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Calculate PAYE ZRA, NAPSA, NHIMA

Calculate your income tax, NAPSA, and NHIMA contributions with our easy-to-use calculator. Updated for 2025 tax rates.

Salary Details

Calculation Type

Normal

Salary → Net Pay

Reverse

Net Pay → Salary

Basic Pay

Allowances (Optional)

Includes commissions, bonuses, overtime and other emoluments

Employer Deductions (Optional)

Includes payday loans, credit, and other non-statutory deductions

Summary (2025 Rates)

Your Net Pay

Take-home amount after all deductions

Total Deductions

All statutory and non-statutory deductions

Gross Earnings

Total earnings before deductions

Detailed Breakdown

Total Earnings (Basic + Allowances)	K 0.00
PAYE (ZRA Pay As You Earn)	K 0.00
NAPSA (5% employee share)	K 0.00
NHIMA (1% employee share)	K 0.00
Total Non-Statutory Deductions	K 0.00
Total Statutory Deductions	K 0.00
Total Deductions	K 0.00
Net Pay (Take Home)	K 0.00

PAYE Tax Complete Guide (Income Tax Act, Cap. 323)

Governing Law

PAYE (Pay As You Earn) is governed by the Income Tax Act, Chapter 323 of the Laws of Zambia and administered by the Zambia Revenue Authority (ZRA).

Key Requirement: Employers must deduct tax on all emoluments at source and remit by the 10th of the following month.

Official Documents:
📄 Download Income Tax Act (PDF)

Understanding PAYE Tax

1. What is Taxable?

PAYE applies to all emoluments which include:

Basic salary/wages
All cash allowances (housing, transport, responsibility)
Overtime payments
Leave pay
Bonuses and commissions
Acting allowances
Gratuity (when paid)
Benefits in kind (valued per ZRA schedules)

2. What is Non-Taxable?

Reimbursable expenses (properly vouched)
Redundancy payments
Medical discharge benefits
Death benefits paid to beneficiaries
Employer pension contributions

3. Order of Deductions

First: Deduct NAPSA (5% of gross)
Second: Calculate PAYE on (Gross - NAPSA)
Third: Deduct NHIMA (1% of gross)
Finally: Apply any other deductions

Important: NAPSA reduces taxable income but NHIMA does not.

4. How to Calculate PAYE

Forward Calculation (Salary → Net Pay)

Calculate your gross income (basic salary + all allowances)
Deduct NAPSA (5% of gross earnings, subject to ceiling)
Apply PAYE tax bands to (Gross - NAPSA)
Deduct NHIMA (1% of gross)
Subtract any other deductions
Result = Your net take-home pay

Reverse Calculation (Take-Home → Salary)

Perfect for salary negotiations! Enter your desired take-home amount and we'll calculate the gross salary you need.

ZRA Tax Bands (2025)

Income Range	Rate	Tax
K1 - K5,100	0%	K0
K5,100.01 - K7,100	20%	K200
K7,100.01 - K9,200	30%	K630
Above K9,200	37.5%	-

Compliance Deadlines

Monthly: File & pay by 10th
Annual: Submit returns
Penalties: 5% per month + interest

Frequently Asked Questions

Yes, gratuity is subject to PAYE as it forms part of emoluments under the Income Tax Act. When gratuity is paid (usually at contract end), it should be added to other emoluments for that month and taxed accordingly using the progressive tax bands.

PAYE is calculated after NAPSA deductions. The correct order is: (1) Calculate gross pay, (2) Deduct NAPSA (5%), (3) Calculate PAYE on the balance (Gross - NAPSA), (4) Deduct NHIMA. This means NAPSA contributions reduce your taxable income.

Yes, cash housing allowances are fully taxable. However, if the employer provides actual accommodation, it's valued according to ZRA schedules (typically lower than cash allowance). The valuation depends on the property's rental value and location.

Employers must remit PAYE to ZRA by the 10th of the following month. Late payments attract penalties of 5% per month plus interest. Failure to remit employee deductions can result in criminal prosecution of company directors.

Basic salary is your fundamental salary amount. Gross pay is basic salary plus all allowances, overtime, bonuses, and other cash benefits. PAYE is calculated on gross pay, not basic salary.

Under PAYE, the main deduction that reduces taxable income is NAPSA contributions. Other deductions like medical aid or life insurance premiums are generally not deductible under PAYE (they may be claimable during annual tax returns).