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Severance pay calculator for Lesotho

Enter your monthly wage when the job ends and your completed years of service. You get the minimum severance payment the law gives you.

The rule is in section 136 of the Labour Act, 2024.

How it's calculated

You need more than one year of continuous service with the same employer.
For each completed year you get 2 weeks of wages, at the rate paid when your job ends.
The Act does not say how to turn a monthly wage into a week's wage. This calculator uses the Act's own hourly rule: monthly wage divided by 195 hours, times 45 hours.

An example

After five years on M6 000 a month, a week's wage is M1 384.62 and severance pay is M13 846.20.

Frequently asked questions

Do I get severance pay if I am dismissed for misconduct?

No. A worker fairly dismissed for misconduct is not entitled to severance pay.

What if my employer has its own separation scheme?

If the scheme pays more than statutory severance, the employer must pay the better benefit. You cannot claim both unless the employer agrees.

What happens if the employer does not pay?

Failing to pay severance under section 136 is an offence under section 137, punishable by a fine or imprisonment.

Is severance pay taxed?

Yes. Severance pay is employment income under section 18(1) of the Income Tax Act, so PAYE applies.

Key terms

Severance payment: A lump sum paid when the employment ends, based on years of service.
Continuous service: Unbroken employment with the same employer.

The same calculation in other countries

Up-to-date official data

Data checked against the official source on 27 October 2026.

We check the official sources automatically, every day.

Revenue Services LesothoLabour Act No. 3 of 2024, section 136

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