Employer of Record in Botswana

Hiring independent contractors has boomed in popularity because of the cost savings and flexibility they offer. It can be a great option if you require niche skills or short-term project support. Contractors allow businesses to access specialized skills quickly, without the time and cost of setting up a local entity.

However, it’s important to know the limits of this model: contractors are not a substitute for full-time employees. Relying on them for ongoing, long-term roles can create serious compliance risks, including employee misclassification, which can lead to fines, back taxes, and reputational damage.

Playroll’s contractor management solutions make it simple to compliantly engage, onboard, and pay contractors around the world. We provide clear visibility into agreements, streamline payments, and reduce compliance risks – so you can focus on getting the work done. And when you’re ready to take the next step, we can help seamlessly convert contractors into full-time employees through our global Employer of Record service.

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.

Growing your team in Botswana is exciting, but it’s not without challenges. Local labor laws are often nuanced, and hiring without the right legal structure or processes can lead to misclassification, non-compliance penalties, or disputes. An Employer of Record removes that risk by acting as the legal employer on your behalf, taking full responsibility for compliance, contracts, payroll, and employee benefits.

This gives you the freedom to scale at your own pace, whether you're adding one employee or building out an entire function, without the burden of setting up and managing a local entity. You remain in control of day-to-day responsibilities and performance, while the EOR ensures every hire is legally protected and properly supported. It's a strategic way to expand globally without spreading your internal team too thin or exposing your business to legal liabilities in unfamiliar markets.

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

As of January 1, 2025, Botswana has a minimum wage of BWP 9.06 per hour for various sectors including building, construction, wholesale distributive trades, manufacturing, hotel and catering, and security guards. The agricultural and domestic services sectors have a minimum wage of BWP 1,500 per month.

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 BWP1,400.00. They can receive this allowance in cash from Service Providers at various pay points or through monthly bank transfers to their beneficiaries' bank accounts.

Employees expect to be paid accurately, on time, and in full compliance with local standards. When you're hiring in Botswana, providing a smooth payroll experience is critical to retention and trust. An Employer of Record ensures that employees receive what they’re owed, without errors, delays, or confusion about taxes or benefits.

Key Ways an EOR Supports Payroll in Botswana:

• Reliable Salary Payments: Ensures employees are paid promptly in local currency.
• Clear Payslips & Documentation: Provides employees with compliant, understandable records.
• Correct Benefits & Contributions: Delivers legally mandated contributions and any changes in compensation, like bonuses.
• Payroll Setup & Processing: Handles salary calculations, tax withholdings, and local reporting obligations.
• Boosts Employee Confidence: Builds trust with compliant, consistent payroll operations.

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, including proof of job advertisements that circulated for at least 14 days with an exclusive period for nationals to apply. Employers must also provide proof that the advertisement is no older than 6 months. All document copies must be notarized for acceptance by the Immigration Board. Certain vaccines may be required as part of the application process, including a yellow fever certificate for travelers from infected areas, with malaria vaccination also recommended. Employers must ensure 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, fathers are entitled to 5 working days of paternity leave with full pay after the birth of a child.

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

In Botswana, failing to provide the correct employee benefits can have serious consequences. Mistakes in benefits administration may result in fines and harm your reputation as an employer. An Employer of Record ensures statutory benefits and leave are handled correctly, every time, and provides comprehensive options for extra perks to reward your team.

Beyond just avoiding legal issues, a well-managed benefits program builds trust with your employees. An EOR ensures benefits are set up quickly during onboarding, updated when employee status changes, and fully compliant with national regulations. They also manage communication with employees, so there’s no confusion around what’s offered and how to access it. This combination of legal compliance and positive employee experience is hard to replicate without local infrastructure. With an EOR, you can offer peace of mind to your team (and to yourself) knowing that your benefits program in Botswana is running as it should.

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 Pay in Botswana

In Botswana, employees who have completed a minimum period of continuous service are typically entitled to a severance benefit upon termination, provided the termination is not due to serious misconduct.

This benefit is calculated based on the employee's length of service. The standard calculation for severance benefit is: One day's basic pay for each completed month of service for the first 60 months (5 years). Two days' basic pay for each completed month of service exceeding 60 months. Severance pay is usually applicable in cases of redundancy, retirement, or termination for reasons other than serious misconduct. It is calculated based on the employee's basic wage at the time of termination. Employees who receive a pension at the end of employment are not entitled to a severance payment.