Precise PAYE, every time
PAYE is annualised, banded and remitted to BURS by the 15th, with the ITW8 Statement of Emoluments and annual return handled — no spreadsheets, no missed deadlines.
Popay Payroll · Botswana PopayPayroll
Payroll in Botswana, built for BURS compliance.
No mandatory national social security — but PAYE still has to be calculated exactly right and remitted to BURS, with the ITW8 annual statement, occupational pension schemes to administer and a severance-or-pension choice to manage. Configured to Botswana law, not bolted on.
One engine, all of Africa. Botswana payroll rules run natively inside our own gross-to-net engine — PAYE on the annualised method, occupational pensions, workers' compensation — monitored and kept current across Botswana and 40+ African countries.
Talk to our African payroll team No commitment — a working conversation about your team in Botswana.
BW
BW Gaborone · Southern Africa / SADC — payroll across the continent
Understand HR in Botswana
Everything Botswana payroll asks of an employer — in one place.
The full local picture for Botswana: statutory contributions and the rules our engine runs natively — maintained by our Pan-African legislation team.
01 · At a glance
Botswana payroll, by the numbers
The fixed parameters every Botswana payroll run starts from.
Capital
Gaborone
Currency
Botswana Pula (BWP, P)
Official language
English (official); Setswana (national language)
STATUTORY AUTHORITIES
BURS — Botswana Unified Revenue Service · Social security: none mandatory (occupational pensions regulated by NBFIRA)
Income tax year
1 July → 30 June
Payroll cycle
Monthly
Monthly statutory deadline
PAYE (ITW 7A) to BURS by the 14th of the following month · annual Statement of Emoluments (ITW8) to employees by 28 July · annual return (ITW 10)
Minimum wage
Set by sector — from ≈ BWP 9.06/hour; revised periodically by government
Ordinary working week
8 hours/day; overtime capped at 14 hours/week
Overtime
1.5× on normal workdays · 2× on rest days and public holidays
Notice period
By contract — typically 1 week (probation), 1 month thereafter (or equal to the pay period) — see contracts table
Minimum working age / retirement age
14 years / 60 years (up to 65 by company terms)
Main labour law
Employment Act [Chapter 47:01] · Employment and Labour Relations Bill 2025 in progress
02 · Statutory obligations & contributions
Statutory obligations in Botswana
There is no mandatory national social security or pension contribution. The employer's obligations rest on PAYE paid to BURS, optional occupational pensions (NBFIRA) and compulsory workers' compensation cover.
| Obligation | Who pays | Rate/ Basis | Notes |
|---|---|---|---|
| National social security / pension | — | None mandatory | Botswana has no compulsory national social security or pension scheme — payroll is lighter on statutory contributions than most African countries. |
| Workers' compensation insurance | Employer only | ≈ 0.3–3% of payroll, by industry risk | Mandatory cover under the Workers' Compensation Act for work-related injury and occupational disease. |
| Occupational pension (voluntary) | Of salary, per the scheme rules | No legally mandated private-sector rate. Regulated by NBFIRA. Public sector = BPOPF (government 15% + employee 5%). An employer may provide a pension instead of severance pay. |
03 · Income tax brackets (PAYE)
The PAYE brackets withheld for BURS
Employment income is taxed on a progressive scale, computed by annualising the monthly remuneration, applying the brackets, then dividing by twelve. Residents and non-residents fall under separate schedules.
Residents — annual bands
- 0 – 48,000 BWP
- 0% (tax-free)
- 48,001 – 84,000 BWP
- 5% on the amount over 48,000
- 84,001 – 120,000 BWP
- P1,800 + 12.5% on the amount over 84,000
- 120,001 – 156,000 BWP
- P6,300 + 18.75% on the amount over 120,000
- 156,001 - 400,000 BWP
- P13,050 + 25% on the amount over 156,000
- Above 400,001 BWP
- P74,050 + 27.5% on the amount over 400,000
Non-residents — annual bands
- 0 – 84,000 BWP
- 5% on the full amount
- 84,001 – 120,000 BWP
- P4,200 + 12.5% on the amount over 84,000
- 120,001 – 156,000 BWP
- P8,700 + 18.75% on the amount over 120,000
- 156,001 - 400,000 BWP
- P15,450 + 25% on the amount over 156,000
- ABOVE 400,001 BWP
- P76,450 + 27.5% of excess over 400,000
Method & deadlines
- Calculation
- Annualise monthly pay, apply the bands, divide by twelve — the top rate is 27.5%
- Tax year
- 1 July → 30 June
- Remittance
- PAYE (ITW 7A) due to BURS by the 14th of the following month
- Annual statement
- ITW8 Statement of Emoluments to employees by 28 July; annual return ITW 10 filed on time
04 · Employment contracts
The contract types and the formalities that frame them
The Employment Act governs hiring — permanent, fixed-term or casual — with notice, severance pay and gratuity rules your payroll must apply correctly from day one.
