Eswatini: A Guideline to Payroll and Employer of Record

Run your business seamlessly with Neeyamo as we help you go beyond borders to manage your international payroll and hire new talent in Eswatini.

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Overview

Eswatini is a landlocked country in Southern Africa, bordered by South Africa and Mozambique. Known for its rich cultural heritage, beautiful landscapes, and wildlife reserves, Eswatini is one of the few remaining absolute monarchies in the world.

The country has a mixed economy with agriculture, forestry, and mining playing important roles, along with a growing service sector.

Neeyamo provides assistance for onboarding and management of employees in Eswatini along with processing of a firm's payroll, compliance, benefits, and more.

Tools And Instances

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Global Payroll

Neeyamo’s global payroll solution covering 180+ countries

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Global Work

A tech-based EOR solution to manage your extended workforce

Facts And Stats

Capital

Mbabane(Administrative), Lobamba (Legislative and Royal)

Currency

Swazi lilangeni (SZL), South African rand (ZAR)

Official Language

English, Swazi

Fiscal Year

1 April to 31 March

Date Format

DD/MM/YYYY

Country Calling Code

+268

Time Zone

South Africa Standard Time (UTC+2)

Global Payroll

Overview

Handling payroll for a widespread workforce can pose a major challenge for any firm. The added complication of compliance can make things worse and drastically affect the time and efforts that can be used in other equally important aspects of an organization's development. 

Over the years, Neeyamo has observed these complexities and strived to provide a global payroll solution through a single technology platform, Neeyamo Payroll.

Payroll Taxes

Payroll tax is the percentage amount retained from an employee's salary and paid to the government to invest in the welfare of the general population.

Employee Taxes

Employee Contributions:

Social Security:

There are no social security contributions in Eswatini. There is, however, a graded tax (poll tax) of SZL 1.50 per month for all employed persons payable in advance in full on 1 July (i.e. SZL 18.00).

Income Tax:

Swaziland assesses resident and non-resident individuals on a graduated/progressive tax rate basis.

  • 0 - 100,000 SZL 0 plus 20% of taxable income over SZL 0
  • 100,000 - 150,000 SZL 20,000 plus 25% of taxable income over SZL 100,000
  • 150,000 - 200,000 SZL 32,500 plus 30% of taxable income over SZL 150,000
  • 200,000 and above SZL 47,500 plus 33% of taxable income over SZL 200,000

* Eswatini lilangeni

A rebate of SZL 8,200 (SZL 10,900 for those over age 60) per annum is applied to the annualized tax calculated. In essence, no tax is payable below an annual taxable salary of SZL 41,000 per annum.

Employer Taxes

Employer's Contributions:

Social Security

There are no social security contributions in Eswatini. There is, however, a graded tax (poll tax) of SZL 1.50 per month for all employed persons payable in advance in full on 1 July (i.e. SZL 18.00).

Payroll Cycle

Overview

Undoubtedly, payroll is a critical aspect of any organization. The Pay cycle is a notable feature of it that provides a sense of accountability for an employee to be paid consistently for their work.

Frequency

The frequency cycle in Eswatini is Monthly.

13th Month Cycle

In Swatini, the 13th Month pay is not mandatory

Global Work

Overview

An Employer of Record service provider helps you get rid of the hassle of handling the complexities that come with setting up a new employee in remote locations. They act as legal employers, facilitate salary payments, and handle everything from health insurance. payroll taxes, and employee benefits to comply with local tax laws and regulations.

This ensures that the client company can focus on the employee’s everyday tasks safely in the knowledge that they have a cost-effective solution as they continue their global expansion.

HR Mandates and Practices

Minimum Wage

  • The minimum wage in Eswatini varies by industry and sector. As of 2024:
  • Unskilled workers earn at least SZL420 per month (about USD 23)
  • Domestic workers earn at least SZL531 per month (about USD 29)
  • Skilled workers earn at least SZL600 per month (about USD 33)
  • Eswatini currently does not have a national minimum wage. Instead, 18 different wage orders set minimum wages for nearly 500 different categories of workers across various occupations, sub-sectors, and regions.
  • The government is exploring the feasibility of implementing a National Minimum Wage (NMW) that would take into account the needs of workers and their families, as well as economic factors like productivity and employment rates. However, the exact minimum wage level has not been determined yet for 2024.

Overtime

The primary law governing overtime in Eswatini is the Employment Act of 1980. 

Eswatini law mandates overtime pay for employees working beyond their regular hours. The overtime rate is typically 1.5 times the regular wage, with double pay for work on rest days. While there's no strict cap on daily or weekly overtime, total working hours, including overtime, must remain within reasonable limits to protect employee well-being. 

