Employer of Record (EOR) in Zimbabwe

An EOR in Zimbabwe allows businesses to enter the market quickly and help maintain compliance with local laws, all while reducing the overhead costs of establishing a local entity. Atlas HXM offers a seamless EOR service that handles all aspects of employment from payroll processing to compliant administration.

Partner with Atlas HXM for a cost-effective, compliant solution to hire and manage your workforce in Zimbabwe.

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Country InsightsZimbabweEmployer of Record

Quick Overview of EOR in Zimbabwe

Expanding into Zimbabwe doesn’t have to involve piles of paperwork or high setup costs. An Employer of Record (EOR) helps you navigate local regulations and hire employees quickly while staying compliant with Zimbabwe’s labor laws. From managing payroll and taxes to handling benefits and NSSA contributions, the EOR covers all administrative and legal tasks so you can focus on scaling your business without opening a local entity.

The EOR model offers a low-risk and affordable alternative to forming a subsidiary. Setting up a local entity in Zimbabwe can cost between USD 10,000 and USD 50,000, not including expenses for HR, legal, and accounting support. It’s also time-intensive and can slow expansion. Partnering with an EOR eliminates these setup costs, speeds up market entry, and removes the need for a physical office. This makes it a practical choice for startups, SMEs, and businesses testing new markets that need to move quickly and remain compliant.

Disclaimer: The contents of this article is not legal advice and should be used for reference only. If in doubt, please seek independent legal advice from a lawyer in the relevant jurisdiction.

What You'll Learn

  • Hiring in Zimbabwe doesn’t need to be complicated or time-consuming.

  • An Employer of Record (EOR) lets you hire and onboard employees while staying compliant with local payroll and labor laws.

  • A Direct EOR gives you better control, faster onboarding, and higher compliance standards, it is ideal for businesses looking to expand quickly.

  • An Indirect EOR can reduce costs but often leads to slower operations and more administrative hurdles.

  • EOR fees usually range between USD 200 and USD 800 per employee each month.

  • Atlas HXM provides a reliable Direct EOR service that simplifies market entry, ensures compliance, and centralizes employee management within one platform.

How an EOR Works

At Atlas HXM, we provide EOR services that ensure your business remains compliant with Zimbabwe's labor laws while you focus on growing your operations, free from administrative and legal burdens.

Candidate Selection

Atlas HXM does not recruit candidates, but will check the employment setup for compliance around new hires like validating right-to-work, reviewing contract terms against Zimbabwe rules, and configuring payroll and statutory obligations correctly. EOR providers in Zimbabwe, including Atlas HXM, can assist with work permit applications. Anyone hired via EOR must either already hold valid work authorization or work with the EOR to obtain proper permits through established immigration processes.

Employment Contracts

Atlas HXM drafts and administers employment contracts in compliance with the Zimbabwe Labor Act. The service clearly outlines required employment particulars to reduce risk of future disputes, such as:

  • Job title and responsibilities

  • Salary, benefits, and working hours

  • Leave entitlements and notice periods

Payroll & Benefits Management

Payroll is processed in local currency, including:

  • Accurate tax withholdings and NSSA contributions

  • Statutory benefits such as medical insurance

The EOR also helps maintain compliance with mandatory benefits, so employees are protected under Zimbabwe's laws.

Work Permit Compliance

In Zimbabwe, EOR providers can assist with work permit applications and compliance. Atlas HXM manages compliant employment, payroll, NSSA, and statutory obligations in alignment with local regulations.

Ongoing HR Support

Provides HR support, including: Leave management and performance tracking and employee relations and regulatory updates throughout the employee's tenure. This allows businesses to focus on core operations, while Atlas HXM handles ongoing compliance.

Costs & Pricing

EOR services in Zimbabwe are typically billed as a platform/service fee in the range of USD 200–800 per employee per month. This fee covers administration such as compliant contracts, payroll processing, statutory filings, and HR administration for workers who already hold valid work authorization or for whom permits are being processed. This service fee is separate from the employee's salary, benefits, taxes, and permit-related costs, which vary by role and jurisdiction. By using an EOR, companies avoid the cost and overhead of setting up a Zimbabwe entity, which can require USD 10,000–50,000 upfront before any operational spend.

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What to Choose: EOR vs PEO

EOR

Employer of Record

An EOR becomes the legal employer for your hires in a country where you do not have an entity. The EOR carries employer liability and handles compliant contracts, payroll, statutory benefits, tax filings, and labour-law adherence. You still direct the employee's work. This model suits companies expanding into Zimbabwe without wanting to form a local entity or take on compliance risk.

PEO

Professional Employer Organization

A PEO provides outsourced HR services like payroll, benefits, HR admin, but only when you already have a local entity. You remain the legal employer, and the PEO shares administrative tasks without taking on employer liability. Suitable when you are already established in the country and are only looking to offload HR administration.

What’s Best for You?

  • Choose an EOR when you want to hire in Zimbabwe without setting up an entity and want a partner who absorbs employer risk.

  • Choose a PEO when you already operate locally and just want HR support.

Work Life in Zimbabwe

Zimbabwe's employment framework is designed to balance operational needs with employee protections. Here's what you need to know:

Employment Types:

  • Permanent: Ongoing employment with full statutory benefits.

  • Fixed-Term: Hired for a specific project or defined duration.

  • Temporary: Short-term assignments; entitled to statutory benefits like leave and overtime.

Probation Periods: Probation periods can be up to 3 months for standard contracts and must be outlined in the employment contract. These periods allow employers to assess employee suitability before offering permanent employment. Notice periods during probation are typically 2 weeks for standard contracts and 1 week for casual or seasonal work.

