Key Facts: Laos vs Bhutan Wages
- Laos Minimum Wage
- ₭10,417/hr ($0.48 USD)
- Bhutan Minimum Wage
- Nu3,250/mo ($35.75 USD)
- Laos Avg. Gross Monthly Salary
- ₭4,000,000 /mo ($185.79 USD)
- Bhutan Avg. Gross Monthly Salary
- Nu18,000 /mo ($198.02 USD)
- Data Sources
- Ministry of Labour and Social Welfare — Lao PDR (2026-02-25), Ministry of Industry, Commerce and Employment — Royal Government of Bhutan / ILO (2026-02-25)
Laos
Bhutan
Updated 2026-02-25
The minimum wage in Laos is roughly 74 times lower than in Bhutan in USD terms, reflecting the gap between a lower-middle-income and a lower-middle-income economy. Average salaries are lower in Laos at $186/mo compared to $198/mo in Bhutan. GDP per capita (PPP) in Bhutan is 1.7x that of Laos, underscoring the structural economic divide.
Laos has lower GDP per capita ($9,776 vs $16,215). Laos' unemployment rate is 1.2% compared to Bhutan's 3.2%.
Detailed Comparison
| Metric | Laos | Bhutan |
|---|---|---|
| Minimum wage /hr | ₭10,417 $0.48 | — |
| Minimum wage /day | — | Nu125 $1.38 |
| Minimum wage /mo | ₭2,500,000 $116.12 | Nu3,250 $35.75 |
| Minimum wage /yr | — | Nu39,000 $429.04 |
| Avg. gross salary /mo | ₭4,000,000 /mo $185.79 | Nu18,000 /mo $198.02 |
| Avg. net salary /mo | ₭3,600,000 /mo $167.21 | Nu16,000 /mo $176.02 |
| Median individual income /yr | ₭18,000,000 /yr $836.04 | Nu72,000 /yr $792.08 |
Percentage differences are based on USD equivalent values. Positive means Laos is higher.
Work Week
- Laos
-
48 hrs/wk standard
Max 48 hrs/wk
Overtime : 1.5x pay
Standard workweek is 48 hours (8 hours/day, 6 days/week). Workers in dangerous conditions are limited to 6 hours/day or 36 hours/week. Overtime is limited to 45 hours/month or 3 hours/day. Overtime compensation: 1.5x regular rate on normal days, 2.5x on weekly rest days during daytime, 3x on rest days at night. Governed by the Labour Law.
- Bhutan
-
40 hrs/wk standard
Max 48 hrs/wk
Overtime : 1.5x pay
Bhutan Labour and Employment Act 2007 sets a 40-hour standard workweek (8 hours/day, 5 days). Maximum including overtime is 48 hours. Overtime is paid at 1.5x the regular rate. The public sector follows a 5-day, 8-hour schedule.
What This Means for Workers
A minimum wage worker in Laos earns 7290% less per hour in USD terms than one in Bhutan. Standard work weeks differ: Laos mandates 48 hours while Bhutan mandates 40 hours. A minimum wage worker's weekly earnings in Laos are $23 vs $1,430 in Bhutan.
See this comparison from Bhutan's perspective: Bhutan vs Laos
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Frequently Asked Questions
Is the minimum wage higher in Laos or Bhutan?
In Laos, the minimum wage is ₭10,417/hr ($0.48 USD). In Bhutan, it is Nu3,250/mo ($35.75 USD). Bhutan has the higher rate by 7290% in USD terms. That nominal gap does not account for local prices; see the purchasing power comparison below for a cost-of-living-adjusted view. Workers in Laos may retain a larger share of their earnings if prices there are lower.
How much less does the average worker earn in Laos compared to Bhutan?
The average gross salary in Laos is ₭4,000,000/mo ($185.79 USD), compared to Nu18,000/mo ($198.02 USD) in Bhutan. In USD terms, workers in Laos earn approximately 7% less. Average salaries reflect the full labor market, not just the minimum wage floor. The gap between Laos and Bhutan is shaped by differences in industry composition, labor productivity, and the overall cost of living in each country. Workers in Bhutan earn more in nominal terms, though how far that income stretches depends on local prices in Laos.
How do work hours compare between Laos and Bhutan?
Laos has a longer standard work week at 48 hours, compared to 40 hours in Bhutan. Workers in Laos work 48 hours per week by law. Longer mandatory hours can offset a nominally higher wage; a worker in Bhutan working fewer hours may have comparable or better effective hourly earnings depending on the wage levels of each country. Total annual compensation depends on both the wage rate and the number of hours required.
What is the cost of living difference between Laos and Bhutan?
While direct cost of living data varies by source, GDP per capita (PPP) gives a useful proxy for overall economic level. Bhutan has the higher GDP per capita at $16,215, which is 1.7x that of Laos at $9,776. From Laos' perspective, this means goods and services are priced at a lower economic level. A higher GDP per capita generally correlates with higher wages, higher consumer prices, and greater availability of goods and services. Workers moving between these two countries should expect significant differences in rent, food, and transportation costs.