Globally, the impact of employment contract types on household economic stability is a significant concern, reflecting broader trends of economic inequality and job insecurity. In many developed countries, permanent, full-time positions are associated with higher income stability, access to benefits, and better overall economic well-being compared to temporary or casual work. This research analyzes effects of employment contract type on household economic situation: a case study of Lusaka. The research is guided by the following objectives; To analyze economic effects of employment contract types on household income distribution and financial stability. To evaluate effects of employment contract type on household economic welfare (savings, financial security, household expenditure, investment behaviours). To analyze effects of employment contract type of household poverty situation. 50 respondents were randomly selected. The research uses both qualitative and quantitative methods. The research concludes that employment contract type significantly influences household economic situations, particularly in relation to food security, access to utilities, housing affordability, and overall financial stability. The analysis shows that households with permanent or formal employment contracts generally experience greater financial security, allowing them to afford essential services and maintain a more stable standard of living.KeywordsContract,employment,household,economic