COUNTRY

Laos

This content is for informational purposes only. We do not guarantee the accuracy or completeness of this content. It is not legal advice and shall not be relied on as such.

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Currency

ກີບ (LAK)

Work Hours

48/week

Officially known as the Lao People's Democratic Republic, Laos is a landlocked country in Southeast Asia. Historically referred to as 'Lane Xang' or 'Land of a Million Elephants', Laos boasts a rich cultural heritage and a diverse natural landscape. The official language is Lao. Laos is heavily reliant on foreign investment and trade, particularly with China. Tourism is a growing sector, attracting visitors with its ancient temples, French colonial architecture, and vibrant festivals.

An employment contract must be in writing and signed by both parties. The contract can be either for a fixed term or an indefinite period. Fixed-term contracts can last up to three years; any contract exceeding this duration is considered an indefinite contract.

Fixed-term contracts may be extended by giving notice at least 15 days before the contract's expiration.

The contract must clearly outline the terms and conditions of employment.

The standard work week is 48 hours over six days. Overtime is limited to three hours a day or 45 hours a month. 

Employees paid monthly receive 30 days of paid sick leave annually. Employees must present a medical certificate. 

Female employees receive at least 105 days of fully paid maternity leave. At least 42 days of the leave must be taken after birth. Maternity leave is increased to 120 days for the birth of twins.
Employers must extend at least three days of paid paternity leave after the birth period. 

The minimum wage in Laos is determined by the country’s labor law. It is a uniform pay rate that applies to all employees. Performance-based bonuses and 13-month bonuses are not mandatory.

Employees receive 15 days of paid annual leave after one year of consecutive service.

In Laos, the public holidays are:

  • International New Year Day

  • International Women's Day

  • Lao New Year Day

  • International Labour Day

  • Lao Women Union's Day

  • The End of Buddhist Lent Day

  • Thatluang Festival Day

  • Lao National Day

Healthcare in Laos is offered by both the private and public sectors.

Employment contracts can be terminated at the end of the contract period (if for a fixed term), by the employer or the employee. Both the employer and employee can terminate an employment contract during the probation period by giving three days of notice (manual labor) or five days of notice (specialized skill work).

  • Local Laws & Regulations

    We understand that local laws and regulations change and sourcing an accurate reference guide is not easy. Our data is researched and verified by our team of local international Employment Attorneys, HR and Benefit Professionals and Tax Accountants through our Atlas team and consultants, to ensure information up-to-date and accurate.

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