Hiring & Employment in Laos: 2025 Guide
Your guide to the employment landscape, working customs and local labor laws in Laos.
Capital / Economic hubs
Vientiane (capital), Savannakhet, Pakse, Luang Prabang
Currency
Lao Kip (LAK)
Official Language
Lao
Key Industries
Hydropower, mining, agriculture, tourism, construction, garments
Business Climate Overview
Laos remains a developing economy with growing infrastructure and energy exports, supported by foreign investment in hydropower, mining, and construction. Its small labor market offers low labor costs but faces shortages in skilled and English-proficient workers.
Talent Market & Recruitment
Workforce
~3.6M; small labor pool; low skilled labor; limited English and technical talent
In-demand Roles
- • Engineers
- • Mining/geology
- • Tourism
- • IT
- • Accountants
- • English teachers
Hiring Channels
108.jobs, JobLao, Facebook, referrals, MyWorld Laos
Employment Regulations
Written Contracts
Mandatory in Lao language; must define role, salary, and duration.
Probation Periods
1–3 months depending on job type; must be stated in the contract.
Public Holidays (2024)
11 official days including Lao New Year, National Day, and Buddhist Lent.
Annual Leave
1.5 days/month (15 days/year; 18 for hazardous roles); 30 days sick leave; 90 days maternity leave.
Termination & Severance
2 weeks–1 month notice; severance ~1 month per year of service or 10% of total wages.
Compensation, Tax & Social Security
Overtime Pay
150% on weekdays; 200% on holidays/weekends.
Employer Contributions
6% to Social Security Fund (SSF).
Employee Contributions
5.5% to SSF.
Bonuses
Not required; discretionary New Year or year-end bonuses common.
Personal Income Tax
Progressive from 0%–25%.
VAT
10% standard rate.
Salary Benchmarks by Industry
| Industry / Role | Salary Range (80% of earners) |
|---|---|
| Software Engineer | 3.5M – 13.2M LAK |
| Backend Developer | 2.5M – 7.6M LAK |
| Digital Marketing | 2.2M – 6.6M LAK |
| Mechanical Engineer | 2.3M – 6.7M LAK |
| Recruiter | 2.3M – 6.2M LAK |
| Financial Analyst | 2.5M – 7.6M LAK |
| Designer | 2.6M – 5.7M LAK |
| Nurse | 2.5M – 7.6M LAK |
| Estate Agent | 2.5M – 7.6M LAK |
| Sales Director | 3.7M – 17.5M LAK |
Payroll & Immigration
Payroll Cycle
Monthly; denominated in LAK; payslips required.
Work Permits
Foreigners require a B2 visa and labor permit. Quota typically ≤15% of skilled staff per company.
Options for Hiring in Laos
Employer of Record (EOR)
Simplifies hiring; handles compliance, payroll, and work permits.
Local Payroll Providers
Local firms manage payroll, taxes, and SSF filings for registered entities.
Independent Contractors
Permissible but ensure compliance to avoid misclassification risk.
Local Entity Setup
Best for long-term presence; requires business licensing and regulatory filings.
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