The Ministry of Labor and Social Welfare has announced a new minimum wage policy, aiming to support workers facing economic challenges due to rising living costs and the depreciation of the Lao kip.
Under the new regulation, employers in the private sector, including production, business, and service units, as well as the household sectors are required to pay a minimum monthly wage of LAK 2.5 million (USD 114), effective on 1 October.
This wage increase applies to all workers earning less than the set threshold, excluding overtime, welfare payments, and other benefits.
Additionally, a subsistence allowance of LAK 900,000 (Approximately USD 41) will be provided to unskilled workers without formal education or training, ensuring that everyone receives fair compensation.
Employers who currently pay below the new wage must adjust salaries accordingly, while those already meeting or exceeding the minimum wage are encouraged to maintain their pay standards.
Previously, the minimum wage was LAK 1.6 million per month (approximately USD 75). However, with the cost of living rising sharply, the government has deemed it necessary to further support workers across the country.
