The Lao Government has instructed businesses and service providers to pay a higher support allowance to low-wage workers so they can cope with the rising cost of living.
Laos’ Ministry of Labour 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).
This is 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 support workers across the country further.
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 remained a pressing concern, although it slightly eased to 21.7 per cent in September 2024, down from 24.3 per cent in August.
Meanwhile, high inflation and depreciation of the kip mean that workers are being paid less in real terms.
This is undermining their spending capacity and is widely believed to have forced many to seek employment in other countries, leading to worsening domestic labour shortages. (Xinhua/NAN)
