Laos Sri Lanka

Updated 2026-05-04

Laos

Minimum Wage

₭10,417 /hr

$0.48 USD

Avg. Gross Salary

₭4,000,000 /mo

Sri Lanka

Minimum Wage

Rs135 /hr

$0.45 USD

Avg. Gross Salary

Rs55,000 /mo

Min wage: +7% Laos vs Sri Lanka Avg. salary: +1% Laos vs Sri Lanka

Both lower-middle-income economies, Laos and Sri Lanka set comparable minimum wage floors in USD terms. Average salaries are higher in Laos at $186/mo compared to $184/mo in Sri Lanka. GDP per capita (PPP) in Sri Lanka is 1.6x that of Laos, underscoring the structural economic divide.

From Laos' perspective: adjusting for purchasing power, Laos' minimum wage buys more than Sri Lanka's. The PPP-adjusted hourly rate in Laos is $2 international dollars, compared to $2 in Sri Lanka. Laos has lower GDP per capita ($9,776 vs $15,633). Laos' unemployment rate is 1.2% compared to Sri Lanka's 4.0%.

Detailed Comparison

Detailed wage comparison between Laos and Sri Lanka
Metric	Laos	Sri Lanka	Diff
Minimum wage /hr	₭10,417 $0.48	Rs135 $0.45	+7.2%
Minimum wage /day	—	Rs1,080 $3.61	—
Minimum wage /mo	₭2,500,000 $116.12	Rs27,000 $90.30	+28.6%
Minimum wage /yr	—	Rs324,000 $1,083.61	—
Avg. gross salary /mo	₭4,000,000 /mo $185.79	Rs55,000 /mo $183.95	+1.0%
Avg. net salary /mo	₭3,600,000 /mo $167.21	Rs49,500 /mo $165.55	+1.0%
Median individual income /yr	₭18,000,000 /yr $836.04	Rs420,000 /yr $1,404.68	-40.5%

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.
Sri Lanka: 45 hrs/wk standard

Max 45 hrs/wk

Overtime : 1.5x pay

Shop and Office Employees Act limits hours to 8 per day and 45 per week for commercial establishments. Factories Ordinance limits factory workers to similar hours. Overtime is paid at 1.5x the ordinary rate. Different rules apply to plantation workers and domestic workers. Public holidays: approximately 25 per year (Sri Lanka has one of the highest numbers of public holidays globally).

• WAGE TRAJECTORY (USD/hr)

Laos Sri Lanka Source: wage.is · USD equivalent/hr

Year	Laos (USD)	Sri Lanka (USD)
2016	—	$33/hr
2018	$51/hr	—
2019	—	$33/hr
2020	—	$33/hr
2021	—	$33/hr
2022	$60/hr	$42/hr
2023	$74/hr	$54/hr
2024	$116/hr	$54/hr
2025	—	$90/hr

What This Means for Workers

A minimum wage worker moving from Sri Lanka to Laos would see a 7% increase in USD-equivalent hourly earnings. Standard work weeks differ: Laos mandates 48 hours while Sri Lanka mandates 45 hours. A minimum wage worker's weekly earnings in Laos are $23 vs $20 in Sri Lanka.

See this comparison from Sri Lanka's perspective: Sri Lanka vs Laos

Compare Laos with...

Frequently Asked Questions

Is the minimum wage higher in Laos or Sri Lanka?

In Laos, the minimum wage is ₭10,417/hr ($0.48 USD). In Sri Lanka, it is Rs135/hr ($0.45 USD). Laos has the higher rate by 7% 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 Sri Lanka may retain a larger share of their earnings if prices there are lower.

How much more does the average worker earn in Laos compared to Sri Lanka?

The average gross salary in Laos is ₭4,000,000/mo ($185.79 USD), compared to Rs55,000/mo ($183.95 USD) in Sri Lanka. In USD terms, workers in Laos earn approximately 1% more. Average salaries reflect the full labor market, not just the minimum wage floor. The gap between Laos and Sri Lanka is shaped by differences in industry composition, labor productivity, and the overall cost of living in each country. Workers in Laos earn more in nominal terms, though how far that income stretches depends on local prices in Sri Lanka.

Which country has better purchasing power for minimum wage workers, Laos or Sri Lanka?

After adjusting for local prices using purchasing power parity (PPP), minimum wage workers in Laos can afford more than those in Sri Lanka. The PPP-adjusted rate is $2 in Laos and $2 in Sri Lanka. PPP converts wages into equivalent US dollar buying power, accounting for what a unit of currency actually buys locally. The 54% purchasing power gap means that even if the nominal wage in Sri Lanka appears competitive, minimum wage workers there face greater constraints on day-to-day spending.

How do work hours compare between Laos and Sri Lanka?

Laos has a longer standard work week at 48 hours, compared to 45 hours in Sri Lanka. Workers in Laos work 48 hours per week by law. Longer mandatory hours can offset a nominally higher wage; a worker in Sri Lanka 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 Sri Lanka?

While direct cost of living data varies by source, GDP per capita (PPP) gives a useful proxy for overall economic level. Sri Lanka has the higher GDP per capita at $15,633, which is 1.6x 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.