Currently, the Minimum Wage in Laos is 900,000 kip ($97), but it is scheduled to increase to 1.1 million kips in 2021. However, there have been no increases since 2018. This is not good news for the country, which is one of the poorest in Southeast Asia. However, the minimum wage will increase as other countries in Southeast Asia do. It is still far below the minimum wage in other regions.
Laos’ minimum wage is 900,000 kip
The government of Laos has approved an increase to its minimum wage. From 900,000 kip per month to 1.1 million kips per month, it will take effect on 1 May, which coincides with International Labor Day. It is clear that this increase is a necessary step in ensuring a decent standard of living for workers. Yet, 900,000 kip per month is not nearly enough to sustain a family in Laos. To avoid a situation where the minimum wage isn’t sufficient to sustain a family, employers must understand the plight of their workers and increase their pay accordingly.
The increase in the minimum wage came about due to the fact that the cost of living in Laos is on the rise. Although the government has raised the minimum wage several times in recent years, it has been unable to prevent price increases for consumer goods. In 1991, the government approved the first increase in the minimum wage, which rose from 348,000 kips to 626,000 kips in 2012, and then to 900,000 kilos in 2015.
It will increase to 1.1 million kips in 2021
The Lao National Chamber of Commerce and Industry is pleased to see that the minimum wage will increase. The current minimum wage is 900,000 kip a month, which is still far from enough to cover the cost of living. The Lao Federation of Trade Unions has also called for a pay hike, and the LNCCI rejected the proposal, suggesting that the minimum wage be increased to 1.3 million kip a month. However, the government’s recent approval of minimum wage increases has not prevented the price of essential items from increasing significantly.
The announcement follows a petition by the Lao Federation of Trade Unions, which has argued that the government should increase the minimum wage in the country. The unions argued that a wage increase is necessary given the high cost of living and the growing costs of living. The Lao National Chamber of Commerce and Industry argued that the minimum wage should not increase above one million kips, and asked for a two-year implementation period.
It has not increased since 2018
Despite increasing the minimum wage every three years, the government hasn’t increased it since early 2018. This year, the Lao minimum wage is unchanged at 1.3 million kips per month. While the minimum wage in Laos is among the lowest in Southeast Asia, it’s still not enough to live on. Many workers have moved to neighboring Thailand in search of better-paying jobs, but the current situation is proving difficult for them.
A recent petition by the Lao Federation of Trade Unions argues that the country needs to raise the minimum wage to keep pace with the rising cost of living. The LFTU says that raising the wage would attract more workers and that it would also improve the bottom line for employers. However, the Lao National Chamber of Commerce and Industry argues against raising the minimum wage beyond a million kip and has demanded that it be implemented gradually for two years.
It is one of the poorest countries in Southeast Asia
The communist government of Laos is committed to improving the lives of its people. To this end, the government has committed $100 million over 20 years to programs to clean up unexploded ordinances and provide rehabilitation centers for those who have been injured. In February 2016, Laos and the United States signed a Trade and Investment Framework Agreement, which will open up new opportunities and investments between the two countries. As one of the poorest countries in Southeast Asia, Laos has made significant progress since CARE International started working in the country in 1954.
Laos is home to seven million people and is one of the most impoverished countries in Southeast Asia. Despite its poor economic status, the country has continued to attract foreign investment owing to its relatively young population, and favorable tax regimes. This is despite the fact that the government in Laos has a communist command economy that is deeply embedded in a culture of poverty.
It has skyrocketing prices for gasoline, food, and everyday products
With the price of fuel, food, and everyday products rising rapidly, the price of the minimum wage in Laos has been out of control for months. Thankfully, the Lao government has backed the right move and decided to raise the minimum wage to 1.1 million kips a month by August. This will help millions of Laotians make ends meet and keep up with inflation.
Despite the rise in prices, Laos is still expensive – with prices of gas, food, and everyday products reaching over 200% of what they were before the increase. While Thongloun is backing the labor forces, the ruling Communist Party is keen to diversify the economy. While some business owners are concerned about the shortage of labor, it is estimated that approximately 170,000 Laotians are currently legally working in Thailand and earning higher wages than their Lao counterparts.