VDB Loi Laos Alert: Determination of minimum and increase in secured salary for social security purpose

Recently, the Minister of Labor and Social Welfare issued Decision No. 1740/LSW dated 25 April 2016 to determine a minimum and increase secured salary for social security purpose.

The ceiling of or maximum secured salary for calculation of social security contribution will be increased up to LAK4.5 Million, which is five times of minimum wage (LAK900,000 per month).

Where an employee receives salary below the minimum wage due to his/her partial working in the month, or taking unpaid leave or deduction of production salary, the minimum secured salary will not less than 50% of the minimum wage.

The Decision is to supersede the Decision No. 1851/SSO, dated 13/06/2012.

The new secured salaries will be in force from 1 January 2017 onwards.

Should you have any questions on this or any other developments, please do not hesitate to contact Ms. Daodeuane Duangdara ([email protected]) or Mr. Sornpheth Douangdy ([email protected]).

Did you know that VDB Loi Laos is licensed to provide compliance accounting services to complement our tax compliance services?

VDB Loi is a network of leading law and advisory member firms and affiliated companies that comprises eleven partners and over 100 lawyers and advisors, with offices in Cambodia, Indonesia, Laos, Myanmar and Vietnam, and representatives in Japan and Singapore. We provide the highest quality solutions for transactions and taxation.

You can find more information on our Laos office here.