UNDERSTAND YOUR PAY
Your salary, clearly calculated.
From gross salary to take-home pay. A free calculator for private-sector employees in Laos.
Your take-home pay
After income tax, contributions and entered deductions
Where the money goes
| Item | Amount, LAK | Share |
|---|---|---|
| Employer cost | — | — |
| Employer social security | — | — |
| Other employer costs | — | — |
| Non-cash benefits | — | — |
| Total cash gross | — | — |
| Expense reimbursements | — | — |
| Employee social security | — | — |
| Other deductions | — | — |
| Income tax withheld | — | — |
| Cash received | — | — |
- Regular basic salary
- —
- Taxable income
- —
- Social-security base
- —
- Exempt overtime
- —
2026 payroll totals
- Cash gross for employed months
- —
- Cash received for employed months
- —
- Total monthly tax withheld
- —
- Total employer cost
- —
Annual payroll totals add the employed months using each month’s tax rules. They are not the annual tax assessment: dependent relief, other income and any year-end refund are excluded.
Month-by-month payroll
| Payroll month | Gross salary | Income tax withheld | Take-home pay |
|---|
Tax bands for the selected month
| Monthly taxable income, LAK | Rate | Tax, LAK |
|---|
Monthly results use the selected payment month. A bonus appears only in its payment month. Full-month private-sector employment is assumed.
Reverse calculation finds the closest whole-kip basic salary. If more than one salary reaches the target because of the overtime threshold, the lower one is shown.
The contribution floor is being used. Low pay, unpaid leave and partial months need payroll confirmation; this is a full-month estimate.
Deductions exceed cash pay. Review your inputs and social-security coverage.
Laos salary & tax guide
Rates from 1 July 2026
Tax is progressive: each rate applies only to the part of taxable income within that band. The zero-rate band increased from LAK 1.3m to LAK 2.5m on 1 July.
| Monthly taxable income, LAK | Rate |
|---|---|
| 0 – 2,500,000 | 0% |
| 2,500,000 – 5,000,000 | 5% |
| 5,000,000 – 15,000,000 | 10% |
| 15,000,000 – 25,000,000 | 15% |
| 25,000,000 – 65,000,000 | 20% |
| Over 65,000,000 | 25% |
Taxable pay = cash gross + taxable benefits − eligible overtime − employee social contribution. Cash received = cash gross + reimbursements − employee contribution − tax − other deductions.
A worked example
LAK 10,000,000 basic salary in October 2026, social security enabled, no extras. The capped contribution base is LAK 4,500,000.
| Employee social security | 247,500 LAK |
|---|---|
| Employer social security | 270,000 LAK |
| Taxable income | 9,752,500 LAK |
| Income tax withheld | 600,250 LAK |
| Cash received | 9,152,250 LAK |
| Employer cost | 10,270,000 LAK |
Common questions
How often should salary be paid?
The Labour Law requires payment at least monthly; piece-rate wages at least twice a month. The employer must explain the calculation and record payment.
Does the top tax rate apply to my whole salary?
No. The first band is tax-free and only the income within each higher band is taxed at that band’s rate.
How are bonuses and overtime treated?
A cash bonus is included in its payment month. Eligible overtime is exempt when basic salary does not exceed the applicable threshold. Other taxable cash allowances remain taxable.
Is the annual total my final tax bill?
No. It totals monthly payroll withholding, including the July rate change. Annual assessment can include dependent deductions, other income and adjustments. This calculator does not estimate a refund.
Can foreign employees use this calculator?
The salary tax schedule covers Lao and foreign employees. Verify social-security coverage, tax-treaty relief and overseas income separately. Government, self-employed and special exempt cases are outside this calculator.
Rules & sources
Rules reviewed on 4 October 2026. The new tax table was checked against the official Lao law. Contribution floor, ceiling and payroll practice were cross-checked with the sources below.
- 2020–June 2026 PIT schedule · DFDL
- Income Tax Law No. 88/NA (25 June 2025), Articles 34, 38 and 50–52 · official Lao scan
- Income Tax Law No. 67/NA (2019) · Lao Trade Portal
- Social Security Law No. 54/NA (2018), Articles 74 and 77 · LSSO
- Labour Law No. 43/NA, Articles 109–116 · ILO
- 2026 PIT rates · PwC (7 August 2026)
- Social contributions and LAK 4.5 million ceiling · PwC
- Effective date and overtime exemption · VDB Loi
- 2026 contribution floor and ceiling · People Partners Laos
About LaoCalc
An independent, free salary calculator for Laos. Use it to compare offers and understand deductions. Results are estimates, not official payslips. Contributions and tax are rounded to whole kip; payroll rounding may differ.
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