Hire in Laos

Employer of Record(EOR) in Laos

Laos Workforce Unlocked: How Employer of Record Makes Hiring Easy

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At a Glance

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Laos has maintained good relations with their neighboring countries, which has developed their trade and attracted foreign investors into the country. Additionally, the country boasts of rich mineral resources and has often imported petroleum and gas products. The mining industry also contributes to Laos economic success.

Major economic hubs:

Vientiane, Savannakhet And Champasack

Skills in demand :

Machinery Operations, Production Line Control, Marketing, Sales, Electronics And Engineering

Public and Provincial Holidays

Employee Leaves


Resident Tax Information

The government of Laos requires all citizens and residents to pay income tax, regardless if they're a Laotian or not.

Income tax in Laos ranges from 5% to 25%, depending on the annual income.

Social Security

Social Security in Laos spreads across multiple aspects, including the following:

Retirement Pension

Laotian employees who make contributions to Social Security for at least 60 months can retire with a pension.

Invalidity Pension

Employees who are victims of accidents resulting in loss or decreased capacity to work, should be entitled to a Invalidity Pension. This benefit is paid for by the company and provides financial assistance with living costs while an injured worker cannot go out into circulation as easily due their injuries suffered during service; it also ensures that employment will not stop abruptly because you're unable handle your job alone any more


Employees who have been with the company for at least three months are entitled to health care benefits.

Sickness Benefits

Employees are entitled to a benefit during their sickness that is 60% of what they were making before. The total amount will be paid for 12 months and can't exceed this time period either

Maternity Benefits

Employees who have been contributing to the Social Security Administration for at least 9 months are entitled to maintain their benefits. The amount equals 100% of an employee’s salary and can be availed up until 3 months time has passed since childbirth, or 6 weeks if they're adopting a child.

Funeral Benefits

The funeral benefit provides an amount of six months’ salary for the surviving family members.

Work Injury or Occupational Disease Benefits

Employees who are injured on the job and unable to work temporarily or permanently, deserve our thanks.

Survivor’s Benefits

The spouse and children of the deceased are entitled to a survivor benefit.

Statutory Benefits

tatutory benefits in Laos are as follows:

  1. Retirement Pension
  2. Healthcare
  3. Funeral Benefits
  4. Work Injury or Occupational Disease Benefits
  5. Invalidity Pension
  6. Sickness Benefits
  7. Survivor’s Benefits
  8. Maternity Benefits

Fringe Benefits

ringe benefits in Laos can be added to the employment contract upon mutual discussion between the employee and the employer. Some of these benefits include

  • Skill Development Programs
  • Work from Home
  • Private health insurance
  • Holiday Bonus
  • Meal Vouchers

Exempt Benefits

The benefits that are not taxable in Laos are:

  • Insurance Premium
  • Travel Allowances
  • Accommodation Allowances
  • Performance Bonus

Long-term Incentives

Long-term incentives are often a significant part of an employee's income on higher levels. Laotian employers can also offer similar rewards to their staff based upon seniority, performance and tenure in order for them all to keep working hard together towards company goals.

Some of these incentives can be:

  • 13th Month pay
  • Performance Bonus

Termination/Severance in Laos

Termination Process

Termination can take place with notice periods given or pay in-lieu. Immediate termination can happen if the employee has:

  • Caused deliberate damage to the employer
  • Repeatedly violate internal regulations of the labor unit or contract after receiving a warning from his employer
  • Neglected one’s duty for 4 consecutive days
  • Been sentenced to court for offense deliberately committed against the labor unit
  • Violated the rights of other employees and has already been given a warning

Notice Period

The notice period for employees under probation period is up to 5 days. Employees who are of regular status will have up to 45 days of notice period.

Severance Pay

Severance pay rate is fixed at 10% of previous month’s salary or salary x (times) the number of years worked

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