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Lesotho has a population of 2.16 million people. It is ranked number 47 in Africa according to the nominal GDP ($ 2.48 Billion). Lesotho has a market economy, even though direct government involvement is active.
1 January- New Year's Day
11 March- King Moshoeshoe I's Anniversary
15 April- Good Friday
18 April- Easter Monday
1 May- International Workers' Day
25 May- Africa Day
25 May- Heroes' Day (in Lesotho)
26 May- Ascension Day
17 July- King Letsie III's Birthday
4 October- Independence Day (of Lesotho)
25 December- Christmas Day
26 December- Boxing Day
Lesotho’s minimum wage is 1178 to 1285 maloti depending on the sector. These rates are set annually by Lesotho’s government.
Wages can be paid daily, weekly, or monthly, depending on the type of employment contract:
Wage payment is made on a daily basis under a piece-rate contract.
If the contract is for less than a month, the wage is paid weekly; if the contract is for more than a month, the wage is paid monthly.
Wages are typically paid solely in legal money. On mutual agreement, the employer may provide partial remuneration in the form of food or a place to live in addition to monetary wages. Wages must be paid on working days, at or near the place of employment.
The resident individual tax rates vary depending on annual income as follows;
20% - for M 1.00-64, 200.00
30% - for above M 64,200.00
Lesotho’s personal income tax is averaged at 30 percent. According to section 107(1), 25% withholding taxes are imposed on the country’s source dividends, interest payments, royalties, natural resource payments, or non-resident management charges.
The income tax is paid through the Pay As You Earn (PAYE) system computed using the personal income tax rates.
Female employees that have worked for two years in the same organization are liable to 12-week payable maternity leave. Six weeks are taken before the child’s birth date and six after the child’s birth. The employer pays 100% of the salary.
An employment contract can be terminated when the contract period ends if fixed for a certain period by the employer or the employee. In the case of gross misconduct, an employment contract can be terminated without notice.
Notice Period
Lesotho's notice period follows the following guidelines:
The guidelines are also applicable when the employee initiates the contract termination.
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