How do you hire an employee in Laos in 2026?

The hourly rate is monthly pay divided by 26 days, then by 8 hours. At LAK 4,000,000 a month that is about LAK 19,231 an hour, so overtime at 150% is about LAK 28,846 an hour. That is our arithmetic from the formula.

Overtime is prohibited for more than four consecutive days except in an emergency.

Lunch breaks last at least 60 minutes and do not count as work time. Workers have at least one day's rest within a week. Work in sectors dangerous to health is limited to 6 hours a day and 36 hours a week.

Either side can end probation at any time with 3 days' notice for non-skilled work and 5 days' notice for skilled work. Seven days before probation ends, the employer must tell the worker in writing whether the job is confirmed. Absence through sickness or necessity does not count towards the period, but more than ten days of it lets the employer cancel the contract.

Put the probation period in the written contract. The termination guide covers what happens after it.

Weekly rest days, official holidays, customary holidays and personal leave do not count towards annual leave. An employer who cannot give leave for a reason of its own owes extra pay of 100% of the normal wage for each day.

Workers paid daily, hourly or by output get sick pay only after more than 90 days of work. Personal leave covers a close relative's hospital stay or death, the worker's own marriage, a wife giving birth or miscarrying, and a natural disaster. Customary holidays are agreed between employer and employee.

After the birth, a female employee can rest for one hour a day for up to one year, to care for her child or take it for vaccinations. An employer may not check for pregnancy before hiring, and may not cancel a contract because of marriage or pregnancy.

Social Security also pays a maternity benefit of 80% of average insurable earnings over the last six months, for 105 days or 120 for twins. The Social Security law makes the employer responsible for the difference between insurable earnings and the total wage. We confirm how the two rules combine before the first maternity case.

The Labour Law lists what the contract must include:

• the names and addresses of both sides, and the scope of work and duties;
• pay, the form of payment, and the length of the trial period;
• the contract's start and end dates, working days, rest days and holidays;
• welfare and other policies, and the benefits payable when the contract ends.

A fixed-term contract longer than three years, including extensions, is treated as indefinite. Both sides give at least 15 days' notice to extend, and the extension must be made within 60 days of expiry. Otherwise the contract is treated as indefinite.

The employer must pay wages at least once a month, and at least twice a month for output-based pay. The Labour Law sets no thirteenth-month payment, Christmas bonus or year-end subsidy.

Real HR and legal experts apply the Labour Law's hours, probation and leave rules to your contract, and you direct the work. There is no setup fee.

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.

1. Agree the offer

   Role, gross pay and contracted hours. Check the monthly pay against the LAK 2,500,000 floor.

2. Sign the service terms

   Teamed employs your hire and issues the written Laos employment contract.

3. Set up payroll

   Teamed registers the hire for Social Security and tax, and sets the contribution base.

4. Run the first payroll

   Your designated person's first-hire role ends at the first payslip, and the ordinary service continues.

Start from the Laos hiring overview, or run the Employer Cost Calculator before your first offer goes out. EOR is the right model for a first Laos hire, until it isn't.