Talent Wiki - Laos
Your quick guide on talent and labor compliance norms in Laos
Capital
Vientiane
Currency
Laotian Kip (LAK)
Languages
Lao (Official), French, English
Payroll Frequency
Monthly
GDP per Capita
$2,172.15
Employer Tax
6%
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 university in Laos include the following:
National University of Laos
Ranking
Local: 1
World: 4799
Souphanouvong University
Ranking
Local: 2
World: 8928
University of Health Sciences Lao
Ranking
Local: 3
World: 22466
Rattana Institute of Business Administration
Ranking
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 | 514.89 |
| General Manager | 8,220,000 | 472.89 |
| Business Development Manager | 5,350,000 | 307.78 |
| Financial Analyst | 3,610,000 | 207.68 |
| Business Analyst | 5,680,000 | 326.77 |
| Project Manager | 5,210,000 | 299.73 |
Talent Sourcing Tips
Top Local Job Boards:
108.Jobs, JobIsland.com, JobsMicro
Number of LinkedIn users:
137,000
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 |
| 14 Apr | Lao New Year | Public Holiday |
| 15 Apr | Lao New Year Holiday (Tentative Date) | Public Holiday |
| 16 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 |
| 27 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.
Minimum Wage
The National Minimum wage in Laos is LAK 1,200,000.
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:
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
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
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 | – | – |
VAT
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.
