Hire in Eswatini through our Employer of Record (EOR)

Eswatini's employment landscape is characterized by a youthful population and high unemployment rates, especially among the youth. The country faces challenges in formal sector job creation, with agriculture playing a significant role in employment. The workforce is mixed-skilled, and there's a growing emphasis on vocational training to enhance employability. While the service and manufacturing sectors are expanding, a large portion of the workforce remains engaged in the informal sector.

Overview of Labor Laws

Eswatini's labor laws aim to protect workers' rights and establish fair employment practices. Key aspects include:

• The Employment Act of 1980 (as amended) governs basic employment conditions
• Minimum wage regulations vary by sector
• Standard working hours are typically 48 hours per week
• Employees are entitled to annual leave, sick leave, and maternity leave
• The Industrial Relations Act regulates collective bargaining and dispute resolution

Cultural Considerations

Understanding Eswatini's cultural nuances is crucial for effective workplace management:

• Respect for elders and authority figures is highly valued
• Indirect communication is preferred to maintain harmony
• Community and family obligations are prioritized
• SiSwati is widely spoken, but English is the language of business
• Workplace hierarchies often reflect traditional leadership structures

Challenges of Direct Hiring

Employers face several challenges when directly hiring in Eswatini:

1. Skills gap: Finding candidates with the right technical and vocational skills can be difficult
2. High unemployment: Managing a large number of applications for limited positions
3. Cultural adaptation: Aligning international business practices with local cultural norms
4. Language barriers: Navigating potential communication challenges in a bilingual environment
5. Legal compliance: Keeping up with local labor laws and regulations
6. Informal sector competition: Attracting workers from the prevalent informal economy
7. Rural-urban divide: Accessing talent pools in rural areas with limited infrastructure

Navigating these challenges requires a deep understanding of Eswatini's unique employment landscape and cultural context. Employers may benefit from partnering with local experts or considering alternative employment solutions to ensure compliance and cultural sensitivity in their hiring practices.

Eswatini, formerly known as Swaziland, has a structured payroll and tax system that governs both employers and employees. This system is designed to ensure fair contributions to the country's social security and revenue collection while providing benefits to workers. Understanding the intricacies of payroll and taxes in Eswatini is crucial for both businesses operating in the country and individuals working there.

The payroll and tax system in Eswatini encompasses various components, including mandatory contributions to social security funds, income tax deductions, and other statutory requirements. These elements work together to create a comprehensive framework that supports the country's social welfare programs and economic development.

Employer Contributions

Employers in Eswatini play a significant role in the country's social security system through their contributions to various funds. These contributions are mandatory and are designed to provide essential benefits to employees.

Eswatini National Provident Fund (ENPF)

The primary contribution that employers are required to make is to the Eswatini National Provident Fund (ENPF). This contribution is calculated as 5% of the employee's gross salary. The ENPF is a crucial social security program that provides various benefits to employees, including:

• Retirement benefits
• Disability benefits
• Survivor benefits

Skills Development Fund

In addition to the ENPF, employers with an annual salary bill exceeding E80,000 are required to contribute to the Skills Development Fund. This contribution is typically around 1% of the total salary bill and is aimed at promoting skill development and training in the workforce.

Reporting and Compliance

Employers have the responsibility to:

1. Register with the ENPF
2. Withhold employee contributions
3. Add their own contributions
4. Remit payments regularly (usually monthly)

It's important to note that compliance with these contribution requirements is mandatory, and failure to do so may result in penalties.

Employee Contributions

Employees in Eswatini are also required to contribute to various funds and pay income tax. The tax system in Eswatini is progressive, meaning that tax rates increase as income levels rise.

Income Tax

Eswatini operates a progressive tax system with the following features:

1. Tax-Free Threshold: Individuals earning below E41,000 per year are not required to pay income tax.
2. Tax Rebates: Resident taxpayers are entitled to an annual tax rebate of E8,200, which increases to E10,900 for those over 60 years old.

Deductible Contributions

Employees can claim deductions for certain contributions, which reduce their taxable income:

1. Pension Fund Contributions: Up to 10% of gross salary can be deducted for contributions to a recognized pension fund.
2. Retirement Annuity Fund Contributions: Up to 15% of taxable income can be deducted for contributions to a retirement annuity fund, reduced by any pension fund contributions already made.

Understanding these contributions and deductions is essential for employees to manage their finances effectively and ensure compliance with Eswatini's tax laws.

In conclusion, the payroll and tax system in Eswatini is designed to balance the needs of social security, revenue collection, and employee benefits. Both employers and employees have specific responsibilities and opportunities within this system, making it crucial for all parties to be well-informed about their obligations and rights.

