What PAYE is in Namibia
PAYE (Pay As You Earn) is the employees' tax that an employer deducts from salaries each month and pays over to the Namibia Revenue Agency (NamRA). It is not a separate tax from income tax. It is how income tax on employment income is collected during the year, so that by the end of the tax year most of your liability has already been paid. Namibia's tax year for individuals runs from 1 March to the last day of February.
A PAYE calculator for Namibia follows the same method payroll software uses. It takes your monthly taxable pay, turns it into an annual figure, applies the annual tax table, and divides the tax by twelve. The other common payslip deduction, the Social Security Commission (SSC) contribution, is a social insurance levy rather than a tax, but it comes off the same payslip, so the calculator shows it too.
The legal basis
- Income Tax Act, 1981 (Act 24 of 1981): sets the tax on individuals, the rate table and the deductions allowed. Schedule 2 to the Act obliges every employer to deduct employees' tax and pay it to NamRA.
- Income Tax Amendment Act, 2024: published in Government Gazette No. 8442 on 16 September 2024 and backdated to 1 March 2024. It doubled the tax-free threshold from N$50,000 to N$100,000 a year and introduced the current table. Employers had to refund the PAYE they had over-deducted between March and September 2024.
- Social Security Act, 1994 (Act 34 of 1994): requires employers and employees to contribute to the Maternity Leave, Sick Leave and Death Benefit Fund run by the Social Security Commission. The contribution ceiling is set by regulation; the latest amendment, in Government Gazette No. 8975 of 15 July 2026, raised it to N$12,500 from 1 September 2026.
NamRA publishes the current table in its Tax on Individuals brochure, and the same rates appear in PwC Namibia's September 2026 tax reference card for years of assessment ending in 2026 and 2027.
Namibia income tax table for 2026/27
These annual rates apply to resident and non-resident individuals on taxable income, which is income after allowable deductions such as retirement fund contributions.
| Annual taxable income (N$) | Tax payable |
|---|---|
| 0 – 100,000 | Nil |
| 100,001 – 150,000 | 18% of the amount above 100,000 |
| 150,001 – 350,000 | 9,000 + 25% of the amount above 150,000 |
| 350,001 – 550,000 | 59,000 + 28% of the amount above 350,000 |
| 550,001 – 850,000 | 115,000 + 30% of the amount above 550,000 |
| 850,001 – 1,550,000 | 205,000 + 32% of the amount above 850,000 |
| Above 1,550,000 | 429,000 + 37% of the amount above 1,550,000 |
In monthly terms, you pay no PAYE if your taxable pay is N$8,333 a month or less. The 37% top rate starts at about N$129,167 a month.
In the 2026/27 Budget Statement of 26 February 2026, the Minister of Finance said the personal income tax brackets would be revised over two years to reduce bracket creep. At the time of checking in October 2026, no new table had been enacted, so payroll still uses the table above. If an amendment act is passed, this page will be updated.
Pension, provident fund and retirement annuity deductions
Before the tax table is applied, you may deduct contributions to an approved pension fund, provident fund or retirement annuity fund, together with premiums on an approved education policy for a child. The combined deduction is capped at N$150,000 a year (N$12,500 a month). Any amount above the cap still comes off your pay, but it does not reduce your tax.
Employers take payroll-deducted pension and provident contributions into account automatically. Retirement annuity or education policy premiums that you pay privately are usually claimed on your annual return instead. Use the second box in the calculator only for amounts your employer deducts.
Social Security contributions
The Social Security Commission funds maternity leave, sick leave and death benefits for employees. Both the employee and the employer pay 0.9% of the basic wage, so 1.8% in total, within a floor and a ceiling.
| Item | Before 1 Sep 2026 | From 1 Sep 2026 |
|---|---|---|
| Monthly basic wage ceiling | N$11,000 | N$12,500 |
| Maximum contribution, each side | N$99.00 | N$112.50 |
| Minimum wage base | N$500 | N$500 |
| Minimum contribution, each side | N$4.50 | N$4.50 |
The July 2026 gazette also approves further increases to N$14,000 from 1 March 2027, N$15,000 from 1 March 2028 and N$16,000 from 1 March 2029. You can type these into the Advanced ceiling box when they take effect. SSC is worked out on basic wage, not total pay, which is why the calculator keeps basic salary and allowances in separate boxes.
How the Namibia PAYE calculation works
- Add up monthly taxable pay: basic salary plus taxable allowances and fringe benefits such as housing, transport, a company car or a cellphone allowance.
- Annualise it: multiply by 12.
- Deduct retirement contributions: your annual pension, provident, retirement annuity and education policy contributions, up to N$150,000.
- Apply the tax table to the annual taxable income. Each slice of income is taxed only at the rate for that slice.
- Divide by 12 to get the monthly PAYE.
- Work out SSC at 0.9% of basic salary, capped at the ceiling.
- Subtract PAYE, SSC and your retirement contributions from gross pay to get take-home pay.
Annual taxable income = (monthly gross × 12) − min(annual retirement contributions, 150,000)
Monthly PAYE = tax from the table ÷ 12
Take-home pay = gross − PAYE − SSC − retirement contributions
Worked example: N$25,000 a month
Maria works in Windhoek. Her basic salary is N$20,000 and she gets a N$5,000 housing allowance, so her gross taxable pay is N$25,000 a month. She contributes N$1,500 a month to her employer's pension fund. These are the calculator's default values.
| Annual gross (25,000 × 12) | N$300,000 |
| Less pension (1,500 × 12, under the N$150,000 cap) | N$18,000 |
| Annual taxable income | N$282,000 |
| Tax: 9,000 + 25% × (282,000 − 150,000) | N$42,000 |
| Monthly PAYE (42,000 ÷ 12) | N$3,500.00 |
| SSC employee (0.9% × 20,000, capped at 12,500) | N$112.50 |
| Pension contribution | N$1,500.00 |
| Take-home pay | N$19,887.50 |
| Employer SSC | N$112.50 |
| Cost to employer (before any employer pension) | N$25,112.50 |
Maria's effective PAYE rate is 14% of gross pay, although her top slice of income is taxed at 25%. If she raised her pension contribution by N$1,000 a month, her PAYE would fall by N$250 a month, because each extra dollar of deduction saves tax at her 25% marginal rate.
