This article presents estimates of off-farm wage returns to education in rural areas of Lesotho. Results from a sample survey conducted in the northern Lowlands and Foothills of Lesotho indicate that returns to education are relatively higher for people wage-employed in Lesotho than those wage-employed as migrants in South Africa. For people working within Lesotho, education appears to have a significant and positive effect on off-farm wages. Most people working within Lesotho are employed as teachers, nurses and civil servants and these job categories require an educated labour force. For people wage-employed in South Africa, education appears not to have a significant effect on off-farm wages. Most men working in South Africa are employed as labourers in mines while women working in South Africa are employed as domestic servants.