The Lao Government has decided to raise the monthly minimum wage from LAK1.2 million (nearly US$70) to LAK1.3 million starting May 1 to ease workers’ difficulties amid soaring inflation and economic uncertainties.
The decision was made at the Lao Government’s meeting held on April 25 – 26 under the chair of Prime Minister Sonexay Siphandone.
In 2022, as workers’ lives were hit hard by soaring inflation, the Lao Federation of Trade Unions Central Committee proposed increasing the monthly minimum wage to 1.5 million LAK.
However, the Lao National Chamber of Commerce and Industry opposed it, saying that the wage hike would negatively impact enterprises that were also struggling with difficulties.
Aside from the minimum wage rise, PM Sonexay Siphandone told the Ministry of Labour and Social Welfare to work with related sectors to consider how the increase is relevant to the current economic situation.
He also asked ministries and sectors to conduct an in-depth study on wage hikes and report results to the Government in the third quarter of this year.