ILO-Luxembourg support strengthens social protection coverage extension in the Lao People’s Democratic Republic

VIENTIANE (ILO News) – The Lao People’s Democratic Republic has made significant progress in establishing robust social protection floors with the support of the International Labour Organization (ILO).

ILO’s Luxembourg-financed Support to the Extension of Social Health Protection in Asia project is working with the Lao Social Security Organisation (LSSO) to address the critical need for greater business adherence to social security obligations, ensuring the long-term protection of workers in Lao People’s Democratic Republic.

Chief among these efforts is the launch of a comprehensive report titled "Government Licensing and Public Bidding Process - Mapping for Social Security Compliance in Lao PDR".

The study explores how government licensing and public bidding processes can be leveraged to bolster registration and contribution payments, thereby expanding coverage and enhancing worker protections. By mapping these processes across key ministries, the research identifies regulatory gaps and provides actionable recommendations to effectively weave social security requirements into existing administrative frameworks.

The training on social security inspection is of significant importance and I am confident that it will enable participants to enhance their knowledge and understanding of the meaning, importance, principles and procedures of social security inspection in depth and in accordance with the laws and regulations on social security said Chomyaeng Pheangthongsawat, Director General, the Lao Social Security Organisation.

While a strong legal framework already mandates registration for all enterprises, the study revealed that none of the thirty licensing processes reviewed currently include these statutory duties as a prerequisite. To bridge this gap, the report recommends that social security compliance becomes a mandatory requirement for obtaining or renewing business licenses and engaging in public bidding. This shift calls for heightened coordination and collaboration between line ministries to ensure that legal mandates are reflected in daily business operations.

In support of these objectives, the findings and subsequent steps to operationalize these recommendations were discussed during a high-level validation workshop, chaired by the LSSO held on 26 February 2026.

The forum brought together representatives from the various line ministries governing the licensing processes review, including the Ministry of Industry and Commerce, the Ministry of Health, and the Ministry of Public Works and Transport. Concrete action plans were developed to integrate registration checks into sectoral regulatory frameworks, reinforcing the principle that meeting social security obligations are a cornerstone of formalising employment.

Complementing these policy-level advancements, the project successfully supported the LSSO in conducting five-day intensive training for social security inspectors from 2-6 March 2026. Participants from both central and provincial levels were trained on new Standard Operating Procedures and inspection guidelines developed with the support of the project.

“The training on social security inspection is of significant importance and I am confident that it will enable participants to enhance their knowledge and understanding of the meaning, importance, principles and procedures of social security inspection in depth and in accordance with the laws and regulations on social security” said Chomyaeng Pheangthongsawat, Director General, the Lao Social Security Organisation.