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Verified: main employer charges cited
Mandatory employer contributions in Laos
| Contribution | Employer rate | Monthly cap |
|---|---|---|
| Social security | 6.0% | none stated |
Employer cost at three salary levels
| Annual salary | Employer contributions | On-cost % | Total cost | Total in USD |
|---|---|---|---|---|
| 47,500,000 LAK | 2,850,000 LAK | 6.0% | 50,350,000 LAK | $2,463 |
| 95,100,000 LAK | 5,706,000 LAK | 6.0% | 100,806,000 LAK | $4,931 |
| 190,000,000 LAK | 11,400,000 LAK | 6.0% | 201,400,000 LAK | $9,851 |
The examples use 1×, 2× and 4× Laos’s 2025 GDP per person in local currency (47,527,783 LAK, World Bank) as reference salaries. GDP per person is not a wage; it is a neutral, cited yardstick for low, middle and senior pay.
Worked example
For a salary of 95,100,000 LAK a year, the employer adds about 5,706,000 LAK (6.0%) in mandatory contributions, for a total of 100,806,000 LAK, about $4,931 at the 2025 average exchange rate. The rate is roughly flat across salaries (6.0% to 6.0%), so on-costs scale with pay.
What is not included
- A contribution ceiling applies (not modelled).
How to budget a hire in Laos
- Start from the gross salary you plan to offer in LAK.
- Add the mandatory contributions above. The calculator applies caps and salary bands automatically.
- Add benefits customary in Laos (health cover, bonuses, extra month salaries) as a percentage in the calculator.
- If you have no local entity, add an employer-of-record fee. Deel and Remote both list EOR from $599 per employee per month on their public pricing pages (checked 23 October 2026).
- Convert to your budgeting currency with a current rate. The USD figures here use the World Bank 2025 average.
Compare Laos with other countries in the any-country comparison, or see whether an EOR, contractor or own entity is cheaper.
Source: PwC Worldwide Tax Summaries: Laos, other taxes, last reviewed 07 August 2026 (checked 23 October 2026). Exchange rate and GDP per capita: World Bank (2025, indicators PA.NUS.FCRF and NY.GDP.PCAP.CN). HireCost transcribes the rates; it does not invent or estimate missing ones.
Frequently asked questions
How much does it cost to employ someone in Laos?
On a salary of 95,100,000 LAK, mandatory employer contributions add about 6.0%, for a total of roughly 100,806,000 LAK a year before benefits (PwC, reviewed 07 August 2026).
What are employer social security contributions in Laos?
Social security 6.0%.
Is the Laos data verified?
Yes: every rate is transcribed from PwC Worldwide Tax Summaries and dated.