Most employees in Laos to receive wage raise

The increase will be effective in August and will be a boost to the millions of people struggling to survive during the current economic downturn, which has resulted in skyrocketing prices. 

According to a recent report by local daily Vientiane Times, the wage increase was proposed by the Ministry of Labour and Social Welfare and was announced by the Prime Minister’s Office. 

The wage hike does not apply to government officials, who are paid through a different salary scale. 

The announcement instructs owners of garment and other factories in Laos to put the new minimum wage into effect. Employers will be subject to legal action if they fail to pay their employees the new minimum wage. 

The Prime Minister’s Office said it was the responsibility of the Lao Federation of Trade Unions to work with the relevant parties to negotiate individual or collective employment contracts, wages, policies and benefits. 

READ: Laos set for first minimum wage raise since 2018

A senior official from the Ministry of Labour and Social Welfare said employers should empathise with workers and help them to improve their circumstances, especially as they are the ones who enable their employers to make a profit.

The pay increase is considered essential to prevent people from falling into poverty and suffering hardship amid spiraling living costs, according to Xinhua.