Lesotho's employment landscape is governed by the Labour Code Order 1992 and subsequent amendments, which outline the minimum standards for employment terms and conditions, including benefits and entitlements. Understanding these regulations is crucial for businesses operating in Lesotho to ensure compliance and attract and retain talent. Employee benefits in Lesotho typically consist of mandatory benefits stipulated by law and supplementary benefits offered by employers to enhance their compensation packages.
Offering competitive and comprehensive benefits packages is increasingly important for attracting and retaining skilled employees in Lesotho. While the statutory requirements provide a baseline, many employers choose to offer additional benefits to stand out in the job market. These can include health insurance, retirement plans, and other perks that improve employee well-being and job satisfaction. This guide provides an overview of the key aspects of employee benefits and entitlements in Lesotho for 2025, covering both legal requirements and common practices.
Mandatory Benefits in Lesotho
The Labour Code Order 1992 mandates several benefits that employers must provide to their employees. These include:
- Minimum Wage: Lesotho has a legally mandated minimum wage, which varies depending on the industry and type of work. Employers must ensure they pay at least the minimum wage applicable to their sector.
- Paid Leave: Employees are entitled to annual leave, sick leave, and maternity leave. The specific number of days varies based on the length of service and the type of leave.
- Public Holidays: Employees are entitled to paid time off for gazetted public holidays.
- Severance Pay: Employees who are terminated through no fault of their own are entitled to severance pay, calculated based on their length of service.
- Working Hours: The law regulates maximum working hours and overtime pay. Employees are generally entitled to overtime pay for hours worked beyond the standard work week.
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