Workforce Africa allows you to build a compliant team in Eswatini without registering a local company. We act as the legal employer in Eswatini, while you keep full control over the employee’s work, duties and performance goals.

Our Eswatini EoR service typically covers:

• Drafting and issuing compliant employment contracts
• Managing onboarding and HR documentation
• Monthly payroll calculations and payslips
• Withholding and paying income tax and statutory contributions
• Managing leave, benefits and basic HR administration
• Supporting with local labour and immigration rules

Using an EoR structure in Eswatini reduces start-up time, lowers fixed costs and helps you avoid mistakes with local labour and tax requirements.

How Employer of Record (EoR) in Eswatini Employer of Record (EoR) Services Works

Workforce Africa allows you to build a compliant team in Eswatini Employer of Record (EoR) Services without first registering a company. We act as the local legal employer, while you direct the employee’s day to day work. We prepare compliant contracts, run monthly payroll, calculate and pay income tax and social security, and keep you aligned with labour and immigration rules.

An Eswatini EoR set up in this way removes delays, reduces set up cost and lowers compliance risk for your cross border team.

1. Employment Contracts in Eswatini

Types of Contracts

Employment in Eswatini can be based on different types of agreement, including:

• Permanent (indefinite) contracts
• Fixed term contracts for a set period or project
• Part time contracts
• Casual or daily employment
• Seasonal contracts, for example in agriculture or tourism

Both written and oral contracts can be valid, but written terms are strongly recommended. Many employers issue contracts in English, sometimes with siSwati used for clarity with local staff.

Key Contractual Elements

Every employment contract in Eswatini should clearly set out at least:

• Employer and employee details
• Job title, duties and reporting line
• Work location (for example, site-based, office-based, remote or hybrid)
• Salary in Lilangeni, pay frequency and any allowances or in kind benefits
• Normal working hours, rest breaks and rules on overtime
• Entitlements to annual leave, sick leave, maternity leave and public holidays
• Probation period and its length
• Notice periods and termination conditions
• Confidentiality, intellectual property and post-employment restrictions (if any)
• Any additional benefits, bonus rules or company policies

Providing clear written particulars on or shortly after engagement is good practice and aligns with Eswatini wage and employment regulations.

2. Working Hours in Eswatini

Standard working hours in Eswatini are usually set in the contract and in the relevant sector wages order. In many sectors a full time role is around 45 hours per week, and must not be more than 48 hours per week, spread over 5 or 6 days.

Employers must also provide at least one full day of rest each week. The normal weekly rest day is often a Sunday, but this can vary by sector and shift pattern.

Overtime

Overtime is any authorised work done beyond the normal daily or weekly hours. Key points:

• Overtime on ordinary days is normally paid at one and a half times (1.5x) the basic hourly rate.
• Overtime on Sundays and public holidays is often paid at double (2x) the basic hourly rate.
• Some wages orders set specific caps on daily or weekly overtime, or require written consent.

Employers should keep accurate records of hours worked, overtime, rest days and public holiday work, and pay the correct overtime rates as set in the law or relevant wages order.

3. Observed National Holidays and Vacation 

These national and religious holidays are normally observed in Eswatini. Employees who work on these days are usually entitled to premium pay or a The following public holidays are commonly observed in Eswatini and are normally paid days off for employees:

• 1 January – New Year’s Day
• Buganu / Lutsango Day (date varies, usually February or March)
• Good Friday – Friday before Easter Sunday
• Easter Monday – Monday after Easter Sunday
• 19 April – King Mswati III’s Birthday
• 25 April – National Flag Day
• 1 May – Labour Day (Workers’ Day)
• Ascension Day – 40 days after Easter Sunday
• 22 July – Birthday of the Late King Sobhuza II
• Early September – Umhlanga (Reed Dance) Day
• 6 September – Somhlolo Day (Independence Day)
• Late December / early January – Incwala Day (dates vary)
• 25 December – Christmas Day
• 26 December – Boxing Day

If a public holiday falls on a Sunday, it is often observed on the following Monday.

Where an employee works on a public holiday, they are usually entitled to premium pay (often double time) or an alternative paid day off, depending on the applicable wages order and the employment contract.

Annual leave is separate from public holidays. If a public holiday falls during an employee’s annual leave, it is normally treated as a public holiday rather than a day of annual leave.

4. Expats, Visas & Work Permits

Visa and Work Permit Requirement

Foreign nationals who wish to work in Eswatini must have:

• An appropriate entry visa (where required), and
• A valid work and residence permit approved by the relevant ministry and immigration authority.

