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<h1>Social Security Programs Throughout the World: Asia and the Pacific, 2006</h1>
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<h1>Laos</h1>
<div class="exchangeRate">Exchange rate: US$1.00 equals 10,065&nbsp;kip.</div>
<h2>Old Age, Disability, and Survivors</h2>
<h3>Regulatory Framework</h3>
<p><span class="h4">First and current law:</span> 1999 (employees in enterprises), implemented in 2001.</p>
<p><span class="h4">Type of program:</span> Social insurance system.</p>
<h3>Coverage</h3>
<p>Employees in private-sector and state-owned enterprises with 10 or more employees; pensioners. (Coverage is currently available only in certain regions of the country.)</p>
<p>Exclusions: Self-employed persons and employees of embassies and international organizations operating in Laos.</p>
<p>Voluntary coverage for workers in smaller enterprises.</p>
<p>Special system for civil servants, the police, and armed forces personnel.</p>
<h3>Source of Funds</h3>
<p><span class="h4">Insured person:</span> 4.5% of gross monthly earnings.</p>
<p>The insured's contributions also finance sickness, maternity, and funeral benefits.</p>
<p>The minimum earnings for contribution and benefit purposes are 290,000&nbsp;kip.</p>
<p>The maximum earnings for contribution and benefit purposes are 1,500,000&nbsp;kip.</p>
<p><span class="h4">Self-employed person:</span> Not applicable.</p>
<p><span class="h4">Employer:</span> 5% of monthly payroll.</p>
<p>The employer contributions also finance sickness, maternity, funeral, and work injury benefits.</p>
<p>The minimum earnings for contribution and benefit purposes are 290,000&nbsp;kip.</p>
<p>The maximum earnings for contribution and benefit purposes are 1,500,000&nbsp;kip.</p>
<p><span class="h4">Government:</span> Administrative costs for the salaries of civil servants who work for the Social Security Organization.</p>
<h3>Qualifying Conditions</h3>
<p><span class="h4">Old-age pension:</span> Age&nbsp;60 with at least 5&nbsp;years of covered employment. Retirement from gainful employment is not necessary.</p>
<p>Early pension: Age&nbsp;55.</p>
<p>Deferred pension: Age&nbsp;65.</p>
<p><span class="h4">Old-age lump-sum benefit:</span> Paid if the insured reaches the pensionable age with less than 5&nbsp;years of covered employment.</p>
<p><span class="h4">Disability pension:</span> Paid for a permanent or long-term inability to earn normal income (for blue-collar workers, normal income must be more than the minimum wage; for white-collar workers, income must be equal to the typical earnings of such workers) as the result of an assessed disability. The insured must have at least 5&nbsp;years of covered employment and have been in covered employment when the disability began.</p>
<p>The pension is awarded by the board of directors of the Social Security Organization on the basis of an investigation carried out by the organization's disability assessment unit.</p>
<p>The pension may be reduced or suspended if the pensioner refuses to undergo proposed medical treatment or rehabilitation.</p>
<p>Carer's benefit: Must have a need for the frequent or constant attendance of another person in order to complete routine daily activities.</p>
<p><span class="h4">Disability lump-sum benefit:</span> Paid if the insured has less than 5&nbsp;years of covered employment and has a permanent or long-term inability to earn normal income (for blue-collar workers, normal income must be more than the minimum wage; for white-collar workers, income must be equal to the typical earnings of such workers) as the result of an assessed disability.</p>
<p><span class="h4">Adaptation benefit:</span> The deceased was in covered employment at the time of death. The benefit is paid to the surviving spouse and children up to age&nbsp;18 (age&nbsp;25 if a full-time student, no limit if disabled) for a <span class="nobr">12-month</span> period directly after the insured's death.</p>
<p>Other survivor benefits are only payable after the adaptation benefit ceases.</p>
<p><span class="h4">Survivor pension:</span> The deceased had at least 5&nbsp;years of covered employment. The spouse was married to the deceased at the time of death and must not have remarried. A widow must be at least age&nbsp;44; a widow younger than age&nbsp;44 must have dependents younger than age&nbsp;15 (no limit if disabled) or be disabled or incapable of finding suitable employment; a widower must be disabled or incapable of finding suitable employment.</p>
<p><span class="h4">Orphan's pension:</span> The pension is paid to orphans up to age&nbsp;18 (age&nbsp;25 if a full-time student, no limit if disabled).</p>
<p><span class="h4">Survivor lump-sum benefit:</span> Paid if the deceased had less than 5&nbsp;years of covered employment.</p>
<p><span class="h4">Death grant:</span> The deceased was in covered employment for at least 12 of the last 18&nbsp;months.</p>
<h3>Old-Age Benefits</h3>
