per hour, amounting to 1,564.39 NAD per month for a typical 45-hour work week.

New National Minimum Wage (NMW) in Namibia from January 2025

Starting January 2025, Namibia will implement a national minimum wage (NMW) of 18 Namibian dollars (approximately $0.96) per hour. This decision, endorsed by the Cabinet and announced by the Ministry of Labour, Industrial Relations and Employment Creation (MLIREC), aims to improve wages for the lowest-paid workers, reduce income inequality, and alleviate poverty.

The NMW will be reviewed every two years to ensure its effectiveness. For domestic workers, the wage will be phased in over three years, starting at 12.02 Namibian dollars per hour in the first year, increasing to 15.01 in the second year, and reaching 18 in the third year. Similarly, agricultural workers will see their wages rise from 6 Namibian dollars per hour plus in-kind payments to 18 over three years​.

The Labour Act of 2007 governs working hours and conditions in Namibia. According to the act, a regular workweek is 45 hours. The structure of the workweek varies depending on the number of days worked.

Standard Working Hours

• Five-Day Workweek: Employees should not work more than 9 hours per day.
• Six-Day Workweek: Employees should not work more than 8 hours per day.
• Weekly Limit: Employees are generally not permitted to work more than 45 hours per week.

Exceptions

Certain exceptions apply to specific categories of employees:

• Security Officers and Emergency Healthcare Workers: These employees may work up to 60 hours per week. For a five-day workweek, the daily limit is 12 hours, and for more than five days, the daily limit is 10 hours.

Employees, other than security officers, are entitled to a 60-minute break after every 5 hours of work. This break is not included in the calculation of working hours.

Overtime

• Overtime Pay: Employees who work extra hours must be compensated at a rate of at least 1.5 times their regular hourly wage.
• Sundays and Public Holidays: Work performed on Sundays or public holidays is compensated at double the regular hourly wage.

Understanding these regulations ensures that employers remain compliant with Namibian labour laws and that employees receive fair compensation for their work.

Namibia observes several public holidays each year, reflecting its rich cultural and historical heritage.

Namibia's Public Holidays Act, Act 26 of 1990, designates 12 public holidays each year. If a public holiday occurs on a Sunday, the subsequent Monday becomes a public holiday, unless Monday is already a public holiday. 

Below is a list of public holidays for 2024:

Namibia provides  employee benefits to support the well-being and security of its workforce. These benefits are designed to ensure that employees have financial stability during critical life events such as retirement, maternity, illness, and in the event of death or disability.

Pension Benefit in Namibia

Namibia has a National Pension Scheme (NPS) for people aged 60 and above. Administered by the Ministry of Health and Social Services, the NPS provides a fixed monthly pension of NAD 450 or USD 45 for eligible individuals. This benefit is available to those over 60 who have resided in Namibia for less than six months.

Maternity Leave, Sick Leave, and Death Benefits in Namibia

Employees become eligible for maternity leave, sick leave, and death benefit fund benefits six months after commencing membership. These benefits are calculated as a percentage of an employee’s monthly remuneration and are subject to the following maximum limits:

• Maternity Leave for Female Employees: 100% of remuneration, up to a maximum of NAD 10,500.
• Sick Leave Benefit: 75% of basic salary, up to a maximum of NAD 10,500. After 12 months, the benefit is reduced by 65% for a maximum period of 18 months.
• Death, Disability & Retirement Benefits: A single payment up to a maximum of NAD 5,515.

These benefits provide crucial financial support to employees during times of need, ensuring they can maintain their livelihoods and support their families during significant life events. Employers in Namibia are required to contribute to these benefits to safeguard their employees' welfare.

Additional Benefits

Many employers in Namibia also provide supplemental benefits such as:

• Medical Aid: Access to healthcare services and coverage.
• Subsidised Housing: Assistance with housing costs.
• Meal and Car Allowances: Financial support for meals and transportation.
• Entertainment and Phone Allowances: Coverage for entertainment and communication expenses.
• Fitness Allowance: Support for health and fitness activities.
• Sabbatical Leave: Extended leave for personal development or rest.

Namibia's Tax Policy and Tax Administration Reforms (2024/25)

In the 2024/25 budget, Namibia has introduced several significant tax policy and tax administration reforms, focusing on providing relief to taxpayers and adjusting to economic conditions. Here are the key updates:

Corporate Tax Reductions

• The non-mining company tax rate will be reduced by two percentage points to 31% effective January 1, 2024. A further reduction to 30% will take place on January 1, 2025​.

Personal Income Tax

• Income Tax Threshold for Individuals: The income tax threshold for individuals will increase from N$50,000 to N$100,000 starting March 1, 2024. This change aims to provide tax relief for low-income earners by exempting the first N$100,000 of income from tax​.
• Revised Tax Table: The new personal income tax rates are as follows:
  • Up to N$100,000: 0%
  • N$100,001 to N$150,000: 18% on the amount above N$100,000
  • N$150,001 to N$350,000: N$9,000 plus 25% on the amount above N$150,000
  • N$350,001 to N$550,000: N$59,000 plus 28% on the amount above N$350,000
  • N$550,001 to N$850,000: N$115,000 plus 30% on the amount above N$550,000
  • N$850,001 to N$1,550,000: N$205,000 plus 32% on the amount above N$850,000
  • Above N$1,550,001: N$429,000 plus 37% on the amount above N$1,550,000​.

Adjustments for Inflation

• Over the next two fiscal years, adjustments to tax brackets will be made to counteract the effects of inflation. This measure is intended to maintain the real value of income and provide further tax relief.

Additional Measures

• Special Economic Zones (SEZs): Introduction of SEZs offering a reduced corporate tax rate of 20% and VAT zero-rating for participants. This initiative aims to stimulate economic growth and attract investments​.
• Internship Tax Incentive Program: A new "My First Job" program will provide additional corporate tax deductions to employers offering internships to graduates, promoting youth employment​.
• Tax Amnesty Program: Continuation of the Tax Amnesty Program until October 30, 2024, allowing taxpayers to settle outstanding taxes without penalties and interest​ .

These measures reflect Namibia's commitment to tax reform aimed at economic growth, investment attraction, and providing relief to its citizens. The focus on adjusting tax brackets for inflation and increasing the income tax threshold are particularly geared towards supporting low and middle-income earners.

Please note that this document gives general guidance only and should not be regarded as an authoritative or complete statement of the law, regulations or tax position in any country. You should always seek specific advice for each specific situation. This document should not be relied upon as professional advice and activpayroll accepts no liability for reliance on its contents.