Employee Benefits in Laos

Bonuses and additional payments

In Laos, labor law mandates a 13th-month salary, equivalent to one month’s wage, payable annually. This bonus is typically disbursed at the end of the calendar year and applies to all employees under the general labor regime.

Annual leave

Employees in Laos are entitled to paid vacation leave after completing one year of service. The statutory entitlement is 15 days per year, increasing to 18 days for employees working in hazardous conditions. This leave is fully paid and can be taken throughout the leave year, as agreed between employer and employee.

Additional leave may be offered as part of an employment contract, though it is not required by law. Many employers offer enhanced leave policies to stay competitive and improve retention. 

Unused statutory leave must be taken within the calendar year it is earned. Payment in lieu of unused leave is only permitted upon termination of employment. 

Sick leave

In Laos, employees are entitled to up to 30 days of paid sick leave per year, provided they have completed at least 90 days of continuous employment. A medical certificate from a recognized healthcare provider is typically required for absences exceeding a few days. Employers may offer more generous sick leave policies through employment contracts or collective agreements.

Parental leave

Employers must provide 90 to 105 days of paid maternity leave, with at least 42 days taken after childbirth, for each pregnancy, including adoptive and surrogacy-commissioning mothers. Pregnant employees who have contributed to the Social Security Fund are eligible for benefits, with written notice and medical documentation required to be submitted to the employer confirming the pregnancy and expected delivery date.

Additional benefits

In addition to the above, employers in Laos are legally required to provide certain benefits under Laotian labor laws. 

• Social Security contributions: Employers contribute 5% of an employee’s salary to the National Social Security Fund, covering retirement, healthcare, maternity, disability, and sickness benefits.
• Work injury compensation: Employers contribute to a separate fund providing compensation for work-related injuries and illnesses. 

Free public healthcare coverage is provided to all Laotian residents, but a majority of the population relies on private healthcare. As your employer of record in Laos, we can consult with you about supplemental coverage options and may be able to provide medical insurance coverage for professionals and their dependents at a more cost-effective rate.