The Lao Federation of Trade Unions (LFTU) has called on businesses, including garment factories, to pay workers the increased minimum wage, which rises from 1,100,000 kip to 1,500,000 kip per month this year.
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Attempts to increase the minimum wage are meeting with resistance because of the impacts on businesses caused by the Covid-19 pandemic.
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Policymakers in Laos are studying a proposal to rise the country’s minimum wage as inflation and an increasing cost of living bites particularly low-earners
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The Lao Federation of Trade Unions (LFTU) plans to ask the government to approve an increase in the monthly minimum wage from 1.1 million kip to 1.3 million or 1.5 million kip.
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Employers in Laos will be subject to legal action if authorities discover they are failing to pay their workers the minimum wage.
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The government has approved a minimum wage increase from the present 900,000 kip to 1.1 million kip a month, according to the Prime Minister’s Office.
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Owners of garment factories and other businesses in Laos are rejecting a proposal to raise the minimum wage by as much as one-third, saying the increase in expenses would force them to shut down operations, despite reports of workers seeking opportunities elsewhere due to low pay and high living costs.
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A tripartite meeting held in Vientiane recently agreed to increase the minimum wage from the present 900,000 kip to 1.2 million kip a month, a senior official has confirmed.
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