Laos approves wage increase for low-paid workers amid high inflation

VIENTIANE, Oct. 3 (Xinhua) — The Lao government has instructed businesses and service providers to pay a higher support allowance to low-wage workers in order to cope with the rising cost of living.
Laos’ Ministry of Labor and Social Welfare issued a notice, effective on Oct. 1, urging employers in business and service units to pay a minimum monthly wage of 2.5 million Lao kip (about 114 U.S. dollars), according to the ministry’s report on Thursday.
The minimum wage currently stands at 1.6 million kip (about 73 dollars). However, with the cost of living rising sharply, the government has deemed it necessary to further support workers across the country.
The new wage and allowance increases are part of broader government efforts to help workers cope with the economic pressures caused by the high cost of living and inflation.
Inflation in Laos remains a pressing concern, although it slightly eased to 21.7 percent in September 2024, down from 24.3 percent in August.
Meanwhile, high inflation and depreciation of the kip mean that workers are being paid less in real terms, undermining their spending capacity and widely believed to have forced many to seek employment in other countries, leading to worsening domestic labor shortages. ■