Botswana PEO & Employer of Record

WeHG provides an International PEO and vglobal Employer of Record service in Botswana to companies willing to enter the Botswana market or hire local/emigrant employees in this country.

The general approach requires establishing a subsidiary in Botswana.  However our Employer of Record solution allows you to start the operations in Botswana within days hence save time and money.  WeHG would recruit applicants on your behalf while you maintain full operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf. 

Botswana fast facts

Population, million: 2,351,627
Land area, sq. km: 581,730 km²
Capital: Gaborone
Local currency: Botswana pula (BWP)

GDP per capita:$ 7000.00
GDP in currency:$ 17 billion
Economic growth percentage: 4.2%
Inflation rate (consumer prices): 2.2%
Volume of export: $ 178.8 million
Import of goods and services: $7312 million
Total population: 2,351,627
Population of working age (15-64): 57.7%

Botswana, country in the centre of Southern Africa. The territory is roughly triangular—approximately 600 miles (965 km) from north to south and 600 miles from east to west—with its eastern side protruding into a sharp point. Its eastern and southern borders are marked by river courses and an old wagon road; its western borders are lines of longitude and latitude through the Kalahari, and its northern borders combine straight lines with a river course. Within the confines of Botswana’s borders is a rich variety of wildlife, including many species of mammals, birds, reptiles, amphibians, and fish.

Hiring, Negotiating and Doing Business in Botswana

Necessity of written employment contract

Contracts of employment may be oral or in writing, expressed or implied. However, any work which falls outside of Botswana or as may be specified by the Minister of Labour, the employment contract must be in writing. Worker must be given a copy of contract where employment contract is concluded in writing.

Contract of employment is to contain the full name and address of the employer, the name and occupation of the employee, the place of work, the date on which employment begins, working hours, wage, rate of overtime pay, other cash payments, when remuneration will be paid, deductions from remuneration, annual leave, sick leave, maternity benefits and leave, period of notice for termination of employment or when the contract is to terminate, the payment for working on public holidays, and the list of documents which form part of contract of employment.

The employment contract which pertains to work outside Botswana or as otherwise prescribed by the Minister for labour should all of the above and certain extra information.

Three copies of every contract of employment attested under this Act are to be attested together with the original; one copy is to be delivered to the employer, one copy to the employee and one to the labour officer of the district of employment or, where the place of employment is outside Botswana, to the appropriate government official in the district within which the place of employment is located. The original of every attested contract of employment is to be deposited with and preserved by the attesting officer.

Botswana Employment Contract

Types of employment agreements

The length of local fixed term contracts has not been specified under the law. Fixed term contracts are allowed for employment outside of Botswana. The maximum length of employment contract is to be 2 years. Where the employment contract is made in another country and relates to employment in Botswana, then the period of employment stipulated in any re-engagement contract of employment is not to exceed nine months or the maximum period prescribed by the law of the country of origin if it is less than nine months.

Botswana working hours

Normal working hours in Botswana are 8 hours a day and 48 hours a week.

Overtime

An employee is not to be required or permitted to work overtime for more than 14 hours in any one week. The Minister can through an order published in the Gazette, declare that the limitation upon overtime is not to apply to employees in a particular industry or undertaking.

If an employee is required to work in any one day more than the number of hours in the ordinary daily working period, the number of hours so worked in excess will be considered overtime, and the employee will be paid one and a half times (150% of the normal wage rate).

Vacation leave in Botswana

Every employer shall grant to every employee leave with basic pay at the rate of not less than 1,25 days per month.

This amounts to 15 working days for every 12 months worked.

Any balance of leave not taken may be accumulated, year by year; but such leave shall not be accumulated for longer than 3 years. At the end of that 3 year period all the accumulated leave must be taken.

Sick leave

Employees are generally entitled to 20 days of paid sick leave per year and must provide a doctor’s certificate.

Botswana Maternity Leave

A female employee is to give notice to her employer of her confinement through a written medical certificate that states that the confinement will probably take place within six weeks immediately after the date of the certificate. On receipt of this certificate, the employer has to immediately permit the female employee in question to absent herself from work until her confinement. He is not to permit or require her to return to work until the expiry of six weeks immediately after her confinement. This means that the pregnant employee is entitled to 12 weeks of maternity leave. Within 21 days immediately after her confinement, a female employee is to inform her employer of the date of confinement through a written certificate.

Where a female employee delivers to her employer a written certificate that the employee is suffering from an illness arising out of her confinement and is consequently unfit to return to work, the employer will not permit or require her to return to work until the expiry of eight weeks immediately after her confinement.

The maternity leave can be extended further by six weeks where the employee is suffering from an illness arising out of her confinement and is consequently unfit to return to work.

Botswana Severance Laws

Termination Process

Unskilled employees may serve a probationary period of up to three months and skilled employees for 12 months. Termination of an employee during the probationary period does not require a reason. The probationary terms must be provided to the employee in writing before employment begins.

Both the employee and the employer may terminate the employment contract. Minimum notice, equivalent to the wage period, must be given or pay in lieu unless the employee was guilty of serious misconduct, no notice is needed.

Managers, administrators, executives, and professional staff are generally entitled to severance after serving 60 months of continuous employment. The payment is equal to the rate of one day’s basic pay for each month served during the first 60 months and two days for each additional month served. Employees who receive a gratuity or pension at the end of employment are not entitled to the severance benefit.

Botswana Tax

There are no payroll or social security taxes in Botswana.

Taxable Income (BWP) / Tax Rate %

• BWP 0 – 72,000 BWP 5% 
• BWP 72,000 – 108,000 BWP 12.50% over BWP72,000
• BWP 108,000 – 144,000 BWP 1,500 + 18.75% over BWP108,000
• Above BWP 144,000 BWP 25.00% over BWP144,000

Botswana Income Tax Rates for Nonresident Individuals

• BWP 0 – 72,000 BWP 5% 
• BWP 72,000 – 108,000 BWP 12.50% over BWP72,000
• BWP 108,000 – 144,000 BWP 1,500 + 18.75% over BWP108,000
• Above BWP 144,000 BWP 25.00% over BWP144,000

Health Insurance Benefits in Botswana

Botswana Holidays

• New Year’s Day
• Good Friday
• Easter Monday
• Labour Day
• President’s Day
• Day Following President’s Day
• Botswana Day
• Christmas Day

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.