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Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
BWP P (Botswana Pula)
Employer contributions
~10.5% employer pension (private sector schemes vary)
Minimum wage
BWP 11.40/hour (Minimum Wage 2023)
Payment frequency
Monthly
April 1 - March 31 (tax year)
Capital
Gaborone
Timezone
CAT (GMT+2)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~BWP 16,575 total
/month
For a gross salary of
BWP 15,000 gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
~10.5% employer pension (private sector schemes vary)
Mandatory extras
Annual Bonus
Monthly admin
Monthly payroll - PAYE + pension by 15th - annual return June 30
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
+
A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~BWP 16,575 total
Example gross salary
BWP 15,000 gross/month
~BWP 11,200 net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~BWP 1,575 pension
Employer contributions on that salary
Employer contributions
~10.5% employer pension (private sector schemes vary)
Employee contributions
~5% employee pension + income tax (PAYE)
Total cost above gross
~10.5% above gross (BPOPF)
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~BWP 10,000
Per month
Gaborone
BWP 12,000 - 45,000
~35%
Francistown
BWP 8,000 - 28,000
~10%
Monthly gross. National average salary per year:
~BWP 120,000
Minimum wage
BWP 11.40/hour (Minimum Wage 2023)
Paid:
Hourly
Extra pay
Annual Bonus
Discretionary
December
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
0% up to BWP 48,000 / 5% / 12.5% / 18.75% / 25%
Tax year:
April 1 - March 31 (tax year)
Filing calendar
Monthly by 15th
Social security payments
June 30 (annual tax return)
Income tax
By July 31
Employee tax certificate
Annual Tax Certificate (ITW4)
June 30
Annual return
Annual Income Tax Return
Late payment penalties
Late PAYE: 25% penalty + interest; late pension: fund-specific penalties
Who collects what
BURS
Income tax (PAYE)
BPOPF / private pension funds
Pension contributions
Department of Labour and Social Security
Labour law
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Annual Leave
15 working days/year
Public holidays
~15 public holidays
Sick leave
Sick Leave
26 days paid/year from employer
Maternity leave
12 weeks (84 days) maternity + 3 days paternity
Full pay employer
The contracts you can use, and what ending an employment relationship costs.
Permanent
Contract of Employment (Permanent)
Fixed term
Fixed-Term Contract
Independent contractor
Consultancy Agreement
Collective agreements
Collective Bargaining Agreement
Ending employment
Severance Pay
How it is calculated
Per Employment Act; negotiated minimum
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
Work Permit Quota Compliance
Risk Level: HIGH
Botswana requires all foreign workers to obtain work permits and employers must demonstrate no qualified citizen is available (labour market test). Immigration authorities conduct random workplace audits with deportation orders for undocumented workers.
Pension Fund Registration Obligation
Risk Level: MEDIUM
Botswana requires all employers with 5+ employees to enroll workers in a registered pension fund. The NBFIRA (Non-Bank Financial Institutions Regulatory Authority) audits compliance. Employers who skip registration or remit to unregistered schemes face NBFIRA fines.
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$49
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Global Account for every contractor
FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.