PAYE (Pay As You Earn) is the income tax Namibian employers must deduct from employees' salaries each month and pay over to the Namibia Revenue Agency (NamRA). This guide explains the current tax tables, walks through a worked example, and summarises what employers must do to stay compliant.
The current tax brackets (effective 1 March 2024)
Individual income tax in Namibia is progressive: the first N$100,000 of annual taxable income is tax-free, and higher slices of income are taxed at higher rates, up to 37%.
| Annual taxable income | Tax |
|---|---|
| Up to N$100,000 | No tax |
| N$100,001 – N$150,000 | 18% of the amount above N$100,000 |
| N$150,001 – N$350,000 | N$9,000 + 25% of the amount above N$150,000 |
| N$350,001 – N$550,000 | N$59,000 + 28% of the amount above N$350,000 |
| N$550,001 – N$850,000 | N$115,000 + 30% of the amount above N$550,000 |
| N$850,001 – N$1,550,000 | N$205,000 + 32% of the amount above N$850,000 |
| Above N$1,550,000 | N$429,000 + 37% of the amount above N$1,550,000 |
Worked example: N$25,000 per month
Suppose an employee earns a gross salary of N$25,000 per month with no other taxable income. Annual income: N$25,000 × 12 = N$300,000.
N$300,000 falls in the N$150,001–N$350,000 bracket, so the tax is N$9,000 plus 25% of the amount above N$150,000: N$9,000 + 25% × N$150,000 = N$9,000 + N$37,500 = N$46,500 per year.
Monthly PAYE is one-twelfth of that: N$46,500 ÷ 12 = N$3,875. The employer deducts this from each salary and pays it to NamRA. The effective tax rate on this salary is 15.5% — lower than the 25% marginal rate, because the first slices of income are taxed at lower rates.
What counts as taxable income
PAYE applies to remuneration in the broad sense — not just basic salary.
- Basic salary and wages
- Most cash allowances (housing, transport, entertainment)
- Bonuses, commissions and overtime
- The taxable value of certain fringe benefits (for example company housing or vehicles)
- Pension fund contributions are deductible within statutory limits, reducing taxable income
Employer obligations
- Register as an employer with NamRA before running payroll
- Deduct the correct PAYE from every employee's remuneration each month
- Pay the deducted PAYE to NamRA and file the monthly return by the 20th of the following month
- Issue employees with PAYE 5 certificates reflecting income and tax deducted for the tax year (1 March – 28/29 February)
- Submit the annual PAYE reconciliation to NamRA after each tax year
Common mistakes to avoid
- Using outdated tax tables — the threshold moved from N$50,000 to N$100,000 in March 2024, and many old spreadsheets still use the previous rates
- Annualising incorrectly for employees who start mid-year or receive once-off bonuses
- Forgetting to tax allowances and fringe benefits
- Paying NamRA late — penalties and interest accrue on late PAYE payments
Frequently asked questions
Who must deduct PAYE in Namibia?
Every employer paying remuneration above the tax threshold must register with NamRA, deduct PAYE monthly and pay it over by the 20th of the following month.
What is the PAYE tax-free threshold in Namibia?
N$100,000 per year of taxable income, effective since 1 March 2024. Below that, no income tax is payable.
When does the Namibian tax year run?
For individuals, from 1 March to 28/29 February of the following year.
Is there an easy way to check a PAYE amount?
Yes — use the free GamaERP Namibia PAYE calculator to compute PAYE, SSC and net take-home pay from any gross monthly salary.
This guide is general information, not tax or legal advice. Rates and rules change — confirm current figures with NamRA, the Social Security Commission or your practitioner before filing.
GamaERP calculates PAYE and SSC automatically for every employee, every payroll run — with payslips and statutory returns built in.
See HR & Payroll