Swaziland Employer of Record & Payroll
Africa Deployments Swaziland offers our clients Employer of Record (EOR) services covering all of the regions within. We offer full-time employment or fixed terms contracts based on your requirements in Swaziland for locals or expatriates. ADS will take care of the work permit under our umbrella and will issue local work contracts to your contractors. We will also advise our client’s on best Human Resource (HR) practices when setting up the employee’s locally in Swaziland.
ADS takes care of the local tax & PAYE remittances to the Revenue Services on a monthly basis ensuring that they are fully compliant with the law. We will also ensure that their salaries are paid on time monthly and issue them with their pay slips.
Eswatini, officially the Kingdom of Eswatini and formerly named Swaziland, is a hilly landlocked country in Southern Africa, bordered completely by South Africa other than in the northeast where it borders Mozambique.
Eswatini is Africa’s last absolute monarchy [giving the head of state supreme authority] – and one of the few remaining in the world.
By tradition, the king reigns along with his mother who is known as the Indlovukazi (She-elephant) while the King is referred to as Ingwenyama (Lion)
King Mswati III, the current reigning monarch, is the world’s youngest crowned monarch [on the throne at just 18] – and his father King Sobhuza II is the longest reigning monarch in world history [reigned from 1899 to 1982 and spent 82 years and 253 days on the throne].
Eswatini is rich in wildlife and home to the big five: lion, leopard, rhino, elephant and buffalo, even including both black and white rhinos, and Hlane Royal National Park houses Africa’s largest population of nesting vultures.
Geographically Eswatini claims the world’s second largest monolith (single piece of rock) Sibebe Rock on the outskirts of Mbabane, and the world’s oldest iron-ore mine, Ngwenya Mine in the north.
Eswatini has 2 capital cities: Mbabane (Executive), and Lobamba (Legislative).
What is the main language spoken in Swaziland:
In Swaziland, the 2 official spoken and written languages are Swazi or Swati, and English.
Accordingly, proceedings of the Parliament of Eswatini take place in both languages.
What type of employment contracts can you offer in Swaziland:
- 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 3 months [standard / maximum]
- The probation period may be increased if the work is confidential or technical work
WHAT INCOME IS TAXABLE IN Swaziland:
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 Swaziland:
Any amount of cash paid by an employer to an employee as an allowance is taxable in the hands of the employee. It forms part of what the employee is paid for the services being rendered to the employer.
Income tax is levied on all income derived from sources generated within or deemed to be generated within the country, irrespective of whether the recipient of the income is actually resident in Eswatini.
Standard working hours: Number Overtime to be paid?
- The basic week shall consist of seventy-two hours spread over a period of six days.
- Employees can work overtime, but they must consent to perform the extra hours.
- All employees working overtime must get paid at least one and a half times their normal wage rate.
- An employee who works on his or her rest day shall be paid double the hours he or she has worked.
Mandatory contributions?
Employee
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
ENPF Employee |
E175.00 |
E3,500.00 |
|
Graded Tax |
Variable |
- |
|
Pay As You Earn (PAYE) |
Variable |
- |
Employer
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
ENPF Employer |
E175.00 |
E3,500.00 |
What is the Maternity and Paternity policy within Swaziland:
Maternal leave:
- Entitled to 12 weeks full pay after a continuous one year service.
Paternal leave:
- There is no statutory paternity leave in Swaziland
What type of leave is allowed in Swaziland:
Annual leave
- 12 days, full per year
Sick Leave
- After three months of employment, employees are eligible for 14 days of 100% paid sick leave and 14 days of 50% paid sick leave at the employee’s base wage rate.
Do I need to pay a mandatory bonus annually OR is it discretionary in Swaziland:
Employers are not required to provide bonuses in Swaziland.
What Gratuity / Severance payments do you need to provide for Swaziland:
- Except as noted in the labor laws, a terminated employee is eligible for severance pay of 10 working day’s wages for each completed year of service after the first year.
- Except as noted in the labor laws, a terminated employee is eligible for severance pay.
- Severance pay is calculated as 10 working days’ wages for each completed year of service after the first year.
CAN YOU GIVE FRINGE BENEFITS IN Swaziland:
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 Swaziland
- Probationary periods of up to three months are permitted.
- After the probationary period and one month of employment: one week’s notice.
- For three to 12 months of employment: two days’ notice for each completed month of continuous employment.
- For more than 12 months of employment: one month’s notice plus four days for each completed year.
Is 13th month pay (Bonus) mandatory?
Not mandatory, applicable as per contract.
What are the Corporate and VAT / Sales tax rates in Swaziland:
Corporate Tax Rates: 27.5% – 30% [in general]
VAT / Sales Tax Rates: 15% [on most goods and services]
Public Holidays in Swaziland:
- January 1 - New Year's Day
- January 2 - New Year's Day
- April 07 - Good Friday
- April 10 - Easter Monday
- April 19 - King's Birthday
- April 25 - Flag Day
- May 01 - Labour Day
- May 18 - Ascension Day
- July 22 - Birthday of Late King Sobhuza
- July 24 - Birthday of Late King Sobhuza
- September 04 - Umhlanga reed dance
- September 06 - Somhlolo Day
- December 25 - Christmas Day
- December 26 - Day of Goodwill
- December 28 - Incwala Day
What Industries we support in Swaziland:
- Non-Governmental Organization’s (NGO) / Non- profit
- Engineering & Construction
- Government / Development Agencies
- Oil & Gas
- FMCG & Manufacturing
- Private Equality, Finance, Insurance & Banking
- Mining
- Agriculture
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.
