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Overview
Botswana Pula (BWP)
CURRENCY
Gaborone
CAPITAL
weekly
PAYROLL FRECUENCY
8
PUBLIC HOLIDAYS
0 to 0
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Botswana
Employer
In Botswana, the employer is not required to make social security contributions.
Employee
In Botswana, the employee is not required to make social security contributions.
- 0%
Total Employee Cost
Employee Income Tax in Botswana
Worker Income Tax
0%
Up to BWP 48000
5%
BWP 48000 - BWP 84000
12.5%
BWP 84,000 - BWP 120,000
18.75%
BWP 120,000 - BWP 156,000
25%
BWP 156000 and above
Payroll Contributions in Botswana
Payroll Cycle
With payroll services, you will comply with the cycle, which can be weekly, biweekly, or monthly.
13th Salary
In this case, the laws of the country do not require payment of the 13th month. However, employers can pay this bonus at their discretion and establish them in the employment contract.
Employee Benefit in Botswana
Visa and work permit in Botswana
A foreigner will need to obtain a valid entry visa unless they are from one of the British Commonwealth countries. In this case, although the citizens of Bangladesh, Ghana, India, Nigeria, Pakistan, and Sri Lanka belong to the region, they do need such a visa. Also, Citizens of countries with which Botswana has signed visa abolition agreements do not need to apply for a visa.
Likewise, foreign citizens can visit the country with a tourist or visitor visa, subject to compliance with immigration rules. Thus, the said citizens can stay in Botswana for 90 days in 12 months. However, they can request an extension of the said period from the Head of Immigration.
Moreover, regular visas allow a foreigner to enter the country on several occasions. Also, the period of approval and delivery of the visa from the application is about 21 days. Also, the Employer of record in Botswana can do it for you.
In this case, the worker must apply for a work permit, which can be valid for up to 5 years. Besides, these permits are renewable as long as the worker continues to be employed by a company.
In the same way, an employee will be able to change employers while they have a valid permit, which will be canceled and they will have to apply again. In this case, the services of a professional employment organization are also useful, to obtain the permit in about 10-12 weeks.
On the other hand, a foreign citizen can work independently in the country with a work and residence permit for investors. However, there is no minimum capital investment to opt for these permits. In addition, those who have work permits will be able to carry out any activity not reserved for citizens of Botswana.
VAT in Botswana
The VAT rate in Botswana is 12% and applies to all supplies that do not qualify for an exemption or have no zero rates.
Working Hours in Botswana
General
The work week for African employees cannot be longer than 48 hours. In this case, employees who work 5 days a week cannot work more than 9 hours a day. In contrast, for a 6-day work week, an employee must not work more than 8 hours per day.
Working Week
From Monday to Friday.
Employee Termination in Botswana
Termination Process
Employers who decide to terminate the contract of a worker must provide it in writing. However, the employer does not need to provide the reasons if the dismissal is for poor performance or misconduct. Likewise, this occurs while the worker is under the trial period in the company.
In addition, redundancy dismissals are governed by special rules in the country. In cases of termination, the employer must allow the employee to present their arguments against the dismissal.
Notice Period
The employer must provide a period of notice or payment in lieu, corresponding to the employee's pay period. However, employees found to have engaged in serious misconduct do not receive a notice period. Generally, the notice period consists of the following:
- 2 to 5 years of service, notice is 2 weeks.
- 5 to 10 years of service, notice is 1 month.
- More than 10 years of service, notice is 6 weeks.
Severance Pay
Pay severance pay with an Employer of Record in Botswana. In this case, the following employees receive severance pay after 60 months of continuous work:
- Managers.
- Administrators.
- Executives.
- Professional staff.
In this case, the payment consists of 1 day of salary for each month of service during the first 60. The employee will then be paid 2 days of salary for each additional month after the first 60.
On the other hand, if an employee receives a bonus or pension at the end of their service, they are not entitled to severance pay.
Probation Period
In Botswana, you will be able to manage the probation period of your employees with PEO services which are 3 months for unskilled employees. On the other hand, the probationary period for qualified employees may not exceed 12 months.
Employee Leaves in Botswana
Paid Time Offs
Through the Employer of record in Botswana, you will be able to pay the annual leave of the employees, which is 1.25 days per month of work. That is, an employee could receive 15 days of paid vacation in a year. However, annual vacation does not increase with the years of service of the employees.
In addition, at the beginning of each new year, the employer must establish the terms, conditions, and amount of vacation paid in advance. In addition, if the employer terminates the employment contract, he must pay the employee for unused vacations. Similarly, the employee is entitled to receive full payment on festivals, and religious and public holidays.
Public Holidays
There are 8 national holidays throughout the year.
Vacation Holidays
There are 15 vacation holidays throughout the year.
Sick Days
Pay for the 20 days of sick leave an employee is entitled to receive through the Employer of Record in Botswana. However, the employee must provide a medical certificate to receive this leave.
Paternity Leave
Labor laws do not provide for paternity leave.
Paternal Leave
As with the previous case, there is no established parental leave.
Other Leave
There are no other licenses in Botswana.
Maternity Leave in Botswana
EOR services can manage this leave, which is 12 weeks paid at half the employee's salary. In addition, the employee must take 6 weeks before the expected delivery date and 6 weeks after that. Likewise, the employer can extend said leave in case of illnesses related to pregnancy.
There are 84 leave throughout the year.