What changed in Botswana labor law in 2026?

The Employment and Labour Relations Act 2025 came into force on 1 September 2026. It replaces the Employment Act, the Trade Disputes Act, and the Trade Unions and Employers' Organisations Act. It also extends maternity leave to 14 weeks and introduces paid paternity leave, so update contracts and leave policies written under the old rules.

Do employers pay social security in Botswana?

No. Botswana has no statutory social security contributions for employers or employees. Payroll cost is mainly gross salary plus any benefits you offer. Income tax is withheld through PAYE at rates from 0% to 25%, and the tax year runs from 1 July to 30 June.

How does Good Balance Global hire employees in Botswana?

As your Employer of Record (EOR), we hire the employee locally under the new Act, run payroll in pula, and withhold PAYE for the Botswana Unified Revenue Service. You keep control of the work. We handle contracts, leave tracking, and termination steps.

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Payroll and benefits guide

Botswana

CapitalGaborone

Fiscal Year1 July - 30 June

Date Formatdd/mm/yyyy

CurrencyBWP (Botswanan Pula)

Payroll FrequencyMonthly

Employer Taxes0%

Employee Costs0%

Overview

Languages: English, Setswana
Income tax: 0% – 25%
VAT: 14%; Exempt and zero-rated supplies apply

Contributions

Employer

Social securityBotswana has no statutory social security contributions

Total employer cost

Employee

Social securityIncome tax is withheld through PAYE

Total employee cost

Authority Payments

Authority PaymentPaid ToDue DateMethod

Authority Payment

Botswana Unified Revenue Service (BURS)

Paid To

PAYE withheld from salaries

Due Date

By the 15th of the month after the deduction

Method

Monthly return and payment; late payment accrues interest at 2% per month

Minimum Wage & Working Hours

Minimum wage: Varies by sector / Hourly; Sector rates set by the Regulation of Minimum Wages Order (S.I. 7 of 2024), effective 1 February 2024

Leave

Maternity leave14 weeksExtended from 12 weeks under the Employment and Labour Relations Act 2025; government officials describe pay at 70% of salary
Paternity leaveAt least 5 daysPaid; further unpaid leave at the employer's discretion
Sick leave20 days of hospitalization leaveIntroduced by the Employment and Labour Relations Act 2025

Leave type	Duration	Notes
Maternity leave	14 weeks	Extended from 12 weeks under the Employment and Labour Relations Act 2025; government officials describe pay at 70% of salary
Paternity leave	At least 5 days	Paid; further unpaid leave at the employer's discretion
Sick leave	20 days of hospitalization leave	Introduced by the Employment and Labour Relations Act 2025

Termination

Probation period: Up to 6 months, extendable only in limited cases. Ending employment during probation requires telling the employee about their shortcomings and offering support to improve.

Visas & Work Permits

Work permit
Requirements
Employment contract, offer letter, job advert no older than 6 months, CV, and certified qualifications; some professions need prior clearance from their regulator
Filed at a Labour Office, with a listed processing time of 14 working days. Renewals are due 6 months before expiry, and a separate residence permit is also required.
Emergency work permit
Duration
Up to 3 months
For urgent short-term work

FAQ

Sources

Last updated: November 1, 2026

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