Are you looking to expand to Southern Africa? Botswana is a country with plenty of natural resources, such as diamonds and copper. While you plan your expansion, it’s important to look at different facets like payroll, hiring, compensation, benefits, and more. The first step is to examine the different Botswana payroll options to stay compliant with Botswana’s labor laws.

Fortunately, G-P can save you time and stress, ensuring that your teams can be productive sooner.

Taxation rules in Botswana

Botswana does not have any social security taxes. However, the country does operate under a Pay-As-You -Earn (PAYE) system that varies for resident and non-resident taxpayers. Resident tax rates vary from 0-25% depending on their taxable income, and non-resident taxpayers contribute anywhere from 5-25% depending on their income.

Botswana payroll options for companies

Companies have 3 main Botswana payroll options:

  • Internal: If you have a subsidiary in Botswana, you may choose to run your own internal payroll. However, you’ll need the budget to hire a larger HR team to manage all the administrative tasks that come with it.
  • Botswana payroll processing company: You can also choose to outsource with a Botswana payroll processing company, which will solve the dilemma of setting up your Botswana payroll. However, with this option, you’ll still be responsible for compliance.
  • G-P: The easiest way to run payroll in Botswana and stay compliant is partnering with an Employer of Record (EOR) like G-P. With us, you can rest assured that all employees will be paid on time, freeing you to focus on other important aspects of your business.

How to set up a payroll in Botswana

Before you can set up your Botswana payroll, you must establish a subsidiary in the country. A variety of factors impact the incorporation process, and the length of time can vary from a few weeks to a few months. In that time, candidates could find other jobs, and you could lose out on lucrative business contracts. But with G-P, you can bypass entity setup and start hiring in minutes, not months.

Entitlement/termination terms

Since termination is often difficult in some countries, we recommend detailing certain entitlement and termination terms before hiring employees and choosing a Botswana payroll option. Employers must give minimum notice, equivalent to the wage period, or pay in lieu of notice, unless the employee is guilty of serious misconduct. Some employees are entitled to severance pay depending on how long they’ve worked with the company.

Streamline global payroll management with G-P

Hire and pay your team anywhere in the world with our agentic Global Employment Platform. Vetted labor law intelligence is embedded directly into your workflows to ensure 99% payroll accuracy wherever you hire.

Our platform is designed to integrate with the systems you already use. Sync employee payroll data automatically to create one reliable source of truth for your HR team.

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