Working in Eswatini on a standard business or tourist visa is not compliant if the person is performing regular, productive work.

Common Visa and Permit Types

• Business visa – for short term business visits such as meetings, negotiations or conferences, not for ongoing employment
• Employment visa and work/residence permit – for foreign employees hired by a local employer or sponsored organisation
• Mission, NGO or international organisation permits – for staff of approved agencies

Eligibility and Employer Role

The Eswatini employer or EoR usually acts as sponsor and will typically need to:

• Provide a signed job offer or employment contract
• Confirm the job role, salary and duration of employment
• Explain why the position needs specific skills that may not be easily available locally
• Submit company registration details and tax numbers, where required

The foreign employee may need to submit:

• Valid passport and recent photographs
• Police clearance certificate from their country of residence
• Medical fitness certificate
• Copies of academic and professional qualifications
• Any additional forms requested by immigration authorities

Applications are usually lodged with the Ministry responsible for labour/enterprise and the immigration department. Processing times can vary, so employers should plan ahead. An Eswatini EoR partner can help prepare correct documentation and coordinate applications.

An Eswatini EoR offers this service to help businesses manage their clients

5. Paid Leaves

Annual Leave

The Employment Act and various wages orders in Eswatini give employees a right to paid annual leave after a qualifying period of service. A common minimum standard is:

• At least 12 working days of paid annual leave for each completed year of service for a full time employee.

Some sector orders or company policies provide more generous leave, or increase leave after a set number of years with the same employer.

Annual leave should normally be taken within a set time after it accrues (for example, within six months of the end of the leave year). Leave is paid at the employee’s normal wage. Employers should agree annual leave dates in advance and keep proper records of leave taken and leave balances.

Sick Leave

After a short period of continuous service (often three months with the same employer), employees in Eswatini become entitled to sick leave when they are unable to work due to illness or injury that is not work related. A common pattern is:

• Up to 14 days of sick leave on full pay, and
• A further 14 days of sick leave on half pay,

in each period of twelve months of continuous service with the same employer.

To qualify, employees usually must provide a medical certificate from a registered doctor or nurse for absences beyond a short threshold. Payment during sick leave is normally made at the employee’s basic wage rate.

Maternity Leave

Female employees in Eswatini are generally entitled to 12 weeks of maternity leave, usually taken as:

• Up to 6 weeks before the expected date of birth, and
• At least 6 weeks after delivery.

Employees who have completed at least one year of continuous service with the employer are normally entitled to 2 weeks of this maternity leave on full pay. The remaining period is often unpaid, unless the employer provides more generous benefits or there is specific cover under social security or an insurance scheme.

Maternity leave may only be taken again after a defined interval (often 24 months) from the previous maternity leave, unless company policy is more favourable.

Pregnant employees have additional protections against dismissal and should not be required to perform work that is unsafe during pregnancy or soon after childbirth.

Paternity Leave

There is currently no clear statutory paternity leave in Eswatini law. Some employers provide a short period of paid or unpaid leave for new fathers under company policy, collective agreements or individual contracts.

Compassionate and Family Leave

Many employers in Eswatini allow short periods of compassionate leave (for example, for the death or serious illness of a close family member). This may be paid or unpaid, depending on company policy and the contract.

Paid Public Holidays

Employees are entitled to paid time off on recognised public holidays. Where employees are required to work on a public holiday, the employer normally pays premium rates (often double time) or offers another paid day off in lieu, as set in the relevant wages order or contract.

6. Statutory Deductions

A. Social Security Contributions

Most employees and employers in Eswatini must contribute to the Eswatini National Provident Fund (ENPF). Key points:

• The standard contribution rate is 10% of insurable wages,
• This is split equally between employer and employee (5% each).

Contributions are calculated on wages up to a set ceiling. From 1 January 2025, a common practical limit is:

• Employee contribution: E200 per month (maximum)
• Employer contribution: E200 per month (maximum)

Total ENPF contribution is therefore up to E400 per month for each employee at or above the ceiling.

The employer deducts the employee’s share from payroll and adds the employer share, then pays the total to ENPF by the due date. ENPF savings are usually paid out as a lump sum or annuity when the member qualifies (for example, at retirement or permanent emigration).

