Talent Wiki - Lesotho
Your quick guide on talent and labor compliance norms in Lesotho
Capital
Maseru
Currency
Lesotho Loti (LSL)
Languages
Sesotho, English, Isizulu, Siphuthi, Isixhosa
Payroll Frequency
Monthly
GDP per Capita
$1,186
Employer Tax
None
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
Local Universities
The top universities in Lesotho are;
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 |
Talent Sourcing Tips
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 |
Payroll
Payroll Cycle
Workers are paid monthly.
Minimum Wage
The minimum wage in Lesotho ranges from LSL 1,881 to LSL 2,053 per month.
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.
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
Taxes
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%
Offboarding & Termination
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.
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
