Multiplier Logo
Loading Animation Image

Laos Employment Guide

Your quick guide on talent and labor compliance norms in Laos




Laotian Kip (LAK)


Lao (Official), French, English

Payroll Frequency


GDP per Capita


Employer Tax


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

Map 10

Local Universities

The top local universities in Laos are as follows:

Uni1 9

National University of Laos


Local: 1

World: 6405

Uni2 8

Souphanouvong University


Local: 2

World: 8928

Uni3 8

University of Health Sciences Lao


Local: 3

World: 22466

Uni4 7

Rattana Institute of Business Administration


Local: 4

World: 29659

Salary Data

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

Job Title Average Monthly Salary (LAK) Average Monthly Salary (USD)
Financial Manager 8,950,000 469
General Manager 8,220,000 431
Business Development Manager 5,350,000 280
Financial Analyst 3,610,000 189
Business Analyst 5,680,000 298
Project Manager 5,210,000 273
Talentsource 39

Talent Sourcing Tips

Top Local Job Boards:

108.Jobs,, JobsMicro

Number of LinkedIn users:


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 Public Holiday
14 Apr Lao New Year Holiday (Tentative Date) Public Holiday
15 Apr Lao New Year Holiday (Tentative Date) Public Holiday
1 May Labor Day / May Day Public Holiday
20 Jul Lao Women Union’s Day Public Holiday
22 Jul Lao Women Union’s Day observed Public Holiday
24 Oct Boat Racing Festival Local 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 1

Payroll Cycle

The payroll cycle in Laos is usually monthly.

Payroll 2

Minimum Wage

The National Minimum wage in Laos is LAK 1,200,000.

Payroll 3

Overtime Pay

The standard working hours in Laos are 8 hours per day and 48 hours per week. Pay rate for overtime in Laos depends on the time and date that the extra work is performed. Below are the rates:


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


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

Income tax deductions as per monthly income for both residents and foreigners:

Monthly income base (LAK) Basis of computation (LAK) Tax rate (%) PIT of each threshold (LAK) Total PIT (LAK)
From To
0 1,300,000 1,300,000 0 0 0
1,300,001 5,000,000 3,700,000 5 185,000 185,000
5,000,001 15,000,000 10,000,000 10 1,000,000 1,185,000
15,000,001 25,000,000 10,000,000 15 1,500,000 2,685,000
25,000,001 65,000,000 40,000,000 20 8,000,000 10,685,000
65,000,001 and above 25

Income tax deductions as per annual income for both residents and foreigners:

Annual income base (LAK) Basis of computation (LAK) Tax rate (%) PIT of each threshold (LAK) Total PIT (LAK)
From To
0 15,600,000 15,600,000 0 0 0
15,600,001 60,000,000 44,400,000 5 2,220,000 2,220,000
60,000,001 180,000,000 120,000,000 10 12,000,000 14,220,000
180,000,001 300,000,000 120,000,000 15 18,000,000 32,220,000
300,000,001 780,000,000 480,000,000 20 96,000,000 128,220,000
780,000,001 and above 25


The standard rate of VAT in Laos ranges from 7% to 10%.

Offboarding & Termination

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

The notice period for employees doing unskilled work is 30 days, and those doing skilled work is 45 days.

Severance pay in Laos is released under the following conditions:

Circumstances Severance pay
Unjustified termination 15% of the last monthly salary x number of months employed
No fault-based termination 10% of the last monthly salary x number of months employed

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.

Visa 40
Footer 24x5 New Img2x

Streamline payroll and compliance for your international workforce


Minimum 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