Lesotho Employer of Record & Payroll
Africa Deployments Lesotho offers our clients Employer of Record (EOR) services covering all of the regions within. We offer full-time employment or fixed terms contracts based on your requirements in Lesotho for locals or expatriates. ADS will take care of the work permit under our umbrella and will issue local work contracts to your contractors. We will also advise our client’s on best Human Resource (HR) practices when setting up the employee’s locally in Lesotho.
ADS takes care of the local tax & PAYE remittances to the Revenue Services on a monthly basis ensuring that they are fully compliant with the law. We will also ensure that their salaries are paid on time monthly and issue them with their pay slips.
WHAT INCOME IS TAXABLE IN LESOTHO:
Any income earned in the form of cash, wages, salary, overtime, leave pay or payment in lieu of leave, commissions, gratuity, bonus, or any amount that has benefited the employee. All income will be taxed in accordance with the law and the final payroll issued monthly.
WHAT TYPE OF LEAVE IS ALLOWED IN LESOTHO:
- Annual leave – 21 days, full pay per year
- Public Holiday-10 Public Holidays per annum as per leave law of Lesotho
- Sick leave- Sick leave during the first six months of continuous employment with the same employer is unpaid.
- Maternity leave- The general duration of maternity leave is 12 weeks and comprises six weeks before and six weeks after the birth.
CAN YOU GIVE FRINGE BENEFITS IN LESOTHO:
Yes you can but keep in mind that Fringe Benefits will be subject to employee PAYE tax. Only benefits that cannot be converted to cash will not be subject to tax. If the employer covers some of the employees expenses i.e. mobile phone then it must be subject to PAYE tax and either the employer will cover this portion for the employee or the employee will bear the PAYE tax.
IS THERE GRATUITY PAYMENTS FOR TERMINATION IN LESOTHO:
For any employee who has completed more than one year of continuous service with the same employer, a severance payment equivalent to two weeks’ wages is paid for each completed year of service.
Get in touch with one of our consultants should you have any further questions regarding our Employer of Record solutions or only require a payroll solution in Lesotho