Lesotho Employer of Record & Payroll Services

Lesotho HR Solutions | Employee Payroll & Tax Compliance

Employer of Record (EOR) Services in Lesotho for Local & Expatriate Employees

Africa Deployments Lesotho (ADS) offers reliable Employer of Record (EOR) services, handling all HR, payroll, and legal requirements for businesses operating in Lesotho. Whether you require full-time employment or fixed-term contracts, we provide customized solutions for local and expatriate employees in Lesotho. From work permits to local contracts, ADS ensures full legal compliance, with a focus on best HR practices.

Comprehensive Payroll & Tax Compliance in Lesotho

Our services include monthly tax remittances, ensuring compliance with Lesotho’s tax laws. We also manage salary payments and provide pay slips to your employees. ADS ensures that both you and your employees stay fully compliant with local laws.

Lesotho: A Unique Business Destination in Southern Africa

Located within South Africa, Lesotho covers 30,000 km² and is home to diverse landscapes and unique geographic features, earning it the title “Kingdom of the Sky.” Lesotho boasts treasures such as hydro-electric power, abundant water resources, and diamonds.

Key Information about Lesotho:

• Population: 2.3 million (2021)
• Currency: Lesotho Loti
• Capital: Maseru
• Language: Southern Sotho and English
• GDP: 2.5 billion USD (2021)
• Main Industries: Manufacturing, Mining

Lesotho’s diverse history and high-altitude terrain create a distinctive business environment. As the only country entirely above 1,000 meters in elevation, it offers a one-of-a-kind setting for international businesses.

Employment Contracts & Payroll Compliance in Lesotho

Types of Contracts Offered in Lesotho under Employer of Record:

• Fixed Term Contracts
• Indefinite Term Contracts

All contracts are in writing, in the official language (Southern Sotho or English), and specify salary/compensation, benefits, and termination conditions.

Employment Categories:

• Full-time Employees receive benefits like company perks and are entitled to a probationary period of up to four months.

Taxable & Exempt Income in Lesotho

• Taxable Income: Includes salary, wages, overtime, commissions, bonuses, and any payment that benefits the employee.
• Exempt Income: Non-cash benefits and certain employee expenses may be exempt from tax, subject to specific criteria.

Mandatory Contributions for Employees & Employers:

• National Pension Scheme: 10% (both employee and employer)
• National Health Insurance Fund: 1% (employee), 2% (employer)

Leave Policies in Lesotho

• Annual Leave: 21 days of full pay per year
• Sick Leave: Unpaid during the first six months of employment
• Maternity Leave: 12 weeks (6 weeks before and after birth)
• Paternity Leave: No statutory entitlement

Gratuity, Severance & Bonus Payments in Lesotho

• Gratuity Payments are typically provided upon retirement or completion of tenure.
• Severance Pay: Employees with over a year of service receive two weeks’ wages.
• Bonus Payments: No statutory 13th-month salary or bonus.

Corporate & Tax Rates in Lesotho

• Corporate Tax Rate: 25%
• VAT / Sales Tax Rate: 15%

Public Holidays in Lesotho

• January 1 – New Year’s Day
• March 11 – Moshoeshoe I’s Day
• April 7 – Good Friday
• April 10 – Easter Monday
• May 1 – Workers’ Day
• May 18 – Ascension Day
• May 25 – Africa Day
• July 17 – King’s Birthday
• October 4 – Independence Day
• December 25 – Christmas Day

Industries We Support in Lesotho

Africa Deployments Lesotho provides EOR services across various industries:

• NGOs and Non-Profits
• Engineering & Construction
• Government & Development Agencies
• Oil & Gas
• FMCG & Manufacturing
• Private Equity, Finance, Insurance & Banking
• Mining
• Agriculture

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• Contact Us
  For detailed assistance with Employer of Record (EOR) services in Lesotho, including specific payroll and employment solutions tailored to your needs, contact our team at Africa Deployments.