Powering Payroll, Compliance & Workforce Management in Eswatini

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Eswatini at a Glance

Whether you're hiring your first employee or expanding an existing team, understanding the local employment landscape is essential. From visa requirements and statutory benefits to payroll taxes and regulatory oversight, this section provides a practical overview of what employers need to know to stay compliant and operate effectively in 

Eswatini
Work Permits & Visas
  • Work Permit Requirement: All non-citizens must obtain a valid work permit before beginning employment in Eswatini.
  • Permit Types:
    • Short-term (temporary) work permits for assignments under 90 days.
    • General work permits for long-term employment.
  • Application Process: Employers apply through the Ministry of Home Affairs with supporting documentation (employment offer, qualifications, police clearance, and medical report).
  • Residence Permits: Issued alongside long-term work permits; renewable in line with employment duration.
  • Dependents: Spouses and children may apply for residence permits but cannot work unless they obtain separate work authorization.
  • Payroll
  • Payroll Frequency: Salaries are typically paid monthly.
  • PAYE Registration: Employers must register with the Eswatini Revenue Service (ERS) for PAYE upon hiring employees.
  • Social Security: There are no statutory social security contributions, but employers contribute to the Eswatini National Provident Fund (ENPF).
  • Employer Contributions:
    • ENPF: Employer 10% + Employee 5% of monthly basic salary (subject to prescribed limits).
  • Other Deductions: PAYE, union dues (if applicable), and voluntary medical or pension deductions.
  • Payroll Taxes: Focused on PAYE; employers must withhold and remit monthly, with annual reconciliations submitted to ERS.
  • Employment Contracts
    • Contract Types: Can be fixed-term or open-ended; written contracts are mandatory.
    • Probation Period: Typically 3 months; may be extended for senior roles.
    • Working Hours: Standard workweek is 48 hours, typically spread over 6 days.
    • Overtime: Paid at 150% of normal hourly rate; 200% on public holidays or rest days.
    • Termination: Notice required by either party:
      • 1 week (up to 1 year of service)
      • 2 weeks (1–3 years)
      • 1 month (over 3 years)
    • Severance Pay: One month’s wages for every completed year of continuous service if terminated for redundancy or at contract end.
    • Collective Bargaining: Common in certain industries such as textiles and manufacturing.
    Employee Benefits
  • Annual Leave: Minimum of 12 working days after one year of service.
  • Sick Leave: Up to 14 days full pay, plus 14 half-pay days with medical certification.
  • Maternity Leave: 12 weeks (6 before and 6 after birth), generally paid at full salary.
  • Paternity Leave: Not legislated; some employers offer 3–5 days at discretion.
  • Public Holidays: 12 national holidays observed.
  • Provident Fund: Mandatory ENPF contributions serve as retirement savings.
  • Additional Benefits: Many employers provide housing, transport, or meal allowances as part of remuneration.
  • Tax Overview
  • Tax Residency:
    • Individuals present in Eswatini for 183+ days per year are considered residents.
    • Residents are taxed on worldwide income; non-residents on Eswatini-sourced income only.
  • Tax Year: January 1 – December 31.
  • System: Progressive income tax up to 33%.
  • Filing & Payment: Employers withhold PAYE monthly; annual reconciliation due by end of tax year.
  • Double Taxation Treaties: Eswatini has DTAs with South Africa, the UK, and others to prevent dual taxation.
  • Personal Income Tax
    Chargeable Income (SZL/year) Tax Rate
    Up to 100,000 20%
    100,001 – 150,000 25%
    150,001 – 200,000 30%
    Above 200,000 33%

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