Countrypedia · Africa

Hiring in Botswana

A practical guide to employing staff in Botswana — reflecting the new Employment and Labour Relations Act 2025, in force from 1 July 2026.

Currency
Botswana pula (BWP)
Payroll cycle
Monthly
Social security
No statutory scheme
Top PAYE rate
25%
Annual leave
15 working days
Tax year
1 July – 30 June
Language
English, Setswana
Truerix presence
Own entity (NGIS Botswana)

The new Employment and Labour Relations Act

The Employment and Labour Relations Act 2025 took effect on 1 July 2026. It replaces the Employment Act, the Trade Unions and Employers’ Organisations Act and the Trade Disputes Act with a single law, and creates a new Mediation and Arbitration Commission in place of the district labour offices and the Industrial Court.

  • Written contracts are now required for all employees, including domestic, farm and construction workers.
  • Late payment of wages can lead to a fine of up to P10,000 or 12 months’ imprisonment.
  • Workers under the employer’s control and dependency are presumed to be employees, even if labelled contractors.
  • Discrimination (including on health status, pregnancy and disability) and sexual harassment are expressly prohibited; employers need complaint procedures.

Contracts and probation

Fixed-term contractsLimited to 12 months unless objectively justified; fixed-term staff must be treated equally with permanent staff
ProbationUp to 6 months, with feedback and support required before termination
LanguageEnglish

Working hours

Standard hours48 hours a week
Overtime pay1.5 times the normal rate; double on rest days and public holidays

Leave and holidays

Annual leave15 working days a year
Sick leavePaid sick leave with a medical certificate
Hospitalisation leave20 days, separate from sick leave (new)
Maternity14 weeks at 70% of salary (new — previously 12 weeks)
Paternity5 days (new)
Public holidaysAround 15 days a year

Notice and termination

Dismissals must be for a fair reason and follow a fair disciplinary process, with reasons documented. Retrenchments require consultation and a negotiated package.

Notice (previous Act, pending detailed regulations)2 weeks (2–5 years’ service), 1 month (5–10 years), 6 weeks (over 10 years); pay in lieu allowed
Severance (previous Act)After 5 years: 1 day’s basic pay per month of service for the first 60 months, 2 days per month thereafter — not payable where a pension or gratuity applies

Truerix confirms notice and severance terms against the new Act and its regulations for each hire.

Payroll and employer costs

Employers deduct PAYE monthly and pay it to the Botswana Unified Revenue Service (BURS) by the 15th of the following month. There are no statutory social security contributions; pension and medical schemes are provided by contract.

Up to P48,0000%
P48,001 – P84,0005%
P84,001 – P120,00012.5%
P120,001 – P156,00018.75%
Above P156,00025%

Annual resident individual rates; non-residents are taxed from the first pula.

Benefits and practice

  • A 13th cheque is not mandatory.
  • Gratuity at the end of a fixed-term contract is common market practice.
  • Foreign nationals need a work permit and residence permit before starting work.

Hire in Botswana with Truerix

Truerix employs your Botswana staff through our own local entity — written contracts under the new Act, PAYE filings, work permits and payroll handled for you.

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Last reviewed: October 2026. This guide is general information, not legal or tax advice. Rates and thresholds change regularly; Truerix confirms the current position before every hire.
Sources: Daily News – Employment Act comes into effect July 1 · Andersen Botswana – Key employment legislative highlights 2025 · ILO – Botswana landmark labour reform · WageIndicator – Notice and severance (previous Act) · BURS – Botswana Unified Revenue Service