Registering Local Employees Working with International Organizations

On 5 February 2026, the Government of the Lao PDR issued the Decree on Local Employees Working with International Organizations in the Lao PDR No. 12/GOL (“Decree 2026”), replacing previous decree no. 456/GOL issued in 2010. Decree 2026 entered into force on 23 March 2026 and was subsequently published in the Lao Official Gazette website on 30 March 2026.  The key highlights are summarized below.

Local employee hiring

The recruitment of employees by international organizations can be done in two main ways:

• By directly recruiting them.  
• By requesting the Local Employee Management Organization under the central or provincial foreign affairs authority (“Foreign Affairs Authority”) to conduct the recruitment on their behalf: Upon completion of the selection process, the Foreign Affairs Authority will formally notify the organization of the selected candidates who have been accepted for employment.

For recruitment done by the Foreign Affairs Authority, if any supporting documents are in a foreign language, they must be translated into Lao and certified by the applicable Notary Office.

Local employee salaries

Local employees’ salaries are determined by mutual agreement with the international organization, but must not be lower than the minimum wage prescribed under the applicable Lao laws and regulations.

Local employees are also required to obtain their own taxpayer identification number from the relevant tax authority for their personal income tax declaration.

Local employee registration

Within 15 days after the employment contract is signed, the international organization must apply, with all supporting documents, for registration of the local employee with the Foreign Affairs Authority.

The employment contract type, terms, duration, cancellation, termination, and extension must comply with applicable laws and regulations of the Lao PDR.

 Registration timeline

• Review of the local employee registration application and issuance of employee identification cards by the central Foreign Affairs Authority takes up to 15 days from receipt of a complete application.
• Registration at the provincial Foreign Affairs Authority takes up to five working days from the date of receipt of a complete application and formal request letter. Once the registration is completed, the provincial Foreign Affairs Authority will forward a request letter and documents supporting the registration to the central Foreign Affairs Authority within five working days. The central Foreign Affairs Authority will then issue the employee identification card within 10 working days from the date it receives the request letter.

Validity of employee identification cards

Employee identification cards are valid for one year and are renewable. Applications for renewal must be submitted within 30 days prior to the expiration date.

Employee relocation

Relocations between provinces for assignments longer than three months must be reported to the Foreign Affairs Authority within 10 days of the relocation date.

Prohibitions for international organizations

• Recruiting local employees in violation of Decree 2026 and other applicable laws and regulations.
• Engaging in, facilitating, or acting as an intermediary in any form of corruption.
• Using forced local labor in any form.
• Relocating local employees without notifying the Foreign Affairs Authority.
• Committing any other acts that violate the applicable laws and regulations of the Lao PDR.

Violation measures

Individuals, legal entities, and organizations that violate this decree may be subject to educational measures, warnings, disciplinary action, penalties, compensation for civil damages, or criminal prosecution, in accordance with applicable laws.

For more information on this alert, or any other queries on foreign currency-related policies, please contact the undersigned or your usual VDB Loi adviser.