Capital City
Vientiane
Currency
Laotian Kip
(
₭
)
Timezone
GMT +7
Payroll Frequency
Tax Year
Employer Tax
Languages
French
English
Capital City
Vientiane
Currency
Laotian Kip
(
₭
)
Timezone
GMT +7
Payroll Frequency
Tax Year
Employer Tax
Languages
French
English
Minimum Wage: The statutory minimum wage in Laos is LAK 1,100,000 per month and applies across all sectors.
Working Hours: Standard working hours are 48 hours per week with a maximum of 8 hours per day; overtime is limited to 45 hours monthly and paid at 1.5 times the regular rate.
Payroll Taxes: In Laos, employers are required to contribute 6% of employee wages to the Social Security Organization (SSO), which provides healthcare benefits, retirement pensions, and limited unemployment protection.
Average Salary: The average salary in Laos is approximately USD 240.
Hiring independent contractors has boomed in popularity because of the cost savings and flexibility they offer. It can be a great option if you require niche skills or short-term project support. Contractors allow businesses to access specialized skills quickly, without the time and cost of setting up a local entity.
However, it’s important to know the limits of this model: contractors are not a substitute for full-time employees. Relying on them for ongoing, long-term roles can create serious compliance risks, including employee misclassification, which can lead to fines, back taxes, and reputational damage.
Playroll’s contractor management solutions make it simple to compliantly engage, onboard, and pay contractors around the world. We provide clear visibility into agreements, streamline payments, and reduce compliance risks – so you can focus on getting the work done. And when you’re ready to take the next step, we can help seamlessly convert contractors into full-time employees through our global Employer of Record service.
From compliant contracts to competitive benefits, Playroll’s EOR services keep you aligned with local labor laws and regulations, safeguarding your business, so you can focus on growth.
Book a DemoBusinesses can only operate smoothly in Laos if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Laos below, to avoid any compliance issues.
We can help you get a new employee started in Laos quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment.
The average monthly salary in Laos in 2025 is approximately USD 240. Salaries differ notably by company size - micro-enterprises average around USD 140/month, small businesses about USD 210, medium-sized companies USD 260, and large enterprises over USD 330. Public sector roles earn slightly less, averaging around USD 190. Industry and role matter significantly: tech roles like software development can exceed USD 400, while teaching positions range from USD 240 to USD 300. Location and experience further influence these figures, with urban and more skilled roles generally paying higher.Laos’ economy is growing moderately, with GDP increasing around 4.5% in early 2025, but challenges persist due to high inflation - still in double digits - labor shortages, and financial system vulnerabilities, all of which continue to impact wage growth and stability.
Employment laws in Laos can be intricate, and even unintentional mistakes in contracts, benefits, or termination processes can carry legal and reputational consequences. With an Employer of Record, you gain a local partner that ensures every hire is compliant. The EOR takes care of drafting compliant contracts, processing accurate payroll, managing contributions to statutory benefits, and handling lawful terminations if needed, all according to local employment standards.
This level of protection is especially valuable when expanding into new or unfamiliar regions. Instead of using time and resources to build in-house legal knowledge, you gain immediate access to local expertise. The EOR keeps you ahead of regulatory updates and shields your company from potential compliance gaps, so you can confidently hire and manage employees while minimizing risk. For hiring managers and founders, it's the difference between hiring with uncertainty and building your team on a legally sound foundation.
The payroll cycle in Laos is usually Monthly, with employees being paid as stipulated in employment contract.
When you’re scaling quickly, setting up local payroll systems in each new country slows you down. In Laos, the administrative load can include government registration, benefits management, and accurate, on-time payment delivery. An EOR gives you a plug-and-play solution that handles all of this while your internal team stays focused on growth, not red tape.
Key Ways an EOR Supports Payroll in Laos:
Make better business decisions by consolidating global payroll data, while seamlessly syncing your existing payroll operations.
Book a DemoIn Laos, work permits and visas are essential for employers hiring foreign workers. The process includes submitting applications to the Ministry of Labor and Social Welfare, meeting specific eligibility criteria, and ensuring compliance with local labor laws. The primary visa types include the Temporary Work Visa, Long-Term Work Visa, and Investor Visa. Employers must provide necessary documentation such as employment contracts, proof of qualifications, and health checks. It's important for employers to follow the correct procedures to avoid delays and ensure legal compliance when sponsoring foreign employees.
The annual leave entitlement in Laos is 15 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.
An Employer of Record (EOR) helps businesses manage annual leave, paid time off (PTO), and local holidays across the globe, including in Laos. By partnering with an EOR, companies ensure full compliance with local labor laws in Laos when it comes to annual leave and time-off management. EOR providers like Playroll offer platforms that simplify tracking and managing employee time off in Laos. By outsourcing this responsibility to Playroll, you can streamline leave management, ensure compliance, and free up time to focus on other business priorities.
For startups and small teams, managing global employee benefits isn’t just complex, it’s a full-time job. In Laos, understanding what benefits are required, how to deliver them, and how to stay compliant can be overwhelming, especially without local HR expertise. An Employer of Record removes that pressure by taking complete ownership of benefits administration, so you don't have to become an expert in local employment law.
Whether it’s healthcare contributions, pension enrollment, or statutory leave, the EOR ensures everything is delivered accurately and on time. They navigate any country-specific nuances, keep up with legal changes, and ensure each benefit is properly tracked and documented. For founders, that means fewer distractions and more time to focus on growth. Your employees get the security and support they expect from a local employer, and you get to scale your team in Laos without building complex infrastructure or worrying about compliance missteps.
Disclaimer
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.
Copied to Clipboard
As of January 1, 2024, Laos' minimum wage rates are:
The average monthly salary in Laos in 2025 is around USD 240. Salaries vary by experience, industry, and company size, with urban and skilled roles typically offering higher pay.
Where to next?
Your “everything you ever needed to know” guides to compliant global employment around the world.