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Global Expansion Guide

Laos

Manage and pay your employees easily with BIPO in Laos and 170+ other markets. Build your international teams today with our global Employer of Record service!

employment guide_currency

Currency

Lao Kip (LAK)

employment guide_language

Language

Lao

employment guide_capital

Capital

Vientiane

Employer of Record Laos

Employment Contract

Statutory Contributions

Minimum Wage

Public Holidays

Working Hours

Leave

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in Laos

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Employer of Record Laos

Embark on your business expansion in Laos with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the Lao market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

This guide was last updated on 17 December 2025. The content in this guide is current as of this date and based on common business practices.

Employment Contract

In Laos, employment contracts are classified into fixed-term contracts and permanent contracts.

Forms of Employment Contracts

  • Employment contracts may be concluded either verbally or in writing.
  • A written employment contract is mandatory where one or both parties are a legal entity or organisation.
  • A verbal employment contract is permitted only where both the employer and the employee are individuals.

Key Requirements of an Employment Contract

An employment contract must include, at minimum, the following particulars:

  • Full name of the employer and the employee.
  • Scope of work, including the employee’s rights, obligations, responsibilities, and occupational duties.
  • Salary or wages payable to the employee.
  • Duration of the employment contract, including the commencement date and, where applicable, the expiry date.
  • Address of the employer and the employee.
  • Method of payment of salary or wages.
  • Duration of any probationary (trial) period.
  • Employee welfare provisions and other applicable workplace policies.
  • Working days, rest days, and public holidays.
  • Benefits payable to the employee upon expiry or termination of the employment contract.
  • Any other matters mutually agreed by the parties, provided they comply with applicable laws and regulations.

Statutory Contributions

Scope of Application: All employees.

TypeMonthly Minimum (LAK)Monthly Maximum (LAK)Employee ContributionEmployee Contribution
Pension2,500,0004,500,0002.5%2.5%
Medical (including Maternity)2.0%2.0%
Work Injury–0.5%
Unemployment1.0%1.0%

Minimum Wage

Effective 1 October 2024, the statutory monthly minimum wage in Laos is LAK 2,500,000.

Note: For employees paid on a daily or piece-rate basis, the total monthly remuneration must not be lower than the statutory minimum wage.

Public Holidays

The public holidays listed below are national public holidays observed across Laos. Please refer to official government announcements for the latest updates.

  • New Year’s Day
  • International Women’s Day
  • Lao New Year (3 Days)
  • Labour Day
  • Lao Women’s Union Foundation Day
  • Lao National Day

Notes:

  • If a public holiday falls on a statutory weekly rest day, a compensatory leave shall be granted on the next working day.

  • Overtime Compensation for Work on Public Holidays:

    • 06:00–16:00: 250% of the regular wage
    • 16:00–22:00: 300% of the regular wage
    • 22:00–06:00: 350% of the regular wage
    • Night or shift work: Paid at no less than 15% of the hourly wage of a regular working day for each hour worked.

Working Hours

CategoryDailyWeekly
General Industries8 Hours48 Hours
Hazardous Industries6 Hours36 Hours

Rest Time

  • Daily Rest: Employees are entitled to a lunch/rest break of at least 60 minutes, which is not counted as working hours.
  • Weekly Rest: Employees must receive at least one day of rest per week, or four days per month. This rest is unpaid.

Overtime Compensation

  • Overtime on a regular workday:

    • 17:00–22:00: 150% of the regular wage
    • 22:00–06:00: 200% of the regular wage

  • Overtime on a weekly rest day:

    • 06:00–16:00: 250% of the regular wage
    • 16:00–22:00: 300% of the regular wage
    • 22:00–06:00: 350% of the regular wage
  • Night or shift work: Paid at no less than 15% of the hourly wage of a regular working day for each hour worked.

Leave

Annual Leave

  • Applicable Employer Type: Single employer.
  • Eligibility: Completion of one consecutive year of service.

  • Entitlement:

    • General employees: 15 days
    • Employees in hazardous industries: 18 days
  • Allowance: 100% of regular salary, fully paid by the employer.
  • Conversion of Unused Annual Leave:
    • If an employee is unable to take annual leave due to reasons attributable to the employer, the employer shall pay additional remuneration equal to 100% of the employee’s normal daily wage for each unused day (effectively double pay).
    • If an employee has unused annual leave upon termination, compensation shall be paid accordingly.

