Employment Cost Calculator for Botswana
Calculate your complete hiring costs for Botswana employees, including payroll taxes, social security contributions, employee benefits, and management fees. This salary calculator provides accurate employer cost estimates for informed hiring decisions.
Employer Tax Contributions
| Tax Type | Rate | Base |
|---|---|---|
| PAYE (Pay As You Earn) | Progressive: 0-25% (residents) / 5-25% (non-residents) | Employee's taxable income |
| Training Levy | 0.2% (turnover BWP 250,000 to BWP 2 billion); 0.05% (turnover over BWP 2 billion) | Company's annual turnover (for businesses exceeding BWP 250,000 turnover) |
| Workers' Compensation Insurance | 0.3% - 3% | Annual payroll, based on industry risk |
| Pension Contributions | Typically 10-15% (private sector employer contribution) | Employee's salary |
Filing & Compliance
- Employers must register with the Botswana Unified Revenue Service (BURS) for tax purposes and obtain a Tax Identification Number (TIN).
- Monthly PAYE returns must be submitted to BURS by the 15th of the following month.
- Annual PAYE returns (Form ITW-10) must be filed by July 31st, and ITW-8 certificates issued to employees.
Income Tax Brackets
| Income Range (BWP) | Tax Rate |
|---|---|
| 0 - 48,000 | 0% |
| 48,001 - 84,000 | 5% |
| 84,001 - 120,000 | 12.5% |
| Above 120,000 | 25% |
Employee Contributions
| Deduction Type | Rate | Cap |
|---|---|---|
| Pension Contributions (Public Sector - BPOPF) | 5% | None stated |
| Pension Contributions (Private Sector - voluntary) | 5% (common) | 15% of earned income |
| Workers' Compensation Fund | Varies by industry/employees | None stated |
Personal Allowances
- A tax-free allowance of BWP 48,000 is incorporated into the individual tax table for residents.
- Contributions to an approved retirement benefits scheme are deductible up to a maximum of 15% of earned income.
- Medical aid contributions to a registered scheme are generally tax-deductible.
