Do I Need a Local Entity to Hire in Eswatini?

In Eswatini, a "local entity" refers to a legally recognized presence that can act as an employer, such as a subsidiary or branch office. This setup is essential for managing payroll and fulfilling local employment obligations. Without a local entity, your company can't directly hire employees, register for taxes, or comply with local labor laws.

However, using an Employer of Record (EOR) allows you to hire employees in Eswatini without establishing a local entity. The EOR becomes the legal employer, managing payroll and compliance on your behalf.

What is Required to Employ Someone in Eswatini?

• Local employing entity required to directly employ? Yes (unless using an EOR)
• Payroll registration required? Yes (must register with the Eswatini Revenue Authority)
• Withholding/tax remittance required? Yes (payroll taxes must be remitted to the Eswatini Revenue Authority)
• Social contributions required? Yes (employers must contribute to the Social Security Fund)
• Local employment agreement required? Yes (written contracts are mandatory under the Employment Act)
• Mandatory benefits to budget? Yes (includes annual leave, sick leave, and maternity leave)
• Works council/collective agreements considerations? Usually (depending on the industry and number of employees)

Best Options If You're Hiring in Eswatini

Can I Hire Contractors Instead of Setting Up an Entity?

Yes, but you should be cautious about misclassification risks. Hiring contractors in Eswatini is possible without a local entity, but the relationship must be genuinely independent.

Eswatini has strict labor laws, and misclassifying a contractor as an independent worker can lead to legal issues. Here are some key points to consider:

• Ensure contractors have multiple clients and control over their work.
• Avoid directing their work hours or methods to maintain independence.
• Be mindful of the nature of the work; core business functions may imply employment.

How Long Does Entity Setup Take And What Does It Cost?

Typical entity setup timeline: It often takes 4–8 weeks to set up an entity in Eswatini, depending on the registrations required.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated 5,000–10,000 SZL per month ($300–$600)
• Payroll provider: Estimated 500–1,500 SZL per employee per month ($30–$90)
• Employer registrations and recurring compliance: Estimated 2,000–5,000 SZL per year ($120–$300)
• Corporate tax filings and annual reporting: Estimated 10,000–20,000 SZL per year ($600–$1,200)

EOR cost components (no-entity route):

• A per-employee EOR service fee (from $399 p/month with Playroll)
• Pass-through statutory costs (e.g., employer social security contributions, typically 6% of gross salary)
• Any optional benefits you choose to provide beyond statutory minimums

How an Employer of Record Can Help You Hire in Eswatini

Hiring in Eswatini can be complex, but it doesn’t have to require setting up a local entity or taking on long-term overhead. With an Employer of Record like Playroll, you get a simple, predictable way to hire compliantly while keeping costs transparent and under control. We help you:

• Hire employees in Eswatini quickly without establishing a local entity, eliminating incorporation costs, ongoing administration, and exit complexity.
• Stay fully compliant with local payroll, tax, and employment regulations with Playroll’s payroll services.
• Control your total employment costs, with a clear monthly EOR service fee (from $399 per employee).
• Focus on growing your business while we manage contracts, payroll, compliance, and labor law obligations end to end.
• Scale up or exit the market easily, without the financial or legal burden of closing a local entity.