Employer of Record in Laos

Hiring Employees in Laos With An EOR

Hiring in Laos can seem complex – but with the right facts and tools, it’s simple. This guide walks you through the local job market, shows how Employer of Record services guarantee compliance, and highlights the key labor laws you need to know.

Hiring Employees In Laos
Employer Of Record In Laos

Capital City

Vientiane

Currency

Laotian Kip

 (

)

Timezone

GMT +7

Payroll Frequency

Tax Year

Employer Tax

Languages

French

English

Jesse Weisz

R&D Analyst

Last Updated

September 12, 2025

In This Guide

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Employment Guide For Hiring in Laos

Looking to grow your team in Laos? It’s a great way to tap into new talent and fresh markets – but hiring across borders comes with its own set of hurdles. From understanding local labor laws to managing payroll and staying compliant, it gets complex if you don’t have local HR support.

Playroll’s full-service Employer of Record platform handles all the heavy lifting so you can hire confidently in Laos without setting up a local entity. In this guide, we’ll break down everything you need to know about hiring employees in Laos, including employment contracts, payroll, statutory benefits, and compliance with local labor laws.

What to Know Before Hiring employees in Laos

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.

Labor Laws: An Employer of Record acts as the legal employer for workers in Laos, taking on key responsibilities to ensure compliance with local labor laws and regulations. 

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.

How to Hire Employees In Laos

Hiring in Laos for the first time can be overwhelming, especially when navigating unfamiliar employment laws. So, how do you get started? There are three main ways to hire in Laos: Set up your own legal entity, hire independent contractors, or use an EOR service to handle payroll and global HR for you. Below, we’ll walk you through each option in detail.

1. Set Up A Local Entity In Laos

Setting up a local entity in Laos is the traditional route for businesses that want to build a long-term presence in a new market. It allows for direct hiring, fine control over operations, and compliance with local labor laws.

That said, the process is rarely simple. It involves navigating complex legal structures, extensive registration procedures, ongoing payroll administration, and local tax obligations. Beyond the administrative burden, the costs of incorporation, maintaining local offices, and hiring compliance experts can quickly add up.

For companies operating with slim margins or testing new markets, these financial and operational commitments often make setting up a local entity an unfeasible option compared to more flexible and cost-effective solutions.

2. Use An Employer Of Record In Laos

An Employer of Record (EOR) acts as the legal employer for workers in Laos, taking care of compliance, payroll, and local labor regulations. This makes it fast and straightforward to bring on talent without the cost and complexity of setting up a local entity. For businesses looking to test new markets or scale teams across borders with confidence, EORs offer a flexible, low-risk solution.

The Employer of Record in Laos is responsible for:

  • Employment Compliance: Ensure all employment contracts comply with Laos's labor laws and regulations, including proper classification of employees.
  • Payroll Management: Calculate, process, and distribute employee salaries in accordance with Laos's payroll laws, including deductions for taxes and social security contributions.
  • Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
  • Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with Laos's legal requirements.
  • Benefits Administration: Provide mandatory employee benefits as required by Laos's labor laws, such as health insurance, pension contributions, and statutory leave.

3. Hire Independent Contractors In Laos

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.

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Labor Laws in Laos

Businesses 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.

Onboarding Process

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.

Average Salary In Laos

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.

Not sure what to pay in Laos? Compare fair, local salaries with our free benchmarking tool.
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Working Hours in Laos

Minimum Wage in Laos

How an Employer of Record Helps You Hire in Laos

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.

Payroll Management in Laos

Payroll Cycle in Laos

The payroll cycle in Laos is usually Monthly, with employees being paid as stipulated in employment contract.

Employment Taxes in Laos

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The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Laos tailored to your needs.

Employment Taxes and payroll in Laos

How an EOR Helps You Run Payroll in Laos

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:

  • Rapid Payroll Setup: Onboards employees quickly with ready-to-go infrastructure.
  • End Administration: Handles salary, tax, and benefits with no extra internal resources.
  • Vendor Simplicity: Consolidates payroll across countries for centralized oversight.
  • No Entity Required: Operates legally, saving your business the time and resources needed for local incorporation.

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Work Permits & Visas in Laos

In 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.

Annual Leave & Company Policies In Laos

Mandatory Leave Entitlement in Laos

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.

Annual Leave and Company Policies In Laos

Employee Benefits in Laos

Using an Employer of Record to Administer Benefits in Laos

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.

Termination and Severance Policies in Laos

Employment Termination and Severance Policies in Laos

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.

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ABOUT THE AUTHOR

Jesse Weisz

Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).

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FAQs About Hiring in Laos

What is the minimum wage in Laos?

As of January 1, 2024, Laos' minimum wage rates are:

  • LAK 1,100,000 per month.
  • Applies across all sectors.
  • Reviewed periodically by the government.

What is the average salary in Laos?

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.

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