Find your employer of record in Laos
Laos
Laotian Kip (LAK)
Currency
monthly
Payroll Frequency
0 to 6
Employer Tax
With 2 clicks, start your journey to Hire a contractor or remote employees in Laos without a entity set up.
Overview
Capital
Currency
Date Format
Fiscal Year
Reviews
Vientiane
Laotian Kip (LAK)
MM/DD/YY
January 1st-December 31st
0 / 5 Star (0 Reviews)
Write ReviewFind your employer of record in Laos
Laos
Laotian Kip (LAK)
Currency
monthly
Payroll Frequency
0 to 6
Employer Tax
Overview
Capital
Currency
Date Format
Fiscal Year
Reviews
Vientiane
Laotian Kip (LAK)
MM/DD/YY
January 1st-December 31st
0 / 5 Star (0 Reviews)
With 2 clicks, start your journey to Hire a contractor or remote employees in Laos without a entity set up.
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Overview
Laotian Kip (LAK)
CURRENCY
Vientiane
CAPITAL
monthly
PAYROLL FRECUENCY
13
PUBLIC HOLIDAYS
0 to 6
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Laos
Employer
Company Payroll Contributions
0% - 6%
Social Security
0% - 6%
Total Employment Cost
Employee
Worker Payroll Contributions
0%- 5.5%
Social Security
0% - 5.5%
Total Employee Cost
Employee Income Tax in Laos
Worker Income Tax
0%
LAK 0 - LAK 1300000
5%
LAK 1300001 - LAK 5000000
10%
LAK 5000001 - LAK 15000000
15%
LAK 15000001 - LAK 25000000
20%
LAK 25000001 - LAK 65000000
25%
LAK 65000001 and above
Payroll Contributions in Laos
Payroll Cycle
The payroll cycle is monthly and can be managed with PEO services.
13th Salary
There are no employment laws for the 13th-month pay. However, employers can assign bonuses to their employees if they wish. Also, with payroll outsourcing services you can calculate these bonuses for your workers.
Employee Benefit in Laos
There are no common benefits in Laos.
Visa and work permit in Laos
For foreigners who want to live and work in Laos, the authorities have an LA-B2 visa. In addition, the visa has a validity period of 3 months, 6 months, or 1 year with multiple entries. Likewise, people who wish to enter the country must apply for a visa in advance from the Lao Consulate in the country of origin. Therefore, the visa cannot be applied for while already living in Laos.
Alternatively, the foreigner may apply if he has legally secured employment by obtaining a sponsorship letter from a local licensed company in Laos. In addition, the sponsoring company must appear before the Ministry of Foreign Affairs (MAF) for approval. In this case, you must present a financial guarantee for the foreigner that the employer requires.
Likewise, upon receiving said approval, the Laotian Consulate will issue the LA-B2 visa for the foreigner who is applying to enter the country. Similarly, the Ministry of Labor and Social Welfare issues the work permit. In the same way, the residence permit is issued by the Immigration Department of the Ministry of Public Security.
On the other hand, the sponsoring employer must register the request for the Work Permit and SP. In this case, you must do so within one month, from the receipt of the authorization from the Ministry of Foreign Affairs. In this case, a PEO can help you manage visas and permits for your foreign workers.
VAT in Laos
The standard VAT rate in Laos is 7%, applicable to goods and services. In addition, exports have a zero rate, except for those of natural resources that are subject to 10% VAT.
Working Hours in Laos
General
An Employer of Record in Laos can arrange working hours in your company which is usually 48 hours per week. However, employees who work in the following activities can only work 6 hours a day for a total of 36 hours a week:
- Exposed to radiation or have a serious contagious disease
- Those who are in contact with toxic gases or fumes
- Those who are exposed to chemical agents or products
- Workers in tunnels underground, submerged, or work in high-altitude sites established by legislation
- Employees who work in environments under strong heat or cold
Overtime
According to the Labor Law in Laos, overtime cannot exceed 3 hours a day, nor can it exceed 45 hours a month. Thus, if the employer wants the staff to work outside the established hours, they must request authorization. In this case, authorization can be requested from the Labor Administration Agency, the union, the labor representative, or the majority of workers.
On the other hand, an Employer of Record in Laos can arrange this allocation and payment process at their company. Likewise, these overtime hours cannot exceed more than 4 days in a row unless there is a natural disaster.
Working Week
Monday to Friday.
Employee Termination in Laos
Termination Process
The employer or employee can terminate the employment relationship at the end of the established work contract. Thus, you can hire a Professional Employment Organization to take care of this and other labor processes.
Notice Period
Hire HR and payroll outsourcing for the application of notice of workers in your company. In this case, the legal notice is for employees with indefinite-time contracts and consists of the following:
- Non-qualified employees will have a 30-day notice.
- Qualified employees will have a 45-day notice.
Severance Pay
An Employer of Record in Laos can calculate and pay the severance pay provided by the Labor Law. Thus, the payment varies according to the type of labor termination:
- In case of unilateral dismissal, the compensation will be 10% of the salary received by the worker multiplied by the months worked.
- If the termination is unjustified, the compensation will be 15% of the base salary of the worker, multiplied by the months worked. In addition, there are no limits to the compensation.
- In the event of the death of the worker, the employer will pay the compensation that the employee would have received, as a unilateral dismissal. The compensation will be 50% of the last salary received by the worker.
Probation Period
In Laos, trial periods vary, depending on the qualities of the hired employee, as you will see below:
- For unskilled workers, it is 30 days maximum.
- For skilled workers, it is 60 days maximum.
Employee Leaves in Laos
Paid Time Offs
Labor Laws establish that workers who have worked for 1 full year are entitled to 15 days of vacation per year. Similarly, workers who work putting their health at risk will enjoy 18 days of vacation per year. In addition, payment for vacation periods may be made for you by an Employer of Record in Laos.
Public Holidays
There are 13 national holidays throughout the year.
Vacation Holidays
There are 15 vacation holidays throughout the year.
Sick Days
With payroll outsourcing, manage and pay sick leave to your employees, which is 30 days a year. In addition, employees who work specifically by the hour, unit, contract, or by the day, receive 30 days of leave if they have worked for a minimum of 90 days.
Paternity Leave
There are no legal provisions for parental leave.
Paternal Leave
In Laos, there is no statutory parental leave.
Other Leave
There are no other legal licenses for employees in Laos.
Maternity Leave in Laos
Female workers are entitled to receive 105 days of paid maternity leave, of which 42 days are after the birth of the child. In addition, in the case of twins, the employee will receive 120 days of leave. Also, under the social security system, female employees can receive additional leave if they meet certain conditions.
In the same way, in case of spontaneous abortion, the employee will have the right to take leave suggested by the attending physician. Additionally, the employees receive 1 hour of rest to take care of their baby until the child turns 1 year old. Additionally, an EOR can effectively manage this license for your company.
There are 105 leave throughout the year.
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