LESOTHO Payroll Outsourcing
Pay Your Talents in Lesotho Compliantly
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Pay Your Team in Lesotho. On Time. Everytime.
Ensure your team in Lesotho is paid accurately and on time with our Payroll Outsourcing services. Gain expert support to keep your operations fully compliant with Lesotho's Labour Code and tax regulations.
- Pay anyone in Lesotho - no matter the currency.
- Manage employee benefits easily. Get the support you need to navigate employee contributions in Lesotho.
Flexible Payroll Solutions in Lesotho.
Payroll solutions that adapt to your needs whether you are established or growing in Lesotho.
Lesotho Payroll expertise at your fingertips
Over more than a decade, Africa HR Solutions has become a leading payroll service provider in Lesotho and across Africa with a proven track record of success with over 400 clients across many industries.
A single point of contact
Avoid unnecessary headaches and mistakes – manage everything from a single point of contact. Your dedicated account manager is always available to assist with any queries you may have.
Self service portal for your talents in Lesotho
Give your team the tools they need to easily manage their payslips, leave allowances, and other claims. Powered by SAGE, the employee self-service portal will make their lives easier.
100% Compliant payroll operations
Ensuring your operations are carried out compliantly is a must. From country-specific employee contribution to tax policies, we make sure your company is up to code with Lesotho’s legislation at all times.
Lesotho Country Overview
Geographic location: Lesotho is a mountainous landlocked country surrounded by South Africa
Population: Lesotho is essentially monolingual in Sotho (or SeSotho), although English and Sotho are both official languages
Economy: Lesotho’s economy is largely based on agriculture, livestock, mining, and manufacturing. Classified as a lower-middle-income country, Lesotho is rich in natural resources such as water and diamonds. Its last-recorded GDP per capita was estimated at around $1,029.
Payroll in Lesotho- What You Should Know
- Population: 2,281,454
- Gross Domestic Product (GDP): $2.5 B
- GDP Growth (April 2021): 1.3%
- Inflation, consumer prices: 6.0%
- Foreign Direct Investment (% of GDP): -0.5%
- Unemployment Rate: 24.6%
- Capital: Maseru
- Currency: Lesotho Loti
- Languages: Southern Soto, English
Employer Contribution
- Lesotho did not integrate a social security system yet
Employee Contribution
- Lesotho did not integrate a social security system yet
Value-added tax (VAT)
The standard VAT rate is 15% in Lesotho – applied to the supply of goods and services both local and imported. This does not include activities such as imports of certain products, banking, and general insurance.
Electricity and telephone supply are levied at a reduced rate of 8% and 12% respectively.
Banking services and goods including maize grain, beans, lentils, milk, bread and more are zero-rated in Lesotho.
Paid Time-Off
Employees are generally entitled to 12 days of paid annual leave.
Sick Leave
In Lesotho, taking a sick leave during the first 6 months of employment is generally unpaid. Once the employee has accumulated more than 6 months of continuous service, they are then entitled to 12 days paid full then 24 days of leave paid at half their regular wage.
Maternity Leave
In Lesotho, women are entitled to a maximum of 12 weeks of paid maternity leave – half of which must be taken before childbirth.
Paternity Leave
There is no statutory paternity leave in Lesotho.
- In Lesotho, the employment contract may be terminated by either party.
- Dismissal in Lesotho must be justified by valid reasons related to company capacity or the worker’s conduct – any other reasons deemed ‘abusive’ will lead to legal repercussions for the employer.
- A written statement containing the reasons for dismissal must be provided to the employee.
Lesotho’s Labour Code provides the statutory notice periods which are as follows:
- <6 months of service: 7 days
- <1 year of service: 14 days
- >1 year of service: 1 month
- >10 years of service: 3 months
Lesotho’s Labour Code has made provisions that severance pay is provided in proportion to an employee’s years of service within the same company.
A worker who has completed more than a year of continuous service is entitled to 2 weeks’ wages for each completed year of service.
- New Year’s Day (1st January)
- King Moshoeshoe I’s Anniversary (11th March)
- Good Friday (10th April)
- Easter Monday (13th April)
- International Workers’ Day (1st May)
- Ascension Day (21st May)
- Africa Day (25th May)
- King Letsie III’s Birthday (17th July)
- Independence Day (of Lesotho) (4th October)
- Christmas Day (25th December)
- Boxing Day (26th December)
Seeking a Reliable Payroll Partner in Lesotho?
Pay your talents are paid on time and without error! Our team at Africa HR Solutions also provides your company the guidance you need to ensure that your operations comply with Lesotho’s labour Code and tax policies. Over the years, we have played a pivotal role in the expansion of over 400 clients across Africa by providing reliable HR and payroll and cross-border payment outsourcing solutions.
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While the content presented on this webpage is accurate as of the time of publication, it is imperative to recognise that the content is provided solely for informational purposes and does not constitute legal and/or tax advice. To obtain the most current and precise guidance, it is essential to verify specific details related to employment or compliance with our experts or consult your own legal and/or tax advisor(s). Africa HR Solutions Ltd. explicitly does not offer legal or tax advice. The information provided is general in nature, not tailored to a specific company or workforce, and does not reflect the service delivery of Africa HR Solutions in any given jurisdiction. Africa HR Solutions makes no representations or warranties regarding the accuracy, completeness, or timeliness of this information and disclaims any liability arising out of or in connection with it, including any loss resulting from the use of or reliance on the information.