Capital: Gaborone

Currency: Botswana Pula (P)

Population: (2023 est.) 2,379,000

Official languages: English

Botswana, country in the center of Southern Africa. The territory is roughly triangular approximately 600 miles (965 km) from north to south and 600 miles from east to west with its eastern side protruding into a sharp point. Its eastern and southern borders are marked by river courses and an old wagon road; its western borders are lines of longitude and latitude through the Kalahari, and its northern borders combine straight lines with a river course.

The public holidays in Botswana are as follows;

Date  &   Holiday

  • 1 Jan –  New Year’s Day
  • 2 Jan –  New Year Holiday
  • 3 Jan – New Year Holiday
  • 7 Apr – Good Friday
  • 8 Apr – Easter Saturday
  • 10 Apr – Easter Monday
  • 1 May – Labour Day
  • 18 May – Ascension Day
  • 1 Jul – Sir Seretse Khama Day
  • 17 Jul – President’s Day
  • 18 Jul – President’s Day Holiday
  • 30 Sep – Botswana Day
  • 2 Oct – Botswana Day Holiday
  • 25 Dec – Christmas Day
  • 26 Dec Boxing Day

Unskilled employees may serve a probationary period of up to three months and skilled employees for 12 months.

Employees are generally entitled to 15 days of paid leave per year, 8 days of which must be taken within 6 months. The remaining days must be taken within 3 years

Female employees are generally entitled to 12 weeks of maternity leave and can take six weeks before the birth and six after. You’ll need a doctor’s certificate to take this leave, and employees should get at least 50% of their basic pay while on maternity leave.

There is no statutory paternity leave.

Employees are generally entitled to 20 days of paid sick leave per year and must provide a doctor’s certificate.

Managers, administrators, executives, and professional staff are generally entitled to severance after serving 60 months of continuous employment. The payment is equal to the rate of one day’s basic pay for each month served during the first 60 months and two days for each additional month served. Employees who receive a gratuity or pension at the end of employment are not entitled to the severance benefit.

Accurately estimate your costs when employing in Botswana in 2023. Includes base salary, dependents, benefits, taxes, social contributions, and payroll costs. Monthly or yearly calculation period.

13th / 14th Month Salary: There is no statutory requirement to pay the 13th or 14th month. Employers have the discretion to have such bonuses and they are generally agreed in employment contract.

Botswana has one work visa, also known as a work permit, for all foreign employees working in the country under the Employment of the Non-Citizens Act. Employers cannot engage an employee unless they hold a valid Botswana work permit or a certificate of exemption. The Immigration Board reviews all permits, then issues an appropriate validity period.

Requirements to Obtain Botswana Work Visas

While the Botswana government recognizes the importance of foreign talent, the application process includes numerous requirements and ambiguities that often weigh down employers and applicants. As an employer, you must show:

  • Proof that you tried to recruit Botswana citizens first
  • Proof of a job advert that listed candidate requirements, contact details, a minimum advertising period, and an exclusive period during which only Botswana citizens could apply
  • Proof that the advert circulated for at least 14 days and those applications were open only to Botswana citizens during that period
  • Proof that the advert is no older than six months

Employees have their own separate requirements, including:

  • A valid job offer reflected in an employment contract or appointment letter
  • A work application
  • A CV
  • Certified copies of key certificates, including birth, marriage, and educational certificates, all translated into English
  • A medical report
  • Certified copies of a valid passport
  • Four passport-size photos
  • An applicable labor form

It takes about 30 working days from the first submission of the application to receipt of a Botswana work permit

The application process for a work visa in Algeria depends on how a person applies. For example, your employees can submit the documents in person at an Algerian consulate or embassy, mail them, use a proxy with a notarized letter of authorization, or work with an authorized visa application agency.

If they’re applying in person, the applicant must make an appointment with the embassy or consulate in their country of residence. Then, they’ll complete the application form, gather the necessary documents, and submit everything in person at the appointment. This process may include questions about the purpose of the trip or an individual’s job or salary. Afterward, pay the visa fee and wait for the application to be processed.

