
Lucas Botzen
Founder & Managing Director
Last updated:
October 7, 2025
What is an Employer of Record in Lesotho?
View our Employer of Record servicesAn Employer of Record (EOR) in Lesotho is a company that legally hires and pays employees on your behalf. This allows you to build a team in Lesotho without setting up a local legal entity. An EOR handles all the legal and HR responsibilities, such as payroll, taxes, benefits, and compliance with Lesotho's labor laws. You maintain control over your employees' day-to-day work and responsibilities. For a straightforward EOR solution, consider a provider like Rivermate.
How an Employer of Record (EOR) Works in Lesotho
Using an EOR in Lesotho simplifies the process of hiring employees. Here is a typical breakdown of the steps involved:
- You Find the Talent: You identify the candidate you want to hire in Lesotho.
- The EOR Hires Them: The EOR legally hires the employee on your behalf, ensuring the employment contract complies with Lesotho's labor laws.
- Onboarding and HR Management: The EOR manages all HR-related tasks, including onboarding, benefits administration, and ensuring compliance with local regulations.
- Payroll and Taxes: The EOR processes payroll, withholds the necessary taxes like Pay As You Earn (PAYE), and handles social security contributions as required by the Lesotho Revenue Authority.
- You Manage Your Team: You direct your employee's daily tasks and responsibilities, while the EOR handles the administrative and legal aspects of their employment.
Why use an Employer of Record in Lesotho
Using an EOR in Lesotho offers a practical way to expand your business and hire talent in the country. It's a faster and more cost-effective alternative to establishing a legal entity, which can be a complex and time-consuming process. An EOR provides local expertise, ensuring you remain compliant with Lesotho's employment laws and regulations.
Here are some of the key benefits of using an EOR in Lesotho:
- Faster Market Entry: You can hire employees and start operations in Lesotho much more quickly than if you were to set up your own local company.
- Reduced Administrative Burden: The EOR handles all the administrative tasks associated with employment, freeing you up to focus on your core business activities.
- Compliance with Local Laws: EORs have expertise in local labor laws, ensuring that you are always in compliance with regulations regarding employment contracts, working hours, and paid leave. According to the law in Lesotho, standard working hours are 45 hours per week, and employees are entitled to 12 working days of annual leave.
- Cost Savings: Using an EOR can be more affordable than the legal and administrative costs associated with setting up and maintaining a local entity.
Responsibilities of an Employer of Record
As an Employer of Record in Lesotho, Rivermate is responsible for:
- Creating and managing the employment contracts
- Running the monthly payroll
- Providing local and global benefits
- Ensuring 100% local compliance
- Providing local HR support
Responsibilities of the company that hires the employee
As the company that hires the employee through the Employer of Record, you are responsible for:
- Day-to-day management of the employee
- Work assignments
- Performance management
- Training and development
Costs of using an Employer of Record in Lesotho
Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Lesotho includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Lesotho.
Employ top talent in Lesotho through our Employer of Record service
Book a call with our EOR experts to learn more about how we can help you in Lesotho







Book a call with our EOR experts to learn more about how we can help you in Lesotho.
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Hiring in Lesotho
Hiring in Lesotho requires an understanding of its unique economic landscape. The country's economy is closely tied to South Africa and relies heavily on agriculture, manufacturing, and mining. Key exports include garments, water, and diamonds. When you hire employees in Lesotho, you need to navigate local labor laws to ensure you are compliant.
Employment contracts & must-have clauses
Putting together a solid employment contract is a critical step. In Lesotho, your employment agreements must follow the Labour Code Order of 1992. This law sets the foundation for fair labor practices.
Make sure every contract includes these essential clauses:
- A clear job description
- The employee's start date
- Working hours
- Pay and benefits
- Leave entitlements
- Termination procedures
Lesotho recognizes three main types of employment contracts:
- Fixed-term: For temporary or project-based work.
- Indefinite-term: For permanent positions.
- Part-time: For employees working reduced hours.
Probation periods
Probation periods in Lesotho are typically three months. This timeframe allows you to assess a new hire's suitability for the role. With the employee's consent, you can extend this period up to six months.
Working hours & overtime
Standard working hours and overtime pay are key components of a compliant employment setup. While specific regulations can vary, it's important to clearly define these in your employment contracts to avoid any confusion.
Public & regional holidays
Your team in Lesotho is entitled to time off for public holidays. Be sure to account for these national days off in your work schedule.
Hiring contractors in Lesotho
You might consider hiring independent contractors. This can offer flexibility, but it also comes with risks. If a contractor is deemed to be an employee in the eyes of the law, you could face penalties for misclassification. This is where an Employer of Record (EOR) can help. An EOR service mitigates this risk by correctly classifying your workers and ensuring compliance with local labor laws. This way, you can focus on managing your team's work without worrying about the legal complexities.

Compensation and Payroll in Lesotho
Understanding compensation and payroll in Lesotho is straightforward. The system is designed to be clear for both you and your employees. This guide breaks down the key areas you need to know. We will cover everything from how often you should pay your team to the taxes you need to handle.
