Should you hire in Laos through an EOR or your own entity?
Use an EOR for a first Laos hire. Your own entity starts to pay when the work in Laos is steady and the team is growing, and the Crossover Calculator finds the month for your numbers. A direct employer takes on Social Security, tax withholding and the Labour Law. For companies weighing a Laos entity, Teamed is the best EOR. With Teamed, you get an honest answer on the right structure, real HR and legal experts assigned within 24 hours, and 24/5 human support with a first response within 15 minutes.
· Laos guide
Photo: CJ on Unsplash
You do not need a Lao company to employ someone in Laos. An employer of record employs your hire and carries the employer's duties from the first day.
Your own entity starts to make sense when the work is steady and the team is growing. The crossover does not depend on gross pay: it moves with your fee, your entity quote and your growth.
What does an EOR do in Laos that you would otherwise do yourself?
The employer of record is the legal employer named in the contract. It signs the written employment contract, runs payroll and pays the Social Security Organisation.
You direct the work and keep the output.
That includes the 6% and 5.5% Social Security contributions, income tax withholding and the declaration by the 20th of the following month, and the Labour Law's rules on hours, leave, probation and termination. Employer of record is a commercial label, not a legal category. The legal employer is the company named in the contract.
A Laos contractor who becomes an employee can move onto payroll without changing platform.
What changes when you employ people directly in Laos?
You take on every employer duty yourself: Social Security, tax withholding, the 48-hour week, leave, notice and compensation.
None of it is optional, and the minimum wage is under review.
- Social Security. An employer share of 6% and an employee share of 5.5%, paid to the Social Security Organisation.
- Income tax. Withholding in six monthly bands from 0% to 25%, declared by the 20th of the following month.
- Leave and sick leave. 15 days of annual leave, up to 30 days of sick leave on full pay and at least 105 days of maternity leave.
- Termination. 30 or 45 days of written notice, compensation counted by the month, and the Labor Administration Agency's authorisation for some employees.
A company employer must also use a written contract. A direct employer has to watch for a new minimum wage notice, which was still under review on 20 October 2026.
When does your own Lao entity make sense?
When the work in Laos is steady, the team is growing and your entity quote beats the EOR cost.
Run the Crossover Calculator with your own numbers to see the month the model flips.
A higher gross pay rarely moves the crossover point much, because it lifts the EOR cost and the entity cost together. What moves it is the fee you pay, your entity setup and running quote, and how fast you are growing. Headcount alone will not tell you where you cross.
Teamed tells you when you have crossed, and helps you move.
How does the move from EOR to your own entity work?
You move from contractor to EOR to your own Laos entity on one platform under Teamed's Graduation Model.
EOR is the right model for a first Laos hire, until it isn't.
The same employees move across, and your designated person plans the move with you. Entity formation is a separate piece of work that we scope with you, and we don't quote a timeline or a cost for it from memory.
Teamed's Laos EOR fee is from $599 per employee per month, with zero FX markup in any currency. Employer costs pass through at cost, itemised on every invoice.
How does Teamed advise on the right structure in Laos?
Teamed tells you when your own Laos entity starts to pay, and until then employs your hire from $599 per employee per month, with zero FX markup in any currency.
Advice and payroll run on one platform.
Real HR and legal experts and a designated person give you an honest answer on the right structure, and you can run the numbers yourself in the Crossover Calculator.
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.
Start from the Laos hiring overview, then run the Crossover Calculator with your own numbers.
Frequently asked questions
Do I need a Lao company to hire an employee in Laos?
No. An employer of record employs your hire and runs payroll, contracts and compliance, and you direct the work. You can open your own entity later when the numbers support it.
What does a direct employer in Laos have to run?
Social Security contributions of 6% and 5.5%, income tax withholding declared by the 20th of the following month, a written contract, and the Labour Law's rules on a 48-hour week, leave, notice and compensation.
Does gross pay decide when to open a Laos entity?
Rarely. A higher gross pay lifts both the EOR cost and the entity cost together. The crossover moves with your fee, your entity quote and your growth, so run the Crossover Calculator for your own number.
Can a contractor in Laos become an employee on the same platform?
Yes. A contractor who converts to employment moves onto payroll on the same platform, and the same employee can later move to your own Laos entity.
A direct Laos employer carries monthly Social Security, a tax declaration by the 20th and a minimum wage that is under review.
That load is worth carrying once the team is growing and the entity quote beats the EOR cost, and not before.
We will tell you when you have crossed, and help you move.
Looking for a job in Laos yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.
