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Basic Economic Summary

Basic Information

  • Local Languages: Lao (Official), French, English
  • Major Economic Hubs: Vientiane, Savannakhet, Champasack
  • Currency: Laotian Kip (LAK)
  • Population: 7,200,000 (2020)
  • Date Format: dd/mm/yyy

Useful Information

  • GDP Per Capita (in USD): $2,535
  • Exchange Rate (LAK/USD): 0.00011

Local Universities

Renowned Local Universities:

University Number of Graduates (Undergrad) Subjects
National University of Laos Information Unavailable Business, Science and Technology, Engineering
Souphanouvong University Information Unavailable Engineering

Salary Data

The table below shows the average salaries of some jobs in Laos. Please refer to SalaryExplorer for more information.

Job TitleAverage Salary (LAK)Average Salary (USD)
Accounting  Manager6,770,000745
Software Engineer4,320,000475
Software Developer4,170,000459
Data Scientist7,370,000811
UX Designer3,070,000338
Sales Manager8,110,000892

Talent Sourcing Tips

English Proficiency: Very Low Proficiency

Number of LinkedIn Users (2019): 106,080

Top Local Job Portals: 108.Jobs, JobIsland.com, JobsMicro

Top Recruitment Agencies: Bousavan Employment Provision, Consultdustry, iJobs


Employer Payroll Tax

Type of TaxContribution (%)Note
Social Security Contributions6%Capped at LAK 4.5 million

The employer payroll tax can be found here

Employee Payroll Tax

Type of TaxContribution (%)Note
Social Security Contributions5.5%Capped at LAK 4.5 million

Employee Monthly Income Tax

Income Group (LAK)Contribution (%)
≤ 108,333.330%
108,333.33 – 416,666.675%
416,666.67 – 1,250,00010%
1,250,000 – 2,083,333.3315%
2,083,333.33 – 5,416,666.6720%
> 5,416,666.6725%

Laos follows a progressive income tax model. Links to the employee payroll tax and employee income tax.

Minimum Wage & Payroll

Minimum Wage

The minimum wage is LAK 1,100,000.

Payroll Cycle

No statutory payroll cycle.


13th month salary

Not compulsory but bonuses are common.

Working Hours & Statutory Leave

Maximum working hours

The maximum working hours for employees is 8 hours a day, 6 days a week which totals up to 48 hours a week.

For employees working under hazardous or dangerous conditions, the maximum working hours must not exceed 6 hours a day, 6 days a week which totals up to 36 hours a week.

Employees are entitled to a 45-minute break per shift for shift work or at least 5-10 minutes after 2 hours of work.

Overtime pay

Overtime hours must not exceed 45 hours per month or 3 hours per day. Otherwise, the employer may write in to the Labour Administration Agency to request for approval.

Overtime Pay Rate

Overtime TypePay Rate
Regular Working Day150%
Night of Regular Working Day200%
Weekly Rest Day or Holiday250%
4pm-8pm on Weekly Rest Day or Holiday300%
10pm-6am on Weekly Rest Day or Holiday350%

Public Holidays

The public holidays can be found here.

Annual Leave

CriteriaNo. of Days
Has an indefinite contract/fixed-term contract of more than a year and who has been working for one full year15
Working in dangerous or hazardous conditions18

Sick Leave

Employees generally receive 30 days of full-day paid sick leave per year.

Employees must provide a medical certificate.

Parental Leave

Maternity Leave
No. of ChildrenNo. of DaysNote
1st child105It is mandatory to take at least 42 days of maternity leave.
2nd child onwards120It is mandatory to take at least 42 days of maternity leave.

In the first year after birth, employees are entitled to one hour of rest per day.

Paternity Leave

Employees will be entitled to 3 days of paid leave for childbirth and miscarriages.

Offboarding & Termination

Termination Process

The termination process is simple.

Termination can take place with notice periods given or pay in-lieu.

Immediate termination can happen if the employee has:

  • caused deliberate damange to the employer
  • repeatedly violate internal regulations of the labour unit or contract after receiving a warning from his employer
  • neglected one’s duty for 4 consecutive days
  • been sentenced to court for offence deliberately committed against the labour unit
  • violated the rights of other employees and has already been given a warning

Notice Period

Type of JobNo. of Days
Manual work30 days
Specialized skills45 days

Severance Pay

Severance pay rate is fixed at 10% of previous month’s salary or salary x number of years worked.

Probation period

Not mandatory.



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