According to the Employment Code Act of 2019, an employer shall provide an employee housing allowance. This may take the form of:

• An allowance
• Housing
• A loan
• An advance paid towards the purchase or construction of a house
• A guarantee facility for a mortgage or house loan on behalf of the employee

While the Employment Code Act of 2019 does not provide an exact percentage or figure for housing allowance, the following Statutory Instruments (SIs) provide that housing allowance should be 30% of basic pay for certain classes of employees:

• Minimum Wages and Conditions of Employment (Domestic Workers) (Amendment) Order, 2018
• Minimum Wages and Conditions of Employment (Shop Workers) (Amendment) Order, 2018
• Minimum Wages and Conditions of Employment (General) (Amendment) Order, 2018

For more on minimum wage in Zambia, click here.

While the Employment Code Act of 2019 came after the 2018 General Order, Shop Workers & Domestic SIs, they still remain in force. This is because the Laws of Zambia Chapter 2 Section 15 allow for:

Where any Act, Applied Act or Ordinance or part thereof is repealed, any statutory instrument issued under or made in virtue thereof shall remain in force, so far as it is not inconsistent with the repealing written law, until it has been repealed by a statutory instrument issued or made under the provisions of such repealing written law, and shall be deemed for all purposes to have been made thereunder.

Laws of Zambia, Chapter 2 Section 15

For more on housing allowance in Zambia, click here.

Download the Employment Code Act of 2019 here.

Please note that the above is intended for general information only and does not constitute legal advice.