Overtime work requires employee consent, and specific rates or benefits might be outlined in employment contracts or collective bargaining agreements.

Data Retention Policy

In Eswatini, data retention is governed by the Data Protection Act, 2022, which establishes guidelines for the collection, processing, and retention of personal data. The Act emphasizes the importance of protecting individuals' privacy while balancing it with the needs of lawful data processing.

Key Provisions on Data Retention

Retention Period: According to the Act, personal data records should not be retained longer than necessary. Specific conditions allow for extended retention:

  • If required or authorized by law.
  • If the data controller needs the record for lawful purposes related to its functions.
  • If retention is stipulated by a contract.
  • If the data subject consents to the retention.

Historical and Research Purposes: Records may be retained beyond the usual limits if they are used for historical, statistical, or research purposes, provided that appropriate safeguards are in place to protect the data from misuse.

Destruction of Data: Once a data controller is no longer authorized to retain personal information, they must delete or destroy the records as soon as reasonably practicable.

Compliance and Reporting: Data controllers are mandated to report data breaches to the Eswatini Data Protection Authority (EDPA) within 72 hours of becoming aware of the breach, ensuring accountability and transparency in data handling practices.

Regulatory Framework

The Eswatini Data Protection Authority is responsible for overseeing compliance with the Data Protection Act, ensuring that personal data is handled lawfully and that individuals' rights are protected. This includes the authority to investigate breaches and resolve complaints related to data handling practices.

Hiring and Onboarding Requirements

Hiring

Employers in Eswatini tend to prefer candidates who possess specific skills and characteristics that align with the local job market's demands.

Skills and Qualifications

There is a notable shortage of skilled labor in specialized fields such as healthcare, engineering, and information technology. Employers often prioritize candidates with relevant technical qualifications or experience in these areas, as they may require less training and can contribute to the organization more quickly.

Employers look for candidates with a solid educational foundation, particularly those who have graduated from local or international institutions. Collaboration with educational institutions is encouraged to identify emerging talent and bridge the skills gap.

Employment Status

Many employers prefer candidates who are currently employed, as this is often perceived as an indicator of competence and reliability. Employed candidates are thought to bring proven experience and may require less onboarding, making them more attractive to hiring managers.

Cultural Fit

Given Eswatini's rich cultural heritage, employers value candidates who demonstrate an understanding of local customs and traditions. This cultural fit can enhance workplace harmony and productivity, making candidates who are culturally aware more desirable.

Gender Considerations

Women in Eswatini may face challenges in the hiring process, with evidence suggesting they are often passed over compared to male candidates. This gender gap indicates potential biases that employers need to address to promote a more equitable hiring process.

Language Proficiency

Proficiency in both English and SiSwati is advantageous, as it allows for better communication in the workplace. Employers may seek candidates who can navigate both languages effectively, especially in roles that require interaction with diverse teams and clients.

Onboarding

When onboarding employees in Eswatini, employers must ensure compliance with the following requirements:

  • Work Permit: A work permit is essential for foreign nationals wishing to work in Eswatini. The application process typically takes between 7 to 30 working days. Required documents for the work permit include:
  • Completed application form (Form 3)
  • Two passport-sized photos
  • Covering letter from the employer
  • Proof of job advertisement (full page)
  • Original police clearance from the country of origin
  • Copies of qualification certificates
  • Medical certificate
  • Certificate of incorporation of the employer.
  • Employment Contract: Employers must provide a written employment contract that outlines the terms and conditions of employment, including job responsibilities, salary, and working hours. This contract is crucial for ensuring compliance with local labor laws.
  • Labour Compliance Form: This form is necessary to ensure that the employer adheres to the labor laws and regulations set forth by the Eswatini government. It includes various compliance measures and may need to be submitted annually.
  • Health and Safety Compliance: Employers are required to implement health and safety measures to protect employees, which may include documentation of safety protocols and training.
  • Social Security Registration: Employers must register employees with the National Provident Fund and ensure compliance with social security contributions, which are mandatory for all employees.

Probation

According to the Employment Act of Eswatini, the standard maximum probationary period for most positions is three months. However, this period can be extended if the work is confidential or technical in nature.

Key points regarding probation periods in Eswatini:

  • The standard probationary period is 3 months
  • For supervisory, technical, or confidential roles, the probation period can be extended beyond 3 months, but should not exceed 6 months in total
  • After the probationary period and one month of employment, the notice period for termination is one week
  • For 3 to 12 months of employment, the notice period is 2 days for each completed month of continuous employment
  • For more than 12 months of employment, the notice period is one month plus 4 days for each completed year.