Eswatini, formerly known as Swaziland, offers a range of employee benefits designed to support workers and provide financial security. As an Employer of Record (EOR), Rivermate expertly manages these benefits, ensuring compliance with local regulations while streamlining the process for both employers and employees. By partnering with an EOR, companies can navigate the complexities of Eswatini's benefit system with ease, focusing on their core business operations while providing comprehensive support to their workforce.

Mandatory Benefits

In Eswatini, several benefits are legally required for all employed individuals:

• Paid Annual Leave: Employees are entitled to a minimum of 11 days of paid annual leave per year
• Public Holidays: Workers receive paid time off for 11 national public holidays annually
• Sick Leave: 14 days of full-pay sick leave, followed by 14 days at half pay, totaling 28 days per year
• Maternity Leave: Female employees are granted 12 weeks of maternity leave, with the first 6 weeks at full pay
• Social Security: Both employers and employees contribute to a provident fund system, providing benefits for retirement, disability, and death
• Termination Benefits: Employers must provide notice periods and, in some cases, severance pay upon termination of employment

Optional Benefits

Many employers in Eswatini offer additional benefits to attract and retain top talent:

• Private Health Insurance: Supplementing public healthcare with broader coverage and faster access to services
• Life and Disability Insurance: Voluntary schemes providing financial security for employees and their families
• Pension Top-Up Schemes: Additional contributions to enhance employees' retirement savings
• Flexible Work Arrangements: Options like remote work or compressed workweeks to improve work-life balance
• Training and Development Opportunities: Investing in employee growth through training programs or tuition reimbursement
• Family-Friendly Benefits: Childcare subsidies or on-site facilities to support working parents
• Car Allowances or Company Cars: Particularly beneficial for employees who travel frequently for work

By offering a mix of mandatory and optional benefits, employers in Eswatini can create attractive compensation packages that support their workforce while complying with local regulations. An EOR like Rivermate can help navigate these complexities, ensuring seamless benefit management and administration.

Terminating an employee's contract and managing their departure from a company in Eswatini involves several important steps and considerations. Understanding the legal requirements and best practices for this process is crucial for both employers and employees.

In Eswatini, the Employment Act of 1980 provides the framework for terminating an employee's services. Valid reasons for termination include serious breaches of the employment contract, such as gross insubordination, theft, or habitual negligence. Poor performance, illness, injury, or operational requirements can also be grounds for termination.

Notice Requirements

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

• After probation and one month of employment: One week's notice
• 3-12 months of employment: Two days' notice per completed month
• More than 12 months of employment: One month's notice, plus four days for each completed year of service

Severance Pay

Employees with more than one year of continuous service are entitled to severance pay upon termination. The calculation is typically 10 working days' wages for each completed year of service after the first year. However, there are exceptions to this rule, such as dismissal due to serious misconduct or when an employee unreasonably refuses suitable alternative employment offered by the employer.

Key Considerations

When terminating an employee in Eswatini, employers should:

1. Provide written notice of termination, clearly outlining the reasons for dismissal
2. Ensure compliance with notice period requirements
3. Calculate and provide appropriate severance pay, if applicable
4. Be aware that employees have the right to challenge unfair dismissals through the Conciliation, Mediation, and Arbitration Commission (CMAC) or the Industrial Court

Offboarding Process

To ensure a smooth transition, employers should:

1. Conduct an exit interview to gather feedback
2. Retrieve company property and revoke access to systems
3. Provide necessary documentation, including a certificate of service
4. Process final payments, including any outstanding wages and benefits

By following these guidelines, employers can navigate the termination and offboarding process in Eswatini while maintaining compliance with local labor laws and fostering a positive employer brand.

Eswatini, formerly known as Swaziland, has specific requirements for foreign workers seeking employment within its borders. Understanding these regulations is crucial for both employers and employees to ensure compliance with local laws.

Visa Requirements

Foreign nationals planning to work in Eswatini typically need to obtain a work visa before entering the country. The process usually involves the following steps:

1. Secure a job offer from an Eswatini-based employer
2. Apply for a work visa at the nearest Eswatini embassy or consulate
3. Submit required documents, including a valid passport, passport-sized photos, and proof of employment

Work Permit Process

Once in Eswatini, foreign workers must apply for a work permit. The main steps in this process are:

1. The employer submits an application to the Ministry of Labor and Social Security
2. Provide supporting documents, such as educational qualifications and work experience
3. Pay the required fees
4. Undergo a medical examination if required

Key Considerations

• Work permits are usually valid for two years and can be renewed
• Employers must demonstrate that the position cannot be filled by a local candidate
• Some professions may require additional certifications or registrations
• Family members of work permit holders may be eligible for dependent visas

Compliance and Monitoring

The Eswatini government closely monitors foreign workers to ensure compliance with labor laws and visa regulations. Employers and employees should maintain up-to-date documentation and adhere to all relevant laws to avoid penalties or deportation.

By understanding and following these visa and work permit requirements, foreign workers can successfully navigate the process of working in Eswatini while remaining compliant with local regulations.