<p><span class="h4">Old-age pension:</span> The pension is calculated according to the insured's total pension points multiplied by the insured's average covered earnings in the last 12&nbsp;months before retirement. The resulting amount is then multiplied by 1.5%.</p>
<p>Awarded pension points may be earned, purchased, or credited. For a pension point to be earned, the insured's covered annual earnings must be equal to the average earnings of all insured persons in that year.</p>
<p>For a working career that began before the program was introduced, workers are credited with 0.8 pension points per year for a minimum of 1&nbsp;year (if they were age&nbsp;31 when the program was introduced) increasing up to a maximum of 15&nbsp;years (if they were aged&nbsp;45 or older at that time).</p>
<p>Pension points may be purchased under certain conditions to be established in the regulations (not yet implemented).</p>
<p>Early pension: Pensions are reduced by 0.5% for each month the pension is taken before age&nbsp;60.</p>
<p>Deferred pension: Pensions are increased by 0.5% for each month the pension is deferred after age&nbsp;60.</p>
<p>Benefit adjustment: Benefits are adjusted at least once a year according to changes in the average insured earnings of all insured persons.</p>
<p><span class="h4">Old-age lump-sum benefit:</span> A lump sum is paid equal to 70% of the insured's average covered earnings in the last 12&nbsp;months multiplied by the number of months of coverage and divided by 12.</p>
<h3>Permanent Disability Benefits</h3>
<p><span class="h4">Disability pension:</span> With a minimum of 5&nbsp;years of covered employment, the pension is calculated on the basis of the average covered earnings of all insured persons in the last 12&nbsp;months times the number of pension points times 1.5.</p>
<p>Awarded pension points may be earned, purchased, or credited. For a pension point to be earned, the insured's covered annual earnings must be equal to the average earnings of all insured persons in that year. Pension points are credited on the basis of the insured's average annual pension points over the insured period before the onset of disability until the insured reaches the normal pension age.</p>
<p>The disability pension is not reduced if the insured takes up employment.</p>
<p>Benefit adjustment: Benefits are adjusted at least once a year according to changes in the average insured earnings of all insured persons.</p>
<p>Carer's benefit: The benefit is calculated according to the number of hours of care needed per month times the minimum wage (not yet implemented).</p>
<p><span class="h4">Disability lump-sum benefit:</span> A lump sum is paid equal to the actuarial value of the disability pension that the insured would have received.</p>
<h3>Survivor Benefits</h3>
<p><span class="h4">Adaptation benefit:</span> A monthly benefit equal to 80% of the deceased's average covered earnings in the 12&nbsp;months before death is paid for a <span class="nobr">12-month</span> period directly after the date of death. Other survivor benefits are payable only after the adaptation benefit ceases.</p>
<p><span class="h4">Survivor pension:</span> The spouse receives 60% of the deceased's old-age pension. If the worker died before reaching the pensionable age, the pension is equal to 60% of the disability pension, calculated as if the worker was entitled to a disability pension at the time of death.</p>
<p><span class="h4">Orphan's pension:</span> Each orphan receives 20% of the deceased's old-age pension or projected disability pension.</p>
<p>The maximum orphan pension is equal to 60% of the deceased's old-age pension or projected disability pension for three or more children.</p>
<p>The maximum total survivor benefit is equal to 80% of the deceased's old-age pension or 100% of the insured's projected disability pension.</p>
<p>Benefit adjustment: Benefits are adjusted at least once a year according to changes in the average insured earnings of all insured persons.</p>
<p><span class="h4">Survivor lump-sum benefit:</span> A lump sum is paid equal to the actuarial value of the survivor pension that eligible survivors would have received.</p>
<p><span class="h4">Death grant:</span> A lump sum is paid equal to the insured's average covered earnings in the 6&nbsp;months before death.</p>
<h3>Administrative Organization</h3>
<p>Ministry of Labor and Social Welfare supervises the program.</p>
<p>Social Security Organization collects contributions and administers the payment of benefits.</p>
<h2>Sickness and Maternity</h2>
<h3>Regulatory Framework</h3>
<p><span class="h4">First and current law:</span> 1999 (employees in enterprises), implemented in 2001.</p>
<p><span class="h4">Type of program:</span> Social insurance system.</p>
<h3>Coverage</h3>
<p>Employees in private-sector and state-owned enterprises with 10 or more employees; pensioners. (Coverage is currently available only in certain regions of the country.)</p>
<p>Exclusions: Self-employed persons and employees of embassies and international organizations operating in Laos.</p>
<p>Voluntary coverage for workers in smaller enterprises.</p>
<p>Special system for civil servants, the police, and armed forces personnel.</p>
