Employer of Record in Laos

Real HR and legal experts manage every Laos hire, and a designated person runs your first hire from signed terms to first payslip. There is no setup fee. Employer costs pass through at cost, itemised on every invoice.

Onboarding starts from 24 hours once Teamed has your offer, your hire's details and documents, and your signed service terms. Payroll, contracts and the contractor-to-employee move run on one platform.

A Laos contractor who becomes an employee keeps their record, and the same employee can graduate to your own Laos entity later. Run the Crossover Calculator to see the month the model flips. EOR is the right model for a first Laos hire, until it isn't.

Contributions are worked out on earnings between the minimum wage and a ceiling that is set outside the law, so the percentage holds for most pay levels and the ceiling caps it for the highest. The Labour Law sets no thirteenth-month payment. Paid leave, sick leave, a maternity top-up and severance all add to the cost of the job.

Teamed's Laos fee is a starting rate, with zero FX markup in any currency. Gross pay, taxes and benefits pass through at cost, itemised on every invoice.

The cost guide has worked examples at three pay levels.

Hiring directly means taking on the employer's duties yourself: Social Security payments, tax withholding and the Labour Law's rules on hours, leave and termination. An employer of record carries those from the first day.

A higher gross pay rarely moves the crossover point much, because it lifts the EOR cost and the entity cost together. The EOR vs entity guide shows what changes in Laos.

You progress from contractor to EOR to your own Laos entity on one platform under Teamed's Graduation Model.

The new income tax law sets six monthly bands from 0% to 25%. It also says the band amounts are adjusted in line with the minimum wage the government sets in each period, so a minimum wage rise can move them.

The National Labour Committee met on 19 March 2026 to review the minimum wage and took no decision. The research went to the Prime Minister's Office for approval and announcement within 2026. The minimum wage remains LAK 2,500,000 a month until a notice says otherwise. We found no replacement Labour Law in the sources we checked on 20 October 2026.

The Labour Law lists six official holiday days for all employees, plus 8 March for women. Personal leave of at least three days with pay covers listed events, including a wife giving birth. Sick leave needs a medical certificate.

The Labour Law sets no thirteenth-month payment. The hiring guide sets out each rule.

The employer deducts the employee's Social Security share and pays both shares to the Social Security Organisation. Salary income tax is deducted and declared to the tax office by the 20th of the following month.

The tax and payroll guide has the full band table and worked examples.

An employer can cancel without compensation only for the faults the Labour Law lists, such as deliberate damage or neglecting duties for four consecutive days without reason. Some employees, including pregnant women, cannot be dismissed without the Labor Administration Agency's authorisation.

The termination guide covers notice, compensation, reductions in staff and the process.

Severance counts months, not years. The translation of the Labour Law multiplies 10% of the last monthly pay by the total months worked. At 24 months of service and LAK 4,000,000 a month, that is LAK 9,600,000. That is arithmetic from the law's formula, so check the figure against the Lao text with a Lao adviser before you plan a redundancy.

A higher minimum wage may be announced in 2026. It would lift the floor for every hire and could move the income tax bands with it. Build a margin into any offer near the current floor.