Lesotho is a landlocked country in Southern Africa, with the border with South Africa stretching for 909 km and looping all the way around Lesotho. It has a young, skilled workforce of 884,000 people (2024) and a GDP of 2.4 billion US dollars (2025).

With its duty-free access to the United States and strong trade agreements with the EU, South African Development Community (SADC), and South African Customs Union (SACU), it offers good routes to other markets while maintaining a stable, educated workforce. Lesotho’s economy is open and export-oriented, particularly in terms of manufacturing and public sector spending, making it a good opportunity for companies looking to hire abroad.

This guide will talk you through the mandatory employee benefits that companies must provide when hiring workers in Lesotho, as well as an overview of the labor laws that must be understood and complied with. We’ll also explain how Remote People can help make doing business in Lesotho a much easier process through our Employer of Record (EOR) services.

Lesotho Labor Law

Lesotho’s labor laws are primarily defined by the Labour Code Order of 1992, an act which is administered by the Ministry of Labour and Employment and explains rules on employment relationships, worker protections, dispute resolutions, and employee benefits.

Other relevant laws and regulations regarding employment law include:

  • National Social Security Bill
  • Workmen’s Compensation Act of 1977
  • Pension Fund Act of 2019
  • Trade Unions and Employers’ Organisations Regulations
  • Public Health and Safety Regulations

When employing workers in Lesotho, it’s strongly advised to consult with legal professionals for the latest compliance. This is to ensure that your employment contracts adhere to the latest legislation set by labor laws in Lesotho and simplify the process of hiring in this country.

Mandatory Employee Benefits in Lesotho

There are many different mandatory employee benefits that workers are entitled to in Lesotho. We’ve explained most of these in the sections below.

Social Security Contributions

The Ministry of Finance in Lesotho administers the Social Security System in Lesotho, ensuring that citizens of Lesotho receive the financial protection they need in circumstances of illness, maternity, unemployment, and retirement.

The government of Lesotho is solely responsible for social security contributions. However, employers must purchase insurance for workplace injuries/death as stated in the Workmen’s Compensation Act of 1977.

Annual Paid Leave

Employees in Lesotho are entitled to a minimum of 12 working days of fully paid leave per year, which accrues as 1 working day of leave per month of consecutive work with one employer.

At least 6 working days must be taken as a continuous holiday within the holiday year.

It may be possible for workers to carry unused annual leave to the next year, to a maximum of 18 days. Some businesses allow employees to request a cash payment in return for up to 6 days of paid holiday.

The timing of annual leave must be agreed upon mutually between the employer and the employee.

Working Hours

Standard working hours in Lesotho are 45 hours per week, which are usually spread over either 5 or 6 days. 

For employees working 5 days a week, they will usually work 9 hours per day; for employees working 6 days a week, they will usually work 8 hours for 5 days and 5 hours on the final day.

In some industries, working hours may be calculated monthly, with a maximum of 195 standard hours or 260 hours including overtime being the maximum amounts.

Hours worked between 6 pm and 6 am are considered night hours and may incur additional pay or reduced working hours. 

The Labour Act defines that employers must arrange transport for employees working at night, and employers are also restricted from giving night work to under-18-year-olds.

Overtime Pay

Hours worked over 45 hours a week count as overtime. Overtime hours must be paid at an additional 25% of an employee’s normal wage, or 100% for overtime worked on weekends or public holidays. There is a limit of 11 hours of overtime work per week.

Public Holiday Leave

There are many different public holidays in Lesotho that result in a paid day off for employees if they fall on a working day. The public holidays in Lesotho are as follows:

  • New Year (1 January)
  • Moshoeshoe’s Birthday (11 March)
  • Good Friday (3 April) (movable date)
  • Easter Monday (6 April) (movable date)
  • May Day (1 May)
  • Africa/Heroes Day (25 May)
  • Ascension Day (14 May) (movable date)
  • King’s Birthday (17 July)
  • Independence Day (4 October)
  • Christmas Day (25 December)
  • Boxing Day (26 December)

Sick Leave

Employees in Lesotho are entitled to sick leave with pay if they are too unwell to attend work.

Workers begin accruing sick pay once they have carried out 6 months of continuous service with their employer. At the 6-month point, they are entitled to 12 days of sick leave at full pay and 24 days of half pay in 12 months.

A medical certificate from a certified professional must be provided to obtain sick leave, particularly when absences exceed 6 working days.

If sick leave exceeds 6 days, an employer may request a medical exam from another registered practitioner.

Maternity Leave

Female employees in Lesotho are eligible for 14 weeks of maternity leave.

This is normally separated into 7 weeks before birth and 7 weeks after birth. It may be extended by up to 8 weeks in the event of pregnancy-related illnesses or birth complications.

Maternity leave is paid in full by the employer. Some companies may request that employees complete 1 year of continuous service before being eligible for maternity leave.

It is not mandated by law that maternity leave is paid.

Paternity Leave

Male employees in Lesotho are entitled to 14 days of paid paternity leave upon the birth of their child. This is payable by the employer, as with maternity leave.

Pensions

The pension system in Lesotho consists of public pensions, private occupational pension schemes, and government initiatives.

The public pension scheme is a non-contributory social pension, also known as the old age pension, which is funded by the government and paid monthly to individuals upon retirement age. There are no links to work history or income with this scheme.

Private occupational pensions are used mainly by the public sector and large companies in the private sector. These are voluntary schemes and are governed by the Pension Fund Act of 2019.

The government is aiming to introduce a National Pension Fund to encourage workers to save for retirement, with contributions being mandatory and extended to formal/self-employed workers. 

Severance Pay

Employees who have completed more than one year of continuous service are entitled to receive severance pay upon termination of their contract, provided that employee misconduct is not present.

Severance pay is generally calculated as 2 weeks’ wages for each year of completed service. Workers may also be eligible for benefits such as gratuity payments, depending on their contract and company policy.

Supplementary Employee Benefits in Lesotho

It’s recommended that companies offer supplementary benefits in addition to mandatory benefits to encourage employees to work for the same company for a longer period of time, while also encouraging new workers to apply for job roles.

Some examples of additional benefits employers could offer include:

  • Performance bonuses
  • Transport, housing, or food allowances
  • Company car
  • Flexible working
  • Advanced training opportunities
  • Private pension schemes
  • Enhanced leave entitlement

Optimize Employee Benefits with Remote People

If you’re an employer looking to hire employees in Lesotho, Remote People can help to streamline the process.

Our Employer of Record services we handle the legal employment of your workers—managing compliance, mandatory benefits, and tax obligations. This allows you to focus on running your business while ensuring your team is hired legally and in full accordance with Lesotho’s labor laws.

We can also help you to hire employees directly via our Lesotho recruitment services. Whether this involves hiring contractors or finding you the best employees for your company, our team is highly experienced in the Lesotho recruitment space, knowing the best places to advertise your roles and the ways to create the best compensation packages.

Our PEO services can also help your business with administrative tasks, HR, payroll, and further compliance.

Contact Remote People today to see how we can help expand your business into Lesotho.