On 16 August 2023, Notice No. 1502/PMO on Minimum Wage Increase ("Notice") was issued by the Laos' Prime Minister’s Office. The Notice provides for the increase in minimum wage for all employees in Laos for 2023. This increase is a continuation of the increases in minimum wage pursuant to Prime Minister’s Notice No.829/PMO dated 13 June 2022.
The Notice augments the minimum monthly wage from LAK1.3 million (approximately US$66) to LAK1.6 million (approximately US$82), in accordance with an agreement concluded in the Government’s ordinary session on 28 July 2023. The new minimum wage rate took effect on 1 October 2023.
In order to improve the living condition of employees in the production, business and service units of companies as well as household workers, and compensate them with appropriate remuneration, the Minister of Labor and Social Welfare and the Chairman of the National Labor Committee issued the following instructions:
- Improve the minimum wage of workers in Laos from LAK1.3 million to LAK1.6 million per person per month ("minimum wage") with effect from 1 October 2023.
- The minimum wage must be paid to employees entering the labour market who do not have skills, training, expertise, and professional qualifications, and who work no more than 26 days a month, six days a week and eight hours a day. The minimum wage does not include overtime pay, annual allowance, incentive to work, food, accommodation and other benefits.
- Employees who have (i) professional qualifications, (ii) specialised subjects at a certain level, (iii) previous work experience and (iv) worked in a labour unit for nine months shall be paid a salary or wage higher than the minimum wage as stipulated in the internal rules of the labor unit or the labor contract with the employees. If employers assign employees to works (including a job/an occupation) as required by law that are dangerous to health, the employers must pay them at least 15% more than the minimum wage.
- All labour units must comply with the improvement of the minimum wage along with the provision of labour welfare. They must also encourage all workers to access the social security system and have an annual health check-up.