Working Hours & Overtime: In Zimbabwe, the Labor Act does not define standard working hours for adult employees but requires at least 24 continuous hours of rest per week. Working hours and overtime regulations are typically set by collective agreement or individual contract. For eligible employees, overtime is generally paid at 150% of the basic rate, and the EOR ensures that all overtime is calculated correctly and that employee work hours comply with local regulations.

Leave Entitlements

Leave Type

Eligibility / Duration

Payment / Notes

Annual Leave

After completing 1 full year of service

Paid by employer; up to 90 days can be accumulated

Maternity Leave

98 days

Fully paid by employer from day one of employment

Paternity Leave

Not specifically provided

May fall under special leave provisions

Sick Leave

After employment begins

90 days full pay, additional 90 days half pay; medical certificate required

Public Holidays

All statutory holidays

Paid at 200% if worked with employee consent

Vacation Leave

As per company policy / statutory minimum

Paid; unused leave typically paid out upon termination

Payroll & Benefits: Wages must meet minimum wage requirements of USD 150 per month (excluding domestic and agricultural workers). Atlas HXM manages payroll in local currency, NSSA contributions (employer and employee), statutory benefits, bonuses, and private health insurance. Supplemental benefits can include dental, vision, wellness programs, and professional development options.

Atlas HXM can help you manage these aspects and can help ensure that employees are supported and compliant with Zimbabwe's labor laws while businesses can focus on operations without administrative burdens.

What to Choose: Indirect vs Direct EOR

Direct EOR

The EOR owns the legal entities in the target country, coordinating all employment-related tasks directly. It offers faster onboarding, better compliance, and more control.

Best for: Businesses looking to scale quickly, expand long-term, or enter Zimbabwe with compliance.

Indirect EOR

The EOR provider acts as an intermediary between the business and a third-party local entity. While it can be cheaper, it may result in delays and compliance complexity.

Best for: Small teams or short-term hires with less urgent compliance needs.

What’s Best for You?

  • For Small Teams or Contractors: Indirect EOR could work, especially for temporary hires or testing a market.

  • For Scaling and Compliance: Direct EOR is the best choice. With Atlas HXM, you'll have control, faster entry, and streamlined compliance.

Taxes & Compliance

Zimbabwe operates on a calendar-year tax system, running from January 1 to December 31. Employers must submit monthly PAYE tax by the 10th of the following month, annual tax returns by March 31st, and provide employee tax certificates by the same deadline. Corporate tax returns are due within four months of the company's financial year-end.

Category

Details

Employer Payroll Tax

NSSA contributions: Equal employer/employee contributions

Workers' compensation insurance premiums

Industry-specific levies as applicable

Employee Payroll Tax

Residents: progressive income tax 0%–40%

AIDS levy: 3% of income tax liability

Employee NSSA contributions: Equal to employer contributions

Pension System (NSSA)

Mandatory savings scheme for retirement, housing, and healthcare

Equal employer/employee contributions

Retirement at age 60 (normal) or 55 (arduous occupations)

Benefits: Lump sum (12-119 months contributions) or monthly pension (120+ months)

VAT & EOR Costs: Zimbabwe applies VAT to applicable services. EOR services may be subject to VAT depending on the service structure and provider location, either included in quoted fees or added separately. Businesses may need to consider VAT implications when budgeting for EOR services.

Atlas HXM handles tax compliance, including progressive income tax calculations, NSSA contributions, year-end filings, and expatriate tax arrangements, ensuring businesses remain compliant with local laws while minimizing administrative burden.

Termination

Employees must give written notice for termination, with statutory notice periods ranging from 1 day to 3 months depending on contract type and length of service. Probationary employees typically have shorter notice periods. Severance pay is required for retrenchment situations, with minimum packages of 1 month's salary per 2 years of service. The EOR helps ensure proper handling of terminations, including notice periods, final wages, and required documentation.

5 Things to Look for in an EOR Provider in Zimbabwe

  1. Local expertise and knowledge of labor laws, NSSA contributions, and regulatory requirements.

  2. Advanced technology for payroll, reporting, and HR system integration.

  3. Experience in your industry and handling work permit management.

  4. Strong compliance track record and relationships with government agencies and legal advisors.

  5. Global presence to support multi-country expansion, with verified security and compliance standards (ISO 27001/27017/27018, GDPR).

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Atlas HXM provides direct EOR services, managing payroll, compliance and benefits efficiently. Our unified platform automates HR, payroll, and compliance tasks, while offering premium employee support, global benefits, and access to 9,000+ learning courses. Recognized by Everest Group PEAK Matrix 2025 and NelsonHall NEAT Assessment 2025, Atlas HXM combines compliance, technology, and global expertise.

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FAQs

How quickly can I hire employees in Zimbabwe through an EOR?

With an established EOR like AtlasHXM, you can typically hire employees in Zimbabwe within 2-3 weeks, including contract preparation and onboarding processes.

What is the minimum wage in Zimbabwe?

The current minimum wage is USD 150 per month as of 2024, excluding domestic workers, maids, and agricultural workers.

What are the notice periods for termination?

Notice depends on contract type: 3 months (indefinite/2+ year contracts), 2 months (1-2 year contracts), 1 month (6 months-1 year), 2 weeks (3-6 months), 1 day (under 3 months/casual work).

What are the NSSA contribution requirements?

Both employers and employees contribute equally to the NSSA pension scheme, with rates calculated as a percentage of gross salary subject to maximum limits.

Do foreign employees need work permits?

Yes, foreign nationals must obtain appropriate work permits. The EOR can assist with applications and ongoing compliance.

How is overtime regulated in Zimbabwe?

Overtime regulations are typically set by collective agreements or individual contracts, generally paid at 150% of the basic rate for eligible employees.

         

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