Discover mandatory benefits and additional perks to offer employees in Botswana, helping your business stay compliant and competitive. 

Botswana is considered one of Africa’s gems for its business-friendly environment, fairly low labor costs, and stable governance. The Sub-Saharan country offers local and international companies investment opportunities in natural resources, including oil and gas, diamonds, and agricultural activities. The growth in Botswana’s economy is attributed to the mining, retail, financial, tourism, and farming sectors.

In fact, Botswana’s GDP reached $19.4 billion in 2023, with diamonds being one of its major exports. Botswana is working toward diversifying its economy and is open to the private sector by supporting the inclusion of public-private partnerships (PPPs) and legislation. Global companies doing business in Botswana benefit from developing infrastructure and attractive private sector and trade laws.

Furthermore, hiring a skilled workforce in Botswana is made easier with transparent regulations and the expertise of an employment service provider, such as an EOR or recruitment agency. When employing workers, you must adhere to Botswanan labor law, which includes regulations governing payroll, recruitment, and employee benefits.

Botswana workers are entitled to statutory benefits such as pension contributions and annual leave. Supplementary extras from life insurance to allowances are encouraged because they can attract top talent and support a motivated workforce. To successfully expand your workforce, this guide lists supplementary and mandatory employee benefits in Botswana to ensure you stay compliant.

Botswana Employment Laws

Botswana prides itself in meeting the needs of its workforce by upholding employee rights and solidifying protections in the form of labor acts and pension fund regulations. These Botswana labor laws include:

  • The Employment Act of 1982 
  • The Workers Compensation Act 
  • The Trade Unions and Employers Organizations Act
  • The Employment of Non-Citizens Act

In addition to these employment and trade union acts, Botswana labor laws consist of programs to support the labor force, citizens, and vulnerable communities. 

The Universal Old Age Pension in Botswana is one such program that provides a government-funded allowance of BWP350 or USD 25.30 per month. The pension is issued to residents at the retirement age of 65 years. In support of trade unions, the Labor Federation is represented by the Botswana Federation of Trade Unions (BFTU).

Furthermore, employers must give their workforce benefits such as retirement, death-in-service, and healthcare benefits. Along with key state employee benefits in Botswana, employers can offer supplementary private healthcare, flexible working conditions (remote work), and extra paid time off. 

Botswana has numerous regulations covering worker benefits, and if you are unfamiliar with these requirements, it increases the risk of non-compliance with labor laws. The simplest way to align with the law, protect employee rights, and create a motivated workforce is to seek legal or HR support.

Professional agencies, like an Employer of Record (EOR), are familiar with the Botswana Employment Act and social assistance programs for employees. And with more than 30 social insurance programs in the African country, hiring a professional partner will provide clarity, compliance, and competitiveness.

Mandatory Employee Benefits in Botswana

Social Security or National Insurance

Botswana does not have social security legislation in which employees and employers contribute to a specific scheme; however, it does have the Caisse Nationale de Prévoyance Sociale, or CNaPS, which is a national pension fund providing social security benefits.

CNaPS Contribution Rates:

CategoryContribution Rate
Employee Contribution2%
Employer Contribution3%

The National Health Insurance Fund, or CNAM, is a mandatory employer and employee contribution.

CategoryContribution Rate
Employee Contribution1%
Employer Contribution3%

For workers in the public sector, the Botswana Public Officers Pension Fund (BPOPF) is a mandatory scheme. 

The National Pension Fund in Botswana consists of the following contributions:

CategoryContribution Rate
Employee Contribution (National Pension Fund)1%
Employer Contribution (FNEF)1%

Annual Paid Leave

Full-time employees are entitled to 15 days of annual paid leave. Eight days of leave must be taken within the first six months of employment.

Working Hours

Employees cover a 45-hour workweek in Botswana.

Overtime Pay

Hours outside the standard workweek are considered overtime and must be paid at a rate of 1.5 times the regular hourly wage rate.

Paid Public Holidays

Botswana’s paid public holidays are listed by the Employment Act. All workers receive time off for public holidays, including:

  • January 1 – New Year’s Day
  • December 25 – Christmas Day
  • December 26 – Boxing Day
  • July 20 & 21 – President’s Day
  • April (varies) – Good Friday
  • September 30 – Botswana Day

Employees must be paid overtime rates when working on a public holiday.

Paid Sick Leave

Employees receive at least 20 days of annual sick leave, but must provide proof of their ailment with a medical certificate.

Maternity Leave

Expectant moms receive 12 weeks of maternity leave, of which six weeks is provided post-birth. They are paid 50% of their standard salary.

Severance Pay

Severance pay is only mandatory for full-time employees who have been retrenched. The payout for severance depends on the term of employment and the reason for dismissal. 

The minimum severance pay based on Botswana labor laws is one month’s salary for every full year worked if the employee has worked for less than 10 years.

Workers employed for more than 10 years are entitled to two month’s salary for each year of service worked. 

Supplementary Employee Benefits in Botswana

To attract and retain employees, it is a good idea to offer supplementary benefits in Botswana. Examples of supplementary or fringe benefits include:

  • Extended Insurance: Extended insurance includes offering employees additional private health insurance, compensation for accidents while on duty, and income protection in case of disability.
  • Car allowances: Employees in Botswana can benefit from the provision of a company car.
  • Education allowances: Employers can offer to pay for school fees or an employee’s education in line with job training.
  • Life insurance: Should an individual pass away while employed, the beneficiary will be paid a lump sum for financial matters, such as funeral cover.
  • Flexible work policies: Employers can create flexible work policies allowing employees to work from home or remotely.

Optimize Employee Benefits with Remote People

Hiring a professional EOR will not only simplify hiring, payroll, and benefits administration in Botswana, but it will also keep you compliant with Botswanan labor law. 

Our expert Botswana EOR service provides customized solutions to help you hire employees compliantly, and cost-effectively in Botswana. Get in touch today.