Payroll in Laos

Wages

Minimum wage rates in Laos are set nationally. As of January 1, 2025, the minimum wage is 2,500,000 LAK per month, reflecting efforts to address rising living costs. 

Certain sectors may have specific wage benchmarks that differ slightly from national standards. These benchmarks are established to ensure fair compensation across various industries.

Salaries

The overall annual average salary in Laos is approximately 36,000,000 LAK per year, with monthly earnings varying significantly by position, experience, and region. The median monthly salary is estimated to be around 3,000,000 LAK. 

By gender, a wage gap exists with average annual salaries for men typically exceeding those for women. Efforts to reduce this disparity continue through targeted government initiatives and policy reforms. 

Salaries by location in Laos

Vientiane: Known for offering salaries above the national average, particularly in sectors such as finance, technology, and healthcare. 

Luang Prabang: Offers competitive compensation in industries like tourism, education, and trade, with wages generally reflecting the cost of living. 

As your employment partner in Laos, we can provide you with the latest resources and insights on average employee compensation across various roles and regions, ensuring that you make competitive and compliant employment offers.

Payroll frequency

In Laos, employees are typically paid on a monthly basis, with salaries disbursed on a fixed, predetermined date specified in the employment contract or workplace regulations. Lao labor law mandates that remuneration must be paid at least once a month, ensuring regular income for employees.

In addition to regular monthly wages, employees may receive additional compensation such as annual bonuses or incentives. These payments are often stipulated in collective bargaining agreements or internal company policies and are disbursed according to the terms outlined therein. Employers are required to adhere to the agreed-upon schedules for these payments to maintain compliance with labor regulations.