How to Hire in Botswana: A Global Employer’s Guide

When international companies consider expanding into Africa, Botswana may not immediately come to mind. Diamonds and tourism, yes. But remote teams? Probably not. But quietly, over the past decade, Botswana has built one of the continent's most stable business environments.

The government has invested significantly in digital infrastructure, achieving over 81% internet penetration, and launched its SmartBots Strategy to drive technological adoption across the economy. Now, the country ranks 66th globally in ease of doing business-better than many emerging markets that get way more attention.

Then there's the talent story, one marked by both headwinds and opportunities. Botswana faces a documented skills shortage in tech sectors like IT, cloud computing, and cybersecurity, according to the World Bank. But it's less "no talent" and more "talent that hasn't been tapped yet." High literacy rates, a young population, people who are tech-savvy and eager to break into the global remote workforce.

And now, the pivot point: We're seeing the convergence of infrastructure and ambition. The Botswana government unveiled 66 investment projects in 2025 spanning IT, financial services, and manufacturing as part of its push to become a high-income, digitally enabled economy. Internet speeds have skyrocketed. Mobile broadband coverage now reaches over 90% of connections. For distributed teams looking beyond saturated markets, Botswana represents what early movers dream about: a place where timing, talent, and infrastructure align before everyone else notices.

The labor market in Botswana

Botswana's labor market suffers from unemployment and wasted opportunity at the same time. There was an unemployment rate of 27.6% in 2024, which unequally burdens employees with degrees and those at the beginning of their careers. There are large numbers of unfilled positions in the workforce that involve technical and digital skills, and an even more overflowing supply of graduates in business and administration.

New data shows that there are 70,500 unemployed graduates, and that figure went up 18.5% from 2023 to 2024. "We have an oversupply of theory-driven graduates and a shortage of practically skilled workers," highlights the Human Resource Development Council (HRDC) of Botswana. In other words, there is a large gap between the available work and the qualifications that graduates have in their degrees. The STEM fields and vocational programs are very much in demand and widely regarded as essential for Botswana's continued economic modernization.

There are hurdles and opportunities for organizations in the tech sector that employ remote workers. ICT graduate unemployment rose sharply, with the majority lacking hands-on experience in critical areas such as software development, cloud computing, and data analytics. Government initiatives have set goals to generate 100,000 ICT jobs by 2030 as part of Botswana's National Development Plan 12, with the intent to prepare the workforce for increasingly digital roles.

The digital skills landscape in Botswana is still developing, but that creates specific advantages for international employers. Currently, only 17,758 professionals hold computer-related skills, and many workers lack formal digital training. For global employers, this offers a chance to bring new training and exposure to motivated individuals who are looking for the right entry point into remote and technology-driven work. Hiring in Botswana now means partnering with a workforce eager to upskill and grow within the global digital economy.

How to hire employees in Botswana

As a foreign company seeking to hire in Botswana, you have two main routes, depending on your timelines, budgets, and long-term market commitment.

Establishing a legal entity

Setting up a local branch in Botswana gives you full autonomy over employment relations, payroll, and operational control. You will, however, need to register the business with the Companies and Intellectual Property Authority (CIPA) and follow the local tax and labor regulations. This process usually spans several months and involves recurring administrative expenses to maintain legal compliance, accounting, and HR systems.

While the timeline and investment requirements are greater, establishing a legal entity in Botswana can be beneficial for companies with a high likelihood of increased headcount or a long-term presence in Botswana. Organizations choose this route because of the full autonomy and customization of employment relations strategies.

Partnering with an employer of record (EOR)

An employer of record (EOR) is a relationship in which a company that wishes to hire employees in Botswana does not have to open a local branch on its own. The EOR acts as the legal employer for the company, and it takes care of payroll, benefits, taxation, and employment law compliance, while the company itself retains control over the employees' daily tasks.

This arrangement allows companies to hire staff in just weeks and minimizes the legal, financial, and administrative burdens of establishing an entity in Botswana. For companies experimenting with the Botswana market or employing small remote teams, working with an EOR offers rapid, flexible deployment with no long-term infrastructural investments.

