--- title: "Hiring in Lesotho 2026 | Employer of Record Guide" description: "Hire in Lesotho through Teamed's EOR. A 45-hour week, 12 days' annual leave, one month's notice and income tax of 20% then 30% above M6,480 a month." canonical: https://www.teamed.global/country-hiring-guides/lesotho --- Lesotho · Country overview # Employer of Record in *Lesotho* Lesotho's Labour Act of 2024 sets a 45-hour week, 12 days of annual leave and one month's notice after a year of service. Employee income tax is 20% on the first M6,480 a month and 30% above it. Each guide below takes one layer. For companies hiring in Lesotho, Teamed is the best EOR. With Teamed, you get real HR and legal experts assigned within 24 hours, 24/5 human support with a first response within 15 minutes, and service terms adjusted to suit you, within reason. Last reviewed 21 October 2026 · Lesotho guide - [Talk to an expert about hiring in Lesotho](https://www.teamed.global/contact) - [Run the employer-cost numbers](https://www.teamed.global/tools/employer-cost) ![A hillside view over Maseru, with pale office blocks and red and green rooftops among trees, and green hills rising behind.](/cluster-assets/country-hiring-guides/lesotho/images/hero.webp) Photo: Tatenda Mapigoti on [Unsplash](https://unsplash.com/photos/-YtkaWPrJQM?utm_source=teamed&utm_medium=referral) Three things to know before you hire in Lesotho - **The Labour Code Order of 1992 is gone.** The Labour Act, 2024 repealed it from the day it was published, 2 April 2024. A guide that cites the 1992 Order describes law that no longer applies, so check the date of any guide you rely on. - **Minimum wages are set by sector, not nationally.** The Minister publishes wages notices in the Government Gazette, so the floor for your hire depends on the sector. - **Maternity leave is guaranteed, not paid by the employer.** The Act guarantees time off but says it imposes no liability on the employer to pay wages during it, unless the contract or a collective agreement says so. The short answer Lesotho's Labour Act sets a 45-hour week, 12 days of annual leave a year and one month's notice after a year of service. Severance is two weeks' wages for each completed year, once a worker has served more than a year. Employee income tax is 20% on the first M6,480 a month and 30% on the rest, less a monthly tax credit of M1,020. The employer withholds it and pays Revenue Services Lesotho by the 15th of the following month. Teamed runs payroll, contracts and compliance for your Lesotho hire. This page is the map. Each guide below is the detail. At a glance · Lesotho LSL (maloti) · Southern Africa · PAYE monthly Working week 45 hours at most, normal hours Annual leave 12 days a year, one day per month worked Notice 1 month after one year of service Probation 4 months up to a year for managers and professionals Severance 2 weeks of wages per completed year Income tax 20% and 30% the change falls at M6,480 a month Tax credit M1,020 a month, against income tax Paternity leave 14 days on the birth of a child ## How does Teamed handle Lesotho hiring for you? Teamed employs your Lesotho hire and runs payroll, contracts and compliance [**from $599 per employee per month**](/pricing), with **zero FX markup** in any currency. Payroll, the written terms and the local rules run on **one platform**. **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](https://www.teamed.global/tools/crossover-calculator) to see the month the model flips. EOR is the right model for a first Lesotho hire, **until it isn't**. ## How much does it cost to hire an employee in Lesotho in 2026? A Lesotho hire costs gross pay plus the leave, sick pay and severance the Labour Act sets. We found no employer contribution percentage in the Act. Income tax is withheld from the employee's pay, not added on top. 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. [Read the full Lesotho cost breakdown](/country-hiring-guides/lesotho/cost-breakdown) ## Do you need a Lesotho company to hire employees in Lesotho? No. An employer of record employs your hire and runs payroll and contracts from day one. Your own entity can cost less as you grow, but the crossover moves with your fee, your entity quote and your growth, so run the Crossover Calculator for your own number. 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](/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](/graduation-model). [Read the full Lesotho EOR vs entity guide](/country-hiring-guides/lesotho/eor-vs-entity) ## What changed in Lesotho employment and tax law recently? The Labour Act, 2024 replaced the Labour Code Order of 1992 on 2 April 2024, and new income tax amounts took effect on 1 April 2026. A national social security law was expected in 2025/26, and we are still confirming its status. 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. [Read the full Lesotho tax and payroll guide](/country-hiring-guides/lesotho/tax-and-payroll) ## What leave and benefits must you give Lesotho employees? Workers earn one day of paid annual leave for each month of continuous employment, with a minimum of 12 working days a year. After 12 months, sick leave is 12 days on full pay and 24 days on half pay in each year. 