Sick Leave

  • Eligibility: Female employees who are pregnant or have recently given birth.
  • Duration: At least 105 days, including a minimum of 42 days postpartum; in the case of multiple births (e.g., twins), leave shall be at least 120 days.
  • Allowance: 100% of the average daily wage, fully paid by the employer.

Maternity Leave

  • Eligibility: Female employees before and after childbirth.
  • Duration: At least 7 weeks before childbirth and 7 weeks after childbirth, with a minimum of 2 consecutive weeks.
  • Allowance: 100% of the average daily wage; paid by social security, with any shortfall supplemented by the employer.

Other Leave Types

Personal Leave

  • Applicable to all employees.
  • Leave must be applied for and approved by the employer, and confirmed by the trade union, employee representative, or responsible authority.
  • Minimum duration: 3 days.
  • Compensation: 100% of the average daily wage, fully paid by the employer.

Adoption Leave

  • Applicable to employees legally adopting a newborn under three months old.
  • Maximum duration: 3 months.
  • Compensation: 100% of the average daily wage; paid by social security, with any shortfall supplemented by the employer.

Miscarriage / Stillbirth Leave

  • Applicable to female employees who suffer a miscarriage or stillbirth.
  • Duration as determined by medical advice.
  • Compensation: 100% of the average daily wage; paid by social security, with any shortfall supplemented by the employer.

Newborn Care Leave

  • Applicable to female employees within one year after childbirth for child care or accompanying the child for vaccinations.
  • Duration: 1 hour per day, counted as normal working time.
  • Compensation: Wages paid by the employer.

Rehabilitation Leave

  • Applicable to all employees.
  • Duration determined according to a medical certificate.
  • Compensation: Paid in accordance with social security benefits, fully covered by social security.

Termination and Compensation

Notice Period

  • Permanent Contracts (Open-Ended): Either party may terminate the contract at any time with prior notice:

    • Manual workers: 30 days
    • Mental/professional workers: 45 days
  • Fixed-Term Contracts: May be terminated only by mutual agreement or if one party breaches the contract.

Compensation

  • Lawful Termination: Compensation equals 10% of the employee’s last month’s wage multiplied by total months of service.
  • Unlawful Termination: Compensation equals 15% of the employee’s last month’s wage multiplied by total months of service.
  • Variable or Production-Based Wages: The calculation base shall be the average wage of the most recent three months.
  • Other Termination Circumstances: If the contract is terminated for reasons not specified by law, the employer shall provide compensation in accordance with the employment contract, internal rules, or mutual agreement.

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.

As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:

  • Initial Consultation:
    The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
  • Payroll Management:
    We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with Lao regulations.
  • Contributions and Taxes:
    Our expertise in managing local social security requirements ensures your business complies with in-country financial obligations.
  • Compliance with Minimum Wage and Working Hours:
    We guarantee that your employment practices adhere to Laos’ minimum wage and working hours standards, safeguarding your business against potential legal issues.
  • Leave and Paid Time Off Management:
    Implement and manage leave policies that comply with Lao laws, ensuring a fair and transparent leave management system for your employees.
  • Regulatory Compliance:
    Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
  • Other services:
    Work visa, permit applications, termination procedures.

Services may vary across countries.

Benefits of BIPO Employer of Record Service in Laos

Unlock your growth potential with BIPO’s Employer of Record service in Laos. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance.

From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities.

Stay up to date with the latest employment regulations.

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Frequently Asked Questions

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees.

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from:

  • Compliance in the global markets where you operate
  • Reduced costs and risk mitigation
  • Overall workforce productivity, effectiveness, and efficiencies

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

  • Scale their global business and be fully operational in foreign markets quickly
  • Reduce financial and HR complexities while expanding internationally
  • Minimise time spent trying to understand local labour laws and foreign tax systems
  • Stay compliant across global markets while reducing HR and administrative workflows
  • Benefit from a centralised and intuitive cloud HR platform to manage international teams

A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities.

When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs.

Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!

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