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Expand your global workforce in Lesotho

Your guide to the employment landscape, working customs and local labor laws in Lesotho.

Capital

Maseru

Currency

Lesotho Loti (LSL)

Languages

Sesotho, English, Isizulu, Siphuthi, Isixhosa

GDP per Capita

$1,186

Employer Tax

None

Payroll Frequency

Monthly

Talent overview

Lesotho is a landlocked country surrounded by South Africa with its economy well-integrated into the surrounding country as well. However, its main economical reliance on agriculture, livestock, mining, and remittances (from SACU) boasts most of its GDP. The country is working with more than 50% of the population in informal crop cultivation and animal husbandry. 

Major economic hubs:

Maseru

Skills in demand:

Mining Professionals, Engineering Professionals, Medical Professionals, Manufacturing Professionals

Top local universities in Lesotho

Uni1 2

National University of Lesotho

RANKING

Local: 1

World : 6589

Uni2 2

Lesotho College of Education

RANKING

Local: 2

World : 12578

Number of LinkedIn users:

86, 360

Top Recruitment Agencies:

KM Global Consult

Where to find talent

Top Local Job Boards:

Number of LinkedIn users:

Top Recruitment Agencies:

Salary Data

The table contains the average monthly salary in Lesotho

Job Title Average Monthly Salary (LSL) Average Monthly Salary (USD)
Information Technology Manager 20,000.00 1,180
Network Engineer 9,830.00 580
Developer / Programmer 11,800.00 696
Project Manager 13,100.00 773
Database Administrator 12,000.00 708
Business Analyst 14,500.00 856
Business Development Manager 19,500.00 1,151

 

Employ in Lesotho

Employing in Lesotho

Hiring in Lesotho requires you to be aware of the local employment laws, benefits, payroll, and taxes. Given below is everything you need to know on how to successfully onboard talents from Lesotho.

Employee Contract

Contracts in Lesotho can either be verbal or written according to the Labour Code, but it is good practice to provide a written contract for employment. According to law, the contract must be written in the Lesotho or English to be recognized.

Probation Period

The probationary period for new employees must not exceed four months.

Public and Provincial Holidays

Date Name Type
1 Jan New Year Public Holiday
11 Mar Moshoeshoe’s Birthday Public Holiday
7 Apr Good Friday Public Holiday
10 Apr Easter Monday Public Holiday
1 May May Day Public Holiday
18 May Ascension Day Public Holiday
25 May Africa/Heroes Day Public Holiday
17 Jul King’s Birthday Public Holiday
4 Oct Independence Day Public Holiday
25 Dec Christmas Day Public Holiday
26 Dec Boxing Day Public Holiday

Employee Leaves

Type of leave Time period Mandatory
Annual leave/Earned Leave 12 days Yes
Maternity Leave  12 weeks Yes
Sick Leave 12 (with full pay) and 24 (with half pay) days Yes

Leave Compliance

Payroll in Lesotho

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Payroll cycle

Workers are paid monthly. 

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Minimum wage

The minimum wage in Lesotho ranges from LSL 1,881 to LSL 2,053 per month.

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Overtime pay

Overtime pay in Lesotho usually amounts to 125% of the base wage. With the weekend and holiday overtime pay amounting to up to 200% of the employee’s wage.

How taxes work

Employer Payroll Tax

Lesotho does not levy any payroll taxes on the employers.

Employee Payroll Tax

Lesotho does not levy any payroll taxes on the employees.

Employee Income Tax

The rates depend on the tax structure for the financial year and are subject to amendments by the parliament. There are two structures:

Taxable Income Rate (%)
1.00 to 67,440.00 20
67,440.01 above 30

VAT

The standard VAT in Lesotho vary on the service and goods purchased.

  • Exports and basic commodities – 0%
  • Electricity – 9%
  • Telecommunications – 12%
  • Other goods and services – 15%

Bonus

13th Month Pay

The 13th-month pay is not mandatory in Lesotho.

Employee Benefits

  • Pension
  • Dependent’s / Survivorship Benefit
  • Temporary Disability Benefit
  • Permanent Disability Benefit
  • Sickness and Maternity Benefit

Employee offboarding

Employers in Lesotho can terminate employees according to three stipulations by the labour law. 

  • Skill capacity and competency of the employee
  • Employee behavior and conduct
  • Operational requirements of the organization or business

The notice period for probationary and regular employees is 1 week to 1 month.

The severance pay in Lesotho is two weeks worth of pay for each year of service after a year.

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Visa and
immigration

Applying for a business visa for Lesotho requires the following documents for successful application:

  • Supporting documents to validate business in country 
  • Current bank statements and proof of travel insurance
  • Itinerary including travel accommodations
  • Business reference
    • Letter from employer
    • Letter of invitation from local business
  • Foreign documents must but translated to English
  • Must be registered to Directorate of Immigration and must present passport and national verification within 7 days of arrival

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