As Zimbabwe transitions into its second five-year development plan, National Development Strategy 2 (NDS2) 2026–2030, the nation continues to strengthen its position as a mineral and agricultural powerhouse. For global organizations, the 2026 business landscape is defined by the stability of the Zimbabwe Gold (ZiG) currency and the recent Labour Laws (Amendments) Act of 2025, which introduced critical updates to maternity rights, dispute resolution, and workplace safety.

Navigating Zimbabwe’s “Dual Currency” tax system and the strict 2026 ZIMRA compliance mandates can be daunting. An Employer of Record (EOR) in Zimbabwe provides a risk-free, rapid-entry solution, allowing you to hire local talent in days while we manage the complex administrative back-end.

What is an Employer of Record (EOR) in Zimbabwe?

An Employer of Record (EOR) is a legal entity that acts as the official employer for your staff in Zimbabwe. While you retain full management of the employees’ daily tasks and strategic output, the EOR assumes all legal, tax, and administrative responsibilities.

In the 2026 business environment, an EOR is essential for:

• Dual-Currency Payroll: Executing payroll in both ZiG and USD, ensuring the correct proportions are remitted for taxes and social security.
• 2025 Labour Act Compliance: Drafting contracts that reflect the new 2025 standards for maternity leave and workplace harassment.
• ZIMRA & NSSA Remittances: Managing monthly filings for the Zimbabwe Revenue Authority and the National Social Security Authority.
• Expatriate Mobility: Sponsoring and managing Temporary Employment Permits (TEPs) for international specialists.

The 2026 Labor and Employment Framework

The Labour Laws (Amendments) Act of 2025 has modernized several key aspects of Zimbabwean employment. Organizations must now adjust their internal policies to reflect these 2026 standards.

1. Working Hours and Overtime

• Standard Hours: The workweek is generally 45 hours, typically spread over 5 days (9 hours/day) or 5.5 days.
• Overtime: Compensation is mandatory for any hours worked beyond the statutory limit. Under the 2025 updates, employers must now obtain documented written consent from employees before assigning overtime.

2. Enhanced Leave Entitlements

• Annual Leave: Employees are entitled to 30 calendar days of paid leave after completing one year of service.
• Maternity Leave (2025 Update): The 2025 amendments removed previous limits on the frequency of maternity leave. Female employees are now entitled to 98 days of fully paid leave regardless of their length of service or number of previous pregnancies.
• Paternity Leave (2025 Update): Fathers of premature children now receive an extended paternity leave of 7 days (up from 3) to ensure adequate family support.

3. Termination and Compensation (2025 Limits)

The 2025 reforms introduced a breakdown for unfair termination compensation. Arbitrators are now capped at awarding a maximum of 24 months’ remuneration, providing more predictability for employers during dispute resolutions.

Payroll, Taxation, and Statutory Funds in 2026

Fiscal compliance in 2026 requires meticulous management of the dual-currency PAYE system.

Personal Income Tax (PAYE) 2026

Employers must segregate income by currency and apply the relevant annual tax table.

USD Annual Tax Brackets | Income Range (USD) | Tax Rate | | :— | :— | | $0 – $1,200 | 0% (Tax-Free) | | $1,201 – $3,600 | 20% | | $3,601 – $36,000 | 25% | | Above $36,000 | 40% |

ZiG Annual Tax Brackets | Income Range (ZiG) | Tax Rate | | :— | :— | | ZiG 0 – 33,600 | 0% (Tax-Free) | | ZiG 33,601 – 100,800 | 20% | | Above ZiG 1,008,000 | 40% |

Mandatory Levies and Contributions

• AIDS Levy: A mandatory 3% surcharge on the total PAYE amount assessed.
• NSSA (Social Security): Contributions are based on 9% of insurable earnings, split equally (4.5% employer / 4.5% employee). As of 2026, the monthly insurable earnings ceiling is set at $700 USD (or ZiG equivalent).
• Standard Development Fund: A 1% levy on the total quarterly wage bill, paid by the employer to support national vocational training.

Strategic Advantages of an EOR in Zimbabwe

1. Rapid Market Entry

Registering a local subsidiary with the Registrar of Companies and setting up dual-currency bank accounts can take 3 to 5 months. An EOR allows you to onboard your first employee in as little as 7 to 14 days.

2. Expatriate Hiring and Work Permits

Zimbabwe requires a Temporary Employment Permit (TEP) for all foreign workers.

• Cost (2026): The application fee is $500 USD per applicant.
• Processing: Typically takes 4 to 8 weeks.
• Compliance: The EOR acts as the mandatory local sponsor, ensuring all professional qualifications and police clearances are correctly filed with the Department of Immigration.

3. Risk Mitigation and “Audit Readiness”

With ZIMRA intensifying audits in 2026 to ensure the correct split of ZiG and USD tax payments, the risk of non-compliance is high. An EOR assumes this liability, ensuring that every cent of tax and NSSA contribution is remitted in the correct currency and on time.

Cultural and Workforce Insights for 2026

• Language: English is the official language for business, law, and education, making Zimbabwe one of the most accessible markets for international communication.
• Workplace Safety: The 2025 reforms introduced strict prohibitions against violence and harassment (including from supervisors), mandating that all companies have formal internal grievance procedures.
• Digital Transformation: Under NDS2, there is a massive push for digital literacy. The 2026 workforce is increasingly adept at remote collaboration, particularly in the tech and NGO sectors.

Choosing the Right EOR Partner in Zimbabwe

When evaluating an EOR for your expansion, ensure they provide:

1. Dual-Currency Capability: Direct experience managing both ZiG and USD payroll streams.
2. Legal Defense: Support and representation in case of labor disputes at the Ministry of Labour.
3. Local Entity Ownership: Avoid “aggregators”; a direct local presence ensures better security and faster processing.
4. 2025 Reform Expertise: Proof that their contracts have been updated to reflect the new maternity and paternity leave standards.

Strategic Outlook for Employers

Zimbabwe’s entry into the NDS2 phase marks a period of “Inclusive Economic Growth and Structural Transformation.” With a highly educated workforce and a modernized labor code, the country offers significant potential for those who can navigate its unique fiscal environment. An Employer of Record serves as your local expert, providing the agility and compliance needed to turn regional opportunities into business success.

Conclusion

Employer of Record services in Zimbabwe offer a reliable, compliant, and cost-effective pathway for global businesses. By managing the complexities of dual-currency taxation, the 2025 Labour Amendments, and NSSA contributions, an EOR allows you to focus on your business objectives while we ensure your operations remain legally sound.