Payroll and Benefits Guide Lesotho
Last updated: Mar 03, 2026
Contribution
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Employer Payroll Contributions
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0.00%
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Total Employment Cost
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Employee Payroll Contributions
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0.00%
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Total Employee Cost
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Employee Income Tax
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| 20% | Up to 5620.00M LSL |
| 30% | Above 5620.00M LSL |
Employer taxes
Minimum Wage
The monthly minimum wage depends on the duration of the employment. LSL 1,188.10 for workers with less than one year of service and LSL 2,053.00 for workers with more than one year of service.
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
In Lesotho, the frequency cycle for payroll is monthly.
13th Salary
There is no statutory requirement to pay the 13th or the 14th month’s salary in Lesotho.
Working Hours
General
In Lesotho, the normal working hours are 45 hours a week within a five or six-day reference period. Specifically:
- In a five-day workweek, employees are expected to work 9 hours a day.
- In a six-day workweek, employees work 8 hours for the first five days and 5 hours on the sixth day.
Overtime
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Maximum Ordinary Hours (Labour Act §186): The standard work limit is 45 hours per week.
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For a five-day work week, the daily limit is 9 hours per day.
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For a six-day work week, the daily limit is 8 hours for five days and 5 hours for the sixth day.
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Overtime Threshold: Any work performed beyond these normal contractual or statutory hours is considered overtime.
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Daily Maximum: An employer may request or permit a worker to work up to 12 hours in a single day, with the additional hours classified as overtime.
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Weekly Overtime Cap: Overtime work is generally limited to a maximum of 11 hours per week.
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Consent and Authorization: Overtime work must be authorized by the employer. Employees may refuse to work overtime if it exceeds the limits established by law or infringes upon their rights to health and rest.
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Exemptions: Managerial positions and other specified roles may be exempt from receiving statutory overtime pay.
Mandatory Overtime Pay Rates
Overtime is compensated with a supplement paid in addition to the pay received for corresponding work during normal working hours. The premium rates increase significantly for work on rest days and public holidays.
| Day/Condition | Minimum Compensation Rate (Statutory) | Total Pay Rate | Notes |
| Normal Overtime (Working Days) | +25% of the regular hourly wage. | 125% | This is the minimum supplement for all standard overtime hours (Labour Act §186). |
| Weekly Rest Day (Sunday) | +100% of the regular hourly wage (Double Pay). | 200% | This double-time rate is the minimum for all hours worked on the designated rest day. |
| Public Holiday Work | +100% of the regular hourly wage (Double Pay). | 200% | This double-time rate is the minimum for all hours worked on an official public holiday. |
Other Mandatory Premiums
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Night Work Premium: Night workers (working between 7:00 PM and 5:00 AM during autumn/winter, or 8:00 PM and 6:00 AM during summer) must be granted reduced working hours without loss of earnings, or receive extra pay for night work.
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The extra pay must be at least 1.25 times (125%) their normal rate (Labour Act §204).
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Compensatory Rest Day: In the case of working on a Public Holiday, the employee will be entitled to take another working day off in lieu of the holiday, or receive the double wage payment, by agreement of the parties (Labour Act §185).
Leave
Annual Leave
In Lesotho, employees are entitled to a minimum of 12 working days of annual leave in a year.
PTO carryover
In Lesotho, statutory annual leave cannot be forfeited. Leave is meant to be taken when due, but unused leave may be carried over by agreement. A blanket “use-it-or-lose-it” policy is not lawful, and unused statutory leave must be paid out on termination.
Public Holidays
Public holidays falling on the weekend are usually lost.
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 11 March 2026 | Wednesday | Moshoeshoe’s Day (King Moshoeshoe I’s Anniversary) | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 1 May 2026 | Friday | Workers’ Day (May Day) | Standard holiday |
| 14 May 2026 | Thursday | Ascension Day | Standard holiday |
| 25 May 2026 | Monday | Africa/Heroes Day | Standard holiday |
| 17 July 2026 | Friday | King’s Birthday (King Letsie III) | Standard holiday |
| 4 October 2026 | Sunday | Independence Day | Standard holiday |
| 5 October 2026 | Monday | Independence Day Holiday | |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 26 December 2026 | Saturday | Boxing Day | Standard holiday |
Sick Days
In Lesotho, employees are entitled to unpaid sick leave during the first six months of continuous employment. After six months, they become eligible for paid sick leave, which includes up to 12 days of full pay and up to 24 days of half pay within a 12-month period. To avail paid sick leave, employees must provide a medical certificate from a registered practitioner. Sick leave does not carry over from year to year, and employers cannot dismiss employees for justified sick leave. The total statutory sick leave entitlement is 36 days per year.
