Employer of Record in Botswana

An Employer of Record, or EOR, is a company that legally hires and pays employees on your behalf in another country. If you want to hire someone in Botswana but don't have a legal entity there, an EOR makes it possible. The EOR handles all the local HR tasks like payroll, taxes, benefits, and compliance with Botswana's labor laws. This means your new team member is officially employed by the EOR, but they work for you and your business. For companies looking to hire talent in Botswana, an EOR provider like Rivermate can simplify the process.

How an Employer of Record (EOR) Works in Botswana

Using an EOR in Botswana simplifies hiring and managing employees. You find the talent, and the EOR handles the legal and administrative side of employment.

Here is how it typically works:

• You Select Your Candidate: You recruit and choose the person you want to hire in Botswana.
• The EOR Hires Them: The EOR legally hires the employee on your behalf. They become the official, registered employer in Botswana.
• Contracts and Onboarding: The EOR prepares a compliant employment contract that follows Botswana's labor laws. They manage all the onboarding paperwork, making sure your new hire is registered correctly.
• Payroll and Taxes: The EOR manages all payroll duties. This includes calculating salary, withholding the correct taxes, and making social security contributions as required by Botswana law.
• Benefits Administration: They can provide your employees with competitive benefits packages, often at better rates than you could get on your own.
• Compliance: The EOR stays on top of Botswana's employment regulations, so you don't have to. They handle HR and legal responsibilities, reducing your risk.
• Ongoing HR Support: The EOR provides a local point of contact for your employee to answer questions about their employment, pay, or benefits.

Why use an Employer of Record in Botswana

Using an EOR in Botswana is a practical solution for businesses that want to grow their teams without the major step of setting up a local company. It allows you to enter the market quickly and efficiently, giving you the freedom to focus on your business goals instead of getting stuck on administrative hurdles. An EOR takes on the legal responsibility of employment, which significantly lowers your risk and ensures you follow local laws from day one.

Here are some key reasons to use an EOR:

• Hire Without a Local Entity: You can build a team in Botswana without the time and expense of establishing a legal entity in the country.
• Faster Market Entry: You can onboard new employees in a matter of days or weeks, instead of the months it can take to set up a company.
• Ensure Legal Compliance: EORs have expert knowledge of Botswana's labor laws, helping you avoid mistakes with contracts, taxes, and termination procedures.
• Save Money: Using an EOR is often more affordable than the costs associated with setting up and maintaining a foreign subsidiary.
• Focus on Your Business: By letting an EOR handle HR administration, you can concentrate on managing your employee's day-to-day work and growing your business.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Botswana includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Botswana.

Hiring in Botswana requires understanding its unique employment landscape. The country's labor laws are designed to protect employees, so it's important to get the details right. This guide will walk you through the key aspects of hiring in Botswana, from contracts to contractors.

Employment contracts & must-have clauses

While oral employment agreements can be valid, a written contract is always the best approach for clarity and legal protection. The Employment Act is the primary law governing employment relationships in Botswana.

Here are the essential clauses to include in your employment contracts:

• Parties to the contract: Full names of the employer and employee.
• Job details: A clear job title and description of duties.
• Start date: The official commencement date of employment.
• Place of work: The primary location where the employee will be based.
• Working hours: The expected hours of work.
• Remuneration: Details on the wage, payment frequency, and method of payment.
• Leave entitlements: Information on annual and sick leave.
• Termination: The required notice period for termination by either party.

Probation periods

Probation periods in Botswana allow you to assess a new employee's suitability. The maximum duration depends on the employee's skill level.

During probation, either you or the employee can terminate the contract with a 14-day notice. A reason for termination is not legally required during this period.

Working hours & overtime

Standard working hours in Botswana are capped at 48 hours per week.

• 5-day workweek: A maximum of 9 hours per day.
• 6-day workweek: A maximum of 8 hours per day.

Any work beyond these hours is considered overtime and must be compensated at a higher rate. Overtime is limited to 14 hours per week.

Public & regional holidays

Employees are entitled to paid leave on public holidays. Here is a list of the public holidays in Botswana for 2025:

• January 1: New Year's Day
• January 2: New Year's Holiday
• April 18: Good Friday
• April 21: Easter Monday
• May 1: Labour Day
• May 29: Ascension Day
• July 1: Sir Seretse Khama Day
• July 21: Presidents' Day
• September 30: Botswana Day
• October 1: Botswana Day Holiday
• December 25: Christmas Day
• December 26: Boxing Day

Hiring contractors in Botswana

Hiring independent contractors in Botswana can offer flexibility. Contractors are self-employed professionals who manage their own work, schedules, and taxes. They are not entitled to employee benefits like paid leave or severance pay.

However, misclassifying an employee as an independent contractor can lead to significant legal and financial risks, including back taxes and penalties. The nature of the working relationship is more important than the contract's wording in determining a worker's status.

An Employer of Record (EOR) can help you avoid these risks. An EOR acts as the legal employer for your workers, ensuring compliance with local labor laws. This allows you to hire talent in Botswana without establishing a local entity and mitigates the risks of employee misclassification.

In Botswana, handling compensation and payroll means following the country's specific laws. The main laws to know are the Employment Act, the Income Tax Act, and the Vocational Training Act. You need to register with the Botswana Unified Revenue Service (BURS) within 14 days of hiring your first employee. While there is no national social security, there are other rules you need to follow for things like payslip details and paying wages on time.

