- Country Guide
- Laos
Laos
Last Update by Julie, 20 Dec 2024
You must log in to be able to download this document
Exchange Rate
22 Jan 2025
Cost of Living
Indicative value for a working adult in a city: Vientiane
Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff
| Living Requirement | Indicative Amount (LAK) |
|---|---|
| McDonalds Set Meal | 69,062 |
| Monthly Train and Bus Tickets | 1,086,956 |
| 3 Bedrooms Rental (City Center) | 19,984,427 |
| 3 Bedrooms Rental (Outskirt) | 34,953,247 |
Current Inflation Rate
24.37%
Wage
Minimum Wages
- Private Sector: LAK1,600,000 LAK per month
Government Sector: LAK2,000,000 per month
Median Salary
Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.
| Job Level | Monthly Salary (LAK) |
|---|---|
|
Entry-Level
Fresh Graduate
|
1,600,000 |
|
Mid-Level
5 Years
|
2,165,000 |
|
Experienced & Managerial Level
10 Years
|
2,730,000 |
|
Specialized & Senior-Level
15 Years
|
and 4,900,896 |
Annual Salary Growth
2%
Statutory Contribution
Country Level
| Type | Employer Rates | Employee Rates | Notes |
|---|---|---|---|
| Social Security Fund (NSSF) |
6% contribution base capped at LAK 4.5 million |
5.5% contribution base capped at LAK 4.5 million |
All staff; expats who work for more than 12 months are required to be registered |
Other Benefit
Other common employment benefits in Laos include:
- 13th-month salary
- Additional Health Insurance: About up to USD200 per year
Income Tax
Residents
-
Tax Period: 1 Jan - 31 Dec
Tax filing start date: 1 Feb of the following year
Tax filing due date: 31 Mar of the following year
Country Level
| Taxable Income | 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 | 25% |
Non-residents
- There is no definition for tax resident or non residents, the rate for expats should be same as tax residents
Working Hours
Statutory
48 hours
8 hour a day, 6 days a week
Monday - Saturday
Overtime
Daily: capped at 3 hours.
Monthly: capped at 45 hours.
- Workdays
17:00 - 22:00: 150% of the hourly rate
22:00- 06:00: 200% of the hourly rate - Public holidays or rest days:
06:00-16:00: 250% of the hourly rate
6:00-22:00: 300% of the hourly rate
22:00-06:00: 350% of the hourly rate
Employment Contract
Permanent
Contract Format
Verbal or written in Lao, and English for expat.
Payroll Currency
LAK
Probation
Unskilled: 30 days and can be extended for another 30 days.
Skilled: 60 days and can be extended for another 30 days.
Contract Period
No minimum duration
Termination
| Voluntary Resignation | Involuntary Termination | Economic Layoff | |
|---|---|---|---|
| Notice Period - Probation | Skilled: with 60 days probation: 5 days Unskilled: with 30 days probation: 3 days |
Skilled: with 60 days probation: 5 days Unskilled: with 30 days probation: 3 days |
Skilled: with 60 days probation: 5 days Unskilled: with 30 days probation: 3 days |
| Notice Period - Regular | Blue collar workers: 30 days White collar workers: 45 days |
Blue collar workers: 30 days White collar workers: 45 days |
Blue collar workers: 30 days White collar workers: 45 days |
| Severance Pay | Not Applicable | Under 3 years' service: 15% monthly salary prior to termination multiplied by the number of months worked Over 3 years' service: 20% monthly salary prior to dismissal multiplied by the number of months worked |
Under 3 years' service: 15% monthly salary prior to termination multiplied by the number of months worked Over 3 years' service: 20% monthly salary prior to dismissal multiplied by the number of months worked |
Public Holiday
13 days
Country Level
| Date | Name |
|---|---|
| 01 Jan | New Year's Day |
| 08 Mar | International Women's Day |
| 13 Apr - 17 Apr | Lao New Year Holiday |
| 01 May | Labor Day |
| 20 Jul - 21 Jul | Lao Women Union's Day |
| 24 Jul | Boun Khao Phansa |
| 05 Nov | That Luang Festival |
| 02 Dec | National Day |
Leave
| Leave Type | Entitlement | Notes |
|---|---|---|
| Annual Leave |
15 working days, 18 working days for staff in hazardous industries |
All staff with 1 year service |
| Sick Leave | Up to 6 months | All staff |
| Maternity Leave |
105 working days 120 working days (for twins) 42 days taken after child birth |
All expectant mothers |
| Personal Leave | 3 working days per event, per year | All staff caring for sick or injured family, for marriage, death of immediate family, birth of a child or natural disasters |
Reference
- https://www.numbeo.com/cost-of-living/in/Vientiane
- https://kpl.gov.la/En/detail.aspx?id=72732
- https://taxsummaries.pwc.com/lao-pdr/corporate/tax-administration
- https://asean.org/wp-content/uploads/2016/06/Labor-Law.pdf
- https://www.luangprabang-laos.com/IMG/pdf/lao_laws_18_labour_law_and_decree_final.pdf
- https://www.luangprabang-laos.com/IMG/pdf/lao_laws_27_women_and_children_law_and_decree_final.pdf
- https://www.mof.gov.la/wp-content/uploads/sites/1/2023/04/Labour-Management-Procedures-LMP-Draft_Rev-2_10-Mar.pdf
Ready To Expand in Laos?