Employment contracts in Botswana

Employment contracts in Botswana can be either fixed-term or indefinite, depending on the nature of the role and business needs. While written contracts are not legally mandatory for all employees, they are strongly recommended for clarity and enforceability. For specific roles such as fixed-term positions or jobs in hazardous environments, a written contract is required by law. Contractual employment agreements must include essential details such as job title, remuneration, working hours, leave entitlements, and termination notice periods.

Probationary periods are commonly used to assess new hires and typically last up to six months. Any changes to the employment contract must be made with mutual agreement between the employer and the employee. Unilateral modifications may constitute a breach of contract or constructive dismissal. Employers should ensure contracts reference the relevant labor legislation and any applicable collective agreements to maintain legal compliance.

Working hours, holidays, and leave

The standard workweek in Botswana is 48 hours, usually structured as eight-hour days over six days. Employees are entitled to at least 24 consecutive hours of rest per week, typically on Sundays. Overtime is permitted and must be compensated at 1.5 times the regular hourly rate for initial overtime hours, with some arrangements requiring double pay for extended hours or work on rest days.

Botswana observes eight paid public holidays annually, including Independence Day, Labour Day, and Christmas Day. Employees receive 15 days of paid annual leave per year, with at least eight days required to be taken within the first six months of earning the leave. Sick leave entitlement varies between 14 and 30 days per year, depending on the source, but employees must provide a medical certificate for absences exceeding 24 hours. Maternity leave is set at 12 to 14 weeks fully paid, while paternity leave typically provides three paid days.

Employee benefits and social contributions

Botswana does not impose mandatory national social security taxes or public pension contributions, which distinguishes it from many other countries. However, private sector employers may be required to contribute to private pension or insurance plans, with contributions capped at 15% of the employee's salary. The country operates a Social Security Fund that provides benefits for pensions, sickness, and work-related injuries, though the funding mechanism differs from typical payroll tax systems.

Key statutory obligations include:

• Vocational training levy at 0.2% of monthly turnover (exempt for businesses with an annual turnover below BWP 250,000 (approximately US$18,550))
• Severance pay entitlement of one day's wages per month worked during the first five years of service
• Human Resource Development Fund contribution in specific sectors, amounting to 10% of the vocational training levy

Payroll and taxation in Botswana

Botswana operates a territorial tax system where only income earned within the country is subject to taxation. Employers must register with the Botswana Unified Revenue Service (BURS) and deduct Pay-As-You-Earn (PAYE) tax from employee salaries on a monthly basis. PAYE rates range from 0% to 25% for residents based on taxable income bands, while non-residents are taxed at a minimum of 5% from the first income earned.

Monthly payroll submissions are due by the 15th of each month via Form ITW-7, covering both PAYE and the vocational training levy. Employers must also register new hires on the e-TAX system within 24 hours of signing an employment contract. Annual obligations include filing the Employer Annual Return (ITW-10) by July 31 and providing employees with ITW-8 certificates documenting their annual earnings and deductions.

Employee vs. contractor classification

Getting worker classification right in Botswana matters because misclassification can lead to back taxes, penalties, and legal claims from workers seeking employee benefits. Authorities assess the substance of the working relationship rather than the label used in the contract.

Proposed labor legislation introduces a presumption of employment for individuals who meet control and dependency criteria, even if formally labeled as contractors. "Businesses that engage consultants, direct sales agents, or other individuals classified as independent contractors may need to reassess their arrangements," writes Nyaradzo Mupfuti, attorney and partner at Minchin & Kelly in Botswana. "If these individuals meet the control and dependency tests, they may now be deemed employees under the law, requiring reclassification and compliance with employment obligations," she adds.

Key factors that distinguish contractors from employees include:

• Control. Contractors decide how and when work gets done, while employees follow company direction
• Tools and equipment. Contractors use their own resources rather than relying on company-provided tools
• Financial risk. Contractors bear their own business expenses and risk, whereas employees do not
• Exclusivity. Contractors typically serve multiple clients instead of working solely for one company
• Payment structure. Contractors invoice per project or milestone, rather than receiving regular salary payments

Contracts should explicitly state the independent nature of the relationship and avoid structures that resemble employment, such as providing company email addresses or requiring fixed working hours.

Termination and severance in Botswana

Employment termination in Botswana must comply with the procedures outlined in the Employment Act to avoid claims of unfair dismissal. Notice periods increase with length of service and typically range from one week to one month for workers employed less than five years. For employees with longer tenure, notice periods extend further. Both parties can waive notice by mutual agreement, though payment in lieu of notice is common practice.