Payroll cycles & wage structure

You and your employee agree on the pay period, which is then stated in the employment contract. Most companies run payroll monthly. Salaries are typically paid between the 15th and the end of the month. The average salary is around 7,692 BWP per month. However, this can change based on experience, education, and industry.

Overtime & minimums

The standard work week in Botswana is 48 hours. You can have employees work a maximum of 9 hours a day for a 5-day week or 8 hours a day for a 6-day week. Overtime is capped at 14 hours per week and is paid at 150% of the normal rate. Work on public holidays or rest days is paid at 200%. As of January 1, 2025, the minimum wage is BWP 9.06 per hour for most sectors. For farm workers and domestic workers, the minimum wage is BWP 1,500 per month.

Employer taxes and contributions

While there are no social security contributions, you have other obligations as an employer.

Employee taxes and deductions

You are responsible for withholding Pay As You Earn (PAYE) income tax from your employees' salaries.

In Botswana, providing competitive employee benefits and understanding leave policies is key to attracting and retaining top talent. The country's employment laws establish a clear framework for minimum standards. This ensures fairness and provides a solid foundation for you to build a comprehensive benefits package.

Statutory leave

Botswana's Employment Act outlines the mandatory leave entitlements for all employees.

• Annual Leave: You must provide a minimum of 15 working days of paid annual leave per year. At least 8 of these days must be taken within the first 6 months of the leave cycle.
• Sick Leave: Employees are entitled to a minimum of 20 days of paid sick leave annually. A medical certificate from a registered doctor is required to validate the absence.
• Maternity Leave: Pregnant employees receive 12 weeks of maternity leave. This is typically taken as 6 weeks before the birth and 6 weeks after. The pay during this leave is at least 50% of the employee's basic salary.

Public holidays & regional holidays

There are no regional holidays in Botswana. The nation observes the following public holidays:

Typical supplemental benefits

To stay competitive, you should consider offering benefits that go beyond the legal requirements.

How an EOR can help with setting up benefits

Navigating a new country's employment laws and cultural expectations for benefits can be complex. An Employer of Record (EOR) simplifies this process for you.

An EOR helps you:

• Ensure full compliance with Botswana's labor laws.
• Manage all statutory leave entitlements correctly.
• Offer competitive and culturally appropriate supplemental benefits.
• Handle all benefits administration, saving you time and resources.

By partnering with an EOR, you can confidently provide your team in Botswana with a comprehensive and compliant benefits package from day one.

When an employment relationship in Botswana ends, you need to follow a specific process. You cannot simply dismiss an employee. You must have a valid reason and follow the correct legal procedures. Valid reasons for termination include misconduct, poor performance, or redundancy.

Notice periods

You must provide employees with a written notice of termination. The length of the notice period depends on the employee's contract and how often they get paid. If an employee is paid monthly, they are entitled to one month's notice. For employees paid weekly, the notice period is typically one week. You can choose to pay an employee in lieu of notice. If your employment contract specifies a longer notice period than the legal minimum, the contract's notice period applies.

Severance pay

Employees are entitled to severance pay if they have been continuously employed for at least 60 months. This does not apply if the employee is dismissed for serious misconduct.

Here is how you calculate severance pay:

How Rivermate handles compliant exits

We help you navigate the complexities of employee exits in Botswana. We ensure that every termination is handled in a compliant and respectful manner.

Here’s how we manage the process:

• Documentation: We prepare all necessary termination documents, ensuring they meet Botswana's legal requirements.
• Final Pay Calculation: We accurately calculate the employee's final pay, including any outstanding wages, accrued leave, and severance benefits.
• Compliance Check: We review each termination case to ensure it follows the correct procedures and has a valid reason, minimizing your legal risks.
• Clear Communication: We help you communicate the termination decision to your employee in a clear and professional way.

Getting the right visas and work permits in Botswana is essential for you and your team. The process can be complex, and the rules can seem unclear at times. Officials have the power to add requirements on a case-by-case basis, so it's important to be prepared. For any foreign national to work in Botswana, they need a valid work permit.

Employment visas & sponsorship realities

Botswana's system is set up to prioritize hiring its citizens. This is the most important thing to understand about sponsoring foreign employees. Before you can get a work permit for an international team member, you must prove that you tried to hire a local citizen for the job first.

This means you will need to provide evidence that you advertised the job locally. The job ad must have been circulated for at least 14 days and be no older than six months.

There are a few main types of work authorization:

• Work Permit: This is the standard authorization for long-term employment. It's typically valid for up to two years and can be renewed.
• Temporary Work Permit: For short-term projects, this permit is usually issued for up to six months.
• Exemption Certificate: This is for roles considered critical to the country's interests.

An Employer of Record (EOR) can help you navigate this process, but they face the same rules. An EOR cannot get around the requirement to prioritize local hiring. The most practical way to sponsor a foreign worker is for roles that require skills that are hard to find in Botswana.

To get a work permit, your employee will generally need:

• A valid job offer and employment contract.
• A completed application form.
• Certified copies of their passport, birth certificate, and educational qualifications.
• A medical report and a police clearance certificate.
• A CV and passport-sized photos.

Business travel compliance

For short-term business visits, you don't always need a full work permit. If your employee is coming to Botswana for a short period, there are a couple of options.

A Temporary Work Permit can be issued for assignments up to six months.

Another option is a visitor's visa that includes a certificate of exemption. This allows for work activities for up to three months. It's important to know that this is for temporary work, not a long-term job. If you have a long-term position, you must apply for a proper work permit.