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Global Payment and Compliance
As your organization expands, you will find yourself recruiting more employees and contractors from all over the world
As your organization expands, you will find yourself recruiting more employees and contractors from all over the world. Hiring remote employees is beneficial since your company can access skills and talent that may be scarce in your current location. On the other hand, remote employees get the job of their dreams without relocating to another country.
However, hiring and paying remote employees from a different country like Zimbabwe has challenges. If you want to employ remote workers in Zimbabwe, you must ensure that you get everything, including recruitment, payroll, and taxes.
This information will detail everything you need to know about hiring and paying remote employees in Zimbabwe.
Hiring remote employees in Zimbabwe means that you have to comply with the country’s labour and employment laws. Fortunately, there are several options you can go for when hiring remote employees in Zimbabwe.
A subsidiary is a daughter company set up in a foreign country by the parent organization whose headquarters is in a different country. Setting up a legal entity in Zimbabwe is a great way to establish your presence in the country and access the talent and skills you need for your parent company.
However, it is worth noting that setting up a legal entity in Zimbabwe is costly, tedious, and stressful. You must meet many requirements to set up a subsidiary in Zimbabwe successfully.
These requirements include the following:
Setting up a subsidiary in Zimbabwe can take months or even a year. The entire process will cost you between $50,000 and $80,000.
Employer of Record is a third-party organization that manages employee recruitment, payroll, taxes, insurance, immigration, and benefits on behalf of another company. An EOR hires and pays remote employees on behalf of another company.
Your company can choose EOR for recruitment in Zimbabwe to avoid complex laws and financial obstacles with employing remote employees in a foreign country.
Every country globally, including Zimbabwe, has employment, work permits, and payroll regulations that you must follow. Failure to meet these requirements poses a significant challenge if you run a company in another country.
Fortunately, you can count on a reliable EOR like Workpay to hire and pay your remote employees in Zimbabwe in compliance with the country’s laws and regulations. Workpay will handle payroll, insurance, taxes, and compliance at a low cost. You get to recruit some of the best talents in Zimbabwe while saving your company thousands of dollars in the process.
Two notable advantages of working with Workpay are their transparency and dedication to detail. Compared to setting up a subsidiary in Zimbabwe, Workpay is more superficial and will save you valuable time.
The work environment in Zimbabwe is relatively relaxed compared to most African countries. The Collective Bargaining Agreement (CBA) in Zimbabwe recommends that a normal working day range between eight hours and ten hours, translating to approximately 44 hours a week.
According to Zimbabwe’s labour laws, every employee is entitled to a break of up to an hour after working for five continuous hours. Breastfeeding mothers are also entitled to a break of up to two hours a day for at least a year. Zimbabwe’s Ministry for Labor also sets regulations regarding overtime, night work, and shifts.
Employees can agree with their employers regarding overtime hours and compensation. However, the country’s labour laws mandate that the minimum overtime rate be at least 150% of the standard daily wage.
If an employee needs to work during a public holiday, they must receive 200% of their regular daily wage. This also applies to the employees who work during the weekends. In addition, employees in Zimbabwe should not work more than 10 hours a day.
Zimbabwe does not have a mandatory minimum wage that employers must adhere to. However, recent reports suggest that the living wage in Zimbabwe is expected to reach $350.00 per month. Therefore, most employers must base compensation packages on these statistics and other factors.
The majority of employees in Zimbabwe receive their salaries monthly. It is also worth noting that the 13th salary is not mandatory in the country. However, if employers give their employees this bonus, they should account for it as part of compensation when deducting payroll taxes.
Every employee in Zimbabwe is entitled to a 30-day leave every year after working continuously for a year. Public holidays and weekends are accounted for as part of the 1-month leave. The country also observes a total of 17 public holidays every year. Employees do not go to work during these holidays, and if they do, they must be compensated per the country’s labour laws.
Employees in Zimbabwe may also take up to 90 days of sick leave while receiving full payment. However, employees and employers can agree on exceeding the 90 days of sick leave at half salary.
An employee must present written documentation from a recognized health professional to be granted a paid sick leave. If an employee exceeds six months of sick leave at half-pay and three months at full payment, the employer has the right to consider termination.
Female employees in Zimbabwe are entitled to three-month maternity leave on full pay. They are only allowed to go on maternity leave not earlier than the 45th day of the pregnancy and not later than 21 days to the due date.
The Ministry for Labor in Zimbabwe does not allow paternity, marriage, and parental leave. However, the employer may allow the employee a few days off if they have lost someone close to them, such as a child, spouse, parent, or legal dependent.
In Zimbabwe, a company can terminate an employment contract if both the employer and employee agree in writing. A company can also complete an employment contract if the fixed-term employment contract elapses. An employer is also allowed by the law to terminate an employment contract if the following happens:
Employers must pay remote employees in Zimbabwe per the country’s employment, payroll, and taxation laws. In Zimbabwe, Companies’ Income Tax stands at 15%, Withholding Tax (WHT) at 15%, VAT at 14.5%, and Personal Income Tax (PIT) at 24.72%. If you have remote employees in the country, you can pay them via a local organization or hire an Employer of Record (EOR) like Workpay.
You can also pay your remote employees as independent contractors using their preferred payment methods. However, you must avoid misclassifying your remote employees since it may attract severe penalties.
Hiring and paying remote employees does not have to be stressful or costly. Consider reaching out to Workpay and let us help you recruit some of the best talents in Zimbabwe and process payrolls without any hassle.
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