Laos to Raise Minimum Monthly Wage in May

Laos to Raise Minimum Wage in May
Sewing staff working in a factory (photo: Pathedlao)

Ahead of International Labor Day, the government has increased the country’s minimum wage from LAK 1,200,000 to LAK 1,300,000, during the monthly cabinet meeting that took place this week. 

The approved minimum monthly wage will go into effect on 1 May, as reported by Lao Security News. The proposal was signed during the cabinet meeting where the government approved the raise.

Although the government discussed the possibility of increasing the minimum wage even further, it has delegated the Ministry of Labor and Social Welfare to continue coordinating with the Ministry of Finance and other relevant ministries to conduct more comprehensive research on the appropriate livable minimum wage. With more insight into the matter, the government hopes to further increase the minimum wage in the third quarter of 2023 as it will benefit many workers across the country.

Apart from approving the minimum wage raise, the meeting also discussed other important issues, such as making the Laos-China railway more convenient for travelers, tackling air pollution, and controlling the rising inflation rate.

The government aims to boost tourism, particularly along the Laos-China railway route, and it will take public feedback into account to improve facilities along the high-speed railway line.

To solve the air pollution problem, the central and local sectors will monitor and evaluate the situation of forest fires and take prompt measures to quench them. Additionally, local authorities will also educate residents to avoid burning forests recklessly and enforce laws on encroachment on protected forests.

The government has also formed a task force to investigate the increasing inflation, commodity prices, and exchange rates. The task force will work with relevant parties to conduct comprehensive research, develop specific and long-term measures, and present its findings to the government for consideration.

The cabinet meeting was chaired by Prime Minister Sonxay Siphandone and was attended by Deputy Prime Ministers, government members, and representatives from ministries, provinces, and relevant parties.