Legal Requirements When It Comes to Employees
Labour Relations Act
Whether someone is a volunteer or paid employee the agreement made with them must be subject to the laws of Zimbabwe and the Labour Relations Act
NSSA and ZIMRA obligations
As an employer you will have to also ensure to comply with National Social Security Authority (NSSA) and ZIMRA requirements
What is NSSA?
In Zimbabwe NSSA is the statutory corporate body tasked by the Government to provide social security. It was constituted and established in terms of the NSSA Act of 1989, Chapter 17: 04. At the moment NSSA is administering two (2) schemes: Pension and Other Benefits Scheme and Accident Prevention and Workers’ Compensation Scheme, although, in an endeavour to provide a more comprehensive social security.
Employer Requirements for NSSA
- Every working Zimbabwean who has attained the age of 16 years and is under the age of 65 years, who is in permanent, seasonal, contract or temporary employment is obligated in terms of Statutory Instrument 393 of 1993 to be a member of the Pension and Other Benefits Scheme.
- Once an employee attains the age of 65, deduction of contributions in respect of the employee should cease even if he/she continues to work.
- At the moment domestic employees and those in the informal sector are currently not covered by the scheme.
- All employers must register within 30 days of becoming an employer
What are the contributions that have to be made to NSSA?
- 3.5% of the insurable earnings (employee)
- 3.5% from the employer
- The total of 7% to be paid to the nearest NSSA office before the 1st of each month. For details on employer obligations and how to register with NSSA, click on the following link: https://www.nssa.org.zw/employer/ The following workers are exempted from this scheme:
- Non-Zimbabwean citizens who are not ordinarily resident in Zimbabwe
- Diplomatic staff who are non–Zimbabwean
- Persons employed as domestic workers
NSSA has offices across various locations across Zimbabwe, which you can contact with any queries or should you be unclear about anything.
Tax Obligations with Zimbabwe Revenue Authority ZIMRA
Who is ZIMRA?
ZIMRA is the body responsible for collecting taxes and other revenue streams for the government in Zimbabwe. As an employer you are required to deduct and pay to ZIMRA Pay As You Earn (PAYE) on behalf of your employee. When it comes to PAYE
- Every businessperson who becomes an employer is required to apply to the Commissioner General for registration within 14 days of becoming an employer.
- An employer can access relevant tax deduction tables and obligations of an employer on the ZIMRA website - https://www.zimra.co.zw/domestic-taxes/tax-tables.
- Some of the obligations include:
- Calculation and deduction of PAYE in accordance with the tax deduction tables
- Remittance of PAYE to ZIMRA within 10 days after the end of the month during which the amount was withheld.
- Keeping accounting records for a period of at least six (6) years.
- Submission of the ITF 16 return which contains details on annual earnings, deductions, credits and PAYE for each employee within 30 days after the end of the year.
If an organisation fails to withhold any amounts which it is required to withhold, it will make them liable to the amounts due as well as penalties and interest.
ZIMRA has offices across various locations across Zimbabwe, which you can contact with any queries or should you be unclear about anything