* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

Lesotho loti (L)



Employment Cost


Annual Leave

12 days

In-demand Specialties*
Healthcare, Agriculture, Education

The Ultimate Guide to Hiring Employees in Lesotho

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.


Key Considerations Before Hiring In Lesotho

Employing in Lesotho requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Lesotho with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Lesotho quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Lesotho's agriculture sector, alongside mining and remittances, plays a crucial role in its economy, engaging over half of its population in informal farming and animal husbandry.

With competitive labor costs, Lesotho offers an attractive environment for foreign employers seeking to manage operational expenses efficiently.

Its proximity to South Africa grants access to regional markets, positioning Lesotho as a strategic hub for businesses aiming to expand across Africa.

Moreover, efforts to enhance the business environment have promoted stability and created favorable conditions for investment and development in the country.


Fundamental Aspects of Employment in Lesotho

Employment contracts in Lesotho can be verbal or written, with a preference for written agreements for legal recognition. These contracts, in Lesotho or English, should detail essential aspects such as:

  • Identification of both parties
  • Commencement date
  • Job responsibilities and duties
  • Employees compensation and other benefits

Probationary Period in Lesotho

In Lesotho, the probationary period for employees should not surpass four months, as stipulated by the Labor Code.

Working hours in Lesotho

The standard working hours are 45 hours per week, distributed over either a five-day or six-day reference period. In a five-day workweek, the daily working hours are 9 hours, whereas in a six-day workweek, they are 8 hours for five days and 5 hours for the sixth day.

Overtime in Lesotho

In Lesotho, overtime work is limited to 11 hours per week, with employees entitled to an additional payment of at least 25% for overtime hours, totaling 125% of their regular wage. On weekends and holidays, this extra payment can rise to 200% of the employee's wage.

Navigating Key Aspects of Payroll in Lesotho

has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

April 1st - March 31st

Fiscal Year in Lesotho

April 1st - March 31st is the 12-month accounting period that businesses in Lesotho use for financial and tax reporting purposes.

Payroll Cycle in Lesotho

The payroll cycle in Lesotho is usually Monthly, with employees being paid last day of the month.
LSL 10.45 p/h

Minimum Wage in Lesotho

The minimum wage for employees in Lesotho is typically LSL 10.45 per hour, amounting to ~LSL 1,881 per month for a typical 45 hour work week.

Minimum wages and salaries in Lesotho

The minimum wage in Lesotho is 10.45 LSL.

Bonus Payments in Lesotho

There is no mandatory provision for a 13th-month salary in Lesotho.

Comprehensive Overview of Employment Taxes in Lesotho

Understanding the tax obligations for both employers and employees is crucial when operating in Lesotho's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Lesotho.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 0% on top of the employee salary in Lesotho.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Lesotho, the typical estimation for employee payroll contributions cost is around 0%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

Lesotho imposes individual income tax at progressive rates, ranging from 20% to 30%.

Tax Rate Income Bracket

Pension in Lesotho

The public pension is funded by the state and does not require contributions from the employer.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Lesotho tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Lesotho

When it comes to terminating employment in Lesotho, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

Either the employer or the employee can terminate the employment relationship in Lesotho. Dismissal needs to be justified based on the company's operational needs or related to the employee’s capacity or conduct. Employers must provide a written explanation for the dismissal to the affected employee.

Notice Period

As per the Labour Code in Lesotho:

  • 7 days notice for less than 6 months of service
  • 14 days notice for less than 1 year of service
  • 1 month notice for more than 1 year of service
  • 3 months notice for more than 10 years of service, unless specified differently in a collective agreement.

Severance Pay

As per the Labour Code in Lesotho, severance pay is determined by years of service. Employees with over a year of continuous service receive two weeks' pay for each completed year. However, employees dismissed due to misconduct are not eligible for severance pay.

Annual Leave Entitlements and Company Policies in Lesotho

The annual leave entitlement in Lesotho is 12 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Lesotho

Lesotho observes a total of eleven national public holidays.

Holiday Date

Paid Time Off in Lesotho

Maternity Leave in Lesotho

Paternity Leave in Lesotho

Sick Leave in Lesotho

Parental Leave In Lesotho

Lesotho's Benefits Built Into Playroll

Competitive benefits package in Lesotho

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Lesotho's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Lesotho

Make your benefits package in Lesotho a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

Statutory benefits for employment in Lesotho

Mandatory benefits in Lesotho typically include:

  • Maternity leave
  • Annual leave
  • Sick leave
  • Public holidays
  • Severance pay
  • Overtime compensation
  • Minimum wage

Playroll allows you to provide localized benefits for employees in Lesotho within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Lesotho create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Lesotho

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Lesotho.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

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Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

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