Leave

Public Holidays

These dates may be modified as official changes are announced.

  • January 1 - New Year's Day
  • March 29 - Good Friday
  • April 1 - Easter
  • April 19 - King's Birthday
  • Apr 25 - National Flag Day 
  • May 1 - Worker's Day
  • May 9 - Ascension Day 
  • July 22 - King Father's Birthday
  • September 2 - Umhalanga Day
  • September 6 - Somholo Day
  • December 18 - Incwala Day
  • December 25 - Christmas Day 
  • December 26 - Boxing Day

Annual Leave

Employees are entitled to 14 working days of paid annual leave after completing 12 months of continuous service. For employees who work less than 21 consecutive days per month, annual leave is calculated proportionately based on the actual days worked.

Sick Leave

Employees are entitled to 14 days of paid sick leave after completing six months of continuous service. The first 14 days are paid at 100% of the employee's salary, and if additional sick leave is required, it may be compensated at a reduced rate (often 50%) depending on the length of service and company policy.

Maternity Leave

Female employees are entitled to 14 weeks of maternity leave, which is typically divided into pre- and post-natal periods. Employers must pay for at least one month of this leave, while the remainder may be covered by social security benefits or other arrangements.

Paternity Leave

There is no statutory paternity leave provided under current laws in Eswatini.

Bereavement Leave

Employees may take short-term leave in the event of the death of a close family member. The specific duration and pay during this leave can depend on company policies or employment agreements.

Other Leave

Employees may also be entitled to leave for personal reasons such as marriage, medical appointments, or civic duties. The specifics of these leave types are often determined by individual employment contracts or workplace policies.

Termination

Notice Period

Notice Period based on service and common practices:

The required notice period for termination of employment varies based on the employee's length of service:

  • Less than 1 month of employment: One week's notice is required.
  • 3 to 12 months of employment: Two days' notice for each completed month of continuous service is required.
  • More than 12 months of employment: One month's notice plus four days' notice for each completed year of service is required.
  • Both employers and employees are required to provide written notice confirming the termination and its effective date, which should include the reason for termination. In cases of gross misconduct, an employer may dismiss an employee without notice, but must still provide an opportunity for the employee to respond to the allegations.

Severance Pay

Severance pay in Eswatini is generally applicable to employees with more than one year of continuous service. The calculation is based on the length of service, specifically:

Severance pay amount: 10 working days' wages for each completed year of service after the first year.

However, severance pay is not applicable in certain circumstances, such as dismissals due to serious misconduct or if an employee unreasonably refuses suitable alternative employment offered by the employer.

Visa

Overview

To obtain a work permit in Eswatini (formerly known as Swaziland), foreign nationals must apply for a temporary residence permit, as there is no separate "work visa" in the country.

The requirements for Visa in Eswatini:

  • Completed application form
  • Original police clearance certificate from country of origin
  • Two passport photos
  • Medical certificate
  • Cover letter from the employer in Eswatini
  • Copies of the applicant's qualification certificates for the position
  • Proof that the position was advertised in Eswatini
  • Certificate of incorporation for the company

Application Process:

  • All applications must be submitted from the applicant's country of residence
  • The Immigration Department's committee reviews applications and grants permits based on merit and requirements
  • Work permits are issued for a 2-year period and must remain valid throughout the employee's stay.

Employee Background Checks

Legal Framework

Employment Act of 1980

In Eswatini, the legal framework governing employment background checks is primarily influenced by the Employment Act of 1980 and the Constitution of the Kingdom of Eswatini.

The Employment Act outlines the rights and responsibilities of both employers and employees. While it does not explicitly detail the process for conducting background checks, it establishes the legal grounds for termination and the protection of employee rights, which indirectly influences how background checks should be conducted.

Anti-Discrimination Laws

The Constitution of Eswatini prohibits discrimination based on various grounds, including gender, race, and religion. Employers are required to uphold these anti-discrimination principles during the hiring process, which includes conducting background checks. This means that any information obtained from background checks must be used in compliance with these laws to avoid discriminatory practices.

Types of Background Checks

Employers in Eswatini may conduct various types of background checks, which can include:

  • Identity Verification: Ensuring the applicant's identity matches their claims.
  • Employment History: Verifying past employment claims to assess the candidate's experience and reliability.
  • Educational Credentials: Confirming the educational qualifications presented by the applicant.
  • Criminal Records: Checking for any criminal history that may affect the applicant's suitability for the position.
  • References: Contact previous employers or personal references to gain insights into the applicant's character and work ethic.

Last updated on August 8, 2024.

If you have any queries or suggestions, reach out to us at irene.jones@neeyamo.com

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