Is gratuity mandatory in Zambia?

The Exemption Regulations exempt expatriate employees on short term contracts from a statutory entitlement to gratuity. It also further exempts management employees on short term contracts.

How is gratuity calculated in Zambia?

  1. a) For employees covered under the Act. There is a formula using which the amount of gratuity payable is calculated. …
  2. (15 X last drawn salary X tenure of working) divided by 26. …
  3. b) For employees not covered under the Act. …
  4. (15 X last drawn salary X tenure of working) divided by 30.


Who is eligible for gratuity in Zambia?

Vulnerable workers who earn very little compared to other workers in Zambia should have the compulsory gratuity benefit of 25% of the salary they earned during their employment if they have worked for 10 or more years.

What is non qualifying gratuity in Zambia?

Non-qualifying gratuity is added to the salary for the month in which it is paid and taxed with reference to the appropriate P.A.Y.E tax. Redundancy or Retrenchment. The following payments may be made to an employee who has either been declared redundant or has been retrenched: Salary. Leave pay.

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How is redundancy package calculated in Zambia?

(iv) The nature of the redundancy package. … Redundancy benefits for those that are protected by the statutory instruments under the minimum wages are calculated at two months’ pay for each year served and at least one month’s pay for those whose notice was not given.

What is the new rule for gratuity?

Change in gratuity rules According to the New Wage Code Bill 2021, employees will be entitled to gratuity even if they have been employed for just one year. However, right now, employees are getting gratuity after five years of continuous work in the same company.

Is gratuity deducted from salary?

Gratuity amount is not to be deducted from the employee’s salary. It is a gratituous gift from the employer to the employee for completing 5 years of continuous service and no amount from the salary is to be deducted for gratuity. Every year, the company has to create a liability, a provision for payment of gratuity.

Who is entitled to gratuity?

Under the Payment of Gratuity Act, 1972, an employee who has worked in a company for over five years is eligible for gratuity by his/her employer.

Who qualifies for gratuity?

An individual is eligible for gratuity if he/she fulfills the following criteria: The employee should be eligible for superannuation. He/she should have retired from the job. The individual must have resigned from the job after continuous employment with the organization for five years.

What is the percentage of gratuity in Zambia?

Termination of a Fixed Term Contract – gratuity at the rate of not less than twenty-five percent of the employee’s basic pay earned during the contract period as at the effective date of termination.

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What is the minimum wage for domestic workers in Zambia?

The statutory minimum wage for domestic workers in Zambia is K520 per month (US$53). A worker whose duty is beyond a three kilometre radius from the place of work is also entitled to be paid a monthly transport allowance of K102.

How much is Paye in Zambia?

Income Tax Bands (ZMW)

Income Tax Bands (ZMW) Tax Rates (%)
3,300.00 and Below 0%
3,300.01 – 4,100.00 25%
4,100.01 – 6,200.00 30%
6,200.00 and Above 37.5%

How is gratuity calculated?

The formula is: (15 * Your last drawn salary * the working tenure) / 30. For example, you have a basic salary of Rs 30,000. You have rendered continuous service of 7 years and the employer is not covered under the Gratuity Act. Gratuity Amount = (15 * 30,000 * 7) / 30 = Rs 1,05,000.

What is the minimum wage in Zambia?

Job Type and Grade

Basic per month Total pay and allowances
Sales person (Category VII) Minimum wage with effect from September 1, 2018 Minimum Wages – last checked – 2/13/19 ZMW2,167.70 ZMW3,151.35
Domestic Workers Minimum Wages – last checked – 2/13/19 ZMW840.00

Do I get paid after resigning?

If you quit a job without notice, do you still get paid? According to the Fair Labor Standards Act of 1938, or FLSA, your employer must pay your wages for hours worked and may not withhold your wages under any condition.

Do you get paid your leave days when you resign?

When you resign and end your employment with a particular company, they must pay you for any period of annual leave due to you that you haven’t taken, as well as any other time off due to you.

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