Laos set for first minimum wage raise since 2018

The government has begun discussion on raising the national minimum wage this March amid rising inflation and the increasing cost of living.
By: | February 3, 2022
Topics: Compensation and Benefits | Health and Wellness | Laos | News

The minimum wage for local workers is set to rise in March after the government gives the final approval.

The current minimum wage in Laos is LAK1,100,000 (US$96) per month after the last minimum wage increase was approved in mid-2018, said Vice President of the Lao Federation of Trade Unions (LFTU) Phonesane Vilaymeng.

He said that the salaries of low-wage employees in the country needs to be increased as the cost of living has continued to rise.

“The high cost of living affects thousands of workers across the country working in four sectors, namely agriculture, industry, services, and construction,” said the LFTU Vice President.

“We have recommended that the minimum wage be increased from LAK1,100,000 (US$96) per month to LAK1,500,000 (US$131) per month. We are now seeking official confirmation after government approval,” he added.

LFTU, together with the Ministry of Labour and Social Welfare and the Lao National Chamber of Commerce and Industry, will hold a final discussion on increasing the minimum wage. The decision is expected to be announced by early this year, said LFTU.

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The last time Laos raised the minimum wage was in May 2018 from LAK900,000 (US$78.6) to LAK1,100,000 (US$96), according to The Star citing Laotian Times and Lao National Radio.