Botswana Annual Leave & Settlement Calculator

Under Section 98 of the Botswana Employment Act (Cap. 47:01), every employee is entitled to not less than 15 working days of paid annual leave for each continuous 12 months of service, which accrues at the rate of 1.25 working days per completed month. Collective bargaining agreements in mining or corporate sectors frequently enhance this to 18, 21, or 24 working days.

For employees paid on a monthly basis, the statutory daily basic wage is determined by dividing the monthly basic remuneration by 22 working days (for standard 5-day working weeks) or by 26 working days (for 6-day working weeks).

No. Section 98(5) of the Employment Act mandates that upon termination of an employment contract by either party, the employer must pay the employee their full basic wage for any accrued annual leave days that have not been taken.

A standard final settlement paycheck in Botswana includes: prorated basic salary for days worked in the final month, encashment of all accrued unused annual leave days, any severance benefit accrued under Section 27, notice pay (if terminated without notice), and any contractually agreed bonus or terminal allowances.

Yes. Leave pay encashment is classified employment income under the Botswana Income Tax Act and is subject to PAYE withholding tax according to the employee's applicable progressive tax bracket in the month of payment.