How to Pay Employees in Botswana: Payroll and PAYE Guide
Paying employees correctly is more than transferring salaries. A Botswana employer needs a repeatable payroll process for remuneration, PAYE, deductions, net pay, records and BURS reporting. This guide explains the workflow in practical terms.
The Botswana payroll process at a glance
A sound monthly payroll process starts with employee and remuneration data, calculates gross earnings and authorised deductions, determines PAYE using the current BURS rules, produces net pay, creates payroll records and then completes the employer's statutory remittance and reporting obligations.
Maintain employee payroll records
Keep the employee details, remuneration terms, tax information and authorised deductions needed to calculate payroll consistently.
Calculate gross remuneration
Include the salary or wages and other remuneration that applies to the employee for the payroll period.
Calculate PAYE and deductions
Apply the current BURS PAYE rules and any valid pension or other authorised deductions relevant to the employee.
Calculate and pay net salary
Net pay is the amount remaining after the applicable deductions from payroll earnings.
Create payroll records and payslips
Retain a clear calculation trail so the employer can explain how gross pay became net pay.
Remit PAYE and complete BURS reporting
Pay withheld PAYE and complete the required monthly and annual employer reporting using the current BURS process.
1. Register and understand the PAYE obligation
BURS states that an employer with employees must register for PAYE as part of the income-tax registration process. PAYE is the system under which the employer deducts tax from remuneration paid to employees in accordance with the Income Tax Act and the applicable BURS tax tables.
BURS also explains that remuneration can extend beyond basic salary or wages and may include items such as bonuses, allowances, commissions and certain benefits. That is why payroll should start from the employee's full remuneration information rather than from basic salary alone.
Read the official BURS PAYE guidance →2. Calculate gross pay for the payroll period
Build the payroll calculation from the employee's actual earnings for the period. Depending on the employment arrangement, this may include basic salary or wages, allowances, overtime, bonuses or other remuneration. Keep the source information behind each amount so payroll can be reviewed before approval.
Separate payroll inputs from payroll approval. Changes to salary, allowance, overtime or deductions should be traceable to an authorised source instead of being typed into the final payroll without explanation.
3. Calculate PAYE using the current BURS tax tables
PAYE is not one flat percentage. The amount depends on the employee's taxable remuneration and the applicable BURS tax tables. Use the current table for the relevant tax period and apply any BURS direction that specifically applies to the employee.
Do not rely on an old spreadsheet simply because it worked last year. Tax tables can change. BURS currently provides a 2026 tax table through its tax-downloads area, so payroll systems and manual workbooks should be checked when tax rules are updated.
Check the latest BURS tax downloads →4. Calculate net pay and prepare the payment
After gross earnings, PAYE and the other valid deductions are calculated, determine the employee's net pay. Before releasing a bank payment file or making salary transfers, reconcile the total payroll to the approved payroll run and investigate unexpected movements from the prior period.
Gross payroll − payroll deductions = net payroll payable
5. Keep a clear payroll record
A good payroll record should let the employer explain the calculation for each employee and reconcile the payroll total. Keep the earnings, PAYE, other deductions, net pay, approval history and payment evidence together rather than maintaining unrelated spreadsheets that cannot be reconciled easily.
Employees should also receive clear payroll information showing how their pay was determined. For annual PAYE reporting, BURS identifies the ITW8 as the employee tax certificate showing earnings and tax deducted for the year.
6. Remit PAYE to BURS on time
BURS states that PAYE is payable by the employer within 15 days after the end of the month in which the tax was deductible. The prescribed monthly PAYE remittance return is ITW7A. Employers should check the current BURS filing and payment process before submission because administrative procedures can change.
See BURS tax payment due dates →7. Complete annual employer PAYE reporting
BURS PAYE guidance describes an annual employer return after the end of the tax year, including the employer's PAYE return, employee details and tax certificates. Treat monthly payroll and annual reporting as one continuous record-keeping process; the annual return should reconcile back to the payroll runs and PAYE remittances made during the year.
Monthly Botswana payroll checklist
Run the calculation before choosing software
BotsPay has a free Botswana PAYE calculator using the same payroll engine as the platform. You can test a sample salary, allowance, pension rate and residency status without creating an account.
Official Botswana payroll sources
For statutory requirements, use official guidance as the source of truth. The main sources referenced in this guide are the Botswana Unified Revenue Service PAYE guidance, tax downloads and tax payment due-date pages.