More examples to check your payslip
- N$10,000 a month, no pension: annual taxable income N$120,000. Tax is 18% × 20,000 = N$3,600, so PAYE is N$300.00 a month. SSC is N$90.00 and take-home pay is N$9,610.00.
- N$8,000 a month: N$96,000 a year is below the N$100,000 threshold, so PAYE is nil. Only SSC of N$72.00 is deducted.
- N$150,000 a month with N$12,500 pension: 1,800,000 − 150,000 = N$1,650,000 taxable. Tax is 429,000 + 37% × 100,000 = N$466,000, so PAYE is N$38,833.33 a month.
- N$50,000 a month with N$15,000 pension: the pension is N$180,000 a year, but only N$150,000 is deductible. Taxable income is 600,000 − 150,000 = N$450,000, tax is 59,000 + 28% × 100,000 = N$87,000, and PAYE is N$7,250.00 a month.
Common mistakes and edge cases
- Using the old N$50,000 threshold. Some older calculators and spreadsheets still use the pre-2024 table. If you earn N$8,333 a month or less and see PAYE on your payslip, ask your payroll team to check.
- Charging SSC on total pay. SSC is based on basic wage only and is capped. On a basic salary above N$12,500 it should be N$112.50 a month from September 2026, not 0.9% of everything.
- Payslips around September 2026. August 2026 payslips should show a maximum SSC of N$99.00; September 2026 onward should show N$112.50.
- Deducting more than the pension cap. Contributions above N$150,000 a year do not reduce tax, even though they still go into the fund.
- Bonuses and 13th cheques. These are taxable in the month paid. Payroll systems usually spread the tax using an annual projection, so a single month's PAYE may jump. Enter the bonus as an allowance for that month to see the effect.
- Forgetting fringe benefits. A company car, free or subsidised housing and low-interest loans have taxable values. Add the monthly value to the allowances box.
- Two employers. Each employer applies the table on its own pay, so the tax-free amount can be used twice. You will then owe the difference on assessment after filing your return by 30 June.
Who this calculator suits, and who it does not
It suits employees on a monthly salary in Namibia, in the private sector, government or an NGO, and employers who want to check a payroll run. It is less suitable for:
- Self-employed people and sole traders, who pay provisional tax rather than PAYE.
- Directors with irregular remuneration or employees paid weekly or fortnightly, where the annualisation factor differs.
- People with large lump sums, such as retirement or severance payments, which have their own exemptions and tax directives.
- Diplomats and some international staff, who may be exempt under treaties.
Employer obligations in brief
NamRA's employer brochure says employers must register within 14 days of becoming an employer, deduct PAYE at the correct rates, and pay it over within 20 days after the end of the month in which it was deducted. After the tax year ends on 28 or 29 February, employers issue PAYE5 certificates to employees and file the annual reconciliation within 30 days. SSC contributions are paid monthly to the Social Security Commission. The total cost of an employee therefore includes gross salary, the employer's 0.9% SSC, any employer pension contribution and other benefits.
Frequently asked questions
What is the tax-free threshold in Namibia?
N$100,000 of taxable income a year, which is about N$8,333 a month. It has applied since 1 March 2024 and is still in force for the 2026/27 tax year.
How do I calculate PAYE in Namibia?
Multiply monthly taxable pay by 12, subtract retirement fund contributions up to N$150,000, apply the annual tax table and divide the result by 12. The PAYE calculator for Namibia on this page does this for you and shows the tax in each band.
What are the income tax rates in Namibia for 2026/27?
Nil up to N$100,000, then 18%, 25%, 28%, 30%, 32% and 37%. The 37% rate applies to taxable income above N$1,550,000 a year.
How much is Social Security in Namibia?
0.9% of basic wage from the employee and 0.9% from the employer. From 1 September 2026 the wage ceiling is N$12,500 a month, so the maximum is N$112.50 each. Before that it was N$99.00 on an N$11,000 ceiling. The minimum is N$4.50.
Is pension deductible for PAYE in Namibia?
Yes. Contributions to approved pension, provident and retirement annuity funds, together with education policy premiums, are deductible up to N$150,000 a year in total.
How much tax do I pay on N$20,000 a month in Namibia?
With no pension contribution, annual taxable income is N$240,000. Tax is 9,000 + 25% × 90,000 = N$31,500, or N$2,625 PAYE a month. SSC adds N$112.50 if your basic salary is N$20,000.
Is SSC deducted before PAYE?
No. PAYE is worked out on taxable pay after retirement fund deductions only. The SSC contribution is a separate deduction and the calculator does not treat it as reducing tax.
When is PAYE paid to NamRA?
Within 20 days after the end of the month in which it was deducted. Employers also issue PAYE5 certificates and file a reconciliation after the tax year ends in February.
Will the Namibian tax brackets change?
The 2026/27 Budget Statement said brackets would be revised over two years, but no new table had been enacted when this page was checked in October 2026. Until an amendment act is published, employers use the current table.
Is this PAYE calculator official?
No. It is a free estimate based on published rates. Your employer and NamRA determine the final tax.