Compensation

Overtime Compensation

In line with the Employment Code Act of 2019, normal working hours are 8 hours a day and 48 hours a week, spread over 6 working days. The weekly hour limit for watchperson is 60 hours, spread over 06 days.

Work done in excess of normal weekly working hours is considered as overtime and is compensated by the premium of at least 150% of the normal hourly wage rate. Law does not clearly specify the limits to overtime. The lesser working hours may be stipulated in an employment contract or collective agreement. In such a case, working hours can be increased to 48 hours per week without paying overtime.

In order to calculate hourly rate of pay, a worker’s monthly wages must be divided by 208 hours. For guards and watchpersons, the monthly wages are divided by 240 hours.

Government of Zambia has promulgated Employment Code Act of 2019 which repeals and replaces the Employment Act,1965, the Employment (Special Provisions) Act,1966, the Employment of Young Persons and Children Act, 1933 and the Minimum Wages and Conditions of Employment Act, 1982.

Source: §74-75 of the Employment Code Act of 2009

Night Work Compensation

Employment Code Act of 2019 defines night as the “period between 18:00 hours in the evening

and 06:00 hours in the morning”.  In accordance with the General Wages Order 2011, workers working between 18:00 hours and 06:00 hours are paid hourly rate of categories I & II (3,646 Kwacha). These employees would also be paid an additional rate of 100-kwacha shift differential for hours worked between these hours.

On the other hand, the Shop Workers’ Wages Order requires a shift differential of 500 kwacha for these hours.

Source: §2(5) of the Minimum Wages and Conditions of Employment (General) Order, 2011 (amended in 2012); §3(4) of the Minimum Wages and Conditions of Employment (Shop Workers) Order, 2011 (amended in 2012)

Compensatory Holidays / Rest Days

In extraordinary circumstances, workers may perform work on weekly rest days and public holidays. There is no provision of compensatory rest day when a worker has to perform work on a weekly rest day or a public holiday except in the case of domestic worker who can be granted time-off in lieu of overtime allowance.  There is no provision for compensatory holiday for workers working on a public holiday.

Source: §7(2) of the Minimum Wages and Conditions of Employment (Domestic Workers) Order, 2011 (amended in 2012)

Weekend / Public Holiday Work Compensation

Workers may be required to work on weekly rest days and public holidays with a premium pay for it. When a worker performs work on Sunday and Public Holidays, he/she receives wages at a premium rate of 200% of the normal hourly wage rate. If it is normal for some class of employees to be working on public holidays, such employees would be entitled to such wages as agreed under collective agreement or an individual contract of service.

Source: §75(3) of the Employment Code Act of 2009; §4(2) of the Minimum Wages and Conditions of Employment (General) Order, 2011 (amended in 2012); §4(2) of the Minimum Wages and Conditions of Employment (Shop Workers) Order, 2011 (amended in 2012); §7(2) of the Minimum Wages and Conditions of Employment (Domestic Workers) Order, 2011 (amended in 2012)

Regulations on Compensation

  • Employment Code Act, 2019
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