Employment
The 2013 Labour Law with a foreign worker quota by sector
The Labour Law of 2013 sets employment standards including a 48-hour week and minimum wage fixed by government decree. Foreign labour is capped by quota: broadly 15% of unskilled and 25% of skilled positions, with exemptions available for investment projects. Social security registration is mandatory for both Lao and foreign employees.
Governing law
- Labour Law, No. 43/NA of 2013 — Core employment standards.
- Law on Social Security, No. 54/NA of 2018 — Compulsory social insurance.
In practice
Standard working time is 48 hours per week, or 36 for hazardous work. Minimum wage is set by government decree and has been revised upward repeatedly. Foreign worker quotas apply by skill level, with concessions for approved investments. Employers and employees contribute to the National Social Security Fund. Quota exemptions are negotiated as part of investment licensing — address them at project approval rather than at hiring. Termination requires notice and severance based on service, and dismissal without cause is restricted.