Have any questions? We’d love to hear from you
Contact UsCountry Guide - Laos
Last updated: 20 Dec 2024
Exchange Rate
Currency (LAK)
- 1 CNY = 0.185 LAK
- 1 USD = 1.32 LAK
Other currencies can be retrieved via the country guide link above.
Find us on WeChat
Labor Cost Calculator
To know the total employer cost for hiring a staff with certain salary, please go to our main site: https://marcopayroll.com
Cost of Living
Indicative value for a working adult in a city: Vientiane
Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff
| Living Requirement | Indicative Amount (LAK) |
|---|---|
| McDonalds Set Meal | 69,062 |
| Monthly Train and Bus Tickets | 1,086,956 |
| 3 Bedrooms Rental (City Center) | 19,984,427 |
| 3 Bedrooms Rental (Outskirt) | 34,953,247 |
Current Inflation Rate
24.37%
Wage
Minimum Wages
- Private Sector: LAK1,600,000 LAK per month
Government Sector: LAK2,000,000 per month
Median Salary
Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.
| Job Level | Monthly Salary (LAK) |
|---|---|
|
Entry-Level
Fresh Graduate
|
1,600,000 |
|
Mid-Level
5 Years
|
2,165,000 |
|
Experienced & Managerial Level
10 Years
|
2,730,000 |
|
Specialized & Senior-Level
15 Years
|
and 4,900,896 |
Annual Salary Growth
2%
Statutory Contribution
Country Level
| Type | Employer Rates | Employee Rates | Notes |
|---|---|---|---|
| Social Security Fund (NSSF) |
6% contribution base capped at LAK 4.5 million |
5.5% contribution base capped at LAK 4.5 million |
All staff; expats who work for more than 12 months are required to be registered |
Other Benefit
Other common employment benefits in Laos include:
- 13th-month salary
- Additional Health Insurance: About up to USD200 per year
Income Tax
Residents
-
Tax Period: 1 Jan - 31 Dec
Tax filing start date: 1 Feb of the following year
Tax filing due date: 31 Mar of the following year
Country Level
| Taxable Income | 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 | 25% |
Non-residents
- There is no definition for tax resident or non residents, the rate for expats should be same as tax residents
Working Hours
Statutory
48 hours
8 hour a day, 6 days a week
Monday - Saturday
Overtime
Daily: capped at 3 hours.
Monthly: capped at 45 hours.
- Workdays
17:00 - 22:00: 150% of the hourly rate
22:00- 06:00: 200% of the hourly rate - Public holidays or rest days:
06:00-16:00: 250% of the hourly rate
6:00-22:00: 300% of the hourly rate
22:00-06:00: 350% of the hourly rate
Employment Contract
Fixed-Term
Project-based work, seasonal employment, or temporary staff hiring.