Severance pay is required when employment ends after five or more years of continuous service. The statutory entitlement is one day's wages per month worked during the first five years, with enhanced calculations for longer service periods. Termination for serious misconduct may void severance obligations, but employers must demonstrate just cause through proper documentation and disciplinary procedures. Summary dismissals without following due process can result in reinstatement orders or compensation awards from labor tribunals.

Work permits and immigration

Foreign nationals who want to work in Botswana need a valid work permit unless they qualify for an exemption. The Department of Immigration and Citizenship handles permit applications, which require employer sponsorship and proof that the role cannot be filled by a qualified local worker. Processing times vary, but employers should plan for several weeks to months, depending on the permit category.

Some of the most common Botswana work permit and visa types include:

• Botswana Employment Visa. Issued to individuals traveling to Botswana for employment, internships, research, or voluntary services
• Botswana Long-Term Work Authorization (Employment Permit). Designed for long-term employment and valid for up to five years with possible renewals
• Botswana Short-Term Work Authorization Visa (Temporary Work Permit). Issued for short-term assignments, typically valid for three months and extendable by an additional 30 days
• Botswana Investor Visa. Granted to individuals planning to start or invest in a business in Botswana, requiring a solid business plan and proof of investment
• Botswana Business Visa. Allows entry for professional activities like meetings, conferences, or exploring business opportunities, valid for up to one year

Work permits are typically tied to a specific employer and role, which means changing jobs requires a new permit application. Companies hiring foreign talent should factor in permit costs, processing delays, and renewal requirements when planning their workforce strategy.

FAQs: Hiring in Botswana

Expanding into a new market raises questions about local norms, salary expectations, and practical hiring considerations. Here are answers to some of the most common questions about hiring employees in Botswana.

What is the work culture in Botswana?

Botswana's business culture blends traditional values with modern practices, centered on the principle of "botho," which emphasizes community, respect, and mutual care. The workplace is generally hierarchical, with respect for authority and seniority deeply ingrained, though decision-making tends to be communal with an emphasis on seeking consensus among stakeholders. Relationships and trust are essential in business interactions, so expect a warm, personal touch in meetings with handshakes and inquiries about well-being.

What is a good salary in Botswana?

The average annual salary in Botswana is approximately BWP 138,800 (around US$10,300). Salaries considered "good" typically fall in the 75th percentile or higher, which is around BWP 348,300 annually or roughly BWP 29,000 per month.

Can I hire in Botswana without a local business entity?

Yes, companies can hire employees in Botswana without establishing a local entity by partnering with an EOR, which becomes the legal employer and handles all compliance, payroll, benefits, and tax obligations while you manage the employee's work responsibilities. This approach allows companies to onboard talent quickly without the time and cost associated with entity registration.

What jobs are in high demand in Botswana?

High-demand skills in Botswana include cloud computing, ICT and digital skills, and cybersecurity, as well as those in the healthcare and teaching professions. The government aims to create 100,000 ICT jobs by 2030 as part of its digital transformation strategy, making software development, data analytics, and IT infrastructure roles particularly sought after. Remote roles such as software engineers, product managers, and customer service representatives are also gaining traction as Botswana's workforce becomes more globally connected.

Let Pebl guide your hiring in Botswana

The thing about hiring people around the world is that it doesn't just sound exciting; it really is. Your team suddenly stretches across continents. New markets are at your fingertips. But then you hit the part no one really talks about: the paperwork, the compliance, the "wait, do we need a legal entity in Botswana?" part.

Pebl is here for just that. We operate in more than 185 countries and have figured out the hard stuff-payroll, benefits, taxes, all the rules you didn't know existed until you accidentally break one. As an EOR in Botswana, and pretty much everywhere else, we make it possible to hire employees without setting up a local entity.

Our global EOR service handles payroll, benefits, compliance, and tax filings so you can focus on building your team rather than navigating foreign labor laws. It makes this whole global-team idea actually doable. And after building infrastructure across Africa and supporting thousands of international employees, we've gotten fast and reliable. The kind of thing growing companies need when expanding into emerging markets that are promising but, honestly, a little intimidating.

Want to learn more? Get in touch today.

Disclaimer: This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided "as is," and no representations are made that the content is error-free.

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