Employment Cost Calculator for Laos
Calculate your complete hiring costs for Laos employees, including payroll taxes, social security contributions, employee benefits, and management fees. This salary calculator provides accurate employer cost estimates for informed hiring decisions.
Employer Tax Contributions
| Tax Type | Rate | Base |
|---|---|---|
| Social Security Contribution | 6% | Gross monthly remuneration (capped at LAK 4.5 million) |
| Personal Income Tax (PIT) Withholding | 0% - 25% (progressive) | Employee's taxable income |
| Skills Development Fund (SDF) | 1% | Gross remuneration |
Filing & Compliance
- Personal Income Tax (PIT) withheld from salaries must be remitted by the 20th day of the following month.
- Social Security Contributions are also generally paid monthly by a similar deadline.
- Annual individual income tax filing and payment is required by March 31 of the following year.
In Laos, employees face deductions for income tax and social security contributions, calculated based on their earnings and applicable thresholds.
Personal Income Tax (PIT)
The personal income tax rate in Laos is 25% as of 2025. A progressive tax system is employed, meaning different income levels are taxed at different rates. Specific thresholds and rates are as follows:
- 0%: Up to LAK 1,300,000
- 5%: LAK 1,300,001 to LAK 5,000,000
- 10%: LAK 5,000,001 to LAK 15,000,000
- 15%: LAK 15,000,001 to LAK 25,000,000
- 20%: LAK 25,000,001 to LAK 35,000,000
- 25%: Over LAK 35,000,000
Deductions:
Taxpayers can claim an annual deduction of up to LAK 5 million per dependent, for a maximum of three dependents (spouse, parents, or children under 18 who are unable to work and have no income). This caps the total annual deduction at LAK 15 million.
Social Security Contributions (SSC)
Both employers and employees contribute to the social security system.
- Employer Contribution: 6% of the employee's gross salary.
- Employee Contribution: 5.5% of the employee's gross salary.
These contributions are capped for salaries exceeding LAK 4,500,000 per month. The maximum monthly SSC payment is LAK 270,000 for the employee and LAK 247,500 for the employer.
Other Considerations
- Tax Year: The tax year in Laos follows the calendar year.
- Filing and Payment: PIT is typically withheld monthly by the employer. Annual filing and payment requirements may also apply. Consult a tax professional for specific requirements.
This information is current as of February 5, 2025, and may be subject to change. Consulting with a Lao tax advisor is recommended for the most up-to-date and personalized guidance.