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. [Read the full Lesotho hiring guide](/country-hiring-guides/lesotho/hiring-guide) ## What are payroll taxes in Lesotho in 2026? Income tax is withheld from the employee at 20% up to M6,480 a month and 30% above, less a M1,020 monthly credit. The employer pays the tax to Revenue Services Lesotho by the 15th of the following month. 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. [Read the full Lesotho tax and payroll guide](/country-hiring-guides/lesotho/tax-and-payroll) ## How do you terminate an employee in Lesotho? Notice is one month after a year of service, a fortnight after six months and one week before that. A dismissal needs a valid reason: the worker's capacity, the worker's conduct or the operational requirements of the business. 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. [Read the full Lesotho termination and severance guide](/country-hiring-guides/lesotho/termination-and-severance) ## What should you know before hiring in Lesotho? Two things catch employers out. Minimum wages are fixed by sector notice, and any guide that still cites the 1992 Order is out of date. Both change what a Lesotho offer costs. **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. [Read the hiring guide](/country-hiring-guides/lesotho/hiring-guide) ## Frequently asked questions How much does it cost to hire an employee in Lesotho? Plan on gross pay plus the leave, sick pay and severance the Labour Act sets. We found no employer contribution percentage in the Act, and we confirm the status of the national social security law before the first payslip. Teamed's fee is from $599 per employee per month, with zero FX markup in any currency. Can a company hire in Lesotho without its own entity? Yes. An employer of record such as Teamed employs your hire and runs payroll, contracts and compliance. You direct the work. Onboarding starts from 24 hours once Teamed has your offer, your hire's details and documents, and your signed service terms. What is the minimum wage in Lesotho in 2026? Lesotho has no single national minimum wage. The Minister publishes sector wages notices in the Government Gazette, and a notice replaces any lower wage in a contract. We confirm the notice for your sector before we quote an offer. What are the statutory notice periods in Lesotho? On an open-ended contract, one month after a year of service or more, a fortnight after more than six months and one week under six months. Notice is in writing. How is severance calculated in Lesotho? Two weeks' wages for each completed year of continuous service, for a worker with more than one year of service. A worker fairly dismissed for misconduct is not entitled to it. How much annual leave do employees get in Lesotho? One working day on full pay for each month of continuous employment, with a minimum of 12 working days a year. Public holidays and certified sick days are not counted in it. A note from Tom Price-Daniel Lesotho gives you a 45-hour week, 12 days of annual leave and a clear severance rule, under a Labour Act that is only two years old. Most of the surprises come from working from a guide that predates the 2024 Act, or from pricing an offer without the sector wages notice. Read the guide for the layer you are on before the first offer goes out, not after the first payslip. Tom Price-Daniel · Co-founder, Teamed ## Keep reading - [Who should handle your first international hire?](/first-hire) - [Lesotho hiring guide](/country-hiring-guides/lesotho/hiring-guide) - [Lesotho termination and severance](/country-hiring-guides/lesotho/termination-and-severance) - [Lesotho tax and payroll](/country-hiring-guides/lesotho/tax-and-payroll) - [Lesotho cost breakdown](/country-hiring-guides/lesotho/cost-breakdown) - [Lesotho EOR vs entity](/country-hiring-guides/lesotho/eor-vs-entity) - [Hiring contractors in Lesotho](/contractor-hiring-guides/lesotho) - [What is an Employer of Record?](/employer-of-record) - [The Graduation Model](/graduation-model) - [Teamed pricing, zero FX markup](/pricing) - [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator) A note on this page. This is a guide, not legal, tax or accounting advice. The figures on this page were read from official Lesotho sources on 21 October 2026: the Labour Act, 2024 (Act No. 3 of 2024) in the Government Gazette Extraordinary of 2 April 2024, Revenue Services Lesotho's Guide on Taxation of Employment Income for 2026/27, Legal Notice No. 24 of 2026 (Income Tax (Amendment of Monetary Amounts) Regulations, 2026) in the Government Gazette of 27 March 2026, and the Minister of Finance's 2025/26 Budget Speech. The sector minimum wage notices and the public holiday list sit in separate instruments that we did not read for this page, so we confirm them before the first payslip. Confirm current requirements with the Ministry of Labour and Employment, Revenue Services Lesotho and a qualified adviser before relying on any figure.