Employer PAYE Guide

Your PAYE Obligations as an Employer

As an employer in Zimbabwe, you are legally required to act as a tax collection agent for ZIMRA. You must deduct Pay As You Earn (PAYE) from your employees’ salaries and remit it to ZIMRA on their behalf. Failure to do so exposes you to severe penalties — up to 100% of the unremitted PAYE plus interest, and directors can be held personally liable.

Key Employer Obligations

1. Register for PAYE with ZIMRA before your first employee starts
2. Calculate PAYE correctly using the current tax tables for each employee
3. Deduct PAYE monthly from each employee’s gross salary
4. Remit PAYE to ZIMRA by the 10th of the following month
5. File monthly PAYE returns (REV5 form) via TaRMS
6. Issue tax certificates (ITF16) to each employee annually
7. Submit annual reconciliation (ITF14C) by the deadline
8. Maintain payroll records for at least 6 years

Registering for PAYE

You must register for PAYE before paying your first employee. Registration can be done through TaRMS or at your nearest ZIMRA office.

Requirements

• Valid company TIN (register for income tax first)
• Details of employees (names, ID numbers, salary amounts)
• Employment contracts or offer letters
• Payroll start date

Once registered, ZIMRA will assign you a PAYE registration number. This number must be used on all PAYE returns and payments.

For full registration instructions, see our ZIMRA registration guide.

How to Calculate PAYE

PAYE is calculated using the progressive income tax tables. For each employee:

1. Determine gross taxable income — salary + allowances + benefits in kind (housing, car, etc.)
2. Deduct exempt items — pension contributions (employee’s share), approved deductions
3. Annualise the monthly amount — multiply by 12
4. Apply the tax bands:

5. Subtract the tax credit — US$1,200/year (US$100/month)
6. Add AIDS levy — 3% of tax after credit
7. Divide by 12 — for monthly PAYE deduction

Use our PAYE Calculator to verify your calculations.

Monthly Filing: The REV5 Form

The REV5 is the monthly PAYE return that must be filed on TaRMS by the 10th of the following month.

What to Include

• Each employee’s name and ID number
• Gross salary paid
• PAYE deducted
• AIDS levy amount
• Total PAYE remittance for the month

How to File

1. Log into TaRMS
2. Navigate to “Returns” > “PAYE” > “REV5”
3. Select the tax period (month/year)
4. Enter employee details and PAYE amounts (or upload a CSV file)
5. Submit and make payment

Annual PAYE Reconciliation

At the end of each tax year (December), employers must:

1. Issue ITF16 certificates to every employee — this shows total income, PAYE deducted, and AIDS levy for the year
2. File the annual PAYE reconciliation (ITF14C) on TaRMS — this reconciles monthly REV5 returns with the annual total
3. Resolve any discrepancies — underpayments must be settled; overpayments can be credited

Employees use the ITF16 certificate to file their individual tax returns (ITF1).

NEC (National Employment Council) Agreements

Many industries in Zimbabwe have NEC agreements that set minimum wages and conditions. As an employer, you must:

• Comply with the applicable NEC minimum wages for your industry
• Calculate PAYE on the actual salary paid (which must meet or exceed the NEC minimum)
• Adhere to NEC conditions regarding leave, overtime, and termination
• Contribute to any NEC-mandated levies or funds

Other Employer Deductions

These deductions are separate from PAYE and have their own filing and payment deadlines.