Botswana Employer of Record & Payroll
What is the main language spoken in Botswana:
In Botswana the official languages are English and Tswana.
English is used for official business and most written communication, whilst Tswana is the country’s national language, spoken by most of the population.
The number of individual living languages listed for Botswana is ±31; 26 being indigenous and 5 being non-indigenous.
What type of employment contracts can you offer in Botswana:
- Fixed Term
- Indefinite term
- Be in writing
- Be in the official local language and the local currency
- Include salary/compensation, benefits and termination requirements
- Have specific working terms and conditions
- Can be eligible for organizational perks and/or other benefits
- Tend to be more focused [as only one employer] and familiar with the specific business – due to e.g. ongoing company training etc.
- Probationary period is 12 months [maximum]; probationary terms to be provided in writing to the employee ahead of employment.
WHAT INCOME IS TAXABLE IN Botswana:
Any individual who works and lives in Botswana for more the 183 days a year will be subject to local taxes in Botswana. They maintain a permanent home in Botswana. The tax years from effectively from 1 August to 30 September the following year. They may not be present for more than 122 days in the tax year and the two preceding tax years after that.
Any income earned in the form of cash, wages, salary, overtime, leave pay or payment in lieu of leave, commissions, gratuity, bonus, or any amount that has benefited the employee. All income will be taxed in accordance with the law and the final payroll issued monthly.
What income is exempt from taxes in Botswana:
Exempt income/earnings include: The value of contractual travel benefits for employees and their families. Medical fund contributions and medical attention paid for by the employer. One third of contractual terminal gratuities payable to expatriate employees.
Standard working hours: Number Overtime to be paid?
In Botswana, the standard workweek is 45 hours. Overtime is any time worked beyond this, and employees must be paid at least 1.5 times their regular hourly rate for these extra hours. It’s important for employers and employees to understand the rules around overtime pay to ensure fair treatment in the workplace.
Mandatory contributions?
Employee
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Social Security Fund (CNaPS) |
2% |
P500 |
|
National Health Insurance Fund (CNAM) |
1% |
None |
|
National Pension Fund (CNAPS) |
1% |
P1,000 |
Employer
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Social Security (CNaPS) |
3% |
P500 |
|
National Health Insurance (CNAM) |
1% |
None |
|
National Employment and Vocational Training Fund (FNEF) |
1% |
P1,000 |
Social
| Contribution Type | Employers | Employees |
|---|---|---|
|
Social Security (CNaPS) |
3% |
2% |
|
National Health Insurance (CNAM) |
1% |
1% |
|
National Employment and Vocational Training Fund (FNEF) |
1% |
1% |
What is the Maternity and Paternity policy within Botswana:
- In most cases:
- Paid at minimum 50% of basic pay for employees [usually part employer part insurance]
- Doctor’s certificate required
- 12 weeks [minimum of 6 weeks to be post birth]
- There is no statutory paternity leave in Botswana
What type of leave is allowed in Botswana:
- 15 days paid leave annually
- 20 days per year
Do I need to pay a mandatory bonus annually OR is it discretionary in Botswana:
In Botswana there is no statutory requirement to pay the 13th or 14th month salary/bonus. Bonuses are generally at the employer’s discretion, and agreed within the employment contract.
What Gratuity / Severance payments do you need to provide for Botswana:
- Gratuity or severance payments are not mandatory for all employees in Botswana. They are typically required for permanent employees who have been terminated or retrenched.
- The amount of the gratuity or severance payment will depend on various factors such as the length of employment, reason for termination, and the terms of the employment contract.
- However, the minimum amount of gratuity or severance payment required under the law is:
- One month’s salary for each completed year of service if the employee has been employed for less than 10 years.
- Two months’ salary for each completed year of service if the employee has been employed for 10 years or more.
- Employers are also required to provide notice of termination to their employees, which varies depending on the employee’s length of service:
- Less than 2 years: 1 week’s notice
- 2-5 years: 2 weeks’ notice
- 5-10 years: 4 weeks’ notice
- More than 10 years: 3 months’ notice
CAN YOU GIVE FRINGE BENEFITS IN Botswana:
Yes you can but keep in mind that Fringe Benefits will be subject to employee PAYE tax. Only benefits that cannot be converted to cash will not be subject to tax. If the employer covers some of the employees’ expenses i.e. mobile phone then it must be subject to PAYE tax and either the employer will cover this portion for the employee or the employee will bear the PAYE tax.
Mandatory Probation period of Botswana:
Botswana labor laws do not require a mandatory probation period.
What are the Corporate and VAT / Sales tax rates in Botswana:
Corporate Tax Rates: 22% [in general]
VAT / Sales Tax Rates: 14% [on most goods and services]
Public Holidays in Botswana:
- January 1 - New Year's Day
- January 2 - Public Holiday
- January 3 - New Year's Day
- April 07 - Good Friday
- April 10 - Easter Monday
- May 1 - Labour Day
- May 18 - Ascension
- July 17 - President's Day
- July 18 - President's Day
- September 30 - Botswana Day
- October 01 - Botswana Day
- October 02 - Botswana Day
- December 25 - Christmas Day
- December 26 - Boxing Day
What Industries we support in Botswana:
- Non-Governmental Organization’s (NGO) / Non- profit
- Engineering & Construction
- Government / Development Agencies
- Oil & Gas
- FMCG & Manufacturing
- Private Equality, Finance, Insurance & Banking
- Mining
- Agriculture
What Double Tax Treaties are in place in Botswana:
The information provided above is for an “informative decision” and may change at any given time without prior notice. We always suggest speaking to one of our Sales Consultants before engaging in country.
