Employment in Lesotho is governed by the Labour Act, 2024 (Act No. 3 of 2024), which replaced the Labour Code of 1992, together with sector minimum wages set by annual wages notices. Here is what employers need to know about leave, pay, tax and ending employment.
The Labour Act 2024 sets minimum leave for employees. Collective agreements and employment contracts can give more, and several entitlements were improved compared with the 1992 Code.
12 working days on full pay a year, earned at 1 day per month of continuous service. At least 6 days should be taken in one block. Extra contractual leave can be carried over, up to 18 days.
After 6 months of service: 12 days on full pay and 24 days on half pay a year, with a medical certificate. Sick leave in the first 6 months is unpaid, and it does not carry over.
7 weeks before and 7 weeks after the birth (up from 12 weeks). The Act does not require pay, but the wages notices require paid maternity leave in most sectors. See below.
New under the 2024 Act, on the birth of the employee's child. Adoptive parents get 14 days of bonding leave.
For employees with at least one year of service, the minimum wages notices require 12 weeks of paid maternity leave in most sectors, and 6 weeks in textile, clothing and leather manufacturing and in private security, limited to two confinements with the same employer. Check the current notice for your sector.
Set up each Lesotho leave type in IceHrm with its own accrual, carry forward and approval rules, such as annual leave earned at 1 day a month and sick leave split between full and half pay. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
Lesotho has no single national minimum wage. The Minister publishes sector and occupation minimums in a wages notice on the advice of the Wages and Conditions of Employment Advisory Board; the current one is the Labour Act Wages (Minimum Wages) Notice, 2025 (Legal Notice No. 62 of 2025).
Separate rates for textiles and clothing, construction, retail, hospitality, services, transport, small businesses, domestic work and a general minimum, varying by skill level.
9 hours a day over 5 days, or 8 hours for 5 days and 5 hours on the sixth. No more than 5 hours of continuous work without a 1 hour break.
Of the normal wage. Total hours, including overtime, cannot exceed 12 in a day.
Work on the weekly rest day or a public holiday is paid at double time; for public holidays the parties can agree on a paid day off instead. Night workers must get reduced hours without loss of pay or at least 125% pay, a prior health assessment, and transport home during late hours.
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so overtime, night and holiday premiums are paid on what was actually worked. Time & attendance →
Employers withhold Pay As You Earn (PAYE) tax from employment income each month and pay it to the Revenue Services Lesotho (RSL). Income is assessed annually; the tax year runs from 1 April to 31 March.
| Annual chargeable income | Rate |
|---|---|
| First M69,120 | 20% |
| Above M69,120 | 30% |
Employment income includes wages, bonuses, allowances, overtime, leave pay, commission, gratuities and severance pay. Non-cash benefits are taxed separately through fringe benefits tax paid by the employer.
Lesotho has no general contributory social security scheme for private-sector employees. The old age pension is a flat, government-funded benefit from age 70, so there are no pension contributions to deduct from pay.
Under the Workmen's Compensation Act, employers are liable for compensation and medical costs for work injuries, up to amounts set in the 2024 regulations.
Paid by the employer on the taxable value of non-cash benefits, such as housing or a company car.
Private provident, pension or medical funds are voluntary or set by contract; contributions can be deducted from pay.
Build Lesotho pay the way you already structure it, with your own salary components, deductions and formula columns, such as a PAYE column with the monthly tax credit. Want to know how well IceHrm handles payroll calculations for Lesotho? Contact us or see Payroll →
An employer can only dismiss for a valid reason related to the employee's capacity, conduct or the operational requirements of the business, and must usually give the employee a chance to respond. Otherwise the dismissal is unfair.
| Length of service | Notice |
|---|---|
| Less than 6 months (including probation) | 7 days |
| 6 months to 1 year | 14 days |
| More than 1 year | 1 month |
An employee with more than one year of continuous service receives severance pay of 2 weeks' wages for each completed year of service when employment ends, unless they are dismissed for misconduct.
On request, the employer must give a written certificate of service showing the periods and nature of employment.
The Public Holidays Act 1995 lists 10 paid public holidays. The government can declare additional days off, so check the official announcements each year.
Public holidays are paid. Employees who work on one are paid double time or, by agreement, get a paid day off instead.
Leave groups give each office its own public holiday calendar, so staff in Lesotho get the right days off even if the rest of your team is in South Africa or elsewhere. Holiday calendars →
A contract of employment can be written or oral, for an indefinite period, a fixed period or a specific task. A written contract is still the best way to record agreed terms and prove them later.
Probation can last up to 4 months and can only be extended with the Labour Commissioner's approval; for management and professional roles it can be extended to 1 year by mutual agreement. The Act sets no maximum length for fixed-term contracts, but an employer who ends one early must pay the wages due for the rest of the term.
Send contracts for e-signing, store them on the employee's record, and track onboarding with task lists so nothing is missed on day one. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Lesotho, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Lesotho? Talk to us.
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