Government of Laos agrees to raise minimum wage


VIENTIANE, May 1: The Government of Laos has agreed to a minimum wage increase amid a rising cost of living and rampant inflation, reports Laotian Times.

The decision was reached among other items during a cabinet meeting held in late April in Vientiane Capital, chaired by Prime Minister Phankham Viphavanh.

Discussions on raising the minimum wage were held in March this year, with Vice President of the Lao Federation of Trade Unions, Phonesane Vilaymeng, saying the current minimum wage in Laos of LAK 1,100,000 (US$85) is just no longer viable.

He said that the cost of living has continued to increase, with high prices at markets directly affecting low-wage employees in the country.

Phonesane had recommended the minimum wage be increased from LAK 1,100,000 per month to LAK 1,500,000 (US$122) per month.

This was met by pushback from the business sector, according to Vientiane Times, with the Lao National Chamber of Commerce and Industry (LNCCI) concerned that the burden on employers would be too high.

The Lao kip continues to depreciate, however, trading at LAK 12,384 to the US dollar last week, with the shadow rate already breaching LAK 14,000 to the dollar.

The minimum wage was last increased in mid-2018.

Article type: free
User access status:
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Laos , Minimum Wage , Going Up


Next In Aseanplus News

Energy-efficient buildings on the rise in Vietnam
New cannabis, liquor, same-sex marriage laws ‘against Islam’
ICC aims to reopen drug war probe
Six held over ‘blasphemy’
Lawmaker calls for ramped-up efforts for drug-free Asean
Breakthrough in stem cell research
‘Mermaiding’ subculture is making a splash
Japan eyes public-private body to promote ‘workations’
Suu Kyi moved to solitary cell
‘Time to prepare for next pandemic’

Others Also Read