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From
$249/month
$49/month
2% of gross salary / month
Lesotho is a small enclave country completely enclosed by South Africa. An independent kingdom, 99.7% of Lesotho’s population of 2.164 million people belongs to the Sotho tribe. Since 2000, Lesotho’s GDP has tripled to reach over $2 billion. This growth is predicted to increase by 2.4% in 2024 as the country continues to rebound from the pandemic downturn. After facing high inflation over the past few years, 2024’s rate is expected to drop to 6.4%. Unemployment, though still high, is expected to continue dropping and may reach under 14% in 2024.
If you’re thinking of hiring Lesotho workers for your organization, now could be the right time, and a Lesotho Employer of Record can help get them on your payroll as quickly as possible.
Hire in Lesotho, and pay employees through our platform or app.
Our Lesotho EOR solution is the most affordable on the market.
Fast Lesotho onboarding, hire in as little as 12 hours.
We draft compliant Lesotho labor contracts.
We manage all Lesotho mandatory benefits.
It doesn’t stop with Lesotho — we hire employees globally.
An EOR or employer of record in Lesotho works in this country to help international companies hire local workers. In normal circumstances, a business would need to set up and register a legal entity in Lesotho to hire people. However, when they partner with an EOR, companies can hire without owning entities. The EOR hires the employees directly, acting as their legal employer in Lesotho while contracting them to work for its client companies. It also usually takes on the human resources (HR) functions of recruiting, hiring, contract management, payroll, benefits management, and leave scheduling over the long term. EORs are sometimes also referred to as PEOs or professional employment organizations.
When your company works with an EOR in Lesotho, it can reap many great rewards from this partnership. Among the advantages of working with an EOR are:
Horizons stands out as a Lesotho EOR through:
Working with an EOR in Lesotho helps you get local employees working for you. When you partner with an EOR, it will normally provide multiple services for your company, including:
Lesotho has extensive labor laws that protect the rights of both employees and employers. These are contained in several pieces of legislation, including the Constitution of Lesotho of 1998, Labor Code of 1992, Labor Code Amendment Act of 2006, the Workmen’s Compensation Regulations of 2014, as well as other instruments and international treaties. Keeping track of all of these laws is the responsibility of the EOR. At the same time, you should be aware of these main rules so you know what you’ll have to provide for your Lesotho workers.
Contracts in Lesotho can be written or oral. They can be definite (fixed-term), indefinite (permanent), or for specific tasks. If definite or for specific tasks, they must stipulate end dates or clearly identify the work that must be completed, respectively, to define the end of the contract.
The Lesotho Labor Code allows probation periods to a maximum of four months. If, during this period, either party wishes to terminate the contract, they must give seven days’ notice.
No probationary period.
At completion of the project.
Not applicable
Typically up to 4 months
No set notice period is required by law
Not applicable
Typically up to 4 months
No set notice period is required by law
1 month salary per year of service
Lesotho employees work nine hours per day, five days a week, or eight hours per day for five days and five hours on a sixth day for a total of 45 hours per week. Overtime is allowed only when deemed necessary and must not exceed 11 hours per week.
125% of the standard hourly rate
200% of the standard hourly rate
200% of the standard hourly rate
Lesotho has ten paid public holidays per year. These include:
| Date | Holiday name |
|---|---|
| 1 Jan 2025 | New Year’s Day |
| 11 Mar 2025 | Moshoeshoe’s Day |
| 18 Apr 2025 | Good Friday |
| 21 Apr 2025 | Easter Monday |
| 1 May 2025 | Workers’ Day |
| 25 May 2025 | Africa Day/Heroes’ Day |
| 29 May 2025 | Ascension Day |
| 17 Jul 2025 | King’s Birthday |
| 4 Oct 2025 | Independence Day |
| 25 Dec 2025 | Christmas Day |
| 26 Dec 2025 | Boxing Day |
Workers must receive at least one period of 24 hours for rest per week which should be on Sundays if possible. During working days, workers who work for five consecutive hours are entitled to a one-hour meal break. Mothers are also allowed paid breaks totaling 60 minutes per day to nurse newborn children up to six months after returning from maternity leave.
no leave entitlement
12 days of paid leave annually
12 days of paid leave annually
12 days of paid leave annually
Sick leave for workers with less than six months of service is unpaid. After six months of service, employees get 12 days of fully paid sick leave and another 24 days of leave at half-pay in each 12-month period.
no leave entitlement
12 days of paid leave annually
12 days of paid leave annually
12 days of paid leave annually
Unpaid (unless specified in the employment contract)
Unpaid (unless specified in the employment contract)
Unpaid (unless specified in the employment contract)
In order for employees to receive the full wages due to them, workers must present a valid medical certificate from a certified doctor to their employer.
Maternity leave in Lesotho is mandatory but employers have no obligation to pay wages. Expecting mothers are entitled to six weeks before and six weeks after confinement.
Employees are entitled to at least 12 days of paid leave each year.
Employers can terminate contracts in cases of gross misconduct without providing notice. In all other instances of termination, both by employer and employee, notice must be given as follows:
When severance must be paid, it is given at a rate of two weeks’ wages for every year of service after the completion of the first year.
There aren’t mandatory contributions made by both employers and employees towards a national social security program.
There aren’t mandatory contributions made by both employers and employees towards a national social security program.
Lesotho has a progressive individual income tax system for residents and non-residents deriving income in the country.
Income earned from employment, business activities, rental income, interest, and other sources within Lesotho is subject to income tax.
Lesotho provides healthcare services through public hospitals and health centers operated by the Ministry of Health.
Health insurance coverage is not universally mandatory or standardized across the population. However, there are efforts and initiatives to improve access to healthcare services, including through public health programs and private health insurance options.
The minimum wage in Lesotho is set by sector. However, since increasing in 2022, the general minimum wage is 1881 LSL (Lesotho loti)/month for new workers (about $100/month) and 2053 LSL/month (about $110/month) for workers with over 12 months of service. Skilled workers will make more, with average salaries of around 6200 LSL/month (about $335/month).
A 13th-month annual bonus is not mandatory in Lesotho.
Employers in Lesotho do not pay social security contributions, and neither do employees. Instead, universal systems are set up for the population to provide health care and pensions for all citizens.
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As the sole legal employer of your workers in Lesotho, the EOR must ensure that these workers are treated fairly and justly at all times. The EOR’s staff use their experience and knowledge of local laws to create contracts that are in line with all local regulations. It monitors their working conditions and performs payroll and tax management duties to make sure that everything is done according to the letter of the law.
Some companies find it hard to manage workers who they don’t directly employ. The EOR may use different software systems for HR management and payroll that may not mesh with the company’s systems. This three-way relationship between the company, the EOR, and the employee also adds an extra layer of communication which can increase the chances of misunderstandings occurring.
Holiday Schedule in Lesotho [2025]
