Ministry of Labor and Social Welfare Raises Minimum Wage

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A worker in garment factory in Laos(Photo: KPL).

The Ministry of Labor and Social Welfare will raise the minimum wage for low-skilled workers amid the rising cost of living in Laos.

According to a notice issued by the Ministry of Labor and Welfare, the minimum wage for low-skilled workers will be raised from LAK 1,100,000 to LAK 1,200,000 beginning next month, and to LAK 1,300,000 on May 1, 2023.

According to the notice, low-skilled workers are to be paid the minimum wage, but highly-skilled workers must be paid more.

Under Lao labor law, all state workers are entitled to welfare and other benefits.

In February, Vice President of the Lao Federation of Trade Unions, Mr. Phonesane Vilaymeng, said the minimum wage in Laos should be more than LAK 1,100,000. 

“We have recommended that the minimum wage be increased from LAK 1,100,000 per month to LAK 1,500,000 per month. We are now seeking official confirmation after government approval,” Mr. Phonesane Vilaymeng said.

However, the minimum wage will not raise beyond LAK 1,200,000 all through this year. 

The number of Lao people applying for passports surged beginning on May 9 as many countries relaxed their entry and exit restrictions.

Meanwhile, Thailand plans to employ more than 160,000 migrant workers from neighboring countries including Laos.