| Item | Detail | ||
|---|---|---|---|
| Contract types | Permanent · Fixed-term · Casual · Written terms strongly advised | ||
| Notice — during probation | 1 week if paid weekly/ 1 month if paid monthly (equal to pay period) | ||
| Notice — after probation | 1 month (some positions 2 months) · or equal to the pay period (e.g. 2 weeks if paid bi-weekly) | ||
| Severance pay | Mandatory only where the employee has no pension/provident fund: 1 day's basic pay per month for the first 5 years (60 months), then 2 days' per month beyond. Paid on termination or every 60 months. | ||
| Gratuity (fixed-term / often expat) | 1 month's pay per year on the first contract, then 2 months' per year on subsequent contracts — paid at the end of the contract (e.g. 2 / 3 / 5-year terms) | ||
| Working hours & overtime | 8 hours/day; overtime capped at 14 hours/week; 1.5× on normal days, 2× on rest days & holidays | ||
| End-of-year bonus | Per employer terms; not statutory | ||
| Minimum / retirement age | 14 years / 60 years (up to 65 by company terms) |
Note: severance and pension interact — an employer that provides a pension/provident fund may give pension benefits instead of severance. Accrued unused leave is paid out in cash on termination. Source: Employment Act.
05 · Leave & employee rights
The leave entitlements set by the Employment Act
The law sets the floor; contracts and collective agreements can add to it. Below are the statutory minimums your accruals must track.
| Leave Type | Entitlement | Key conditions | |
|---|---|---|---|
| Annual leave | Minimum 15 working days per year | Accrues at 1.25 days per month worked, at the normal wage rate. Paid out on termination. | |
| Sick leave | 14 days per year, fully paid | On production of a valid medical certificate. | |
| Maternity leave | 12 weeks (6 before + 6 after birth) — 84 continuous days | Paid at no less than 50% of basic pay. May be extended for medical reasons (drawn from sick, then annual, then unpaid leave). | |
| Paternity leave | No statutory entitlement | Some employers grant 3–5 days at their discretion or under company policy. |
Note: statutory minimums under the current Employment Act. The Employment and Labour Relations Bill of 2025 would extend maternity leave to 14 weeks (at 70% pay) and add statutory paternity leave. Source: Employment Act; Bill No. 10 of 2025.
06 · Unions & collective agreements
The federations and the framework that shape pay
Affiliated unions negotiate wage scales and union dues that your payroll must calculate, deduct and remit. A poorly applied collective agreement can lead to a dispute before the Industrial Court.
BFTU — Botswana Federation of Trade Unions
The main national federation. Its affiliates negotiate sector wage scales, allowances and overtime premiums your payroll must calculate correctly, plus union dues you must deduct and remit. Unionisation is strongest in mining, the public service and retail.
BOFEPUSU — Botswana Federation of Public Sector Unions
The public-sector federation. It negotiates public-sector pay and conditions, with dues to deduct and remit through payroll for affiliated employees.
Legal framework
The Employment Act and the Trade Unions and Employers' Organisations Act protect the right to organise and to bargain collectively. Collective agreements set the wages, allowances and dues that apply within their sectors.
Dispute resolution
Disputes over collective agreements go to the Industrial Court. Getting a collective agreement wrong is not just a payslip error — it can trigger a formal dispute, so sectoral rules must be mapped to your payroll configuration.
Native Botswana payroll — and one accountable partner.
We own the gross-to-net engine
Botswana rules — PAYE bands, occupational pensions, workers' compensation, severance — are configured natively inside our engine, not stitched from third-party aggregators.
Always current
Regulatory changes, including the Employment and Labour Relations Bill 2025, are monitored and your configuration updated — so every payslip stays compliant.
Talk to your Botswana HR specialist.
In HR, personal contact is everything. Tell us about your team in Botswana and we'll map your options — PAYE, occupational pensions, contracts and leave — plainly and without commitment.
Popay helped us simplify managing our workforce across Botswana — payroll, PAYE compliance and contracts in one place. Reliable, efficient, and always current with local law.
Botswana payroll, answered
Does Botswana have mandatory social security contributions?
No. Botswana is unusual: there is no compulsory national social security or pension scheme, which makes payroll lighter on statutory contributions than most African countries. The discipline shifts to accurate PAYE, correctly administered occupational pension schemes and the right severance treatment.
How does Popay handle PAYE and BURS filings?
PAYE is withheld on the annualised method — annualise the monthly pay, apply the BURS bands (5% to 27.5%), divide by twelve — and remitted to the Botswana Unified Revenue Service by the 14th of the following month, with the PAYE return (ITW 7A), the annual Statement of Emoluments (ITW8, by 28 July) and the annual return (ITW 10) all handled automatically.
Can Popay administer occupational pension schemes?
Yes. Most employers run voluntary occupational pension schemes, regulated by NBFIRA, that must be deducted and remitted accurately — the public-sector BPOPF runs at 15% employer plus 5% employee. Popay configures each scheme's rules, and every employer's mandatory workers' compensation cover, inside the engine.
How is severance handled in Botswana?
Severance is mandatory only where the employee has no pension or provident fund — one day's basic pay per month for the first five years, then two days' per month beyond. An employer that provides a pension may give pension benefits instead of severance, and the two interact, so our engine applies the correct treatment per employee.
Do you support other African countries too?
Yes — many groups run Botswana alongside South Africa, Namibia, Zambia and Zimbabwe across the SADC region. Popay runs payroll across 40+ African countries on the same engine, with one team and one contract.
Review your HR needs in Botswana — in 30 minutes.
Questions about payroll, PAYE compliance or digitising your processes? Take a no-commitment slot with our Botswana HR specialist. Plain, specific, useful.
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