Pay as You Earn Calculator – Zambia

Update (August 8, 2019): (1) New NAPSA ceiling is ZMW 1073.80. (2) Tax bands remain unchanged (see ZRA 2019 Practice Notes).

There has been a lot of hype [1, 2, 3] about Zambia’s supposedly “Pro-Poor” 2012 budget… and rightfully so –it is perhaps the one most significant piece of evidence linking the Patriotic Front [4] to their Socialist agenda. The one thing everyone seems to be talking about though is the new PAYE Tax bands; and effective April 1, 2012 the new personal tax rates in Zambia be as depicted in table below.

TL;DR

I have set up a PAYE tax calculator below that can be used to compute the PAYE tax when inputed with specific figures. Feel free to replace the required input values with your own. Please leave a comment if you have a suggestion or if you notice an anomaly.

Income Tax Bands

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—Lecture Sessions—
   March 15, 2021 | [Session #1]
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—Slide Decks—
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—Jupyter Notebooks—
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—Lecture Sessions—
   June 7, 2021 | Class Cancelled. Make-Up Scheduled

ZRA Tax Computation Guide

The constitution of Zambia—under the PAYE system—mandates employers to deduct gross payments using the following variables

  • Total gross pay
  • Tax bands
  • Statutory deductions (e.g. NAPSA)

A key thing to bare in mind is that a proportion of statutory deductions are removed before the tax calculation—the amount deducted is either 15% of total statutory contributions or ZMW 255.00, whichever is the minimum. For instance if my greedy employers pay me ZMW 4,000.00 every month then the  tax calculations would be as follows:

  • STEP 1: Deduct Statutory Contributions (Mandatory statutory contribution)
[table “9” not found /]
  • STEP 2: Compute Tax Deductions (Using taxable input from STEP 1 as input)
[table “10” not found /]
  • STEP 3: Compute Take Home
[table “11” not found /]

More money in your pockets????

 

References

[1] https://www.facebook.com/groups/149657968431200/
[2] http://www.lusakatimes.com/2011/11/11/2012-full-budget-address-speech-finance-minster-alexander-chikwanda/
[3] http://www.zambianwatchdog.com/archives/26116
[4] http://www.patriotic-front.com/
[5] http://www.mlss.gov.zm/upload/SI/SI%20general.pdf