Employer of Record in Lesotho

Real HR and legal experts manage every Lesotho hire, and a designated person runs your first hire from signed terms to first payslip. There is no setup fee. Employer costs pass through at cost, itemised on every invoice.

Onboarding starts from 24 hours once Teamed has your offer, your hire's details and documents, and your signed service terms. Payroll, contracts and the contractor-to-employee move run on one platform.

A Lesotho contractor who becomes an employee keeps their record, and the same employee can graduate to your own Lesotho entity later. Run the Crossover Calculator to see the month the model flips. EOR is the right model for a first Lesotho hire, until it isn't.

The Labour Act sets no social security contribution. The Minister of Finance's 2025/26 Budget Speech said the National Social Security Bill was in its final stages and was expected to be enacted in 2025/26, and that it would create a contributory national scheme. We have not confirmed whether it has since become law, so we check before the first payslip, and any contribution would be added to the cost.

Teamed's Lesotho fee is a starting rate, with zero FX markup in any currency. Gross pay, taxes and benefits pass through at cost, itemised on every invoice.

The cost guide has worked examples at three pay levels.

Hiring directly means taking on the employer's duties yourself: tax withholding, a worker register, work permits for non-citizens and the Labour Act's rules on hours, leave and termination. An employer of record carries those from the first day.

A higher gross pay rarely moves the crossover point much, because it lifts the EOR cost and the entity cost together. The EOR vs entity guide shows what changes in Lesotho.

You progress from contractor to EOR to your own Lesotho entity on one platform under Teamed's Graduation Model.

The 2026 regulations raised the annual personal tax credit to M12,240 and the top of the 20% band to M77,760 a year. The Revenue Services Lesotho guide for 2026/27 shows the same limits as M1,020 and M6,480 a month. Some older pages on the tax authority's own site still show earlier credit amounts, so we use the 2026/27 guide and the Gazette.

The Labour Act sets no social security contribution. The Minister of Finance's 2025/26 Budget Speech said the National Social Security Bill was in its final stages and was expected to be enacted in 2025/26, and that it would create a contributory national scheme. We have not confirmed whether it has since become law, so we check before the first payslip, and any contribution would be added to the cost.

Paternity leave is 14 days, bereavement leave is five days, and the Act guarantees seven weeks away from work after a birth. The Act does not oblige the employer to pay wages during maternity absence. Public holidays are days off with pay.

The hiring guide sets out each rule.

An employee earning M5,100 a month or less pays no income tax, because the credit cancels the tax on that amount. The tax and payroll guide has the full calculation and worked examples.

A worker with more than a year of service is entitled to severance of two weeks' wages for each completed year, unless fairly dismissed for misconduct. A dismissal during maternity leave is automatically unfair.

The termination guide covers notice, severance, written reasons and remedies.

Check the sector notice before you quote. Lesotho has no single national minimum wage. Under sections 165 to 167 of the Labour Act the Minister publishes minimum wages in the Government Gazette in a wages notice, and a notice replaces any lower wage in a contract. We read the Act, not the current notice, so we confirm the notice that applies to your sector before you quote an offer.

Check the date of any guide you rely on. A guide that cites the Labour Code Order of 1992 is describing repealed law. The Act in force allows four months of probation and guarantees seven weeks of leave after a birth.