Expanding a business into a new country can be daunting, especially when navigating local labor laws and payroll systems. One solution that is gaining popularity among businesses is the Employer of Record service (EOR). An EOR allows companies to hire employees in another country without the need for company registration in Botswana.
This guide will explore how Employer of Record Botswana works and why it’s an ideal choice for businesses looking to expand into this Southern African nation.
Employment Act in Botswana
Understanding Botswana employment laws is vital for compliance. The country has a structured labor system governed by regulations that define employee rights and employer obligations.
Companies must adhere to strict guidelines on working hours, wages, and conditions of employment. A valid employment contract in Botswana should include job responsibilities, salary, perks, work hours, leave entitlements, and termination terms.
Botswana employer of record verifies that contracts comply with local legislation. The following are the key provisions under the Employment Act of Botswana:
1. Minimum Wage in Botswana
In 2025, Botswana’s minimum wage increased to 9.06 BWP per hour, up from 7.34 BWP in 2024. From 2014 to 2025, the minimum salary averaged around 6.51 BWP/hour, peaking in 2025 and dropping to a record low of 4.86 BWP/hour in 2015.
Wages are calculated monthly by multiplying the hourly rate by 4.33, the average number of monthly weeks. The figures are given in Botswana Pula (BWP).
Note: To calculate monthly earnings for hourly workers, multiply the hourly rate (9.06 BWP) by 4.33.
2. Botswana Labour Law Working Hours
The workweek typically runs from Monday to Friday. Full-time employees often work up to 48 hours per week, divided into either 9 hours per day for five days or 8 hours per day for six. A mandatory 1-hour rest period should be provided during the workday.
If the workweek exceeds five days, daily working hours should not exceed 8, maintaining the 48-hour weekly limit. Overtime must be paid at 1.5 times the regular hourly rate—part-time positions average 20 hours per week.
3. Botswana Employment Act Leave Days
As your Employer of Record Botswana, we ensure that your company complies with leave entitlements in accordance with government regulations.
Public Holidays in Botswana
Observed Public holidays paid by the employer are:
• New Year’s Day- January 1
• Eid-Al-Fitr – 31 March
• Good Friday- April 18
• Easter Monday- April 21
• Labor Day- May 1
• Eid-Al-Adha – June 6
• Sir Seretse Khama Day- July 1
• President’s Day- July 21
• Public Holiday – July 22
• Botswana Day- September 30
• Christmas Day- December 25
• Boxing Day- December 26
4. Maternity and paternity leave
Maternity leave in Botswana lasts 12 weeks—4 weeks before and 8 weeks after childbirth—and covers at least 50% of the basic income. However, the Botswana Labour Act does not require male employees to take paternity leave.
5. Annual Leave
According to the Botswana Employment Act, employees have a right to 1.25 paid leave days per month for 15 days yearly.
6. Sick leave
Employees receive 20 days of paid sick leave per year upon receiving a doctor’s letter. Beyond that, payment is optional, and employees may apply for Social Security.
7. Termination and Severance
Termination requires notice equivalent to the employee’s payment period. Employers may choose to pay in lieu of notice. Employees with more than 60 months of service are eligible for severance pay: one day’s salary per month for the first 60 months and two days’ pay per month beyond that. During probation, either party may terminate with 14 days’ notice.
8. Salary Payment Schedule
Employee salaries are usually paid monthly, between the 15th and the last day of the month.
9. Discrimination and Child Labor
The Botswana labor laws strongly ban hiring discrimination based on race, gender, sexual orientation, or health status, fostering fairness throughout the hiring process. Additionally, child labor is prohibited, with the minister granting limited exceptions for jobs deemed appropriate for young people.
Botswana Tax Rates
The Botswana tax system operates geographically; hence, income is taxed in Botswana if the source is within Botswana. Income for services outside Botswana is assumed to be from a Botswana source if the services relate to employment in Botswana.
Botswana’s tax laws are progressive. The standard tax rate varies from 0-25% for resident taxpayers and 5-25% for non-resident taxpayers based on the salary brackets. The Botswana corporate tax rate is 22% for local and foreign companies. Employer pension contributions must not exceed 15% of total remuneration.
