Source-cited draft: payroll & social contributions for Lesotho (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.
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Every figure is drawn from this Tax Guide and cited to its source.
General overview
Employers operate PAYE on employee salaries and remit it to the RSL monthly. Lesotho has historically had no comprehensive mandatory national social-security or pension scheme for private-sector employees, so contribution practice varies — the items below are flagged for accountant confirmation.
PAYE withholding
Employers must deduct PAYE from employees' chargeable employment income each pay period and remit it to RSLIncome Tax Act (https://www.rsl.org.ls/personal-income-tax)
PAYE rate scale
20% up to LSL 74,040/year, 30% above, less the LSL 1,056/month personal tax credit percentIncome Tax Act (https://www.rsl.org.ls/personal-income-tax)
PAYE remittance deadline
15th of the month following the month of deduction ((approx — confirm))Income Tax Act (https://www.rsl.org.ls/income-tax)
Mandatory national social security
No comprehensive mandatory contributory national social-security/pension scheme for private-sector employees; a non-contributory old-age pension is funded from general revenue ((approx — confirm; some providers report employer/employee pension deductions for specific schemes))Old Age Pensions Act (https://www.rsl.org.ls/)
Employer/employee pension contributions
Where a private/occupational pension or provident scheme applies, employer and employee contributions are commonly around 5% each of gross salary percent ((approx — scheme-specific, not a universal statutory rate; confirm))Employer occupational pension scheme rules (https://asanify.com/global-employer-of-record/lesotho/salary-structure/)
Contribution wage base / cap
No universal statutory social-security wage cap (scheme-specific where occupational pensions apply) ((approx — confirm))Employer occupational pension scheme rules
Annual PAYE reconciliation
Employers file an annual PAYE reconciliation/return summarising deductions and issue employee certificates ((approx — confirm form and due date))Income Tax Act (https://www.rsl.org.ls/personal-income-tax)
Late PAYE remittance penalty
Penalties plus interest on amounts remitted late ((approx — confirm exact penalty and interest rates))Income Tax Act (https://www.rsl.org.ls/personal-income-tax)
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
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Other Lesotho computations in the OpenAccountants Tax Library.