Employer of Record in Swaziland

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 Swaziland 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 Swaziland below, to avoid any compliance issues.

Employment Contract Requirements

In Swaziland, it is a requirement for employment contracts to be documented in writing, and the use of fixed-term contracts is permissible. These contracts must be written in the official local language and currency. The essential elements that must be included in the employment contract are:

• Basic salary/compensation
• Benefits
• Working hours/overtime
• Job description
• Leave (Annual, sick)
• Termination requirements

Onboarding Process

We can help you get a new employee started in Swaziland 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 Swaziland

The standard work schedule in Swaziland entails 48 hours per week, spread across a period of 6 days.

Overtime in Swaziland

Employees in Swaziland can engage in overtime work with the approval of the employer. Compensation for overtime hours is set at 150% of the regular pay rate. Additionally, individuals working on rest days will receive remuneration at a rate of 200% for the hours worked.

Probation Period in Swaziland

It is acceptable in Swaziland to have probationary periods lasting 3-6 months depending on the nature of the work.

Employment laws in Swaziland can be intricate, and even unintentional mistakes in contracts, benefits, or termination processes can carry legal and reputational consequences. With an Employer of Record, you gain a local partner that ensures every hire is compliant. The EOR takes care of drafting compliant contracts, processing accurate payroll, managing contributions to statutory benefits, and handling lawful terminations if needed, all according to local employment standards.

This level of protection is especially valuable when expanding into new or unfamiliar regions. Instead of using time and resources to build in-house legal knowledge, you gain immediate access to local expertise. The EOR keeps you ahead of regulatory updates and shields your company from potential compliance gaps, so you can confidently hire and manage employees while minimizing risk. For hiring managers and founders, it's the difference between hiring with uncertainty and building your team on a legally sound foundation.

Fiscal Year in Swaziland

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

Payroll Cycle in Swaziland

The payroll cycle in Swaziland is usually monthly, with employees being paid as stipulated in the employment agreement.

Minimum Wage in Swaziland

As of January 1, 2025, Eswatini's (Swaziland) minimum wage is set at SZL 2,500 per month. This rate applies to all workers, and the government reviews and adjusts it periodically.

Bonus Payments in Swaziland

The provision of a 13th salary is not mandated by law in Swaziland.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 6% - 10% on top of the employee salary in Swaziland.

Employee Payroll Tax Contributions

In Swaziland , the typical estimation for employee payroll contributions cost is around 5%.

Individual Income Tax Contributions

In Swaziland, income tax is levied on all income earned within the country, regardless of the recipient's residency status. The tax system follows a progressive rate structure for both resident and non-resident individuals.

Pension in Swaziland

Swaziland features three pension schemes: the Public Service Pension Fund (PSPF), the Members of Parliament and Designated Office Bearers Pension Fund (MOPADO), and the Eswatini National Provident Fund (ENPF). These schemes are statutory and operate on a Pay-As-You-Earn basis and is self-administered. Employees can also take out private pension funds or Retirement Annuities.

When you’re scaling quickly, setting up local payroll systems in each new country slows you down. In Swaziland, the administrative load can include government registration, benefits management, and accurate, on-time payment delivery. An EOR gives you a plug-and-play solution that handles all of this while your internal team stays focused on growth, not red tape.

Key Ways an EOR Supports Payroll in Swaziland:

• Rapid Payroll Setup: Onboards employees quickly with ready-to-go infrastructure.
• End Administration: Handles salary, tax, and benefits with no extra internal resources.
• Vendor Simplicity: Consolidates payroll across countries for centralized oversight.
• No Entity Required: Operates legally, saving your business the time and resources needed for local incorporation.

In Eswatini, employers seeking to hire foreign nationals must secure appropriate work permits, typically valid for up to two years, with processing times ranging from 7 to 30 working days. It's crucial to initiate renewals well before expiration to ensure uninterrupted employment.

Although there isn't a dedicated visa for digital nomads, individuals can apply for temporary residence permits for extended stays. Employers should be aware of challenges such as navigating immigration procedures, complying with labor laws, and facilitating cultural integration for foreign employees.

Mandatory Leave Entitlement in Swaziland

The annual leave entitlement in Swaziland is 12 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 Swaziland

Swaziland observes the following 14 national holidays annually:

Paid Time Off in Swaziland

Employees in Swaziland are entitled to 11 days of paid annual leave. Moreover, they are allowed to take up to one month of unpaid compassionate leave per year.

Maternity Leave In Swaziland

Pregnant employees in Swaziland have the right to 12 weeks of maternity leave, with a requirement to take 6 weeks before the due date. During this maternity leave, two weeks are paid, provided that the employee has completed at least one year of service.

Paternity Leave In Swaziland

Eswatini (formerly Swaziland) does not have a statutory provision for paternity leave. Some employers may offer paternity leave as part of their internal policies or employment contracts.

Sick Leave In Swaziland

Following 3 months of employment, workers in Swaziland become eligible for sick leave benefits, which includes 14 days of 100% paid sick leave and an additional 14 days of 50% paid sick leave, calculated based on the employee's base wage rate.

Parental Leave In Swaziland

There is no formal policy of shared parental leave in Eswatini (formerly Swaziland).

For startups and small teams, managing global employee benefits isn’t just complex, it’s a full-time job. In Swaziland, understanding what benefits are required, how to deliver them, and how to stay compliant can be overwhelming, especially without local HR expertise. An Employer of Record removes that pressure by taking complete ownership of benefits administration, so you don't have to become an expert in local employment law.

Whether it’s healthcare contributions, pension enrollment, or statutory leave, the EOR ensures everything is delivered accurately and on time. They navigate any country-specific nuances, keep up with legal changes, and ensure each benefit is properly tracked and documented. For founders, that means fewer distractions and more time to focus on growth. Your employees get the security and support they expect from a local employer, and you get to scale your team in Swaziland without building complex infrastructure or worrying about compliance missteps.

Termination Process in Eswatini

Both the employer and the employee in Eswatini have the option to terminate an employment relationship by giving notice.

Notice Period in Eswatini

The termination of employment in Eswatini necessitates notice periods, and the duration of these notice periods is contingent on the length of the employee's tenure:

1. No notice is required for termination during probation
2. Less than 3 months service: 1 week notice
3. 3-12 months of service: 2 days notice for each completed month
4. More than 12 months of service: 1 month notice + 4 days for each completed year

Employees are entitled to 12 hours of paid leave each week during their notice period.

Severance in Eswatini

Unless specified otherwise in labour laws, an employee who has been terminated in Swaziland is entitled to receive severance pay. The amount is typically calculated at 10 working days' pay for each completed year of service after the first year of employment.