Once your new employees enter Algeria, they should apply for a work and residence permit, which will authorize them to work for your company in Algeria. Some of the requirements to obtain a work permit include:

  • A valid travel document
  • A completed application form
  • Two passport photos
  • Temporary work authorization (APT)
  • An educational certificate
  • A resume/CV
  • A passport that’s valid for at least six months
  • A residence permit application form
  • A medical certificate
  • An employer letter

Unskilled employees may serve a probationary period of up to three months and skilled employees for 12 months. Termination of an employee during the probationary period does not require a reason. The probationary terms must be provided to the employee in writing before employment begins.

Both the employee and the employer may terminate the employment contract. Minimum notice, equivalent to the wage period, must be given or pay in lieu unless the employee was guilty of serious misconduct, no notice is needed.

Managers, administrators, executives, and professional staff are generally entitled to severance after serving 60 months of continuous employment. The payment is equal to the rate of one day’s basic pay for each month served during the first 60 months and two days for each additional month served. Employees who receive a gratuity or pension at the end of employment are not entitled to the severance benefit.

Guaranteed Benefits in Botswana- All employees are entitled to certain guaranteed benefits, such as paid time off for holidays and vacation. The country celebrates eight national holidays where employees get the day off, and they’re also entitled to 15 days of paid leave per year. Eight days of leave need to get taken within six months, and the remaining days must get used within three years of employment.

Botswana Benefits Management- Once you decide on a Botswana benefit management plan, you should include supplemental benefits that are not required by Botswana compensation laws but are expected by employees. For example, Botswana has a universal healthcare system where private health insurance is available but not widely used.

The ordinary working period of 8 hours a day or 48 hours per 6 –day week or 9 hours per day for a 5- day week. Rest period of at least 24 hours in a period of 7 consecutive working days and 30 hours in the case of shift employees.

Employees are limited to 14 hours of overtime per week and are eligible for 1 1/2 times their normal hourly rate. Work on public holidays or rest time should be paid at twice the normal wage rate.

Termination of an employee during the probationary period does not require a reason. Both the employee and the employer may terminate the employment contract.

Minimum notice, equivalent to the wage period, must be given or pay in lieu unless the employee was guilty of serious misconduct, no notice is needed.

The Personal Income Tax Rate in Botswana stands at 25%

The Social Charter to which Botswana is signatory provides for the right of every worker to social security. There is a Draft Protocol on Social Security which provides the same right to any worker or indeed any individual in times of need.

Goodwill- Amortisation of goodwill is not allowed as a tax-deductible expense.

Start-up expenses- Start-up expenses are not specified in the law. However, pre-incorporation expenses might be disallowed since, generally, expenses incurred when there is no income are not allowed.

Interest expenses- The maximum net interest expense claimable by a company (except for a variable rate loan stock company, a micro, small, or medium enterprise, or a bank and an insurance company) is 30% of the taxable income or earnings before interest, tax, depreciation, and amortisation (EBITDA).

Disallowed interest, if any, is to be carried forward and claimed in three years. In respect of mining companies, such denied interest is to be carried forward and claimed in ten years.

In addition to above restriction, interest paid to a non-resident will be allowed as a deduction in the year where the relevant WHT on interest has been remitted to the BURS.

Bad debt

Bad debts written off and specific provisions for bad debt are allowed as a deduction when computing taxable income. General provisions are not allowed as a deduction.

Charitable contributions

Donations made to (i) any educational institution recommended by the Ministry of Education (ii) any sports clubs or sports associations recommended by the Ministry responsible for sports (iii) Government, in respect of the provision of health facilities, or to any health institution recommended by the Minister responsible for Health and Wellness, or (iv) any other eligible beneficiary as may be prescribed by the Minister, and approved by the Commissioner General, shall be deducted when arriving at taxable income, limited to 20% of the chargeable income.

There are no payroll or social security taxes in Botswana.

Payments to foreign affiliates

Royalties, interest, and service fees paid to foreign affiliates are generally deductible, provided such amounts are at arm’s length and WHT is paid.

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