Employer of Record Laos | INS Global

Country Guide

Employer of Record Laos

Last updated: July 22, 2025

Capital City

Vientiane

Languages

Lao (official), French (used in government & education)

Currency

Lao Kip (LAK)

Population Size

7.5 million

Employer Taxes

~20% total employer social security contribution

Employee Costs

Average labor cost varies; minimum wage approx. 1.3 million LAK/month

Payroll Frequency

Monthly

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Expanding to Laos? EOR (Employer of Record) Services Help You Hire Globally, Pay Locally, and Expand Effortlessly

Are you embarking on global expansion? We are your Employer of Record in Laos. INS Global’s expert Employer of Record services in Laos streamline employee recruitment and management so you can expand without local entity establishment and in record time. Navigate international complexities effortlessly and ensure efficiency when overseeing a globally dispersed workforce from anywhere. 

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Why Choose an Employer of Record in Laos Over Company Incorporation?

Opting for Employer of Record services in Laos streamlines the expansion process, enabling you to expand in less than a week. Collaborating with a Laotian Employer of Record saves time on growing your business abroad, lowers expansion costs, ensures local compliance, and allows you to focus on growing your business within Laos’s unique context. 

Working with a Laotian Employer of Record 

  • Saves time on growing your business abroad 
  • Lowers expansion costs 
  • Ensures local compliance 
  • Allows you to focus on your business 

PEO/EOR vs Company Incorporation

The Advantage in Figures

PEO/EOR

Company Incorporation

Price

80% Less Expensive

Market Entry

2-5 Days

6 Months

Employee Turnover
Decrease by 14%
Recommendation
98% of the Current PEO Clients
Administrative Fees
Saves an Average of $450
Costly Payroll and Compliance Fines
Help Avoid
Company Growth Rate
7 – 9%
ROI
27%
Closed During Pandemic
-58%
employer of record

The Advantages of Using an Employer of Record in Laos

icon EOR

Legal Compliance Assurance

Opt for an Employer of Record (EOR) service well-versed in Laos’s regulatory requirements for effective recruitment and supervision of an international workforce with full legal compliance. This proactive approach protects against potential fines by offering systems and services tailored to Laos’s regulations. 

icon EOR

Lower Expansion Costs

Collaborate with an Employer of Record in Laos to propel global growth and significantly reduce typical expenses associated with expansion by providing every necessary service for a single monthly fee. Scale your operations without needing to establish a new entity in Laos and manage the overheads that come with it. 

icon EOR

Focus on Growing Your Company

An Employer of Record in Laos assumes all HR-related responsibilities, streamlining your operations and granting you the freedom to focus solely on the international goals of your business, aligning seamlessly with Laos’s business environment. 

icon EOR

Expand Effortlessly

Creating a new company in Laos can be time-consuming, ranging anywhere from 2-4 months on average. In contrast, teaming up with a local Laotian Employer of Record expedites expansion, allowing entry into the Laotian market in as little as a week. 

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Manage Your HR Online

INS Global provides an efficient means to manage your diverse, global workforce online through a state-of-the-art digital platform. Utilize our advanced cloud-based HR system to easily oversee all your employees and their needs remotely, tailored to fit Laos’s digital landscape. 

How Does an Employer of Record In Laos Work?

INS Global’s Employer of Record in Laos facilitates your company’s expansion abroad in just four simple steps: 

1

We collaborate with your business to create a tailored expansion plan. 

2

Our organization provides the legal entity needed to hire and manage staff in Laos, ensuring compliance with all of Laos’s business and employment requirements. 

3

We handle HR-related tasks, such as hiring, contracts, and payroll management, ensuring local compliance in Laos during the transition and beyond. 

4

Your employees focus on your goals while we take care of your HR as it evolves. 

  • A PEO provides all HR services to employees on behalf of other companies 
  • A PEO agreement is made between the PEO and the original company to share the responsibilities for the employee 
  • An EOR in Australia legally hires the employee on behalf of the original company and provides all HR services 
  • An EOR agreement is made between the EOR and the employee on behalf of the original company 

In Australia both services are indistinct according to national regulations, but INS Global can offer any elements of both according to your requirements 

INS GUIDES

Check Our Labor Law Guides

Learn how the Labor Law Guide is applied in all aspects and situations, from an employer and employee perspective.
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Labor Law in Laos

Employment Contracts in Laos

  • Employment in Laos should be accompanied by a letter of employment. 
  • In most cases, employers can include a probation period of 60 days. Unskilled workers can’t have a probation period longer than 30 days. 
  • An employment contract should specify and describe the employee’s role in detail. 
  • An employer can end the contract early if the employee violates the conditions of their employment contract. 
  • Employees are entitled to 30 days’ notice for unskilled work and 45 days for skilled work. 
  • Severance pay is set at 10% of the employee’s last wage for every month that they have worked. If the termination is unilateral, this increases to 15% for every month worked. 

