Employer of Record in Botswana

Businesses can only operate smoothly in Botswana if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Botswana below, to avoid any compliance issues.

Employment Contract Requirements

Employment agreements in Botswana can be oral or written. Yet, for individuals outside of Botswana or as designated by the Minister of Labour, a written contract is mandatory, including the following details:

• Identification of both parties
• Job title
• Workplace and working hours
• Starting date of employment
• Basic salary, overtime pay rate, and other cash payments
• Remuneration and deductions
• Annual leave and benefits
• Notice period for termination
• Public holidays and compensation
• Documents supporting employment contract

Onboarding Process

We can help you get a new employee started in Botswana quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Botswana

Typically, the workweek in Botswana is set at 48 hours, allowing a maximum of 9 hours per day for a 5-day week or 8 hours per day for a 6-day week.

Overtime in Botswana

In Botswana, workers can receive a maximum of 14 hours of overtime, compensated at 150% of the standard hourly rate. Additionally, work performed on public holidays or rest days is remunerated at 200% of the regular wage rate.

Probation Period in Botswana

Unskilled workers can undergo a probationary period lasting a maximum of 3 months, while skilled employees may have a probationary period extending to 12 months.

Fiscal Year in Botswana

1 July - 30 June is the 12-month accounting period that businesses in Botswana use for financial and tax reporting purposes.

Payroll Cycle in Botswana

The payroll cycle in Botswana is usually monthly, with employees being paid between the 15th and the last day of the month.

Minimum Wage in Botswana

The minimum wage for employees in Botswana is typically 3.8 BWP per hour, amounting to ~729.6 BWP per month for a typical 48 hour work week.

Bonus Payments in Botswana

There's no legal obligation for a 13th or 14th-month payment in Botswana. Employers can decide on such bonuses at their discretion, typically outlined in the employment contract.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 5% on top of the employee salary in Botswana.

Employee Payroll Tax Contributions

In Botswana , the typical estimation for employee payroll contributions cost is around 4%.

Individual Income Tax Contributions

The Botswana tax system follows a territorial approach, taxing income within Botswana's borders. If the income source is within Botswana, it becomes subject to taxation. The following is the individual tax rates following a progressive rate structure for Motswana residents:

Pension in Botswana

The elderly pension in Botswana is given to people who are 65 years old and older, and they receive a monthly pension of BWP530.00. They can receive this allowance in cash from Service Providers at various pay points or through monthly bank transfers to their beneficiaries' bank accounts.

In Botswana, work permits and visas are essential for employers hiring foreign workers. The process involves obtaining an Employment Visa for short-term work-related visits and securing a Work Permit under the Employment of Non-Citizens Act before the commencement of employment. Applications require documents like a valid passport, employment contract, proof of qualifications, medical and police clearance, and fees of BWP 1,500. Processing times typically range from 7 to 14 working days. Employers must demonstrate that no qualified local candidate is available for the position, ensuring compliance with Botswana’s labor regulations when sponsoring foreign employees.

Mandatory Leave Entitlement in Botswana

The annual leave entitlement in Botswana is 15 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Botswana

The following are the public holidays in Botswana in addition to the paid annual leave:

Paid Time Off in Botswana

Employees typically receive 15 days of annual paid leave, with a requirement to take 8 days within the first 6 months. The remaining days can be utilised within a span of 3 years.

Maternity Leave In Botswana

Pregnant employees usually have a right to 12 weeks of maternity leave, with 6 weeks before and 6 weeks after the birth. A doctor's certificate is required, and they are entitled to receive at least 50% of their basic pay.

Paternity Leave In Botswana

In Botswana, there is no statutory provision for paternity leave, so fathers are generally not entitled to any paid leave following the birth of a child unless provided voluntarily by the employer.

Sick Leave In Botswana

Employees typically have an entitlement of 20 days of paid sick leave per year and are required to provide a doctor's certificate.

Parental Leave In Botswana

Termination Process in Botswana

In Botswana, terminations don't necessitate a specific reason, allowing both the employee and employer to end the contract. Minimum notice, equivalent to the wage period, or payment in lieu, is required unless the employee is engaged in serious misconduct.

Notice Period in Botswana

The notice periods in Botswana depends on the following lengths of service:

• 2-5 years of service: 2 weeks notice
• 5-10 years of service: 1 month notice
• More than 10 years of service: 6 weeks notice period

Severance in Botswana

Botswana's severance pay is one day's regular pay per month for the first 60 months, plus 2 days for each additional month served. Managers and professional staff qualify after 60 months, but those receiving gratuity or pension at the end of employment aren't eligible for severance pay.