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Monday, June 23, 2025
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Lao Pension Rules Updated: 25-Year Contribution Required

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Effective 2 June and announced publicly on 22 June, the Lao government has introduced updated pension regulations to standardize eligibility and benefit calculations for retirees.

Under the new rules, workers must contribute to the social security system for a minimum of 25 years to qualify for full pension benefits. The retirement age now ranges between 57 and 60 years for men, and 55 to 60 years for women, depending on individual circumstances.

Workers who have contributed slightly less, between 23 and 24 years, remain eligible for retirement but will receive a reduced pension, with a one percent deduction for each year below the 25-year threshold.

By comparison, the previous system allowed workers to retire at age 60 with at least 25 years of contributions, while women had the option to retire earlier at 55. It also permitted those missing up to three years in age or two years in contributions to receive pensions, subject to a similar one percent reduction per year shortfall.

Special provisions continue to apply for early retirement to certain groups. This includes individuals who joined the revolutionary movement before 1975, workers who have spent five or more years in hazardous environments, and those who have lost work capacity due to exposure to chemicals or toxins. 

For these groups, early retirement is allowed at age 55 for men and 50 for women, provided they have contributed for at least 20 years.

Furthermore, workers who served under the pre-1975 regime benefit from preferential service crediting, every three years of service during that period counts as one additional year toward pension eligibility.

For workers who do not meet the criteria for a monthly pension, a one-time lump-sum payment will be offered. This payment is calculated at 85 percent of the worker’s final monthly salary, multiplied by 1.5 months, and then multiplied by the total number of contribution years.

These changes do not affect military personnel and police officers, who remain subject to retirement regulations under separate laws governing the Lao People’s Army and national public security forces.

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