B. Tax Brackets and Rates

Personal Income Tax (PIT)

Personal income tax in Eswatini is charged on a progressive scale. For the 2024/2025 tax year a common structure is:

Taxable Annual Income (SZL/E)	Tax Payable
0 – 100 000	20% of taxable income
100 001 – 150 000	20 000 + 25% of amount over 100 000
150 001 – 200 000	32 500 + 30% of amount over 150 000
200 001 and above	47 500 + 33% of amount over 200 000

Other Main Taxes

• Corporate Income Tax:
  • Standard corporate income tax is moving to 25% of taxable profits for many companies (down from 27.5%), with a separate presumptive tax regime for small businesses below certain turnover thresholds.
• Value Added Tax (VAT):
  • Standard VAT rate is 15% on most goods and services.
  • Some items are zero-rated or exempt (for example, certain basic foodstuffs, exports and selected social services).

Employers do not deduct VAT from salaries, but businesses that meet the turnover threshold must register for VAT and charge it on taxable supplies.

7. Health Insurance

Eswatini does not yet have one universal state health insurance fund covering all employees. Public hospitals and clinics provide health services, but access and quality can vary by region and by facility.

Because of this, many employers that hire skilled staff and expatriates offer extra health benefits, such as:

• Private medical insurance for employees (and sometimes their dependants)
• Direct reimbursement of medical expenses up to agreed limits
• Agreements with private clinics and hospitals for quicker access to care

During approved sick leave or maternity leave, employees may receive wage replacement from their employer under the rules described earlier. In addition, ENPF savings and private insurance products can support long term income protection.

8. Additional Compensation and Benefits

Eswatini labour law sets basic minimum standards for wages and protections, but employers often provide extra benefits to be competitive in the local market. Common non-statutory benefits include:

• Transport or fuel allowances, especially where public transport is limited
• Housing or accommodation allowances, or company housing in remote areas
• Meal allowances or canteen facilities during working hours
• Performance or profit-related bonuses
• Training and upskilling programmes, including professional and technical courses
• Voluntary retirement, savings or group life insurance schemes on top of ENPF
• Hardship or field allowances for work in rural or high-risk locations

There is no legal requirement for a 13th month salary in Eswatini. Some employers pay a discretionary annual bonus, often linked to company performance or paid during festive seasons. If bonuses are offered, the rules should be clearly described in the contract or company policy.

9. Termination/Severance in Eswatini 

Probationary Period

The Employment Act and sector wages orders in Eswatini allow for a probation period, which must be clearly stated in the contract. In practice, probation is often around three months, although in some cases it can be longer if allowed by law and agreed upfront.

During probation, employees are usually subject to the same working conditions as permanent staff, but the notice period to end the relationship may be shorter, as long as it still respects basic legal rules.

Termination of Employment

After probation, employment may end on several lawful grounds, such as:

• Natural expiry of a fixed term contract or completion of a project
• Resignation by the employee
• Mutual agreement to end the contract
• Redundancy or operational requirements (for example, restructuring or closure)
• Incapacity due to long term illness, disability or lack of required skills (after fair assessment)
• Misconduct or poor performance, after a fair disciplinary process

Termination should not be based on prohibited grounds such as race, sex, religion, union membership, pregnancy or other discriminatory reasons.

Employers should document the reasons for termination and follow any internal procedures and consultation requirements, especially where trade unions are recognised.

Notice Periods

Minimum notice periods in Eswatini depend on the worker’s length of continuous employment and any specific rules in the relevant wages order. A common pattern is:

• Less than 1 year of service – at least 1 week (7 days) notice
• 1 year to less than 3 years – at least 2 weeks (14 days) notice
• 3 years or more – at least 1 month (30 days) notice

Notice must normally be in writing. The employer may, in some cases, choose to pay salary in lieu of notice instead of requiring the employee to work out the notice period, if this is permitted by law and reflected in the contract.

Shorter notice periods may apply during probation, but these must still be reasonable and consistent with applicable law.

Severance Pay

Employees who are dismissed for reasons other than serious misconduct, or whose contracts end due to redundancy, are often entitled to severance pay if they have completed a defined minimum period of service (usually at least one year).

A common severance formula used in Eswatini is:

• First five years of service: two weeks’ wages for each completed year
• Years six to ten: three weeks’ wages for each completed year in that band
• Beyond ten years: four weeks’ wages for each completed year after the tenth year

Where service is less than a full year, severance is usually calculated on a pro rata basis.

Severance is calculated on the employee’s regular wage (excluding overtime and some allowances unless stated otherwise) and is paid in addition to:

• Final salary up to the last working day
• Pay in lieu of notice (if used)
• Payment for any accrued but unused annual leave
• Any other contractual payments due (for example, bonus earned but not yet paid)

Employees dismissed for proven serious misconduct after a fair disciplinary process may lose the right to severance, but must still receive salary and leave owed up to the date of dismissal. Employers should take legal advice before withholding severance.