<h3>Source of Funds</h3>
<p><span class="h4">Insured person:</span> See source of funds under Old Age, Disability, and Survivors, above.</p>
<p><span class="h4">Self-employed person:</span> Not applicable.</p>
<p><span class="h4">Employer:</span> See source of funds under Old Age, Disability, and Survivors, above.</p>
<p><span class="h4">Government:</span> See source of funds under Old Age, Disability, and Survivors, above.</p>
<h3>Qualifying Conditions</h3>
<p><span class="h4">Sickness benefit:</span> Must have been in covered employment for at least 3 of the last 12&nbsp;months and be no longer eligible for statutory sick pay (payable by the employer for 30&nbsp;days under the labor law).</p>
<p>The insured must provide a medical certificate issued by the hospital with which he or she is registered stating the probable duration of sickness.</p>
<p>The benefit may be reduced or suspended if the insured refuses proposed rehabilitation or partial reemployment.</p>
<p><span class="h4">Maternity benefit:</span> Must have been in covered employment for at least 9 of the last 12&nbsp;months. The benefit is paid to a female insured person who stops work because of pregnancy, childbirth, or a miscarriage. The benefit is also paid to a male or female insured person who stops work to adopt a child younger than age&nbsp;1.</p>
<p><span class="h4">Birth grant:</span> Must have been in covered employment for at least 12 of the last 18&nbsp;months. The grant is paid to a female insured person or the wife of a male insured person. The grant is also paid to a male or female insured person who adopts a child younger than age&nbsp;1.</p>
<p><span class="h4">Medical benefits:</span> Must have been in covered employment for at least 3 of the last 12&nbsp;months. Benefits are provided until 3&nbsp;months after the date of the last payment of contributions or after last receiving the sickness benefit. The benefits may be extended for treatment for a life-threatening condition.</p>
<h3>Sickness and Maternity Benefits</h3>
<p><span class="h4">Sickness benefit:</span> The benefit is equal to 60% of the insured's average covered earnings in the 6&nbsp;months before the incapacity began; for the partial resumption of work, the benefit is 60% of the difference between the insured's earnings from partial activity and the insured's previous earnings.</p>
<p>The benefit is payable for up to 12&nbsp;months; may be extended for up to 6&nbsp;months if the insured is likely to return to work at the end of this period.</p>
<p><span class="h4">Maternity benefit:</span> The benefit is equal to 100% of the insured's average covered earnings in the 6&nbsp;months before stopping work and is paid for 3&nbsp;months.</p>
<p><span class="h4">Birth grant:</span> A lump sum is paid equal to 60% of the monthly minimum wage.</p>
<h3>Workers' Medical Benefits</h3>
<p>Benefits include preventive, curative, and rehabilitative services, including maternity care but excluding necessary treatment resulting from motor vehicle accidents. Accredited providers deliver medical services and are paid on a per capita basis.</p>
<p>The maximum duration for hospitalization is 3&nbsp;months a year.</p>
<p>Each insured person must register with a hospital, and only services provided by that hospital are covered (except in the case of emergencies). The choice of hospital may be changed every 12&nbsp;months.</p>
<p>There is no cost sharing.</p>
<h3>Dependents' Medical Benefits</h3>
<p>Benefits include preventive, curative, and rehabilitative services, including maternity care but excluding necessary treatment resulting from motor vehicle accidents. Accredited providers deliver medical services and are paid on a per capita basis.</p>
<p>The maximum duration for hospitalization is 3&nbsp;months a year.</p>
<p>There is no cost sharing.</p>
<p>Eligible dependents include the spouse and children up to age&nbsp;18 (age&nbsp;25 if a full-time student, no limit if disabled).</p>
<h3>Administrative Organization</h3>
<p>Ministry of Labor and Social Welfare supervises the program.</p>
<p>Social Security Organization collects contributions, administers cash benefit payments, and contracts with hospitals to provide medical benefits. Contracts must be approved by the Ministry of Public Health.</p>
<h2>Work Injury</h2>
<h3>Regulatory Framework</h3>
<p><span class="h4">First and current law:</span> 1999 (employees in enterprises), implemented in 2001.</p>
<p><span class="h4">Type of program:</span> Social insurance system (with an employer-liability system for noncovered employees).</p>
<h3>Coverage</h3>
<p>Employees in all private-sector and state-owned enterprises with 10 or more employees, paid trainees, and volunteers for rescue operations.</p>
<p>Exclusions: Self-employed persons and employees of embassies and international organizations operating in Laos.</p>
<p>Special system for civil servants, the police, and armed forces personnel.</p>
<p>Employers must provide similar benefits for noncovered employees.</p>
<h3>Source of Funds</h3>
