The Lao government announced a new allowance policy on 13 December to help civil servants, military personnel, and public employees cope with rising living costs.
Starting in January 2025, civil servants and retirees earning less than LAK 1,700,000 (approximately USD 77.7) per month will receive additional support. The government will cover the difference, ensuring a minimum monthly income of LAK 1,700,000.
The new policy also includes a monthly increase of LAK 150,000 in the cost-of-living allowance, bringing the total allowance to 450,000 LAK per person per month. This increase will benefit civil servants, retirees, and employees with disabilities.
Families will see added financial relief with child allowances rising to LAK 100,000 per child, along with a spouse allowance of LAK 100,000 per month.
In addition, public employees in administrative and technical roles will experience adjustments to their monthly allowances, with longer-tenured employees receiving service-based increases. Military and police personnel will see their professional allowances double, reaching up to 30 percent of their basic salaries.
This announcement builds on Prime Minister Sonexay Siphandone’s recent pledge to raise the minimum salary for civil servants to LAK 2.2 million (USD 100.26) in 2025, a move made during the 8th Ordinary Session of the National Assembly.Â
