What is Gratuity?
A gratuity is a sum of money customarily given by a customer to certain service sector workers such as
hospitality for the service they have performed, in addition to the basic price of the service.
How To Calculate Gratuity For Domestic Workers In Zambia
Section 73 of the ECA provides for payment of gratuity at the end of a long-term contract. It provides that the
rate of gratuity to be paid should not be less than 25% of the employee’s basic pay earned during the contract period.
Who is eligible for gratuity in Zambia?
Every worker in Zambia is eligible for gratuity benefits measured at 25% of salary earned during their
employment contract if they have worked for more than 3 months or 1 year according to Zambian law on gratuity.
Are part-time employees eligible for gratuity in Zambia?
Only employees on a long-term contract are entitled to gratuity. A long-term contract does not include casual employees,
employees on probation, on a short-term contract nor indeed, those on a permanent contract.