Maternity Leave
In Lesotho, female employees are entitled to 12 weeks of maternity leave, divided into 6 weeks before and 6 weeks after childbirth. If the birth is delayed, prenatal leave is extended without affecting postnatal leave. Employees must provide a medical certificate indicating the expected delivery date to avail of this leave. In cases of pregnancy-related complications, up to 8 weeks of additional leave can be taken with a medical certificate. This leave is paid by the employer, provided the employee has completed at least one year of continuous service with the same employer.
Paternity Leave
In Lesotho, there are no statutory provisions for paternity leave.
Parental Leave
In Lesotho, there are no statutory provisions specifically addressing parental leave.
Employer taxes
Termination
Termination Process
The employment relationship in Lesotho can be terminated by either party. The dismissal must be objectively justified based on the operational requirements of the undertaking or connected with the employee’s capacity or conduct. Employers are required to provide a written statement for the reasons of dismissal to a dismissed employee.
The prohibited grounds for dismissal include marital status, pregnancy, maternity leave, family responsibilities, filing a complaint against the employer, race, color, sex, religion, political opinion, social origin, nationality/national origin, trade union membership and activities, lawfully taking leave (authorized absence from work), and HIV status.
| Salary payment interval / date | Final payment on termination | Bank account payment requirement |
|---|---|---|
| Employers must pay wages within one month for workers paid monthly; for contracts shorter than a month, payments may be more frequent (e.g., weekly). | Upon termination (except for dismissal for misconduct), all wages earned (including overtime and allowances) become due on the last working day, and must be paid no later than the following working day. | Wages must be paid in legal tender, at or near the place of work. |
Notice Period
The statutory written notice period is provided under the Labour Code. Unless otherwise stipulated in a collective agreement, the notice period will be as follows: 7 days’ notice for less than 6 months of service; 14 days’ notice for less than 1 year of service; one-month notice for more than 1 year of service; three-month notice for more than 10 years of service. The notice period starts on the day following the one on which the notice was given. Payment in lieu of notice is also allowed.
Severance Pay
The Labour Code has made provisions for a severance pay that is directly linked to the length of service of the employee. For any employee who has completed more than one year of continuous service with the same employer, a severance payment equivalent to two week’s wages is paid for each completed year of service. The amount of severance pay is capped at a certain level and the amount is updated regularly by the Minister in consultation with the Wages Advisory Board. Severance pay is not paid to employees who have been dismissed by the employer for misconduct.
Probation Period
Immigration
Lesotho offers several visa categories that cover a number of reasons for foreign nationals to enter the country. Some of the most common visas in Lesotho include: Tourist visas, Business visas, Official and diplomatic visas, and Student visas. Lesotho doesn’t offer a work-specific visa. Foreign employees can travel to Lesotho on the basis of a general tourist visa and apply for a work and residence permit after they arrive.
In order to obtain a visa for traveling to Lesotho, applicants will need to provide the following documents: A completed visa application, a valid passport with a blank page for the entry stamp, a recent passport photograph, proof of vaccination against yellow fever, proof that the applicant has travel health insurance. Employees should bring the following documents with them to apply for a work and residence permit in Lesotho: A letter of invitation from the employer in Lesotho, a valid passport, a passport photo, a completed application, proof of accommodations in Lesotho.
Foreign employees should begin the visa application process by locating the nearest embassy or diplomatic mission of Lesotho. The applicant should submit all required documents to the embassy and then wait in their country of residence for approval. After the relevant officials approve the visa application, the employee can travel to Lesotho.
Upon arrival, they’ll need to apply for a work and residence permit. Foreign nationals can apply for this permit at the Department of Immigration and Passport Services. This department is located within the Ministry of Home Affairs in Lesotho. The required documents for the permit include a letter from the employer, so it’s important for foreign nationals to secure a job before traveling to Lesotho. Once approval for the work and residence permit has been given, the employee can begin working in Lesotho. The permit will be valid for an initial period of up to two years.
VAT
The standard VAT rate is 15%. The VAT on on goods and services exported from Lesotho is 0%.
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Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 11 March 2026 | Wednesday | Moshoeshoe’s Day (King Moshoeshoe I’s Anniversary) | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 1 May 2026 | Friday | Workers’ Day (May Day) | Standard holiday |
| 14 May 2026 | Thursday | Ascension Day | Standard holiday |
| 25 May 2026 | Monday | Africa/Heroes Day | Standard holiday |
| 17 July 2026 | Friday | King’s Birthday (King Letsie III) | Standard holiday |
| 4 October 2026 | Sunday | Independence Day | Standard holiday |
| 5 October 2026 | Monday | Independence Day Holiday | |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 26 December 2026 | Saturday | Boxing Day | Standard holiday |
Questions & Answers