Workforce Africa simplifies hiring, payroll, and talent management, as well as your compliance needs for employees and independent contractors in Botswana. No need for a subsidiary or entity setup. From contracts and onboarding to taxes, payroll, and admin tasks, partnering with us — the Employer of Record in Botswana, will help you focus on growth for greater levels of success.
How Employer of Record (EoR) in Botswana Works
Workforce Africa makes it hassle-free to hire and manage your remote staff in Botswana without having to first set up a subsidiary or entity in the country. We handle staff contract management and onboarding, payroll, compliance, taxes, and other administrative matters. With Workforce Africa, you can now focus more on strategic activities and growing your business. These items include >>
1. Employment Contracts in Botswana
Employment relationships in Botswana are governed by the Employment Act and associated regulations. Employers must ensure contracts are appropriately structured and compliant with statutory requirements.
A. Contract Types
Employment may be formalised under various types of contracts, including:
- Indefinite (permanent)
- Fixed-term
- Part-time
- Casual
- Seasonal
B. Key Contractual Elements:
Every employment contract should include essential clauses that clearly define the terms of engagement. These typically cover:
- Names of both employer and employee
- Job title and description of duties
- Place of work
- Remuneration (in Botswana Pula)
- Working hours and leave entitlements
- Notice periods
- Statutory and company-provided benefits
- Confidentiality provisions
- Terms for termination of employment
2. Working Hours in Botswana
- Working Hours: Employees may work up to 8 hours per day and a maximum of 48 hours per week under normal working arrangements.
- Overtime Limits: Overtime is permitted up to 14 hours per week. Any extension beyond this limit requires prior approval from the labour commissioner.
- Overtime Compensation: Overtime must be compensated at the following rates:
- 150% of the employee’s normal hourly wage for regular overtime work
- 200% of the normal wage for work performed on public holidays or designated rest days
3. Observed National Holidays and Vacation
These national holidays are celebrated in Botswana:
- 1 Jan: New Year’s Day
- 2 Jan: New Year Holiday
- 3 Jan: New Year Holiday
- 18 Apr: Good Friday
- 19 Apr: Holy Saturday
- 21 Apr: Easter Monday
- 1 May: Labour Day
- 29 May: Ascension Day
- 1 Jul: Sir Seretse Khama Day
- 21 Jul: President’s Day
- 22 Jul: President’s Day Holiday
- 30 Sep: Botswana Day
- 1 Oct: Botswana Day Holiday
- 25 Dec: Christmas Day
- 26 Dec: Boxing Day
4. Expats, Visas & Work Permits
A. Entry Visa
Nationals of most Southern African Development Community (SADC) member states are exempt from visa requirements for stays of up to 90 days per calendar year. Citizens of non-exempt countries must apply for either a single-entry or multiple-entry visa, which can be obtained either prior to travel or on arrival, provided prior authorization has been granted.
B. Entry Requirements include:
- A passport valid for at least 6 months beyond the date of entry
- Proof of itinerary and a formal invitation letter
- Yellow fever vaccination certificate, if arriving from or transiting through a high-risk area
C. Work Permit (Employment Permit)
Foreign nationals seeking employment in Botswana must obtain an employment permit, which is employer-sponsored and submitted to the Department of Labour.
D. Required documentation includes:
- A copy of a recent job advertisement placed in Botswana to prove local recruitment efforts
- A signed employment contract
- A detailed curriculum vitae (CV)
- Certified copies of academic and professional qualifications
- Valid police clearance and medical report
E. Key Details:
- The initial permit may be issued for up to 2 years
- Renewal applications should be submitted at least six months before expiry
- The standard processing time is approximately 14 working days
- Application fee: BWP 1,500
A Botswana EoR offers this service to help businesses manage their clients.
5. Paid Leaves
- Annual Leave: Employees are entitled to a minimum of 15 working days of paid annual leave per year after completing 12 months of continuous service. Pay: 100% of the employee’s regular salary during leave.
- Sick Leave: Employees may take up to 14 days of sick leave on full pay, followed by an additional 14 days on half pay within a 12-month period, provided there is sufficient medical evidence.
Pay: 100% for the first 14 days; 50% for the next 14 days. - Maternity Leave: Female employees are entitled to 12 weeks of maternity leave, comprising 6 weeks before and 6 weeks after childbirth. In cases of medical complications, the leave may be extended by an additional 2 weeks. Pay: A minimum of 50% of the employee’s salary, typically paid by the employer.