<p><span class="h4">Insured person:</span> None.</p>
<p><span class="h4">Self-employed person:</span> Not applicable.</p>
<p><span class="h4">Employer:</span> See source of funds under Old Age, Disability, and Survivors, above.</p>
<p><span class="h4">Government:</span> See source of funds under Old Age, Disability, and Survivors, above.</p>
<h3>Qualifying Conditions</h3>
<p><span class="h4">Work injury benefits:</span> There is no minimum qualifying period.</p>
<h3>Temporary Disability Benefits</h3>
<p>The benefit is equal to 100% of the insured's average covered earnings in the 6&nbsp;months before the disability began and is payable for up to 6&nbsp;months; thereafter, 60% for up to 12&nbsp;months. If the insured is reemployed part time, the benefit is calculated as the difference between the insured's part-time earnings and previous earnings.</p>
<p>The benefit may be reduced if the insured refuses proposed rehabilitation or part-time reemployment.</p>
<h3>Permanent Disability Benefits</h3>
<p>The monthly benefit is calculated as the percentage of permanent loss of earning capacity multiplied by 67.5% of the insured's average covered earnings during the last 12&nbsp;months before the disability began.</p>
<p>The pension is awarded by the board of directors of the Social Security Organization following a determination of disability by the organization's disability assessment unit. The disability is reassessed every 3&nbsp;years.</p>
<p>The pension may be reduced or suspended if the pensioner refuses proposed rehabilitation.</p>
<p>Benefit adjustment: Benefits are adjusted at least once a year according to changes in the average insured earnings of all insured persons.</p>
<p>Carer's benefit: Paid if there is a need for the frequent or constant attendance of another person in order to complete routine daily activities. The benefit is calculated according to the number of hours of care needed per month times the minimum wage.</p>
<p>An insured person with an assessed degree of permanent disability of less than 25% may opt for a lump sum equal to 12&nbsp;times the insured's monthly disability pension.</p>
<h3>Workers' Medical Benefits</h3>
<p>Benefits include preventive, curative, and rehabilitative services, including the treatment of employment injuries and occupational diseases. Accredited providers deliver medical services and are paid on a per capita basis.</p>
<p>The maximum duration for hospitalization is 3&nbsp;months a year.</p>
<p>Each insured person must register with a hospital, and only services provided by that hospital are covered (except in the case of emergencies). The choice of hospital may be changed every 12&nbsp;months.</p>
<p>There is no cost sharing.</p>
<h3>Survivor Benefits</h3>
<p><span class="h4">Adaptation benefit:</span> A monthly benefit equal to 80% of the deceased's average covered earnings in the 12&nbsp;months before death is paid to the surviving spouse and children up to age&nbsp;18 (age&nbsp;25 if a full-time student, no limit if disabled) for a 12-month period directly after the date of death. Other survivor benefits are payable only after the adaptation benefit ceases.</p>
<p><span class="h4">Survivor pension:</span> The spouse receives 50% of the insured's average covered earnings in the last 12&nbsp;months before death.</p>
<p>The eligible survivor was married to the deceased at the time of death and has not remarried. A widow must be at least age&nbsp;44; a widow younger than age&nbsp;44 must have dependents younger than age&nbsp;15 (no limit if disabled) or be disabled or incapable of finding suitable employment; a widower must be disabled or incapable of finding suitable employment.</p>
<p><span class="h4">Parent's pension:</span> In the absence of an eligible spouse, dependent parents receive 50% of the deceased's average covered earnings in the last 12&nbsp;months before death.</p>
<p><span class="h4">Orphan's pension:</span> Each orphan up to age&nbsp;18 (age&nbsp;25 if a full-time student, no limit if disabled) receives 15% of the deceased's average covered earnings in the last 12&nbsp;months before death. In the absence of an eligible surviving spouse or dependent parents, the orphan's pension is increased to 20% per child. The maximum total orphan pension is 60% of the deceased's average covered earnings.</p>
<p>The total benefit for all survivors must not exceed the maximum amount of permanent disability benefit to which the deceased could have been entitled.</p>
<p>Benefit adjustment: Benefits are adjusted at least once a year according to changes in the average insured earnings of all insured persons.</p>
<p><span class="h4">Death grant:</span> A lump sum is paid equal to the deceased's average covered earnings in the 6&nbsp;months before death. The benefit is paid to the relatives who pay for the funeral.</p>
<h3>Administrative Organization</h3>
<p>Ministry of Labor and Social Welfare supervises the program.</p>
<p>Social Security Organization collects contributions and administers the payment of benefits.</p>
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