Eswatini (Swaziland) - Employer of Record (EOR)

Fixed-term contracts are permitted.

It is legally required to put a written employment contract in place in Swaziland, in the local language, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Swaziland should always state the salary and any compensation amounts in Swazi lilangeni rather than a foreign currency.

The work week should not exceed 5.5 days.

Employees are generally entitled to 11 days of paid annual leave. Additionally, employees can take up to one month of unpaid compassionate leave per year.

After three months of employment, employees are eligible for 14 days of 100% paid sick leave and 14 days of 50% paid sick leave at the employee’s base wage rate.

Female employees are generally entitled to 12 weeks of maternity leave, 6 weeks of which may be taken before the due date.

2 weeks of the leave are paid, if the employee has worked for at least one year.

There is no statutory paternity leave.

Personal income tax rate in Swaziland has been set at 33% and has remained unchanged since 2019.

Employee income taxes are as follows:

• Between 0-100,000 SZL: 20%
• Between 100,001 – 150,000 SZL: 25%
• Between 150,001 – 200,000 SZL: 30%
• 200,0001 SZL and over: 33%

Employer Contributions:National Provident Fund (SNPF) – 5% of the gross salary.

Work Injury: Employers must take out compulsory insurance with a private carrier.

Employee Contributions:
National Provident Fund (SNPF) – 5% of the gross salary.

The employer can set a probationary period in the employment contract. Local labor laws do not specify the maximum probationary period, however, the probation period must be reasonable given the circumstances of the job.

Resignation or Termination Notice Period: Either party can terminate a contract by serving a notice or paying in lieu thereof.   The period of notice is at least:

• 1 week notice if the employee has been employed for up to 6 months
• 2 weeks’ notice if the employee has been employed between 6 months and 12 months
• 4 weeks’ notice if the employee has been employed more than 12 months

A collective agreement may permit the notice period of four weeks required once the employee has worked more than 12 months to be reduced to not less than two weeks.

Severance Pay:

An employee who is dismissed for reasons based on operational requirements (retrenchment) or whose contract of employment is terminated on account of insolvency is entitled to severance pay at a rate of 1 week of pay for each year of service completed. No severance pay is required in cases of resignation, retirement, death, expiration of an employment contract, dismissal for misconduct, poor performance, illness or other reasons.