Resident PAYE Tax Table Botswana
| Income Range (BWP) | Base Tax Amount (BWP) | Tax Rate on excess (%) |
| 0 – 48,000 | 0 | 0% |
| 48,001 – 84,000 | 0 | 5% |
| 84,001 – 120,000 | 1,800 | 12.5% |
| 120,001 – 156,000 | 6,300 | 18.75% |
| 156,001 and above | 13,050 | 25% |
Non-Resident PAYE Tax Table Botswana
| Income Range (BWP) | Base Tax Amount (BWP) | Tax Rate on excess (%) |
| 0 – 84000 | 0 | 5% |
| 84,000 – 120,000 | 4,200 | 12.5% |
| 120,000 – 156,000 | 8,700 | 18.75% |
| 156,000 and above | 15,450 | 25% |
Botswana Health Insurance and Other Benefits
Under the Workers’ Compensation Act, employers must provide health insurance and may also offer supplementary benefits such as pension and life insurance. Public pensions are funded from national tax revenues, whereas workers’ compensation is covered by employer insurance.
Industries Benefiting from Botswana Employer of Record
Several industries in Botswana stand to benefit from EOR services, including:
• Mining and Natural Resources
As one of Botswana’s largest industries, mining companies often rely on EORs to streamline their hiring process.
• Tourism and Hospitality
The booming tourism sector can benefit from EOR services to manage seasonal and part-time workers.
• Technology and Telecommunications
Fast-growing sectors like tech benefit from EOR services’ flexibility in hiring remote and local talent.
Services Offered Under Afrisetup Employer of Record Botswana
Our EOR service includes:
1. Recruitment and Onboarding Support
We facilitate the entire hiring process—from talent acquisition to onboarding—ensuring that all employment procedures align with Botswana’s labor laws. This includes verifying employee eligibility, preparing employment contracts, and collecting required documentation.
2. Payroll Management
We handle all aspects of payroll, including salary calculations, deductions, and statutory contribution remittance. Our service ensures your employees are paid accurately and on time while complying with Botswana’s payroll regulations.
3. Tax Management and Compliance
Our team oversees all tax obligations, such as preparing and filing tax returns, submitting taxes to the relevant authorities, and ensuring complete adherence to Botswana’s tax laws and updates.
4. Administration of Employee Benefits
We manage statutory and optional employee benefits, including medical insurance, pension schemes, and other legally mandated or company-provided benefits, ensuring proper administration and compliance.
5. Legal and Regulatory Compliance
Our team ensures full compliance with Botswana’s labor regulations, including support for immigration and work permits, adherence to workplace safety standards, and proper drafting of employment contracts.
Benefits of Using our Botswana Employer of Record
Utilizing our Employer of Record Botswana provides several advantages, including:
1. Faster Market Entry
Eliminate the need to set up a local entity, allowing you to hire employees quickly.
2. Legal Compliance
Ensure that your business complies with all local labor laws and tax regulations.
3. Reduced Administrative Burden
Allow us to manage payroll, taxes, and benefits, so you can focus on growing your business.
4. Streamlining Market Entry
We simplify the market entry process by handling employment, compliance, and local regulations, allowing companies to focus on their core business activities.
5. Mitigating Risks
Using our EOR reduces the risks associated with non-compliance, legal issues, and unfamiliar labor practices in a new market.
6. Managing Local Employment
We ensure that all local employment requirements are met, from contract negotiations to employee benefits and tax filings.
FAQs
Yes, an EOR can manage both short-term and long-term contracts, depending on your business needs.
According to Section 25(3) of Botswana’s labour law, if workers are laid off due to downsizing, employers should prioritize re-hiring individuals impacted when looking for new employees in the same roles unless more than six months have passed since termination.
Severance pay in Botswana is based on years of service. The pay rate for the first five years is one day’s pay for every month worked. After five years, it will increase to two days per month. For example, three years of service at a monthly income of 4,000 BWP equates to three days of monthly pay.
Section 27 of Botswana’s Employment Act outlines when severance benefits apply, how they are calculated, and when they must be paid upon contract termination, hence ensuring fair compensation for those leaving the company.
Section 42(1) clearly states that Section 41 does not apply to contracts terminated under probation, implying that such dismissals may be subject to alternative regulations.
The Employment Act, Cap 47:01, governs labor relations in Botswana. It establishes worker rights, employer obligations, contract rules, dispute resolution methods, and penalties for noncompliance, providing the legal foundation for workplace standards.
Gratuity = the last salary multiplied by 15/26, followed by years of service, resulting in 15 days’ pay per year based on an average of 26 working days each month.
Conclusion
Using Employer of Record Botswana is an effective way to expand your business into the country without the need to set up a local entity. Botswana Employer of Record services simplify hiring, ensure legal compliance, and reduce administrative overhead. Whether in the mining sector or the booming tech industry, an EOR can be a crucial partner in your expansion journey. Contact us to get started!
