Besides taxes, an employer in Namibia pays three contributions on employees' salaries: social security of 0.9% (capped at N$99 per employee per month), occupational injury of 0.9–8%, and vocational training of 1% of payroll where payroll exceeds N$1 million a year. Payroll means the total salaries of a company for a period.
In short
- Social security: 0.9%, capped at N$99 per employee per month.
- Occupational injury: from 0.9% to 8% depending on the line of business.
- Vocational training: 1% of payroll where payroll exceeds N$1 million a year.
- These payments add to the cost of a salary, including the director's salary.
Three employer contributions
| Contribution | Rate | Condition |
|---|---|---|
| Social security | 0.9% | capped at N$99 per employee per month |
| Occupational injury | 0.9–8% | depends on the line of business |
| Vocational training | 1% of payroll | if payroll exceeds N$1 million a year |
Social security
The rate is 0.9%, but per employee per month the contribution does not exceed N$99. As a simplified illustration: at a salary of N$11,000 a month, 0.9% comes to exactly N$99; at a higher salary the contribution stays at the cap of N$99.
Occupational injury
The occupational injury contribution is from 0.9% to 8% and depends on the company's line of business. The higher the risk of injury in the industry, the higher the rate. Which rate applies to your type of activity is confirmed by the company's auditor.
Vocational training
The vocational training contribution is 1% of payroll. It arises only if the company's payroll exceeds N$1 million a year. If payroll is below this amount, this contribution is not paid.
Simplified illustration
The illustrative amounts show how the rates work (a simplified calculation that does not replace the auditor's):
| Contribution | Illustrative case | Amount, N$ |
|---|---|---|
| Social security 0.9% | salary of N$11,000 a month: 0.9% reaches the cap | 99 a month |
| Occupational injury 0.9% | salary of N$10,000 a month | 90 a month |
| Occupational injury 8% | salary of N$10,000 a month | 800 a month |
| Vocational training 1% | payroll of N$1,200,000 a year | 12,000 a year |
Three salary levels
One more simplified illustration: contributions on one employee's monthly salary at three illustrative levels.
| Salary per month, N$ | Social security, N$ | Injury 0.9%, N$ | Injury 8%, N$ |
|---|---|---|---|
| 5,000 | 45 | 45 | 400 |
| 11,000 | 99 | 99 | 880 |
| 20,000 | 99 | 180 | 1,600 |
Social security grows with the salary up to N$99 and then stays at the cap. The injury contribution depends on the rate for your line of business.
How the payments affect the choice between salary and dividends
A director's salary is deducted from profit, but the employer pays the contributions above on it. Dividends carry no such contributions but are subject to dividend tax: 10% for a resident, an owner with a residence permit or permanent residence, and a non-resident holding 25% or more. The two paths compared: salary or dividends.
Who calculates the contributions
Calculating taxes and filing returns in a company is usually done by the auditor, and calculating the contributions is part of their tasks: an auditor instead of an accountant. The general overview of taxes is in Namibia taxes in 2026, and company registration and hiring begin with registering a company.
What to confirm before hiring
- which line of business the company belongs to and which injury rate applies;
- whether payroll will exceed N$1 million a year;
- how to account for social payments in the company's expenses;
- how the contributions combine with the director's salary.
This material is provided for reference. Data as of October 2026.
FAQ
Which contributions does an employer pay in Namibia?
Social security (0.9%, capped at N$99 per employee per month), occupational injury (0.9–8%) and vocational training (1% of payroll where payroll exceeds N$1 million a year).
What does the injury contribution depend on?
On the company's line of business: a rate from 0.9% to 8%.
When is the vocational training contribution paid?
Where the company's payroll exceeds N$1 million a year; the rate is 1% of payroll.
What is payroll?
The total salaries of a company for a period.
Are contributions paid on the director's salary?
The director's salary is deducted from profit as an expense; employer contributions on employees' salaries are charged at the rates above, and the details are determined by the auditor.
