Social Security (LSSO) Contributions 2026: Current Rates & Compliance
The Lao Social Security Organization (LSSO) contribution ceiling remains a critical compliance check. Here are the current rates and ceilings for 2026.
As we enter the 2026 fiscal year, maintaining compliance with the Lao Social Security Organization (LSSO) is essential for all registered employers. Below is a summary of the current contribution rates and ceiling limits.
Contribution Rates
For Private Sector employees, the contribution rates remain steady:
- Employer Contribution: 6.0% of gross insurable earnings.
- Employee Contribution: 5.5% of gross insurable earnings.
- Total Contribution: 11.5%
Contribution Ceiling (Cap)
The calculation base is currently capped. This finding is based on the latest enforcement data leading into 2026.
- Ceiling Amount: 4,500,000 LAK per month.
- Minimum Base: The minimum wage (currently 2,500,000 LAK, subject to adjustments).
What this means for Payroll
If an employee earns 10,000,000 LAK per month, you do not calculate 6% of the full 10M. You calculate it based on the 4.5M cap.
- Employer Pays: 4,500,000 x 6% = 270,000 LAK
- Employee Pays: 4,500,000 x 5.5% = 247,500 LAK
Note: The Social Security Law has been under review during 2024-2025. While the 4.5M ceiling is currently applicable, companies should stay alert for potential legislative updates later this year aimed at adjusting for inflation.
Key Actions for HR Managers
- Verify Formulas: Ensure your payroll software strictly applies the 4,500,000 LAK cap. Over-deducting gives no extra benefit; under-deducting creates liability.
- Foreign Employees: Remember that foreign employees under labor contracts must also contribute.
- Submission Deadline: Monthly contributions should be filed by the deadline (typically end of the following month) to avoid penalties.
Need help auditing your payroll calculations? People Partners Lao offers comprehensive payroll outsourcing to ensure 100% compliance.