Working Hours in Laos

  • The working week in Laos runs from Monday to Friday. 
  • Full-time employees generally work 8 hours per day, 48 hours per week. 
  • Employees are not allowed to work more than 40 hours per week without receiving overtime pay. 
  • Employees are entitled to a higher hourly rate for overtime. This rate is 150% for overtime during the day and 200% for overtime during the night. 

Types Of Leave

Annual Leave in Laos

  • Laos has 12 official national holidays. 
  • Employees are entitled to 18 days of paid annual leave every year.  

Sick Leave in Laos

  • When an employee is unable to attend work due to illness, they need to get a doctor’s note and present it to HR as soon as possible.  
  • Employees are entitled to up to 30 days of sick leave.  

Maternity / Paternity Leave in Laos

  • According to Laotian law, female employees are entitled to 105 days of maternity leave. 
  • This includes a minimum of 42 days after birth. 
  • Male employees are not entitled to paternity leave. 

Tax Laws in Laos

  • Employers in Laos are responsible for withholding all taxes and social contributions. 
  • Employees contribute 5.5% of their salary towards social security while employers additionally contribute the equivalent of 6%. 
  • The corporate income tax rate is set at 35% for both local and foreign companies. 
  • Foreign companies qualifying for a special investment program can lower the rate to 20%. 
  • Personal income tax ranges from 0% to 25%. The top bracket of 25% is for individuals making over 780 million LAK. 

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Frequently Asked Questions

faqs

While setting up a local entity is an option, collaborating with a local Employer of Record proves more efficient in Laos. Employer of Record services give you local expertise and resources, facilitating hiring and staff management on your behalf. 

An Employer of Record in Laos manages various HR tasks, including payroll, tax compliance, employment contracts, and social security contributions, ensuring comprehensive compliance for your entire workforce. 

Establishing a new company abroad can take months or longer in particularly complex situations, but with INS Global’s Employer of Record services, you can hire employees and expand to a new market in as little as a week. 

Employer of Record service costs are directly linked to your employee’s salary, calculated as a percentage and covering all HR functions for compliant employment in Laos. 

Collaborating with an Employer of Record in Laos is a legal and efficient solution for simplifying your expansion plans while reducing costs. 

Salaries are typically processed monthly for full-time employees, while part-time workers may be paid weekly or bi-monthly. 

Recruitment in Laos varies in cost, but INS Global simplifies remote recruitment and staff management, reducing the expenses of managing an international workforce. 

Absolutely, a Laotian Employer of Record can recruit and hire employees from all regions, facilitating quick expansion across the country. 

Modifications to employment contracts require mutual agreement. 

Yes, employers in Laos are responsible for withholding taxes and social contributions from employee salaries, including an employer’s contribution to each employee’s social security fund. 

INS Global tailors its services to your company’s needs, assisting with recruiting and hiring as many or as few employees as required for your expansion plans. 

Severance pay is set at 10% of the employees last wage for every month that they have worked. If the termination is unilateral, this increases to 15% for every month worked. 

In Laos, employees can be hired for both in-person and remote opportunities, allowing for reduced overheads during international expansion. 

Certainly! Our local experts bring extensive experience in finding top talent globally by providing support in recruiting, hiring, and managing your workforce, regardless of your location. 

Laos observes 12 public holidays where employees are entitled to a paid day off. Working on these holidays usually involves a higher hourly rate. 

Employers must adhere to strict labor laws and regulations to avoid costly penalties and fines. Partnering with an experienced Employer of Record in Laos ensures compliance during your expansion. 

Yes! INS Global assists in the recruitment and management of a diverse workforce, simplifying the process of hiring both Laotian citizens and foreigners. 

Smiling woman representing the simplicity and efficiency of a Global Employer of Record for international hiring

A Global Employer of Record is an effective solutions for companies like yours that are looking to expand a workforce abroad effortlessly.

This approach allows you to outsource the international hiring process quickly and efficiency, providing access to a global talent pool while still managing payroll compliance in each  country.

Public Holidays Calendar

Laos

Date Day Holiday Notes
1 Jan Wednesday New Year’s Day Celebrates the beginning of the Gregorian calendar year.
8 Mar Saturday International Women’s Day Observed nationwide; however, the official holiday for women falls on March 10.
10 Mar Monday International Women’s Day (observed) Official public holiday for women, compensating for the Saturday observance.
13–16 Apr Sunday–Wednesday Lao New Year (Pi Mai Lao) Major cultural celebration with water festivals and religious ceremonies.
1 May Thursday Labour Day International Workers’ Day, observed nationwide.
1 Jun Sunday Children’s Day Celebrates and promotes the welfare of children.
20 Jul Sunday Lao Women’s Union Day Commemorates the establishment of the Lao Women’s Union in 1955.
21 Jul Monday Lao Women’s Union Day (observed) Observed as a public holiday for female government officials and workers.
2 Dec Tuesday National Day Marks the estab

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