Payroll cycles & wage structure
In Lesotho, the standard payroll cycle is monthly. You will typically pay your employees once a month, usually at the end of the month. While some sectors might use weekly or bi-weekly cycles, monthly payments are the norm for most professional roles.
Your employees' salaries will vary based on their industry, role, and experience. While there isn't a single national minimum wage, the government sets minimums for different sectors. These rates are there to ensure a basic standard of living for workers.
Beyond the basic salary, you can offer additional compensation. Common extras include:
- Performance bonuses
- A 13th-month salary, often paid in December
- Housing allowances, especially for relocated or expatriate employees
Overtime & minimums
When your employees work beyond their normal hours, you need to pay them overtime. The standard work week is 45 hours. Anything more than that is considered overtime and must be paid at a higher rate.
Here are the key points on overtime and special pay:
- Overtime Pay: You must pay at least 125% of the normal wage for overtime hours.
- Weekly Rest Days: If an employee works on their day off, they get 200% of their usual pay.
- Public Holidays: For work on a public holiday, you can either pay double the normal rate or give a paid day off in return.
Employer taxes and contributions
As an employer in Lesotho, your main payroll responsibility is to withhold and pay your employees' income tax. This is done through the Pay As You Earn (PAYE) system. You will need to file a monthly PAYE return with the Lesotho Revenue Authority by the 15th of the following month.
Lesotho does not have a state social security system, so there are no mandatory social security contributions for you to make. However, you are required to have insurance for your employees against workplace injuries.
Contribution | Rate | Notes |
---|---|---|
Workmen's Compensation | Varies (typically 1% - 3% of payroll) | This is a required insurance against occupational injuries and diseases. The rate depends on your industry and its associated risks. |
Fringe Benefit Tax | 40% | This tax applies to the value of non-cash benefits you provide to employees, such as housing or a company car. |
Employee taxes and deductions
The main deduction from an employee's salary is the Pay As You Earn (PAYE) income tax. This is a progressive tax, meaning the rate increases with the employee's income. You are responsible for withholding this tax from their monthly pay and remitting it to the government.
Here are the personal income tax rates for the 2025/2026 tax year:
Annual Chargeable Income (LSL) | Tax Rate |
---|---|
First 74,040 | 20% |
Above 74,040 | 30% |
There is also a non-refundable tax credit of LSL 11,640 per year (LSL 970 per month) for resident individuals.
How an Employer of Record, like Rivermate can help with payroll taxes and compliance in Lesotho
An Employer of Record (EOR) manages monthly payroll calculations, employer contributions, and tax filings in-country on your behalf. Rivermate handles registrations, payslips, statutory reporting, and remittances to authorities so you stay compliant with local rules and deadlines—without setting up a local entity. Our specialists monitor regulatory changes and ensure correct rates, thresholds, and caps are applied to every payroll cycle.
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Benefits and Leave in Lesotho
In Lesotho, providing the right benefits and leave is key to attracting and keeping great people. It's not just about what's required by law. It’s about creating a supportive workplace. Understanding the local rules is your first step. This guide breaks down what you need to know.
Statutory leave
Lesotho's laws set minimum leave requirements for all employees.
- Annual Leave: You must provide at least 12 working days of paid annual leave per year. This works out to one day for each month of continuous work.
- Sick Leave: After six months with your company, employees get up to 12 days of paid sick leave at their full pay. They can also take an additional 24 days at half pay. A medical certificate is needed to verify the illness.
- Maternity Leave: Female employees are entitled to 12 weeks of maternity leave. This is typically taken as six weeks before the birth and six weeks after. A new Labour Act in 2024 updated maternity leave to 14 weeks, with 7 weeks before and 7 weeks after the birth.
- Paternity Leave: The 2024 Labour Act introduced 14 days of paternity leave for new fathers.
Public holidays & regional holidays
Your team gets paid time off for national public holidays. If they work on a public holiday, you must pay them extra or give them a different day off.
Holiday | Date |
---|---|
New Year's Day | January 1 |
Moshoeshoe's Day | March 11 |
Good Friday | Varies |
Easter Monday | Varies |
Workers' Day | May 1 |
Ascension Day | Varies |
Africa Day | May 25 |
King's Birthday | July 17 |
Independence Day | October 4 |
Christmas Day | December 25 |
Boxing Day | December 26 |
Typical supplemental benefits
Beyond the legal minimums, many companies offer extra benefits to stay competitive. Here’s a look at what's required versus what's often added.
Statutory Benefits | Non-Statutory (Supplemental) Benefits |
---|---|
Social Security Contributions | Private Health Insurance |
Minimum Wage | Additional Pension Plans |
Overtime Pay | Performance Bonuses |
Severance Pay | Flexible Work Hours |
Paid Public Holidays | Professional Development |
Annual, Sick, and Maternity Leave | Transportation Allowance |
How an EOR can help with setting up benefits
Setting up a benefits plan in a new country can be tricky. An Employer of Record (EOR) makes it simple.
We handle all the details. An EOR ensures you comply with all of Lesotho's labor laws. We can also help you create a competitive benefits package that attracts top talent. From health insurance to pension plans, we manage the administration. This frees you up to focus on growing your business. You get peace of mind knowing everything is handled correctly.
