Home > Countries We Serve > Lesotho
Expand your Global Workforce to 
Lesotho
- Full assistance with visa applications and work permits
- Identify and hire top talent in Lesotho
- Handle employment contracts and employee onboarding
- Support employees during redundancy transitions
- Ensure adherence to Lesotho’s Labor Act
- Complete EOR services in Lesotho
POPULATION
2,337,000
LANGUAGES
4 Languages
COUNTRY CAPITAL
Maseru
CURRENCY
LSL
A Glance at Lesotho
Lesotho is a small, mountainous country surrounded by South Africa. It is a lower-middle-income country with its capital city in Maseru. Lesotho has a GDP of $2.272 billion and a growth rate of 2.8% as of 2024. Their native language, Sesotho, is their official language along with English, IsiXhosa, and SiPhuthi. The country’s primary economic activities include subsistence agriculture, livestock, textile, and apparel manufacturing.
10
Holidays Per Year
45 hrs per week
Working hours
Compensation & Benefits in Lesotho
LSL 11,800
Average wage per month
3-4 weeks
Annual vacation leave (min)
A reputable Employer of Records in Lesotho handles all administrative and legal aspects of employing workers on behalf of an international company, enabling them to expand their business without establishing a local entity. At Talent Grid Africa, we handle tax compliance issues, recruitment, outplacement, and other EOR services to ensure you have a stress-free time running your business in Lesotho.
Taxation and Statutory Deductions in Lesotho
Employees pay an individual tax at a rate of 20% or 30%, depending on their annual income. The tax is paid through the Pay As You Earn (PAYE) system. Corporate tax stands at 25%, while mining companies are taxed at a rate of 30%. Social security includes the National Pension Scheme and the National Health Insurance Fund, which are mandatory for both employers and employees.
The Labor Act of 2024 replaced the Labor Code Order of 1992, which is Lesotho’s current employment framework. The Act regulates employment in the private and public sectors. Here is an overview of the new employment laws in Lesotho.
- Minimum Wage. The government sets the minimum wage on an annual basis. Currently, the minimum wage ranges from 1178 to 1285 Maloti, depending on the sector.
- Occupational Safety and Health (OSH). The Labor Act, 2024, includes provisions for OSH, aligning them with the International Labor Organization framework.
- Employment Contracts. Each contract must identify the employer and the employee with their full names and addresses. The contract should indicate the job description, remuneration, and working hours.
- Working Hours. A standard workweek in Lesotho has 45 hours, spread across 5 or 6 days. Daily working hours are 8 hours for those working 6 days and 9 hours for those working for 5 days per week. However, a worker contracted on a part-time basis should not work fewer than 5 hours a day or fewer than 40 hours a week. Overtime is limited to a maximum of 11 hours per week with a compensation rate of 125% of the regular wage.
- Expats, Visas, and Work Permits. Foreigners must obtain an entry visa, permitting them to work in the country. The employer and the expatriate should then apply for a work permit. However, the employer is responsible for initiating and sponsoring the application.
- Our complete EOR services in Lesotho enable you to expand your business without establishing a legal entity.
- We allow you to focus on growing your business as we handle tax, payroll, and HR functions.
- Our HR support helps you navigate local employment laws, manage benefits, and maintain compliance.
- We handle payroll processing on your behalf, ensuring timely and accurate payment.
- Our EOR services offer risk mitigation, protecting you from legal and compliance issues.
Frequently Asked Questions
An Employer of Record (EOR) allows international companies to hire employees in Lesotho without setting up a local entity. Talent Grid Africa handles payroll, tax compliance, HR, recruitment, and legal obligations on your behalf.
The Labor Act regulates employment contracts, minimum wage (ranging from 1178 to 1285 Maloti depending on the sector), working hours (45 hours per week), overtime (up to 11 hours per week at 125% pay), and occupational safety standards.
Employees pay income tax at 20% or 30% based on annual earnings through the PAYE system. Employers and employees must contribute to the National Pension Scheme and National Health Insurance Fund. Corporate tax is 25%, while mining companies pay 30%.
Yes. Foreign employees must first obtain an entry visa, after which the employer applies for a work permit. Talent Grid Africa assists in securing these permits and ensuring compliance with immigration laws.
We offer payroll outsourcing, onboarding, work permit and visa assistance, executive search and recruitment, and outplacement services, ensuring full compliance with local labor laws.