- Country Guide
- Laos
Laos
Last Update by Katie, 05 Aug 2024
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Exchange Rate
18 Sep 2024
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
- From 1st October 2023 1,600,000 LAK per month for staff in the private sector, for civil servants 2,000,000 LAK 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
|
>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 4.5 million LAK |
5.5% contribution base capped at 4.5 million LAK |
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 200 USD per year
Income Tax
Residents
-
Tax Period: 1st January - 31st December
Tax filing start date: 1st February of the following year
Tax filing due date: 31st March 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
Typical practice
48 hours
Monday - Saturday
Overtime
Over 48 hours is classed as overtime
- 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
- 16:00-22:00: 300% of the hourly rate
- 22:00-06:00: 350% of the hourly rate
Employment Contract
Permanent
Contract Format
Verbal or written in Lao. Expat contracts can be in Lao and the language mutually understood by both parties. If the employer has a legal entity, contracts must be written
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
-
Notice during probation:
- Skilled: with 60 days probation: 5 days
- Unskilled: with 30 days probation: 3 days -
Voluntary resignation and involuntary termination:
- Blue collar workers: 30 days
- White collar workers: 45 days -
Severance for dismissal:
- Staff with under 3 years service: 10% monthly salary prior to dismissal multiplied by the number of months worked
- Staff with over 3 years service: 15% monthly salary prior to dismissal multiplied by the number of months worked
Severance for unjust dismissal:
- Staff with under 3 years service: 15% monthly salary prior to termination multiplied by the number of months worked
- Staff with over 3 years service: 20% monthly salary prior to dismissal multiplied by the number of months worked
Public Holiday
13 days
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/2023/04/Labour-Management-Procedures-LMP-Draft_Rev-2_10-Mar.pdf
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Contact UsCountry Guide - Laos
Last updated: 05 Aug 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.
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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
- From 1st October 2023 1,600,000 LAK per month for staff in the private sector, for civil servants 2,000,000 LAK 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
|
>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 4.5 million LAK |
5.5% contribution base capped at 4.5 million LAK |
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 200 USD per year
Income Tax
Residents
-
Tax Period: 1st January - 31st December
Tax filing start date: 1st February of the following year
Tax filing due date: 31st March 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
Typical practice
48 hours
Monday - Saturday
Overtime
Over 48 hours is classed as overtime
- 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
- 16:00-22:00: 300% of the hourly rate
- 22:00-06:00: 350% of the hourly rate
Employment Contract
Fixed-Term
Used for short term projects, seasonal activities and to replace absent staff who are sick or on maternity leave
Probation
Unskilled: 30 days and can be extended for another 30 days .Skilled: 60 days and can be extended for another 30 days
Termination
-
Notice during probation:
- Skilled: with 60 days probation: 5 days
- Unskilled: with 30 days probation: 3 days -
Contract Renewals:
- Both parties give 15 days notice before the contracts natural expiry date -
Severance for dismissal:
- Staff with under 3 years service: 10% monthly salary prior to dismissal multiplied by the number of months worked
- Staff with over 3 years service: 15% monthly salary prior to dismissal multiplied by the number of months worked
Severance for unjust dismissal:
- Staff with under 3 years service: 15% monthly salary prior to termination multiplied by the number of months worked
- Staff with 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
Termination
-
Notice during probation:
- Skilled: with 60 days probation: 5 days
- Unskilled: with 30 days probation: 3 days -
Voluntary resignation and involuntary termination:
- Blue collar workers: 30 days
- White collar workers: 45 days -
Severance for dismissal:
- Staff with under 3 years service: 10% monthly salary prior to dismissal multiplied by the number of months worked
- Staff with over 3 years service: 15% monthly salary prior to dismissal multiplied by the number of months worked
Severance for unjust dismissal:
- Staff with under 3 years service: 15% monthly salary prior to termination multiplied by the number of months worked
- Staff with over 3 years service: 20% monthly salary prior to dismissal multiplied by the number of months worked
Public Holiday
13 days
2024
| Date | Name |
|---|---|
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/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