On 13 June 2022, Laos' Prime Minister’s Office ("PMO") issued Notice No. 829/PMO modifying the country's minimum monthly wage ("Notice"). This is pursuant to the instruction of the Prime Minister of Lao PDR to the Minister of Labour and Social Welfare and the President of the Lao Federation of Trade Unions (LFTU) in relation to the proposal of the Ministry of Labour and Social Welfare.
The increase in the minimum monthly wage will take place in two phases:
- First phase – the minimum wage will be increased to LAK1.2 million with effect from 1 August 2022
- Implementation of other targets regulations set by BOL.
The Notice mandates government authorities, employers and other stakeholders, including trade unions, to work collectively to ensure that the prescribed minimum wage structure is implemented effectively. PMO has notified all employers to ensure strict compliance with the employee welfare requirements set out in the Labour Law No. 43/NA dated 24 December 2013 and the Law on Social Security No. 54/NA dated 27 June 2018.
By way of background, the national minimum wage was first raised in 2018 pursuant to Notification No. 560/PMO from LAK900,000 to LAK1.1 million. The increase, which took effect on 1 May 2018, was implemented at a time when the Lao kip was facing sharp depreciation against the US dollar amidst heightened inflation.