- Paternity Leave: There is no statutory provision for paternity leave under the Employment Act. However, it is common for employers to offer 3 to 5 days of paid paternity leave, either through company policy or collective bargaining agreements.
- Public Holidays: Employees are entitled to full pay on public holidays if they are not required to work.
Pay: 100% of regular salary.
6. Statutory Deductions
A. Social Security Contributions
Botswana does not operate a compulsory national social security pension or unemployment insurance fund. However, employers are required to comply with the following mandatory payroll-related levies:
B. Skills Development Levy (SDL)
- Employer Contribution: 0.2% of monthly turnover
- Employee Contribution: None
- Applicability: Employers with an annual turnover exceeding BWP 250,000
- Wage Ceiling: No ceiling; calculated on total turnover
- Purpose: Funds collected support national skills training and human resource development initiatives
C. Tax Brackets and Rates
Personal Income Tax (Residents, FY 2025/26)
| Taxable Income (BWP) | Rate |
| 0 – 48 000 | 0% |
| 48 001 – 84 000 | 5% on excess |
| 84 001 – 120 000 | BWP 1 800 + 12.5 % |
| 120 001 – 156 000 | 6 300 + 18.75 % |
| 156 001 + | 13 050 + 25 % |
- Corporate Income Tax: 22% (the budget proposes 23.5% from FY 2025/26).
- VAT: 14% standard rate (reinstated 1 Apr 2023).
7. Health Insurance
State facilities offer basic services; quality varies. Expatriates and many local professionals rely on employer-funded private medical-aid schemes for broader hospital and outpatient cover, as treatment at private clinics is cash-before-service.
8. Additional Compensation and Benefits
While not mandated by law, some employers might offer additional benefits, such as
A. Workers’ Compensation Fund
- Employer Contribution: A risk-based premium assessed according to the employer’s industry classification
- Employee Contribution: None
- Basis: Calculated on payroll, with rates set by the Workers’ Compensation Commissioner
- Purpose: Provides insurance coverage for occupational injuries and diseases
9. Termination/Severance in Namibia
A. Termination of Employment
Employment may be lawfully terminated for the following reasons:
- Expiry of a fixed-term contract
- Voluntary resignation by the employee
- Redundancy or operational requirements
- Incapacity due to health or performance issues
- Misconduct, provided due process is followed
Unlawful grounds include dismissal due to pregnancy, union membership or activity, and any form of discrimination.
B. Minimum Notice Periods
The required notice period depends on the employee’s length of service:
- 2 to 5 years: Minimum 2 weeks
- 5 to 10 years: Minimum 1 month
- 10 years or more: Minimum 6 weeks
Alternatively, payment in lieu of notice may be offered in accordance with contract terms.
C. Probation
There is no statutory limit on the length of a probationary period. However, it is standard practice to set probation for 3 to 6 months, and the duration must be clearly stated in the employment contract.
D. Severance Pay
Employees with 5 or more years of continuous service are entitled to severance as follows:
- 1 day’s basic pay per month for the first 60 months.
- 2 days’ pay per month for each additional month beyond 5 years.
- Not applicable where an occupational pension is provided in lieu.
E. Termination Process Requirements
To lawfully conclude an employment relationship, employers must:
- Provide written notice stating the reason and effective date of termination
- Serve statutory or contractual notice period or offer payment in lieu
- Settle all outstanding payments, including:
- Final salary
- Accrued leave
- Severance (if applicable)
- Skills Development Levy (SDL)
- Pay-As-You-Earn (PAYE) tax deductions
- In redundancy cases, consult with affected employees or their representatives and notify the Labour Commissioner
- Issue a Certificate of Service upon the employee’s request
In the event of a dispute, the matter should be referred to the District Labour Office, and if unresolved, escalated to the Industrial Court.
Bonuses: No statutory 13th-month or festival bonus. Performance or annual bonuses are discretionary and should be stipulated in the employment contract.
F. Termination Process:
- Written notice stating reasons.
- Observe statutory/contractual notice period (or pay in lieu).
- Pay outstanding remuneration & statutory benefits on or before the next working day.
- Issue termination certificate.
Redundancies: consult staff representatives, notify Labour Commissioner, pay severance & six-month notice. Employees may challenge unfair dismissal before the Industrial Tribunal.