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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.
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:
In Lesotho, the probationary period for employees should not surpass four months, as stipulated by the Labor Code.
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.
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.
The minimum wage in Lesotho is 10.45 LSL.
There is no mandatory provision for a 13th-month salary in Lesotho.
Lesotho imposes individual income tax at progressive rates, ranging from 20% to 30%.
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.
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.
As per the Labour Code in Lesotho:
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.
Lesotho observes a total of eleven national public holidays.
Mandatory benefits in Lesotho typically include:
Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.
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