Namibia gained independence in 1990, inheriting an economy with a limited industrial foundation and a strong reliance on the production and export of primary commodities such as meat, fish, and minerals. To address this structural imbalance, the government committed to an economic diversification strategy aimed at creating dynamic industrial and service sectors through increased manufacturing activities, promotion of value addition to locally produced raw materials, and modernization of the financial and information technology sectors. To encourage foreign direct investment, Namibia enacted free-market liberal policies such as the Foreign Investment Act and Export Processing Zone, as well as providing favorable incentives to exporters and manufacturers.

In Namibia, both employers and employees have the right to terminate an employment contract. Employers are restricted from dismissing an employee without a legitimate and reasonable reason and are required to follow a fair procedure specified by law, even if notice is given.

Unfair termination occurs when an employer terminates an employee's employment contract for reasons such as: 

• Refusal to commit any illegal act
• Exercise of a legal or contractual right

A reasonable reason for dismissing an employee is determined by the nature and gravity of the offense.

Notice Period 

If an employee has worked for more than 4 weeks but less than a year, the notice period must not be less than a week. If the employee has worked for the company for more than a year, the notice period must be at least a month.

Probation Period

Employees working part-time or full-time are subject to a three-month probationary period.

The minimum wage in Namibia is NAD 1,564.39 per month, NAD 361.29 per week, NAD 72.25 per day, and NAD 9.03. 

Depending on the employment agreement payments can be done hourly, daily, weekly, or monthly. 

Nonresident individuals who charge service fees (as defined) to Namibian residents are subject to a withholding tax on services at a rate of 10% or 25% of the gross amount paid to the nonresidents. The withholding tax rate may be reduced based on an applicable double tax treaty.

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Statutory Deductions

Annual Leave 

A worker is eligible for 24 consecutive days of paid yearly break.

Sick Leave 

Employees who work five days per week accrue one day of sick leave for every five weeks worked during the first 12 months of employment.

Employees working five days per week are entitled to 30 working days of sick leave, while employees working six days per week are entitled to 36 working days of sick leave, for a 36-month sick leave cycle rather than an annual basis.

Maternity Leave 

A female employee in Namibia is entitled to four weeks of maternity leave before the scheduled delivery and at least eight weeks off after the date of delivery after 12 months of continuous service.  Medical certification is required before the provision of maternity leave.

Paternity Leave 

Paternity leave is not a statutory benefit.

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• We stay ahead of evolving labor laws in 35+ African countries with our in-country experts who manage employment contracts, statutory benefits, tax filings, and terminations to keep your team fully compliant.
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