Laos

Last Update by Katie, 07 Jun 2024

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Exchange Rate

13 Jun 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

Probation

Skilled: 60 days with
Unskilled: up to 30 days

Termination

  • Notice during probation:
    Skilled: with 60 days probation- 5 days
    Unskilled: with 30 days probation - 3 days
  • Notice after probation:
    - Blue collar workers: 30 days
    - White collar workers: 45 days
  • Severance: 15% of the total monthly salary prior to termination 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 - 16 Apr Lao New Year's Day
01 May Labor Day
22 May Visakhabousa Day
01 Jun Children's Day
17 Oct Boun Ok Phansa
28 Oct Boat Racing Festival
01 Nov That Luang Festival
02 Dec Lao National Day

Leave

Leave Type Entitlement Notes
Annual Leave 15 working days
18 working days for health-hazardous industries
All staff with 1 year service
Sick Leave Up to working 30 days All staff with 90 days' service excluding work accidents or occupational diseases
Maternity Leave 105 working days
120 working days (for twins)
42 days taken after child birth
All expectant mothers
42 days after birth and are entitled to rest for 1 hour per day up to 1 year
Family Responsibility Leave 3 working days per year All staff caring for a child, mother, father, or spouse who is sick or injured
Bereavement Leave 3 working days per year All staff with death of an immediate family member

Reference

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