Payroll Cycle
Minumum Wage
Overtime Pay
Overtime Work Rate
Work day, from 17:00 to 22:00 150%
Work day, from 22:00 to 06:00 200%
Visa Immigration

Talent Wiki - Laos

Your quick guide on talent and labor compliance norms in Laos
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Capital
Vientiane
Currency
Laotian Kip (LAK)
Languages
Lao (Official), French, English
Payroll Frequency
Monthly or Bi-monthly
GDP per Capita
$1920
Employer Tax
6%

Supplementary Guide for Employment and Expansion in Laos

Talent Overview

Laos has maintained good relations with their neighboring countries, which has developed their trade and attracted foreign investors into the country. Additionally, the country boasts of rich mineral resources and has often imported petroleum and gas products. The mining industry also contributes to Laos economic success.

Major economic hubs:

Vientiane, Savannakhet and Champasack

Skills in demand :

Machinery operations, production line control, Marketing, Sales, Electronics and Engineering

Local Universities

The top local universities in Laos include the following:

National University of Laos

RANKING

Local : 1

World : 433

University of Health Sciences Lao

RANKING

Local : 2

World : 1080

Souphanouvong University

RANKING

Local : 3

World : 1641

Rattana Institute of Business Administration

RANKING

Local : 4

World : 1805

Salary Data

Some of the popular jobs in Laos and their respective salaries are listed below:

No. Job Title Salary Range (in LAK) Salary Range (in USD)
1 Accounting Manager 3,110,000 - 10,800,000 278.84 - 968.33
2 Software Engineer 1,990,000 - 6,870,000 178.42 - 615.97
3 Software Developer 2,010,000 - 6,950,000 180.22 - 623.14
4 Data Scientist 3,390,000 - 11,700,000 303.95 - 1,049.03
5 UX Designer 1,410,000 - 4,870,000 126.42 - 436.65
6 Sales Manager 3,730,000 - 12,900,000 334.43 - 1,156.62

Talent Sourcing Tips

Top Local Job Boards:

108.Jobs, JobIsland.com, JobsMicro

Number of LinkedIn users:

132,000

Top Recruitment Agencies:

Bousavan Employment Provision, Consultdustry, iJobs

Employing in Laos

Laotian employees are protected by their government’s labor laws and regulations. The succeeding sections shall guide you through these provisions and ensure a smooth process when onboarding employees from the country.

Employee Contract

Employment contracts that are in writing can be in any language preferred by the employee and employer.

Probation Period

The Probation period for employees is up to 60 days.

Public and Provincial Holidays

Date Name Type
1 Jan New Year's Day Public Holiday
8 Mar International Women's Day (Women Only) Public Holiday
13 Apr Lao New Year Holiday Public Holiday
14 Apr Lao New Year Public Holiday
15 Apr Lao New Year Holiday Public Holiday
16 Apr Lao New Year Holiday Public Holiday
1 May Labor Day / May Day Public Holiday
2 May Day off for Labor Day / May Day Public Holiday
20 Jul Lao Women Union's Day Public Holiday
11 Oct Boat Racing Festival Local holiday
8 Nov That Luang Festival Public Holiday
2 Dec National Day Public Holiday

Employee Leaves

Type of Leave Time Period Mandatory
Annual Leave 15 days Yes
Sick Leave 30 days Yes
Maternity Leave 15 weeks Yes

Payroll

Payroll Cycle

The payroll cycle in Laos is usually monthly or bi-monthly. Employers can specify their payroll schedule in their employment contract.

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Minimum Wage

The National Minimum wage in Laos is LAK 1,100,000.

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Overtime Pay

Pay rate for overtime in Laos depends on the time and date that the extra work is performed. Click on the link below to know more about the rates:

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Health Examination Clause

Bonus

13th Month Pay

A 13th month salary is not compulsory in the country. However, it is common for companies to give bonuses for their employees.

Employee Benefits

Some of the benefits that employees in Laos are provided with during their employment includes:

  • ~Private health insurance
  • ~Meal vouchers
  • ~Paid leaves
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Taxes

Employer Payroll Tax

Type of Tax Contribution Rate Notes
Social Security Contributions 6% Capped at LAK 4.5 million

Employee Payroll Tax

Type of Tax Contribution Rate Notes
Social Security Contributions 5.5% Capped at LAK 4.5 million

Employee Income Tax

Annual Income (LAK) Tax Rate (%)
0 - 15,600,000 0%
15,600,001 - 60,000,000 5%
60,000,001 - 180,000,000 10%
180,000,001 - 300,000,000 15%
300,000,001 - 780,000,000 20%
780,000,001 and above 25%

VAT

The standard rate of VAT in Laos is 10%.

Offboarding & Termination

Termination Process

Termination can take place with notice periods given or pay in-lieu. Immediate termination can happen if the employee has:

  • Caused deliberate damage to the employer
  • Repeatedly violate internal regulations of the labor unit or contract after receiving a warning from his employer
  • Neglected one’s duty for 4 consecutive days
  • Been sentenced to court for offense deliberately committed against the labor unit
  • Violated the rights of other employees and has already been given a warning

Notice Period

The notice period for employees under probation period is up to 5 days. Employees who are of regular status will have up to 45 days of notice period.

Severance Pay

Severance pay rate is fixed at 10% of previous month’s salary or salary x (times) the number of years worked

Visa and Immigration

Foreigners living and working in Laos are required to secure a Labor Visa or LA-B2. The validity of the visa may be for 3 months, 6 months or a year.

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