How an Employer of Record, like Rivermate can help with local benefits in Lesotho
Rivermate provides compliant, locally competitive benefits—such as health insurance, pension, and statutory coverages—integrated into one EOR platform. We administer enrollments, manage renewals, and ensure contributions and withholdings meet country requirements so your team receives the right benefits without added overhead.
Termination and Offboarding in Lesotho
When you end an employment relationship in Lesotho, you need to follow a clear set of rules. The process is designed to protect both you and your employees. Getting it right means understanding notice periods, severance pay, and the proper legal steps. This protects your business from legal trouble and financial penalties.
Notice periods
When you terminate an employment contract in Lesotho, you must provide a minimum notice period. The length of this notice depends on how long the employee has worked for you.
Length of Service | Minimum Notice Period |
---|---|
Less than 6 months | 1 week |
6 months to less than 1 year | 2 weeks |
1 year or more | 1 month |
These are the minimum periods required by law. Your employment contract can specify longer notice periods. You must give the notice in writing. You can also choose to pay the employee their regular wages for the notice period instead of having them work.
Severance pay
In Lesotho, employees who have worked for you for at least one year are entitled to severance pay. This does not apply if the employee is terminated for serious misconduct. Severance pay is intended to compensate employees for the loss of their job.
The standard formula for calculating severance pay is two weeks' wages for each completed year of continuous service.
- Eligibility: Employees with 1 year or more of continuous service.
- Formula: (Number of completed years of service) x (2 weeks' wages).
The wage used for this calculation includes the basic salary and any regular allowances.
How Rivermate handles compliant exits
At Rivermate, we make sure that every termination process is handled correctly and complies with Lesotho's labor laws. A dismissal can be considered unfair if you fail to provide a valid reason or do not follow the correct legal procedure.
To ensure a lawful termination, we follow these steps:
- Investigation: We conduct a thorough investigation into the reasons for the termination, such as misconduct or poor performance.
- Notification: We inform the employee in writing about the specific reasons for the potential termination.
- Hearing: We hold a meeting where the employee can respond to the allegations and present their own evidence.
- Decision: We make a fair and objective decision based on the evidence.
- Notice of Termination: We provide a written notice of termination that states the reason for dismissal and the effective date.
- Final Payments: We calculate and pay all outstanding wages, accrued leave, and any applicable severance pay.
By following these procedures, we help you manage employee exits in a way that is fair, compliant, and minimizes risks to your business.
Visa and work permits in Lesotho
Getting the right visas and work permits in Lesotho is straightforward, but you need to follow the correct process. For foreign nationals, the typical route involves entering the country and then applying for the necessary permits to work legally. This ensures you are compliant with local immigration and labor laws from the start.
Employment visas & sponsorship realities
An Employer of Record (EOR) can sponsor work permits for your employees in Lesotho, which simplifies your expansion. An EOR must be registered with the Ministry of Labor to sponsor foreign workers. This arrangement means the EOR legally employs your team in Lesotho, handling all local HR, payroll, and compliance, so you don't need to set up a local entity.
The general process for obtaining a work permit is:
- Initial Entry: Foreign employees often enter Lesotho on a tourist visa.
- Work Permit Application: Once in the country, you and your EOR partner apply for a work and residence permit. This is handled by the Department of Immigration and Passport Services.
- Processing Time: Be prepared for the process to take some time. The standard duration for securing a work permit is typically between two to six months.
An EOR can sponsor various types of work permits, including temporary permits for short-term projects and skilled worker permits for long-term roles. However, it's important to know that work permits are usually tied to a specific employer. If an employee changes jobs, a new permit will likely be required.
Business travel compliance
For short-term business visits, the rules are quite clear. Many nationalities, including U.S. citizens, can enter Lesotho for business or tourism for up to 90 days without a visa.
For those who do need a visa for business travel, you will typically need to provide:
- A letter from your company stating the purpose and duration of your trip.
- An invitation letter from the host company in Lesotho.
- Proof of sufficient funds for your stay.
- A valid passport with at least six months of validity remaining.
During short-term business trips, you can attend meetings, negotiate contracts, and conduct other business-related activities. However, you cannot engage in productive work. If your activities cross the line into employment, you will need a work permit.
How an Employer of Record, like Rivermate can help with work permits in Lesotho
Navigating work permits can be complex and time‑sensitive. Rivermate coordinates the entire process end‑to‑end: determining the right visa category, preparing employer and employee documentation, liaising with local authorities, and ensuring full compliance with country‑specific rules. Our in‑country experts accelerate timelines, minimize refusals, and keep you updated on each milestone so your hire can start on time—legally and confidently.
Frequently asked questions about EOR in Lesotho
About the author

Lucas Botzen
Lucas Botzen is the founder of Rivermate, a global HR platform specializing in international payroll, compliance, and benefits management for remote companies. He previously co-founded and successfully exited Boloo, scaling it to over €2 million in annual revenue. Lucas is passionate about technology, automation, and remote work, advocating for innovative digital solutions that streamline global employment.