Employer of Record in Swaziland

Guide to Hiring Employees in Swaziland

Your guide to hiring employees in Swaziland, covering the employment landscape, employer of record responsibilities, working customs, and local labor laws.

Hiring Employees In Swaziland
Employer Of Record In Swaziland

Capital City

Mbabane & Lobamba

Currency

Swazi Lilangeni

 (

E

)

Timezone

GMT +2

Payroll Frequency

monthly

Tax Year

1 July - 30 June

Employer Tax

0%

Languages

English

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How to Hire Employees In Swaziland

Hiring in Swaziland for the first time can be overwhelming, especially when navigating unfamiliar employment laws.  Whether you hire independent contractors, set up a legal entity, or use an EOR service, understanding the local employment landscape is crucial for success.  Playroll’s comprehensive guide can help you get started if you're hiring locally or relocating a team member.

Companies can hire employees in Swaziland in the following three ways:

  • Setting up a local entity. Entity establishment reduces risk exposure and enables direct hiring, but can be costly and time-consuming – making it less practical for companies seeking quick and flexible solutions for hiring in Swaziland.
  • Partnering with an Employer Of Record. An EOR, like Playroll, is a third-party entity that serves as the legal employer of your international workforce which hires, pays, and manages compliance with Swaziland’s labor laws and tax regulations.
  • Hiring independent contractors. Hiring contractors gives companies a flexible, affordable alternative to hiring local employees, though it involves unique misclassification risks.

Good To Know

Hiring in Swaziland presents opportunities in a growing economy with a diverse workforce and strategic location between South Africa and Mozambique.

The country's emphasis on manufacturing and services, coupled with recent GDP growth of 7.9%, highlights its potential for business expansion and development.

Swaziland offers access to fully-serviced industrial sites and competitive rates for purpose-built factory structures, enhancing operational efficiency for businesses.

Additionally, investors can benefit from financial incentives such as tax allowances, low corporate tax rates of 10%, and duty-free importation of machinery and equipment, further promoting a conducive environment for hiring and investment.

Employment and Labor Laws in Swaziland

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.

Employer of Record in Swaziland

An Employer of Record (EOR) acts as the legal employer for workers in Swaziland, taking on key responsibilities to ensure compliance with local labor laws and regulations. The EOR facilitates the hiring process for businesses that want to employ workers without establishing a legal entity in the country.

The employer of record in Swaziland is responsible for:

  • Employment Compliance: Ensure all employment contracts comply with Swaziland's labor laws and regulations, including proper classification of employees.
  • Payroll Management: Calculate, process, and distribute employee salaries in accordance with Swaziland's payroll laws, including deductions for taxes and social security contributions.
  • Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
  • Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with Swaziland's legal requirements.
  • Benefits Administration: Provide mandatory employee benefits as required by Swaziland's labor laws, such as health insurance, pension contributions, and statutory leave.
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Payroll Management in Swaziland

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

The minimum wage for employees in Swaziland is typically 7.50 SZL per hour, amounting to ~1,800 SZL per month for a typical 48 hour work week.

Bonus Payments in Swaziland

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

Employment Taxes in Swaziland

Employer Tax Contributions

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

Tax TypeTax Rate
Eswatini National Provident Fund5%
Skills Development Levy1%
Workman's Compensation (Contribution is calculated as an insurance premium and is based on the total payroll of the company and the risk classification of the industry)Varies

Employee Payroll Tax Contributions

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

Tax TypeTax Rate
Eswatini National Provident Fund5%

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.

Income BracketTax Rate
0 - 100,000 SZL0 SZL + 20% of taxable income above 0 SZL
100,001 SZL - 150,001 SZL20,000 SZL + 25% of taxable income above 100,000 SZL
150,001 SZL - 200,000 SZL32,500 SZL + 30% of taxable income above 150,000 SZL
200,001 SZL And above47,500 SZL + 33% of taxable income above of 200,000 SZL

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.

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The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Swaziland tailored to your needs.

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Work Permits & Visas in Swaziland

Annual Leave & Company Policies In Swaziland

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 11 national holidays annually:

HolidayDate
New Years Day1 January
Good FridayApril, day changes yearly
Easter MondayApril, day changes yearly
King's Birthday19 April
National Flag Day25 April
International Workers' Day1 May
Ascension Day21 May
King Father's Birthday22 July
Somhlolo Day6 September
Christmas Day25 December
Boxing Day26 December
Incwala DayLast week of December to first week of January.

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).

Employment Termination and Severance Policies in Swaziland

Termination Process in Swaziland

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

Notice Period in Swaziland

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

  • After probationary period: 1 week notice
  • 1 month of service: 1 week notice
  • 3-12 months of service: 2 days notice for each completed month
  • More than 12 months of service: 1 month notice + 4 days for each completed year

Severance in Swaziland

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.

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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ABOUT THE AUTHOR

Jesse Weisz

Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).

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FAQS

FAQs About Hiring In Swaziland

Questions and Answers

What Is an EOR in Swaziland?

An Employer of Record (EOR) in Swaziland is a third-party organization that legally employs workers on behalf of your company. The EOR handles all local employment tasks, including compliance with labor laws, payroll, taxes, benefits, and employment contracts. This allows businesses to easily hire talent in Swaziland without the need to set up a legal entity there, saving time and ensuring compliance with local regulations.

Can I Hire in Swaziland Without an Employer of Record?

Yes, you can hire in Swaziland without an Employer of Record, but this typically requires setting up a legal entity in the country. Establishing a local entity involves navigating registration processes, tax systems, and employment regulations. This can be costly and time-consuming, often taking between 4-6 months to enter a new market. An EOR provides an alternative by allowing you to hire talent quickly and compliantly without the need to establish a legal presence in Swaziland.

How Much Does It Cost To Employ Someone In Swaziland?

The cost of employing someone in Swaziland includes more than just their salary. You also need to consider mandatory contributions such as taxes, social security, insurance, and benefits. These additional costs can vary based on the role, location, and specific employment laws in Swaziland. When using an Employer of Record, there are additional service fees, usually charged as a percentage of the employee's salary or as a monthly or annual fee. This ensures compliance and covers administrative tasks.

What Is the Minimum Wage In Swaziland?

As of January 1, 2024, Swaziland's minimum wage rates are:

  • 3.125 SZL p/h SZL per month.
  • Applies nationwide across all sectors.
  • Adjustments typically occur annually.

How Does an EOR Help You Run Payroll In Swaziland?

An EOR simplifies payroll management in Swaziland by handling all aspects of salary payments, tax deductions, and compliance with local labor laws for your international employees. The EOR calculates gross pay, deducts necessary taxes and contributions, and ensures employees are paid accurately and on time. They also manage year-end tax reporting and compliance filings, reducing the administrative burden on your team and minimizing the risk of errors or penalties.

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