Zambia PEO

Maternity and Paternity leave 

Mothers in Zambia are entitled to 14 weeks of paid maternity leave. In order to qualify, the employee must have worked continuously for 2 years with the same employer. Expectant mothers must provide a medical document signed by a licensed medical doctor. In cases where an employee is sick as a result of pregnancy, the employee is entitled to sick leave. Employees may not be terminated for any reason related to pregnancy. 

Fathers in Zambia are entitled to 5 days of consecutive unpaid paternity leave. In order to qualify, the employee must have worked continuously for 12 months with the same employer.

Healthcare 

The healthcare system in Zambia includes two parts:  

1. Publicly funded universal healthcare 

1. Private healthcare 

The publicly-funded universal healthcare in Zambia suffers from several problems. The first problem is that the system itself is chronically underfunded; as a result, many doctors in Zambia with either leave the country for better opportunities, or work exclusively in the private healthcare system in Zambia. While these problems decrease the quality of healthcare available to Zambia citizens, Zambia’s universal healthcare has no cost for patients, who are often earning low wages. For the majority of Zambia citizens, universal healthcare is their only option. The government of Zambia is working on solutions to increase the quality of healthcare offered, often in conjunction with international partners (e.g., the Japan International Cooperation Agency, or JICA). 

The public health system is divided into three categories: 

• Level 1 Hospitals (‘Primary’, at the district level): in charge of provision of services, diagnoses, etc. 
• Level 2 (‘Secondary’, at the provincial level) & 3 (‘Tertiary’, at the central level) Hospitals: ‘Specialist hospitals’, meant to provide specialist treatment. 

The private healthcare system is mostly used by expatriates or wealthy Zambians. Most of the private healthcare facilities are found in major cities, like the capital Lusaka. Private healthcare accounts for more than 50 percent of formal health services. While the speed and quality of care at private hospitals is better, in cases of emergency, especially those that are life-threatening, those who are able would opt to be evacuated to South Africa, where the quality of healthcare is significantly better. 

With a Zambia PEO, companies have access to affordable private health insurance plans to give their employees access to the private healthcare system of Zambia; and some PEOs, like Horizons, can provide international health insurance plans so if the employee’s situation becomes serious, the healthcare systems of neighboring countries like South Africa can be utilized. 

With quality benefits like international health insurance, attracting and retaining talent in Zambia becomes much easier. 

Pensions 

There are several types of pensions available for workers in Zambia. Zambia has a minimum number of months an employee must contribute to the formal system in order to draw pensions. Contributions are paid by both employees and employers with each monthly salary. Both employees and employer contribute 5% of the total monthly salary each, for a total of 10%. The minimum monthly earnings used to calculate pension payments is 15 ZMW, and the maximum is 21,476 KMW. 

Find below the different types of pensions and settlements offered in Zambia, and the requirements to draw them. 

Zambia’s old-age pension can be drawn from age 55, or 60 for those who started payments after 14 August 2015. To qualify, employees must have made 180 months of contributions (required contribution reduced by 12 months for each year the employee was aged 39+ on 1 February 2000, when the pension scheme went live). When the employee draws the old-age pension, employment must end. Employees who meet the Zambia old-age pension requirements by age 50 are entitled to draw an early pension, and employees may defer pension payments until age 65. Zambia’s old-age pension may be drawn from abroad. 

Zambia’s old-age settlement acts as a lump sum retirement payment for those who are ineligible to draw the Zambia old-age pension. It may be received if the applicant is abroad. 

Zambia’s disability pension is for employees who have been determined as invalid by Zambian medical authorities, with a permanent incapacity to work. To receive the Zambia disability pension, employees must have made at least 60 months of contributions, which includes the previous 12/36 months prior to the disability. The disability pension may be paid to an employee abroad. 

Zambia’s disability settlement acts as a lump sum disability payment to those who are ineligible to draw the Zambia disability pension (i.e., for those who have not reached the minimum number of monthly contributions). Once assessed by government medical authorities as disabled, the employee is eligible to receive the one-time payment in the amount calculated by the Zambian government. 

Zambia’s survivor pension is for the immediate family of a deceased pensioner, or a deceased employee who was eligible to receive the pension with at least 60 months of contributions made at the time of death. Eligible survivors include widows, widowers, or orphans under the age of 18 (or 25 if a student). The widow and widower pension ends when the survivor is remarried, unless taking care of one or more of the deceased’s children. The survivor pension may be paid to survivors living abroad. 

 Zambia’s survivor settlement acts as a lump sum payment made to survivors when the deceased has not made enough contributions to be eligible for the survivor’s pension (i.e., for those employees who were only eligible for the old-age settlement). Eligible survivors include: the widow, widower, child, or elected beneficiary of the deceased. 

Zambia also offers a funeral grant covered by this system. This is paid to survivors if the deceased was eligible for a Zambia old-age or disability pension, or if the deceased had made 12/36 contributions in the months leading up to death.