Probation
Unskilled: 30 days and can be extended for another 30 days
Skilled: 60 days and can be extended for another 30 days
| Voluntary Resignation | Involuntary Termination | Economic Layoff | |
|---|---|---|---|
| Notice Period - Probation | Skilled: with 60 days probation: 5 days Unskilled: with 30 days probation: 3 days |
Skilled: with 60 days probation: 5 days Unskilled: with 30 days probation: 3 days |
Skilled: with 60 days probation: 5 days Unskilled: with 30 days probation: 3 days |
| Notice Period - Regular | Less than 1 year: 1 month 1 year or more of service: 2 months |
Less than 1 year: 1 month 1 year or more of service: 2 months |
Less than 1 year: 1 month 1 year or more of service: 2 months |
| Severance Pay | Not Applicable | Under 3 years' service: 15% monthly salary prior to termination multiplied by the number of months worked Over 3 years' service: 20% monthly salary prior to dismissal multiplied by the number of months worked |
Under 3 years' service: 15% monthly salary prior to termination multiplied by the number of months worked Over 3 years' service: 20% monthly salary prior to dismissal multiplied by the number of months worked |
Permanent
Probation
Unskilled: 30 days and can be extended for another 30 days.
Skilled: 60 days and can be extended for another 30 days.
| Voluntary Resignation | Involuntary Termination | Economic Layoff | |
|---|---|---|---|
| Notice Period - Probation | Skilled: with 60 days probation: 5 days Unskilled: with 30 days probation: 3 days |
Skilled: with 60 days probation: 5 days Unskilled: with 30 days probation: 3 days |
Skilled: with 60 days probation: 5 days Unskilled: with 30 days probation: 3 days |
| Notice Period - Regular | Blue collar workers: 30 days White collar workers: 45 days |
Blue collar workers: 30 days White collar workers: 45 days |
Blue collar workers: 30 days White collar workers: 45 days |
| Severance Pay | Not Applicable | Under 3 years' service: 15% monthly salary prior to termination multiplied by the number of months worked Over 3 years' service: 20% monthly salary prior to dismissal multiplied by the number of months worked |
Under 3 years' service: 15% monthly salary prior to termination multiplied by the number of months worked Over 3 years' service: 20% monthly salary prior to dismissal multiplied by the number of months worked |
Public Holiday
13 days
2025
| Date | Name |
|---|---|
Leave
| Leave Type | Entitlement | Notes |
|---|---|---|
| Annual Leave |
15 working days, 18 working days for staff in hazardous industries |
All staff with 1 year service |
| Sick Leave | Up to 6 months | All staff |
| Maternity Leave |
105 working days 120 working days (for twins) 42 days taken after child birth |
All expectant mothers |
| Personal Leave | 3 working days per event, per year | All staff caring for sick or injured family, for marriage, death of immediate family, birth of a child or natural disasters |
Reference
- https://www.numbeo.com/cost-of-living/in/Vientiane
- https://kpl.gov.la/En/detail.aspx?id=72732
- https://taxsummaries.pwc.com/lao-pdr/corporate/tax-administration
- https://asean.org/wp-content/uploads/2016/06/Labor-Law.pdf
- https://www.luangprabang-laos.com/IMG/pdf/lao_laws_18_labour_law_and_decree_final.pdf
- https://www.luangprabang-laos.com/IMG/pdf/lao_laws_27_women_and_children_law_and_decree_final.pdf
- https://www.mof.gov.la/wp-content/uploads/sites/1/2023/04/Labour-Management-Procedures-LMP-Draft_Rev-2_10-Mar.pdf
Contact Info
-
Singapore (Headquarters)
8 Marina Boulevard, MBFC Tower 1, #11-01, Singapore, 018981
+65 6653 4334 -
China (Headquarters)
79 Jianguo Road, China Central Place Tower 2, #09-52, Beijing, 100025
+86 10 6580 0555 -
China (Service Center)
23 Dagong Street, Eton Place Tower 2, Unit 1808, Dalian, 116001
-
United States
445 S Figueroa St, 31st Floor, Los Angeles, California, 90071
-
United Kingdom
71 - 75 Shelton Street, London, England GB
-
Netherlands
Vijzelstraat 68, 1017 HL, Amsterdam
-
Australia
Level 22, Salesforce Tower, 180 George Street, Sydney, NSW 2000