The Kingdom of Eswatini, formerly known as Swaziland, is a lower middle income country. Their economy relies heavily on the import and export activities they have with South Africa. Both Eswatini and South Africa are a part of the Common Monetary Area (CMA), hence the similarity in their official currencies. Eswatini’s other economic sources include agriculture, mining, and manufacturing.
When employing workers from Eswatini, it’s important to know the country’s Employment Act. The information below will help employers onboard talented people from the country.
Employee Contract
In Eswatini, a contract in the local language (Swazi or English) is given in writing to the employee. It should include the terms and conditions of their employment.
Probation Period
Probation Period in Eswatini should not be longer than 3 months.
Public and Provincial Holidays
Date
Name
Type
January 1
New Year
National Holiday
April 18
Good Friday
National Holiday
April 19
Birthday of King Mswati III
National Holiday
April 21
Easter Monday
National Holiday
April 21
Day off for Birthday of King Mswati III
National Holiday
April 25
National Flag Day
National Holiday
May 1
May Day
National Holiday
May 29
Ascension Day
National Holiday
July 22
Birthday of the late King Sobhuza
National Holiday
September 1
Umhlanga Reed Dance
National Holiday
September 6
Somhlolo Day (Independence Day)
National Holiday
September 8
Day off for Somhlolo Day (Independence Day)
National Holiday
December 25
Christmas Day
National Holiday
December 26
Boxing Day
National Holiday
December 28
Incwala Day
National Holiday
December 29
Day off for Incwala Day
National Holiday
Employee Leaves
Type of Leave
Time Period
Mandatory
Annual Leave
12 to 15 days
Yes
Sick Leave
14 days
Yes
Maternity Leave
12 weeks
Yes
Probation period
Leave compliance
Public and provincial holidays
Payroll in Eswatini
Payroll cycle
Wages in Eswatini are distributed every month.
Minimum wage
Minimum wages in Eswatini range from SZL 420.00 to SZL 600.00.
Overtime pay
In Eswatini, for each hour of extra work performed by an employee, an overtime rate of 150% shall be applied to their basic rate. If the extra work is performed on a rest day, the overtime rate will be 200%.
How taxes work
Employer Payroll Tax
Scheme
Employer contributions
National Provident Fund
5%
Employee Payroll Tax
Scheme
Employee contribution
National Provident Fund
5%
Employee Income Tax
Taxable income (SZL)
Tax rate
0 – 100,000
SZL 0 plus 20% of taxable income in excess of SZL 0
100,000 – 150,000
SZL 20,000 plus 25% of taxable income in excess of SZL 100,000
150,000 – 200,000
SZL 32,500 plus 30% of taxable income in excess of SZL 150,000
200,000 and above
SZL 47,500 plus 33% of taxable income in excess of SZL 200,000
VAT
The Standard VAT in Eswatini is 15%
Bonus
13th-Month Pay
There is no mandatory requirement for a 13th-month pay in Eswatini
An employment contract may be terminated in many circumstances. It can either be due to resignation, unreasonable employee conduct, breach of contract, redundancy, or end of probationary period. In most cases, a notice period must be observed.
For employees during the probationary period, a notice may not be necessary if an employment contract is terminated. For employees outside probationary status, their notice period may last from one week to one month. However, an additional 5 days will be added for every year of service.
Terminated employees may receive a severance pay equivalent to 10 day’s worth of wages for every year of continuous service, excluding the first year.
Visa and immigration
To work legally in Eswatini, a foreign employee must secure a work permit. It is a type of temporary residence permit that, when approved, is valid for 2 years and can be renewed thereafter.
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