The government has agreed to increase the monthly minimum wage from 1,100,000 kips (RM317) to 1,300,000 kips (RM378) for private-sector employees in a bid to keep pace with the rising cost of living.
The increase will come into effect in August, and will be a boost to the millions of people struggling to survive during the current economic downturn, which has resulted in skyrocketing prices.
According to local daily Vientiane Times report yesterday, the wage increase was proposed by the labour and social welfare ministry and was announced by the Prime Minister’s Office on Monday.
The wage hike does not apply to government officials, who are paid through a different salary scale.
The announcement instructed the owners of garment and other factories in Laos to put the new minimum wage into practice.
Employers will be subject to legal action if they fail to do so. — Xinhua
